Executive Summary
ResMed Inc delivered a solid QQ1 2026 performance, underpinned by a resilient top line and strong profitability metrics. Revenue reached $1.336B, up 9.2% year over year and 3.4% quarter over quarter, reflecting continued demand for both Sleep & Respiratory Care devices and the company’s growing Software as a Service (SaaS) ecosystem. Gross margin expanded to 61.5%, supported by favorable product mix and scale benefits, while operating margin stood at 33.4%, indicating efficient cost management and leverage from higher-margin software and services.
Net income of $348.5M rose about 19.3% year over year, though quarterly net income declined modestly versus the prior quarter by 4.5%. The company generated robust operating cash flow of $457.3M and delivered free cash flow of $414.4M, reflecting strong working capital discipline and ongoing investment in growth initiatives. ResMed maintains a solid balance sheet with a net cash position (net debt of -$537.5M) and $1.383B in cash and equivalents at period-end, stoking optionality for buybacks, inorganic growth, or further software investments. The firm also announced a sizable capital return through a $150.0M share repurchase and paid $87.8M in dividends during the quarter.
Looking forward, management commentary (where disclosed) and the quarterly mix suggest continued upside from SaaS-based care management solutions (Brightree, MatrixCare, HEALTHCAREfirst) and from in-market execution in Sleep & Respiratory Care. However, formal forward guidance is not provided in the data, so investors should monitor cadence of software-revenue growth, potential reimbursement dynamics, and ongoing efficiency gains as primary drivers of durability. Overall, the QQ1 results reinforce ResMed’s ability to monetize a high-margin hardware-device franchise while expanding a high-retention SaaS ecosystem.
Key Performance Indicators
Key Insights
Revenue: USD 1,335.58M; YoY +9.19%; QoQ +3.39%
Gross Profit: USD 820.82M; YoY +16.55%; QoQ +7.10%; Gross Margin 61.46%
Operating Income: USD 446.54M; YoY +17.13%; QoQ +4.75%; Operating Margin 33.43%
Net Income: USD 348.54M; YoY +19.27%; QoQ -4.52%; Net Margin 26.10%
EBITDA: USD 446.54M; EBITDA Margin 33.43%
Earnings per Share (EPS): Not disclosed in the provided data
Cash Flow: Operating cash flow USD 457.32M; Free cash flow USD 414.36M
Balance Sheet highlights: Cash and cash equivalents USD 1.3...
Financial Highlights
Revenue: USD 1,335.58M; YoY +9.19%; QoQ +3.39%
Gross Profit: USD 820.82M; YoY +16.55%; QoQ +7.10%; Gross Margin 61.46%
Operating Income: USD 446.54M; YoY +17.13%; QoQ +4.75%; Operating Margin 33.43%
Net Income: USD 348.54M; YoY +19.27%; QoQ -4.52%; Net Margin 26.10%
EBITDA: USD 446.54M; EBITDA Margin 33.43%
Earnings per Share (EPS): Not disclosed in the provided data
Cash Flow: Operating cash flow USD 457.32M; Free cash flow USD 414.36M
Balance Sheet highlights: Cash and cash equivalents USD 1.383B; Total assets USD 8.309B; Total liabilities USD 2.188B; Stockholders’ equity USD 6.121B; Net debt position USD -537.50M (net cash)
Liquidity / Leverage: Current ratio ≈ 2.89x; Quick ratio ≈ 1.82x; Debt total USD 846.35M; Intangibles USD 3.491B; Goodwill USD 0
Capital returns: Common stock repurchased USD 150.01M; Dividends paid USD 87.75M
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.34B |
9.19% |
3.39% |
| Gross Profit |
820.82M |
16.55% |
7.10% |
| Operating Income |
446.54M |
17.13% |
4.75% |
| Net Income |
348.54M |
19.27% |
-4.52% |
Management Commentary
Transcript highlights not provided in the data set. No management call quotes are available to extract thematic highlights.
Forward Guidance
No formal forward guidance is included in the provided data. Given the strong cash generation and the strategic emphasis on expanding SaaS offerings (Brightree, MatrixCare, HEALTHCAREfirst) alongside core Sleep & Respiratory Care devices, the plausible guidance scenario would emphasize sustained revenue growth, margin stability to modest expansion, and continued free cash flow generation. Key factors to monitor include: (1) adoption and monetization of software platforms across patient outcomes, (2) any changes in reimbursement or regulatory environments affecting device and software sales, (3) ongoing mix-shift from hardware to high-margin software and services, and (4) potential share repurchases or opportunistic acquisitions funded by the net cash position. Without explicit targets, investors should weight: mid-single-digit-to-low-double-digit revenue trajectory, stable gross margins in the low-60s, and continued FCF generation in the ~$400M range aided by efficiency gains.