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.