ResMed (RMD) Q4 2026 earnings summary

Executive summary

• Q4 FY26 revenue reached $1.5 billion, up 9% year-over-year (8% constant currency); FY26 revenue totaled $5.7 billion, up 10% headline and 8% constant currency.

• Non-GAAP EPS for Q4 FY26 was $2.95, up 16% YoY; FY26 non-GAAP EPS was $11.17, up 17% YoY.

• Generated over $1.6 billion in free cash flow for FY26, returning more than $1 billion to shareholders via buybacks and dividends, a 70%+ increase year-over-year.

• Focused on operational excellence, portfolio management, and leveraging free cash flow for reinvestment and capital returns.

• Enhanced digital health ecosystem through partnerships (e.g., ŌURA), product launches (AirSense 11, AirCurve 11), and AI-driven patient engagement.

Financial highlights

• Q4 non-GAAP gross margin: 62.3% (up 90 bps YoY); FY26 non-GAAP gross margin: 62.4%.

• Q4 non-GAAP operating margin: 36.1% (up 180 bps YoY); FY26 non-GAAP operating margin: 35.2%.

• Q4 free cash flow: $404 million (down 21% YoY); FY26 free cash flow: $1.6 billion.

• Returned over $1 billion to shareholders in FY26; Q4 capital return was $287 million.

• $42 million provision for Astral device field safety notice excluded from non-GAAP results.

Outlook and guidance

• FY27 core constant currency revenue growth expected at 5%-7%, with a $75 million headwind from Astral sales suspension.

• FY27 headline total revenue guidance: $5.75B–$5.85B.

• Non-GAAP EPS guidance: $12-$12.25 (+7%-10% reported; +12%-14% core, excluding MatrixCare and Noctrix impacts).

• Gross margin expected to expand low double digits; slight operating margin increase anticipated.

• Over $1.85 billion planned capital return to shareholders in FY27 (+75% YoY); capex to rise to $160-$180 million for manufacturing expansion and automation.