01—Abstract
Summary
Summary of the 10-Q filed January 30, 2026. Cited figures are marked; the original filing is the authoritative source.
ResMed Inc. reported net revenue of $1,422.8 milliona for the three months ended December 31, 2025, an increase of $140.7 million, or 11% (9% on a constant currency basis), compared with $1,282.1 million a year earlier.
Sleep and Breathing Health revenue rose 12% to $1,255.9 millionb, led by devices and masks, with masks and other up 16%. Residential Care Software revenue grew 7% to $166.9 million. Gross margin expanded to 61.8% from 58.6%, which the company attributed primarily to manufacturing and logistics efficiencies and component cost improvements.
Net income increased 14% to $392.6 millionc, and diluted EPS was $2.68 versus $2.34. Non-GAAP diluted EPS was $2.81 versus $2.43. For the six months ended December 31, 2025, net revenue was $2,758.4 million, up 10%, and net income was $741.1 million, up 13%.
Operating cash flow was $797.1 milliond, compared with $634.2 million in the prior-year period. Restructuring expenses totaled $21.7 million for the six months, related to workforce planning. Selling, general and administrative expenses rose 15% in the quarter, which the company attributed mainly to employee-related costs, VirtuOx acquisition expenses, and marketing and technology investments.
The balance sheet strengthened over the period. Cash and cash equivalents were $1,417.1 million at December 31, 2025, against total debt of $663.8 million, and $1,500.0 million was available under the revolving credit facility. The company repurchased $325.0 million of its stock in the six months and paid $0.60 per share in quarterly dividends, with a further $0.60 dividend declared on January 29, 2026.
Pending litigation includes several patent suits, including Cleveland Medical and Fractus matters, and the company is unable to estimate a range of loss for open matters. The company also disclosed that the NYU patent case was dismissed with prejudice in November 2025.
02—Key points
Key Highlights
- Net revenue rose 11% to $1,422.8 million in the quarter (9% on a constant currency basis); Sleep and Breathing Health grew 12% to $1,255.9 million and Residential Care Software grew 7% to $166.9 million.
- Gross margin improved to 61.8% from 58.6% in the prior-year quarter, driven by manufacturing and logistics efficiencies and component cost improvements.
- Net income increased 14% to $392.6 million; diluted EPS was $2.68 versus $2.34, and non-GAAP diluted EPS was $2.81 versus $2.43.
- Operating cash flow was $797.1 million for the six months ended December 31, 2025, up from $634.2 million, and cash and cash equivalents reached $1,417.1 million.
- Total debt was $663.8 million at December 31, 2025, with $1,500.0 million available under the revolving credit facility, and the company was in compliance with its debt covenants.
- Restructuring expenses of $5.9 million in the quarter and $21.7 million for the six months relate to employee severance and termination benefits tied to workforce planning.
- The company repurchased $325.0 million of treasury stock in the six months, with 9.6 million shares remaining under the share repurchase program, and declared a $0.60 quarterly dividend on January 29, 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, ResMed kept $0.28.
- Revenue$1.42B100.0%
- Cost of revenue−$544.1M38.2%
- Gross profit$878.7M61.8%
- Operating costs−$387.1M27.2%
- Operating income$491.7M34.6%
- Interest, other & tax−$99.1M7.0%
- Net income$392.6M27.6%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed January 30, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $1.42B$1.28B | +11.0% |
| Cost of Revenue | $544.08M$530.81M | +2.5% |
| Gross Profit | $878.72M$751.27M | +17.0% |
| R&D Expenses | $90.97M$81.37M | +11.8% |
| SG&A Expenses | $278.40M$241.61M | +15.2% |
| Operating Expenses | $387.06M$334.03M | +15.9% |
| Operating Income | $491.66M$417.24M | +17.8% |
| Net Income | $392.59M$344.62M | +13.9% |
| EPS (Basic) | $2.69$2.35 | +14.5% |
| EPS (Diluted) | $2.68$2.34 | +14.5% |
| Shares Outstanding (Basic) | 145.84M146.81M | −0.7% |
| Shares Outstanding (Diluted) | 146.37M147.48M | −0.8% |
05—Questions
Frequently Asked Questions
How did ResMed's revenue and profitability perform in the quarter ended December 31, 2025?
Net revenue rose 11% to $1,422.8 million, and gross profit increased to $878.7 million, with gross margin of 61.8% versus 58.6% a year earlier. Income from operations was $491.7 million, up from $417.2 million, and net income was $392.6 million, up 14%.
What drove growth in the Sleep and Breathing Health segment?
Segment revenue increased 12% to $1,255.9 million. The filing attributes the increase in devices and masks primarily to increased demand and unit sales. Masks and other revenue grew 16% to $529.7 million, and device revenue grew 9% to $726.2 million.
What is the company's liquidity and capital allocation position?
Cash and cash equivalents were $1,417.1 million at December 31, 2025, and $1,500.0 million was available under the revolving credit facility. The company repurchased $325.0 million of stock in the six months ended December 31, 2025 and paid $175.3 million in dividends. Management believes current liquidity will be sufficient for the next 12 months and beyond.
What legal matters could affect ResMed?
ResMed is party to several patent infringement suits, including Cleveland Medical matters and a Fractus suit filed October 9, 2025. The NYU case was dismissed with prejudice on November 12, 2025, after the Federal Circuit affirmed the PTAB's invalidation of the asserted patents. The company states it cannot make a reasonable estimate of loss or range of losses for matters that remain open.
Did the company's guidance or risk factors change in this filing?
The filing does not provide revenue or earnings guidance. It states that there have been no material changes to the risk factors disclosed in the Annual Report on Form 10-K for the fiscal year ended June 30, 2025.
06—Continue