01—Abstract
Summary
Summary of the 10-Q filed May 1, 2026. Cited figures are marked; the original filing is the authoritative source.
ResMed Inc. reported net revenue of $1,431.4 milliona for the three months ended March 31, 2026, an increase of $139.7 million or 11% (8% on a constant currency basis) from $1,291.7 million a year earlier.
Net income rose to $398.7 millionb from $365.0 million, and diluted earnings per share were $2.74 compared to $2.48. Gross margin was 62.2% versus 59.3% in the prior-year quarter, driven by manufacturing and logistics efficiencies and component cost improvements. For the nine months, net revenue was $4,189.8 million, up $391.5 million or 10%, and net income was $1,139.9 million, up 12%.
Balance sheet and cash flow remained strong. Cash and cash equivalents reached $1,660.5 millionc at March 31, 2026, up from $1,209.5 million at June 30, 2025, while total debt was $664.1 million. Operating cash flow for the nine months was $1,351.2 million.
The company repurchased $500.0 milliond of stock during the nine months and declared a quarterly dividend of $0.60 per share payable June 18, 2026. Total debt outstanding under its revolving credit, term credit and senior notes facilities was $665.0 million, and the company stated it was in compliance with its debt covenants.
Operating items to note include $21.7 million of restructuring charges recorded in the nine months for workforce planning, $5.9 million of acquisition and portfolio review expenses in the current quarter, and an effective tax rate of 20.6% for the quarter versus 12.6% a year earlier. Ongoing patent litigation involving Cleveland Medical, Fractus and NYU is described in the filing, and the company stated it does not expect these matters to have a material adverse effect on its consolidated financial statements.
02—Key points
Key Highlights
- Net revenue of $1,431.4 million for Q3 FY2026, up 11% (8% constant currency), with Sleep and Breathing Health at $1,260.5 million and Residential Care Software at $170.9 million.
- Gross margin expanded to 62.2% from 59.3%, attributed to manufacturing and logistics efficiencies and component cost improvements.
- Diluted EPS of $2.74 versus $2.48 a year earlier; non-GAAP diluted EPS of $2.86 versus $2.37 as reported in the filing.
- Nine-month net income of $1,139.9 million, up 12%, with operating cash flow of $1,351.2 million.
- Cash and cash equivalents of $1,660.5 million at March 31, 2026, versus $1,209.5 million at June 30, 2025, with $1,500.0 million available under the revolving credit facility.
- Repurchased $500.0 million of treasury stock in the nine months and declared a $0.60 per share quarterly dividend payable June 18, 2026.
- Recorded $21.7 million of restructuring expenses in the nine months and $5.9 million of acquisition and portfolio review expenses in the quarter.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, ResMed kept $0.28.
- Revenue$1.43B100.0%
- Cost of revenue−$540.4M37.8%
- Gross profit$891.0M62.2%
- Operating costs−$391.2M27.3%
- Operating income$499.8M34.9%
- Interest, other & tax−$101.1M7.1%
- Net income$398.7M27.9%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed May 1, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.43B$1.29B | +10.8% |
| Cost of Revenue | $540.43M$525.33M | +2.9% |
| Gross Profit | $890.98M$766.41M | +16.3% |
| R&D Expenses | $94.27M$83.94M | +12.3% |
| SG&A Expenses | $285.65M$245.30M | +16.5% |
| Operating Expenses | $391.17M$340.14M | +15.0% |
| Operating Income | $499.81M$426.27M | +17.3% |
| Net Income | $398.73M$365.04M | +9.2% |
| EPS (Basic) | $2.74$2.49 | +10.0% |
| EPS (Diluted) | $2.74$2.48 | +10.5% |
| Shares Outstanding (Basic) | 145.34M146.72M | −0.9% |
| Shares Outstanding (Diluted) | 145.72M147.22M | −1.0% |
05—Questions
Frequently Asked Questions
How did ResMed's revenue and profitability perform in the third quarter of fiscal 2026?
Net revenue rose 11% to $1,431.4 million, or 8% on a constant currency basis. Gross profit increased to $891.0 million, and net income grew 9% to $398.7 million, with diluted EPS of $2.74 compared to $2.48 in the prior-year quarter.
What drove the improvement in gross margin?
The filing attributes the increase in gross margin to manufacturing and logistics efficiencies and component cost improvements, with a small positive impact from product mix and foreign currency movements.
How is ResMed's liquidity and capital allocation position?
Cash and cash equivalents were $1,660.5 million at March 31, 2026, and the company had $1,500.0 million available under its revolving credit facility. Nine-month share repurchases totaled $500.0 million, and the company stated it expects current liquidity sources to be sufficient for the next 12 months and beyond.
Are there material legal or tax matters investors should watch?
Multiple patent infringement suits are pending, including cases brought by Cleveland Medical, Fractus and a New York University matter that was dismissed with prejudice in November 2025. The company does not expect these to have a material adverse effect on its consolidated financial statements. The effective tax rate rose to 20.6% for the quarter from 12.6%, primarily due to Pillar Two global minimum taxes and prior-year IRS interest and penalty refunds.
06—Continue