01—Abstract
Summary
Summary of the 8-K filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
ResMed Inc. (NYSE: RMD, ASX: RMD) furnished an 8-K on April 30, 2026 reporting results for its third quarter of fiscal year 2026, the quarter ended March 31, 2026.
Revenue rose 11% to $1,431.4 milliona (up 8% on a constant currency basis). GAAP gross margin was 62.2%, up 290 basis points from 59.3%, and GAAP income from operations rose 17% to $499.8 million. GAAP diluted earnings per share were $2.74 versus $2.48 a year earlier, and non-GAAP diluted EPS were $2.86 versus $2.37, a 21% increase.
Operating cash flow for the quarter was $554.1 millionb, and the company paid $87.2 million in dividends and repurchased 673,000 shares for $175.0 million. By segment, Total Sleep and Breathing Health revenue grew 11% to $1,260.5 million, while Residential Care Software revenue grew 6% to $170.9 million (4% on a constant currency basis). SG&A rose 16% on a GAAP basis, partly reflecting additional expenses from the VirtuOx acquisition and $5.9 million of acquisition and portfolio review related expenses tied to evaluating strategic transactions.
The board declared a quarterly cash dividend of $0.60c per share, with a record date of May 14, 2026, an ex-dividend date of May 13, 2026, and payment on June 18, 2026. The filing also notes a new distribution center in Greenwood, Indiana, scheduled to begin operations in 2027.
02—Key points
Key Highlights
- Revenue of $1,431.4 million, up 11% year over year (8% on a constant currency basis) for the quarter ended March 31, 2026.
- GAAP gross margin of 62.2%, up 290 basis points, driven mainly by component cost improvements and manufacturing and logistics efficiencies.
- GAAP diluted EPS of $2.74 (vs. $2.48) and non-GAAP diluted EPS of $2.86 (vs. $2.37), with non-GAAP EPS up 21%.
- Operating cash flow of $554.1 million for the quarter; $87.2 million paid in dividends and $175.0 million spent on share repurchases.
- Sleep and Breathing Health revenue grew 11% to $1,260.5 million; Residential Care Software revenue rose 6% to $170.9 million.
- Board declared a quarterly dividend of $0.60 per share, record date May 14, 2026, payable June 18, 2026.
- Restructuring expenses of $21.7 million were recorded in the nine months ended March 31, 2026, and $5.9 million of acquisition and portfolio review expenses were recorded in the quarter.
03—Questions
Frequently Asked Questions
How did ResMed perform in the third quarter of fiscal 2026?
Revenue increased 11% to $1,431.4 million, or 8% on a constant currency basis. GAAP income from operations rose 17% to $499.8 million, and GAAP net income was $398.7 million, compared with $365.0 million a year earlier.
What drove the improvement in gross margin?
The company attributed the 290 basis point increase in GAAP gross margin primarily to component cost improvements and manufacturing and logistics efficiencies, with a small positive contribution from product mix and foreign currency movements.
What are the dividend details for shareholders?
The board declared a quarterly cash dividend of $0.60 per share. The ex-dividend date is May 13, 2026, the record date is May 14, 2026, and payment is scheduled for June 18, 2026. CDI holders on the Australian Securities Exchange will receive an equivalent amount in Australian currency.
Did ResMed incur any unusual expenses this quarter?
Yes. The company recorded $5.9 million of acquisition and portfolio review related expenses, reflecting costs for evaluating strategic transactions, including legal and professional fees for diligence. SG&A growth was also driven by the VirtuOx acquisition, employee costs, and marketing and technology investments.
How much capital did ResMed return to shareholders?
During the quarter, ResMed paid $87.2 million in dividends and repurchased 673,000 shares for $175.0 million. For the nine months ended March 31, 2026, dividends paid were $262.6 million and treasury stock purchases were $500.0 million.
04—Continue