ResMed (RMD) Q1 2027 earnings summary

Executive summary

• Q1 FY27 revenue was $1,414.8M, up 6% reported and 7% core constant currency; non-GAAP diluted EPS rose 14% to $2.91.

• Sleep-portfolio demand and higher gross margin supported growth; MatrixCare proceeds and cash generation funded more than $1.0B in shareholder returns.

Financial highlights

• GAAP net income was $418.4M versus $348.5M; GAAP diluted EPS was $2.92 versus $2.37.

• Non-GAAP gross margin was 62.5%, up 50 bps; non-GAAP operating margin was 35.8%, down 30 bps, and non-GAAP net income was $418M versus $375M.

• Operating cash flow was $422M and free cash flow was $374M, down 8% and 10% YoY, respectively.

• MatrixCare's sale contributed a preliminary $62M pretax gain; GAAP operating income was $453.0M versus $446.5M.

Outlook and guidance

• FY27 guidance remained unchanged: core constant-currency revenue growth of 5%-7%, reported revenue of $5.75B-$5.85B, and non-GAAP diluted EPS of $12.00-$12.25.

• Revenue guidance includes an ~130 bps or $75M Astral impact and ~60 bps of FX pressure; excluding Astral, core constant-currency growth would be 6.3%-8.3%.

• FY27 gross margin is expected to expand by low-double-digit bps, with a slight increase in operating margin; quarterly variability is expected.

• FY27 capital returns are expected to exceed $1.85B; capex guidance is $160M-$180M. Q2 revenue is expected to follow typical mid-single-digit sequential seasonality.