ResMed (RMD) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 FY2026 was $1.42 billion, up 11% year-over-year (9% in constant currency), driven by strong demand for sleep and respiratory care devices, digital health solutions, and expansion in Residential Care Software.

• Gross margin expanded by 320 basis points to 61.8% (GAAP), with non-GAAP gross margin at 62.3%, reflecting manufacturing and logistics efficiencies and lower component costs.

• Diluted EPS rose 15% to $2.68 (GAAP) and 16% to $2.81 (non-GAAP) year-over-year; net income increased 14% to $392.6 million.

• Operating income increased 18% (GAAP) and 19% (non-GAAP) year-over-year.

• Free cash flow for the last twelve months reached $1.8 billion, with quarterly operating cash flow at $340 million.

Financial highlights

• Group revenue for Q2 FY2026 was $1.42 billion, up 11% headline and 9% in constant currency.

• Gross profit for the quarter was $878.7 million, up 17% year-over-year.

• Operating cash flow for the six months was $797.1 million; cash and cash equivalents at quarter-end were $1.42 billion.

• Capital expenditures for Q2 FY26 were ~$29 million.

• Net cash was ~$753 million; total debt was ~$664 million.

Outlook and guidance

• Gross margin expected in the range of 62%-63% for FY2026; SG&A at 19%-20% and R&D at 6%-7% of revenue.

• Effective tax rate estimated at 21%-23% for FY2026.

• Management expects continued growth driven by product innovation, geographic expansion, and increased awareness of respiratory conditions.

• Over $600 million in share repurchases planned for FY26.