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, masks, and digital health solutions.

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

• Diluted EPS rose 15% to $2.68 (GAAP) and 16% to $2.81 (non-GAAP); net income increased 14% to $393 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 operating cash flow for the quarter at $340 million.

Financial highlights

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

• Device sales grew 9% globally; masks and accessories revenue up 16%.

• Operating profit increased 19%; operating margin improved to 36.3% (non-GAAP) and 34% (GAAP) year-over-year.

• Net income for the quarter was $393 million (GAAP), up 14% year-over-year; diluted EPS was $2.68 (GAAP), $2.81 (non-GAAP).

• Cash and cash equivalents at quarter-end were $1.42 billion; net cash position was $753 million.

Outlook and guidance

• Gross margin expected in the 62%-63% range 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.

• Five-year global outlook targets high single-digit percentage revenue growth, with earnings growth outpacing revenue.

• Ongoing investment in R&D and digital health capabilities planned to support future growth.