ResMed (RMD) Q3 2026 earnings summary

Executive summary

• Revenue for Q3 FY26 rose 11% year-over-year to $1.43 billion, with 8% growth in constant currency, and strong performance in both Sleep and Breathing Health and Residential Care Software segments.

• Non-GAAP EPS grew 21% year-over-year to $2.86, with GAAP EPS at $2.74; net income increased 9% to $398.7 million.

• Gross margin improved to 62.8% (non-GAAP) and 62.2% (GAAP), up 290 bps year-over-year, driven by manufacturing efficiencies and lower component costs.

• Announced CFO transition, with Brett Sandercock retiring and Aaron Bloomer appointed as new CFO.

• Announced acquisition of Noctrix Health for $340 million, expanding into restless leg syndrome treatment.

Financial highlights

• Q3 revenue reached $1.43 billion, up 11% headline and 8% constant currency year-over-year.

• Gross profit for the quarter was $891.0 million, up 16% year-over-year.

• Free cash flow was $520 million for the quarter, with operating cash flow at $554 million.

• Returned $262 million to shareholders via dividends and share repurchases in Q3.

• Cash and cash equivalents reached $1.7 billion, with $1.5 billion available under the revolving credit facility.

Outlook and guidance

• Maintains FY26 gross margin guidance of 62%-63%, SG&A at 19%-20% of revenue, and R&D at 6%-7%.

• Effective tax rate expected at 21%-23% for FY26.

• Five-year outlook reaffirmed: high single-digit revenue growth and earnings growth above revenue growth.

• Noctrix Health acquisition expected to reduce Q4 FY26 non-GAAP EPS by ~$0.02.

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