In its Q1 FY27 quarterly report, Resmed (NYSE: RMD, ASX: RMD) recorded revenue of $1,415 million, up 6% on the prior year and up 7% on a core constant currency basis. The quarter ended 30 September 2026.
Diluted earnings per share rose on both measures, and the company returned capital at scale during the period.
Q1 FY27 highlights: revenue up 6% to $1.4 billion, non-GAAP EPS up 14%
Revenue reached $1,415 million against $1,336 million a year earlier. GAAP diluted earnings per share rose 23% to $2.92, while non-GAAP diluted EPS rose 14% to $2.91.
Resmed also returned more than $1.0 billion to shareholders through share repurchases and dividends during the quarter.
Mick Farrell, Chairman and CEO
“We began fiscal year 2027 with a strong first quarter, driven by continued global demand for our sleep and breathing health solutions and ongoing execution across our business…”
Farrell said core constant currency revenue grew 7%, non-GAAP gross margin expanded by 50 basis points and non-GAAP earnings per share increased 14%. For investors, the quarter combined revenue growth, margin gains and capital returns.
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Revenue performance across sleep, masks and regions
Revenue growth was primarily driven by strong demand across sleep devices and masks and accessories, according to the report.
Regional and product growth
On a core constant currency basis, Americas Sleep and Breathing Health revenue grew 7%, Rest of World Sleep and Breathing Health grew 8%, and Residential Care Software increased 5%.
| Segment | Q1 FY27 revenue | Q1 FY26 revenue | % change | Core constant currency % |
|---|---|---|---|---|
| Total Sleep Devices | **$716M** | **$655M** | 9% | 9% |
| Total Masks and other | **$540M** | **$489M** | 10% | 10% |
| Residential Care Software | **$155M** | **$166M** | (7)% | 5% |
| Total | **$1,415M** | **$1,336M** | 6% | 7% |
The reported Residential Care Software decline reflects the divested MatrixCare business. Removing MatrixCare, the remaining Brightree and MEDIFOX DAN businesses increased by 8%.
The MatrixCare divestiture was agreed in July 2026 at US$490 million in cash, with MatrixCare contributing roughly US$220 million of revenue in FY2026, which explains why reported software revenue fell while the retained businesses grew.
Product and operational highlights
Resmed listed the following business and operational highlights for the quarter:
- Closed the previously announced divestiture of the MatrixCare business.
- Announced the U.S. launch of the AirTouch F40, the newest addition to its portfolio of fabric CPAP masks.
- Partnered with Eight Sleep to connect its technology with Resmed sleep insights for people in the U.S. and Australia, and with 23XI Racing NASCAR driver Tyler Reddick, following his sleep apnea diagnosis.
- Announced the appointment of Carol Burt as Lead Director, effective 15 November 2026, after the planned retirement of Director Ron Taylor.
Margins, earnings and cash generation
Non-GAAP gross margin increased 50 basis points to 62.5%, predominantly from productivity pipeline execution. GAAP gross margin was 61.5%, up from 61.2%.
Non-GAAP operating margin was 35.8%, down 30 basis points, while GAAP operating margin was 32.0%, down 140 basis points. Research and development expenses rose 15% (13% in constant currency), as the company maintained investment in innovation.
Operating cash flow totalled $422 million, down 8%, and free cash flow totalled $374 million, down 10%.
Key cash flow items for the quarter were:
- Purchases of treasury stock: $936.4 million
- Dividends paid: $95.0 million
- Repayment of borrowings: $250 million
- Proceeds from divestment of subsidiaries, net of cash divested: $450.8 million
Cash and cash equivalents ended the quarter at $1,010.7 million, compared with $1,469.2 million at 30 June 2026. Basic shares outstanding fell to 142,989 thousand from 146,182 thousand.
GAAP net income was $418 million, which includes a gain on divestment of subsidiary ($62 million within other income). Non-GAAP net income was also $418 million.
What is non-GAAP and core constant currency reporting?
GAAP refers to U.S. generally accepted accounting principles. Non-GAAP figures adjust those results for items including amortization of acquired intangibles, restructuring and business transformation expenses, acquisition and divestment related expenses, and gains on divestment of subsidiaries, plus associated tax effects.
Resmed states that non-GAAP measures can provide investors better insight into performance from core operations and more consistent reporting across periods. GAAP diluted EPS of $2.92 sits above non-GAAP EPS of $2.91 partly because the GAAP figure includes the divestment gain, which reduced non-GAAP EPS by $0.38.
Core constant currency growth also excludes the impact of the Noctrix acquisition and the MatrixCare divestiture, alongside foreign currency effects.
During the quarter, Resmed revised its presentation of restructuring expenses and amortization of acquired intangibles, with prior periods reclassified. The change had no effect on previously reported income from operations, income before income taxes, net income, earnings per share or cash flows.
FY27 guidance and what happens next
Guidance as of 29 October 2026 was unchanged from 6 August 2026.
| Metric | FY 2027 guidance as of 6 August 2026 | FY 2027 guidance as of 29 October 2026 |
|---|---|---|
| Revenue, core constant currency | **5 to 7%** growth | **5 to 7%** growth |
| Revenue, reported | **$5.75 to $5.85 billion** | **$5.75 to $5.85 billion** |
| Non-GAAP diluted EPS | **$12.00 to $12.25** | **$12.00 to $12.25** |
The following events are stated in the report:
- Lead Director appointment: Carol Burt’s appointment is effective 15 November 2026, after the planned retirement of Director Ron Taylor.
- Ex-dividend date: 11 November 2026, for common stockholders and CDI holders.
- Dividend record date: 12 November 2026, for the quarterly cash dividend of $0.66 per share. CDI holders will receive an equivalent amount in Australian currency, based on the exchange rate on the record date and reflecting the 10:1 ratio between CDIs and NYSE shares.
- ASX settlement waiver: Resmed will defer processing conversions between its common stock and CDI registers from 11 November 2026 through 12 November 2026, inclusive.
- Dividend payment date: 17 December 2026.
Looking ahead, Farrell said:
Mick Farrell, Chairman and CEO
“…we will continue to build our core sleep and breathing health businesses by extending the reach of our digital health ecosystem and connecting more of the people worldwide who need care with life-saving treatment delivered right in their own home.”
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