Core Insights - ResMed reported $1.42 billion in revenue for the quarter ended December 2025, marking an 11% year-over-year increase and a 2.3% surprise over the Zacks Consensus Estimate of $1.39 billion [1] - The earnings per share (EPS) for the same period was $2.81, compared to $2.43 a year ago, resulting in a 4.59% surprise over the consensus EPS estimate of $2.69 [1] Financial Performance Metrics - U.S., Canada, and Latin America - Devices revenue was $448 million, exceeding the estimated $441.42 million, reflecting an 8.1% year-over-year increase [4] - U.S., Canada, and Latin America - Masks and other revenue reached $387 million, surpassing the average estimate of $367.97 million, with a year-over-year change of 15.7% [4] - Combined Europe, Asia, and other markets - Total revenue was $420.9 million, above the estimated $408.04 million, showing an 11.8% year-over-year increase [4] - Combined Europe, Asia, and other markets - Devices revenue was $278.2 million, slightly above the estimated $275.44 million, with a 9.2% year-over-year change [4] - Combined Europe, Asia, and other markets - Masks and other revenue was $142.7 million, exceeding the average estimate of $132.59 million, reflecting a 17.2% year-over-year increase [4] - U.S., Canada, and Latin America - Total revenue was $835 million, surpassing the estimated $809.39 million, with an 11.5% year-over-year change [4] - Global revenue for Total Sleep and Breathing Health was $1.26 billion, exceeding the estimated $1.2 billion, marking an 11.6% year-over-year increase [4] - Global revenue for Residential Care Software was $166.9 million, slightly below the average estimate of $167.55 million [4] - Global revenue for Total Devices was $726.2 million, exceeding the estimated $716.86 million, with an 8.5% year-over-year change [4] - Global revenue for Total Masks and other was $529.7 million, surpassing the estimated $500.57 million, reflecting a 16.1% year-over-year increase [4] Stock Performance - ResMed shares have returned +7% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

分组1 - ResMed reported quarterly earnings of $2.81 per share, exceeding the Zacks Consensus Estimate of $2.69 per share, and showing an increase from $2.43 per share a year ago, resulting in an earnings surprise of +4.59% [1] - The company achieved revenues of $1.42 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.30%, and up from $1.28 billion year-over-year [2] - ResMed has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 7% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The company's earnings outlook is crucial for future stock performance, with current consensus EPS estimates at $2.75 for the coming quarter and $10.86 for the current fiscal year [7] - The Zacks Industry Rank indicates that the Medical - Products sector is currently in the bottom 37% of over 250 Zacks industries, which may impact stock performance [8]

Financial Data and Key Metrics Changes - The company reported a headline revenue growth of 11% for Q2 FY2026, with a 9% increase on a constant currency basis, resulting in total revenue of $1.42 billion [7][61] - GAAP EPS grew by 16%, reflecting strong double-digit bottom line growth [8] - Gross margin increased by 110 basis points year-over-year to 62.3%, driven by component cost improvements and manufacturing efficiencies [66] - Operating profits rose by 19%, with an operating margin improvement to 36.3% compared to 34% in the prior year [72] Business Line Data and Key Metrics Changes - Global devices revenue experienced high single-digit growth, while masks, accessories, and other revenue saw double-digit growth [9] - Device sales increased by 7% globally on a constant currency basis, while masks and other sales increased by 14% [61] - The Residential Care Software business revenue grew by 5% on a constant currency basis, supported by strong performance from the MEDIFOX DAN software vertical [64] Market Data and Key Metrics Changes - Sales in the U.S., Canada, and Latin America increased by 11%, with a 6% increase on a constant currency basis [62] - In Europe, Asia, and other regions, device sales increased by 5% and masks and other sales increased by 8% on a constant currency basis [64] Company Strategy and Development Direction - The company aims to build a leading digital health ecosystem encompassing sleep health, breathing health, and healthcare technology delivered in the home [15] - ResMed is focused on operational excellence and innovation, with a commitment to maintaining strong free cash flow and a robust balance sheet to support investments and shareholder returns [16][45] - The company is expanding its mask portfolio and enhancing its digital health capabilities, including AI-driven solutions to improve patient adherence to therapy [20][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate global macro uncertainties and highlighted the positive impact of GLP-1 medications on patient engagement and therapy adherence [41][90] - The company is closely monitoring the global trade environment and regulatory landscape, with expectations of continued growth in the sleep health market [42][43] Other Important Information - The company declared a quarterly dividend of $0.60 per share and plans to repurchase shares totaling more than $600 million for FY2026 [76][53] - ResMed's cash balance at the end of Q2 was $1.4 billion, with a solid liquidity position and strong operating cash flows [75] Q&A Session Summary Question: Strong U.S. mask number - Management noted that the strong growth in masks includes contributions from the VirtuOx acquisition, but even without it, there was still double-digit growth in masks and accessories [81][85] Question: Update on GLP-1 landscape - Management confirmed that patients on GLP-1 therapy show a higher motivation to start and adhere to CPAP therapy, with a 10%-11% higher start rate observed [89][92] Question: SG&A growth ahead of revenue growth - Management indicated that the SG&A growth was influenced by the VirtuOx acquisition and marketing programs, but underlying growth was tracking closely with revenue [97] Question: Impact on patient funnel - Management highlighted that the top of the funnel has seen significant progress due to increased awareness from big pharma and tech, and they are focused on scaling home sleep apnea testing [100][102] Question: Philips' potential return to the U.S. market - Management stated uncertainty regarding Philips' re-entry timing and emphasized their focus on current market dynamics and patient flow [128][130]

Financial Data and Key Metrics Changes - ResMed reported an 11% headline revenue growth for Q2 FY2026, with a 9% increase on a constant currency basis, achieving GAAP EPS growth of 16% [7][8][55] - Gross margin increased by 110 basis points year-over-year to 62.3%, driven by component cost improvements and manufacturing efficiencies [58] - Operating profits rose by 19%, with operating margin improving to 36.3% compared to 34% in the prior year [63] Business Line Data and Key Metrics Changes - Global devices revenue grew by high single digits, while masks, accessories, and other revenue saw double-digit growth [9][55] - Residential care software revenue increased by 5% on a constant currency basis, supported by strong performance from the Medifox Dan software vertical [57] Market Data and Key Metrics Changes - In the U.S., Canada, and Latin America, sales increased by 11%, with a 6% increase on a constant currency basis [55] - In Europe, Asia, and other regions, device sales increased by 5% on a constant currency basis, while masks and other sales increased by 8% [56] Company Strategy and Development Direction - ResMed aims to expand its digital health ecosystem, focusing on sleep health and breathing health, while maintaining a strong balance sheet and free cash flow for investments and shareholder returns [14][39] - The company is investing in R&D for next-generation products and enhancing its manufacturing capabilities, including a new distribution center in Indiana [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to achieve sustainable high single-digit growth in the residential care software business by FY2027 [11] - The management highlighted the positive impact of GLP-1 medications on patient engagement and adherence to CPAP therapy, indicating a potential tailwind for future growth [78][104] Other Important Information - ResMed returned $263 million to shareholders through dividends and share repurchases during the quarter, with plans to increase share repurchases to over $600 million for FY2026 [67][68] - The company is actively monitoring the global trade environment and regulatory landscape, with no inclusion of CPAP products in CMS's competitive bidding program [37] Q&A Session Summary Question: Strong US mask number - Management noted that the strong growth in masks includes contributions from the Virtuox acquisition, but even without it, there was still double-digit growth in masks and accessories [70][72] Question: Update on GLP-1 landscape - Management confirmed that patients on GLP-1 therapy show a higher motivation to start and adhere to CPAP therapy, with a 10%-11% higher start rate observed [78][80] Question: SG&A growth ahead of revenue growth - Management indicated that the SG&A growth was influenced by the Virtuox acquisition and marketing programs, but underlying growth was tracking closely with revenue [87] Question: Impact of GLP-1 on patient funnel - Management highlighted that GLP-1 medications are bringing more motivated patients into the healthcare system, leading to higher adherence rates for CPAP therapy [80][104] Question: Philips' potential return to the U.S. market - Management stated uncertainty regarding Philips' re-entry into the U.S. market but noted that ResMed is performing well in competing against them in other regions [114][116]

Financial Data and Key Metrics Changes - The company reported an 11% headline revenue growth and a 9% growth on a constant currency basis for the second quarter of fiscal year 2026, with GAAP EPS growth of 16% [4][28] - Gross margin increased by 110 basis points year-over-year and by 30 basis points sequentially, reaching 62%-63% for fiscal year 2026 [30][31] - Operating profits increased by 19%, with an operating margin improvement to 36.3% compared to 34% in the prior year [32] Business Line Data and Key Metrics Changes - Global devices revenue experienced high single-digit growth, while masks, accessories, and other revenue saw double-digit growth [4][5] - Residential care software revenue increased by 5% on a constant currency basis, driven by strong performance from the Medifox Dan software vertical [30] Market Data and Key Metrics Changes - Sales in the U.S., Canada, and Latin America increased by 11%, with a 6% increase on a constant currency basis [29] - In Europe, Asia, and other regions, device sales increased by 5% on a constant currency basis, while masks and other sales increased by 8% [29] Company Strategy and Development Direction - The company aims to build a leading digital health ecosystem encompassing sleep health, breathing health, and healthcare technology delivered in the home [8] - Continued focus on operational excellence and innovation, with a commitment to R&D investments of 6%-7% of revenues and SG&A investments of 19%-20% [26][31] - The company is expanding its digital sleep health concierge capabilities and enhancing its manufacturing footprint to improve delivery efficiency [10][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in re-accelerating growth in Europe, Asia, and the rest of the world, with expectations of sustainable high single-digit growth in the residential care software business by fiscal year 2027 [5][6] - The company is closely monitoring the global trade environment and regulatory landscape, with positive implications from recent developments in competitive bidding programs [21][23] Other Important Information - The company returned $263 million to shareholders through dividends and $175 million in share repurchases during the quarter, with plans to increase share repurchases to over $600 million for fiscal year 2026 [34][26] - The launch of new AI-enabled products, such as Comfort Match, is expected to enhance patient adherence to therapy [12][19] Q&A Session Summary Question: Strong US mask number and impact of Virtuox - Management confirmed that the strong growth in masks includes contributions from Virtuox, but even without it, there was solid double-digit growth in masks and accessories [36][38] Question: Update on GLP-1 landscape and its impact - Management noted a 10%-11% higher start rate for CPAP therapy among patients with GLP-1 prescriptions, indicating a motivated patient group [39][41] Question: SG&A growth ahead of revenue growth - Management explained that the SG&A growth includes impacts from the Virtuox acquisition and promotional activities, but underlying growth is tracking closely with revenue [43] Question: Impact on patient funnel stages - Management highlighted significant progress in the top of the funnel due to increased awareness from Big Pharma and tech, while focusing on scaling home sleep apnea testing [45][47] Question: Potential return of Philips to the US market - Management expressed confidence in competing effectively against Philips, noting that they have been performing well in various markets despite Philips' presence [60][62]

Medical device maker ResMed on Thursday beat Wall Street estimates for second-quarter profit on the back of strong demand for its devices used to manage sleep apnea. ...

Q2 FY26 Earnings January 29, 2026 Presentation of financial information & forward-looking statements Historical financial and operating data in this presentation reflect the consolidated results of ResMed Inc., its subsidiaries, and its legal entities for the periods indicated. This presentation includes financial information prepared in accordance with accounting principles generally accepted in the United States, or GAAP, as well as other financial measures referred to as non-GAAP. The non-GAAP financial ...

Financial Performance - Revenue for the second quarter of fiscal year 2026 increased by 11% year-over-year to $1.4 billion, with a 9% increase on a constant currency basis[5]. - Diluted earnings per share for the quarter was $2.68, representing a 15% increase compared to the prior year, while non-GAAP diluted earnings per share increased by 16% to $2.81[5][9]. - Net income for the quarter was $392.6 million, a 14% increase from the previous year[6][9]. - Total revenue for the three months ended December 31, 2025, was $1,422.8 million, an 11% increase compared to $1,282.1 million for the same period in 2024[24]. - For the six months ended December 31, 2025, total revenue was $2,758.4 million, a 10% increase from $2,506.6 million in 2024[24]. Margins and Profitability - Non-GAAP gross margin expanded by 310 basis points to 62.3%, driven by manufacturing efficiencies and component cost improvements[5][9]. - GAAP gross margin improved to 61.8% for the three months ended December 31, 2025, compared to 58.6% in 2024[20]. - Non-GAAP gross profit for the three months ended December 31, 2025, was $886,532, up from $758,909 in 2024, indicating a growth of 17%[20]. Cash Flow and Assets - Operating cash flow for the quarter was $340 million, reflecting strong financial performance[9]. - Cash and cash equivalents at the end of the period were $1,417,069, an increase from $1,209,450 at the beginning of the period, marking a rise of 17%[18]. - Net cash provided by operating activities for the six months ended December 31, 2025, was $797,066, compared to $634,161 in 2024, reflecting a year-over-year increase of 26%[18]. - Total assets increased to $8,503,370, up from $8,174,391, representing a growth of 4%[17]. Shareholder Returns and Capital Management - The company declared a quarterly cash dividend of $0.60 per share, payable on March 19, 2026[8]. - The company repurchased 704,000 shares for $175 million as part of its capital management strategy[9]. Expenses and Investments - Research and development expenses increased by 12% year-over-year, reflecting ongoing investment in innovation[6][9]. Market Performance - Revenue in the U.S., Canada, and Latin America grew by 11%, while revenue in Europe, Asia, and other markets increased by 6% on a constant currency basis[7]. - Total Sleep and Breathing Health revenue reached $1,255.9 million for the three months ended December 31, 2025, up 12% from $1,125.6 million in 2024[24]. - Combined revenue from Europe, Asia, and other markets for the three months ended December 31, 2025, was $420.9 million, a 12% increase from $376.6 million[24]. - Devices revenue in combined Europe, Asia, and other markets was $278.2 million, a 9% increase from $254.8 million[24]. - The company reported a 7% increase in Residential Care Software revenue for the three months ended December 31, 2025, totaling $166.9 million compared to $156.5 million in 2024[24]. - Constant currency measures indicate that the company’s revenue growth is consistent across different markets, excluding foreign currency fluctuations[25]. Debt and Liabilities - Total current liabilities rose to $1,248,114, up from $1,019,120, reflecting a 22% increase[17]. - Long-term debt decreased to $403,923 from $658,392, a reduction of 39%[17]. - Total stockholders' equity increased to $6,320,879, up from $5,967,859, indicating a growth of 6%[17].

Core Insights - Resmed reported strong financial results for the quarter ended December 31, 2025, with an 11% year-over-year revenue growth, driven by high demand for sleep and respiratory care devices and the expansion of its digital health ecosystem [3][5][21]. Financial Performance - Revenue for the quarter reached $1.422 billion, an increase of 11% compared to $1.282 billion in the same quarter of the previous year, with a 9% increase on a constant currency basis [4][5][21]. - Gross margin improved by 320 basis points to 61.8%, while non-GAAP gross margin increased by 310 basis points to 62.3%, attributed to manufacturing efficiencies and cost improvements [5][8][21]. - Income from operations rose by 18% to $491.7 million, with non-GAAP income from operations increasing by 19% to $517.2 million [4][5][21]. - Net income for the quarter was $392.6 million, a 14% increase from $344.6 million, with non-GAAP net income rising by 15% to $411.5 million [5][20]. - Diluted earnings per share increased by 15% to $2.68, while non-GAAP diluted earnings per share rose by 16% to $2.81 [5][20]. Operational Highlights - The company continues to invest in innovation to enhance its digital health capabilities and expand access to care [4][8]. - Operating cash flow for the quarter was $340 million, reflecting strong operational performance [5][17]. - Resmed declared a quarterly cash dividend of $0.60 per share, with a record date of February 12, 2026 [8][9]. Market Performance - Revenue growth was driven by a 11% increase in the U.S., Canada, and Latin America, while Europe, Asia, and other markets saw a 6% growth on a constant currency basis [8][21]. - The company reported a 5% increase in Residential Care Software revenue on a constant currency basis [8][21]. Strategic Initiatives - Resmed received FDA clearance for an AI-enabled digital medical device aimed at personalizing CPAP comfort settings, enhancing patient adherence [8]. - The company presented its long-term growth opportunities and leadership in digital sleep and respiratory health at the J.P. Morgan Healthcare Conference [8].

Company Overview - ResMed (RMD) is a notable stock within the Medical sector, which consists of 929 individual stocks and ranks 10 in the Zacks Sector Rank [2] - ResMed currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook based on earnings estimates and revisions [3] Performance Analysis - Year-to-date, ResMed has achieved a return of approximately 7%, outperforming the average gain of 6.3% for the Medical sector [4] - In comparison, Compass Therapeutics, Inc. (CMPX) has returned 14.7% year-to-date, also outperforming the sector [4] - ResMed is part of the Medical - Products industry, which includes 82 companies and currently ranks 155 in the Zacks Industry Rank; this industry has seen an average loss of 5.6% year-to-date, further highlighting ResMed's strong performance [5] Industry Context - The Medical - Biomedical and Genetics industry, which includes Compass Therapeutics, consists of 450 stocks and is currently ranked 90, with a year-to-date increase of 21.1% [6] - Investors are encouraged to monitor both ResMed and Compass Therapeutics for their continued strong performance in the Medical sector [6]