Financial Data and Key Metrics Changes - ResMed achieved a 10% year-over-year reported revenue growth in Q4 FY2025, with a gross margin expansion of 230 basis points year-over-year [6][40]. - Free cash flow for FY2025 was $1.7 billion, providing significant flexibility for investments and shareholder returns [8][48]. - Net income increased by 22%, and non-GAAP diluted earnings per share rose by 23% [47]. Business Line Data and Key Metrics Changes - Device sales globally increased by 8%, while masks and other sales grew by 11% on a constant currency basis [41]. - Residential Care software revenue increased by 9% on a constant currency basis, driven by strong performance in Medifox DAN and HME verticals [42]. Market Data and Key Metrics Changes - Sales in the U.S., Canada, and Latin America increased by 9%, while sales in Europe, Asia, and other regions also rose by 9% on a constant currency basis [40][41]. - Device sales in the U.S., Canada, and Latin America increased by 7%, with masks and other sales up by 12% [41]. Company Strategy and Development Direction - ResMed is focused on building a global digital health ecosystem encompassing sleep health, breathing health, and healthcare delivery in the home [6][7]. - The company aims to achieve its ResMed 2030 goal of improving the lives of over 500 million people [7]. - ResMed is pursuing tuck-in acquisitions to accelerate its growth strategy, with recent acquisitions including Sonderware and Vertuox [9][10]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate global macro uncertainties, including tariffs and trade issues [8][36]. - The company is committed to operational excellence and driving ongoing operating leverage, with expectations for gross margin to be in the range of 61% to 63% in FY2026 [43][44]. Other Important Information - ResMed's Board of Directors authorized a 13% increase in the quarterly dividend for FY2026 and plans to significantly increase share repurchase activity [13][50]. - The company is integrating its residential care software business into the broader organization to enhance operational efficiency [29]. Q&A Session Summary Question: Growth in Rest of World Devices - Management noted strong growth in Europe, Asia, and Rest of World Devices at 10%, attributed to various factors including market dynamics and demand generation activities [54][56]. Question: Gross Margin Guidance - Management highlighted that gross margin improvements were driven by procurement efficiencies and favorable foreign currency movements, with expectations for continued improvements [61][64]. Question: Roadmap for Vertuox Post-Acquisition - Management emphasized that Vertuox is part of a broader strategy to enhance home sleep apnea testing capabilities and improve patient flow through the healthcare system [67][75]. Question: U.S. Mask Growth - Management indicated that U.S. mask growth was driven by product innovations and resupply frequency, with expectations for continued strong performance [80][84]. Question: Competitive Bidding and Consolidation - Management discussed the potential impact of competitive bidding on the DME space, emphasizing the importance of advocating for patient access to care [89][96].

Financial Performance - ResMed's FY2025 revenue reached $5.1 billion[7] - The company's GAAP operating margin for FY2025 was 33%, while the non-GAAP operating margin was 34%[7] - Free cash flow for fiscal year 2025 totaled approximately $1.7 billion, a 28% year-over-year increase, resulting in a free cash flow yield exceeding 4%[34] - ResMed's balance sheet shows a net cash position of $541 million at the end of fiscal year 2025[34] - Q4 FY25 revenue was $1.348 billion, compared to $1.2232 billion in Q4 FY24[36] - Q4 FY25 non-GAAP operating income was $476.4 million, compared to $400.5 million in Q4 FY24[36] - Q4 FY25 non-GAAP EPS was $2.55, compared to $2.08 in Q4 FY24[36] Business Segments and Regions - Devices accounted for 52% of revenue, masks and other 36%, and RCS 12% in Q4 FY25[36] - In Q4 FY25, the U S, Canada, and Latin America region contributed 58% of revenue, while Europe, Asia, and Other accounted for 30%, and RCS (U S & Germany) 12%[36] Strategy and Focus - ResMed aims to empower 500 million lives by 2030 through better sleep and breathing health, with care delivered at home[15, 27] - The company focuses on delivering a market-leading patient experience through innovative solutions for sleep apnea and improving the lives of patients with COPD and other respiratory diseases[10] - ResMed is the global leader in connected and digital health, with over 23 billion nights of respiratory medical data[7, 21]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Fourth Quarter 2025 Highlights](index=1&type=section&id=Fourth%20Quarter%202025%20Highlights) Resmed reported strong Q4 FY2025 results with significant year-over-year growth in revenue, operating profit, and non-GAAP EPS Fourth Quarter 2025 Key Financial Highlights: | Metric | Value | | :-------------------------- | :------------------- | | Revenue | $1.3 billion (up 10%) | | Operating Profit | Up 19% (GAAP & non-GAAP) | | Non-GAAP Gross Margin | 61.4% (improved 230 bps) | | Operating Cash Flow | $539 million | | Diluted EPS (non-GAAP) | $2.55 (up 23%) | | Quarterly Dividend Increase | 13% to $0.60 per share | [Full Year 2025 Highlights](index=1&type=section&id=Full%20Year%202025%20Highlights) Resmed achieved substantial full-year FY2025 growth, with 10% revenue increase, improved gross margin, and strong non-GAAP EPS Full Year 2025 Key Financial Highlights: | Metric | Value | | :-------------------------- | :------------------- | | Revenue | $5.1 billion (up 10%) | | Non-GAAP Gross Margin | 60.0% (improved 230 bps) | | Operating Profit (non-GAAP) | Up 19% | | Operating Cash Flow | $1.8 billion | | Diluted EPS (non-GAAP) | $9.55 (up 24%) | [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO Mick Farrell highlighted strong FY2025 results from global demand and digital health, with FY2026 focused on innovation and care expansion - Strong finish to fiscal year 2025 driven by robust global demand for market-leading sleep and breathing health devices and an expanding digital health ecosystem[3](index=3&type=chunk) - Connected care platform sets the standard for digital health innovation, empowering millions with hardware, software, and healthcare solutions at home[4](index=4&type=chunk) - Plans for fiscal year 2026 include continued investment in innovation, scaling digital health capabilities, and partnering to expand access to care globally[6](index=6&type=chunk) [Financial Performance Overview](index=2&type=section&id=Financial%20Performance%20Overview) [Fourth Quarter Financial Results](index=2&type=section&id=Fourth%20Quarter%20Financial%20Results) Resmed reported strong Q4 FY2025 results, with significant year-over-year increases in revenue, gross profit, operating income, and net income [Revenue Performance (Q4)](index=2&type=section&id=Revenue%20Performance%20(Q4)) Q4 revenue increased 10% year-over-year to $1,348.0 million (9% constant currency), demonstrating consistent growth | Metric | Q4 2025 (USD millions) | Q4 2024 (USD millions) | % Change | Constant Currency % Change | | :----------------------- | :--------------------- | :--------------------- | :------- | :------------------------- | | Revenue | $1,348.0 | $1,223.2 | 10% | 9% | [Profitability and Margins (Q4)](index=2&type=section&id=Profitability%20and%20Margins%20(Q4)) Q4 2025 gross margin improved by 230 bps to 60.8% (GAAP) and 61.4% (non-GAAP), with operating income up 19% | Metric | Q4 2025 | Q4 2024 | % Change | | :-------------------------- | :------ | :------ | :------- | | Gross margin (GAAP) | 60.8% | 58.5% | +230 bps | | Non-GAAP gross margin | 61.4% | 59.1% | +230 bps | | Income from operations (GAAP) | $454.5M | $381.2M | 19% | | Non-GAAP income from operations | $476.4M | $400.5M | 19% | [Earnings Per Share (Q4)](index=2&type=section&id=Earnings%20Per%20Share%20(Q4)) Q4 2025 diluted EPS increased significantly, with GAAP EPS up 30% to $2.58 and non-GAAP EPS up 23% to $2.55 | Metric | Q4 2025 | Q4 2024 | % Change | | :-------------------------- | :------ | :------ | :------- | | Diluted EPS (GAAP) | $2.58 | $1.98 | 30% | | Non-GAAP Diluted EPS | $2.55 | $2.08 | 23% | [Full Year Financial Results](index=2&type=section&id=Full%20Year%20Financial%20Results) Resmed demonstrated robust FY2025 financial performance, with double-digit revenue growth, substantial gross margin expansion, and strong operating income increases [Revenue Performance (FY)](index=2&type=section&id=Revenue%20Performance%20(FY)) Full year FY2025 revenue reached $5,146.3 million, a 10% year-over-year increase, consistent with constant currency growth | Metric | FY 2025 (USD millions) | FY 2024 (USD millions) | % Change | Constant Currency % Change | | :----------------------- | :--------------------- | :--------------------- | :------- | :------------------------- | | Revenue | $5,146.3 | $4,685.3 | 10% | 10% | [Profitability and Margins (FY)](index=2&type=section&id=Profitability%20and%20Margins%20(FY)) Full year gross margin improved by 270 bps (GAAP) and 230 bps (non-GAAP), with operating income increasing 28% (GAAP) and 19% (non-GAAP) | Metric | FY 2025 | FY 2024 | % Change | | :-------------------------- | :------ | :------ | :------- | | Gross margin (GAAP) | 59.4% | 56.7% | +270 bps | | Non-GAAP gross margin | 60.0% | 57.7% | +230 bps | | Income from operations (GAAP) | $1,685.4M | $1,319.9M | 28% | | Non-GAAP income from operations | $1,763.3M | $1,478.4M | 19% | [Earnings Per Share (FY)](index=2&type=section&id=Earnings%20Per%20Share%20(FY)) Full year diluted EPS saw substantial growth, with GAAP EPS up 37% to $9.51 and non-GAAP EPS up 24% to $9.55 | Metric | FY 2025 | FY 2024 | % Change | | :-------------------------- | :------ | :------ | :------- | | Diluted EPS (GAAP) | $9.51 | $6.92 | 37% | | Non-GAAP Diluted EPS | $9.55 | $7.72 | 24% | [Discussion of Fourth Quarter Results & Operational Highlights](index=3&type=section&id=Discussion%20of%20Fourth%20Quarter%20Results%20%26%20Operational%20Highlights) [Revenue Drivers & Regional Performance](index=3&type=section&id=Revenue%20Drivers%20%26%20Regional%20Performance) Q4 revenue grew 9% constant currency, driven by strong demand for sleep devices, masks, and Residential Care Software across all major regions - Revenue grew by 9% on a constant currency basis, driven by increased demand for sleep devices and masks portfolio, and solid growth across Residential Care Software business[9](index=9&type=chunk) - Revenue in the U.S., Canada, and Latin America (excluding Residential Care Software) grew by 9%[9](index=9&type=chunk) - Revenue in Europe, Asia, and other markets (excluding Residential Care Software) grew by 9% on a constant currency basis[9](index=9&type=chunk) [Cost & Expense Management](index=3&type=section&id=Cost%20%26%20Expense%20Management) Gross margin improved by 230 bps due to efficiencies and currency, while SG&A expenses increased 8% (constant currency) but improved to 19.7% of revenue - Gross margin increased by 230 basis points mainly due to procurement, manufacturing and logistics efficiencies as well as favorable foreign currency movements[9](index=9&type=chunk) - Selling, general, and administrative expenses increased by 8% on a constant currency basis, mainly due to increases in employee-related costs and marketing expenses[9](index=9&type=chunk) - SG&A expenses improved to 19.7% of revenue in the quarter, compared with 19.8% in the same period of the prior year[9](index=9&type=chunk) [Net Income & Operating Cash Flow](index=3&type=section&id=Net%20Income%20%26%20Operating%20Cash%20Flow) Q4 net income was $380 million (non-GAAP up 22% to $375 million), diluted EPS was $2.58 (non-GAAP up 23% to $2.55), and operating cash flow reached $539 million Q4 2025 Net Income & EPS: | Metric | Value | | :-------------------------- | :---------- | | Net income | $380 million | | Non-GAAP net income | $375 million (up 22%) | | Diluted earnings per share | $2.58 | | Non-GAAP diluted EPS | $2.55 (up 23%) | - Operating cash flow for the quarter was $539 million[9](index=9&type=chunk) [Capital Management Activities](index=3&type=section&id=Capital%20Management%20Activities) Resmed paid $78 million in dividends and repurchased 419,000 shares for $100 million as part of its capital management strategy - Paid $78 million in dividends to shareholders[9](index=9&type=chunk) - Repurchased 419,000 shares for consideration of $100 million as part of ongoing capital management[9](index=9&type=chunk) [Strategic Initiatives & Innovation](index=3&type=section&id=Strategic%20Initiatives%20%26%20Innovation) Resmed acquired VirtuOx to enhance diagnostics, partnered with Qatar Airways for a sleep health campaign, and presented research at SLEEP 2025 on therapy and AI - Acquired VirtuOx, a leading independent diagnostic testing facility (IDTF) for sleep, respiratory, and cardiac conditions, to support patients earlier in their journey and help healthcare providers deliver care[9](index=9&type=chunk) - Named Official Sleep Partner of the Qatar Airways British and Irish Lions Tour to Australia and launched 'Tackle Your Sleep' digital and content focused campaign[9](index=9&type=chunk) - Showcased research at the SLEEP 2025 conference, reinforcing leadership in sleep science and innovation, with focus areas including PAP therapy adherence, gender disparities in OSA diagnosis, patient-reported outcomes, and AI use in therapy engagement[9](index=9&type=chunk) [Dividend Program](index=4&type=section&id=Dividend%20Program) [Quarterly Cash Dividend](index=4&type=section&id=Quarterly%20Cash%20Dividend) Resmed declared a quarterly cash dividend of $0.60 per share, payable September 18, 2025, to shareholders of record August 14, 2025 - Quarterly cash dividend declared: $0.60 per share[10](index=10&type=chunk) - Record date: August 14, 2025; Payable date: September 18, 2025; Ex-dividend date: August 13, 2025[10](index=10&type=chunk) - Dividend paid in U.S. currency to NYSE common stock holders and equivalent Australian currency to ASX CDI holders (based on 10:1 ratio)[10](index=10&type=chunk) [Company Information](index=4&type=section&id=Company%20Information) [About Resmed](index=4&type=section&id=About%20Resmed) Resmed is a global leader in innovative out-of-hospital solutions for sleep apnea and chronic diseases, leveraging digital health to improve care in over 140 countries - Pioneers innovative solutions that treat and keep people out of the hospital, empowering them to live healthier, higher-quality lives[12](index=12&type=chunk) - Utilizes digital health technologies and cloud-connected medical devices to transform care for sleep apnea, COPD, and other chronic diseases[12](index=12&type=chunk) - Comprehensive out-of-hospital software platforms support professionals and caregivers, improving quality of life and reducing costs in over 140 countries[12](index=12&type=chunk) [Webcast Details](index=4&type=section&id=Webcast%20Details) Resmed will host a webcast on July 31, 2025, at 1:30 p.m. U.S. Pacific Time to discuss Q4 FY2025 results, with live and replay access available - Live webcast of Q4 FY2025 results on July 31, 2025, at 1:30 p.m. U.S. Pacific Time, accessible at investor.resmed.com[11](index=11&type=chunk) - Replay of the webcast will be available approximately two hours after the live event on the website[11](index=11&type=chunk) - Telephone replay available approximately three hours after the webcast until August 14, 2025, using provided dial-in numbers and passcode[11](index=11&type=chunk) [Safe Harbor Statement](index=4&type=section&id=Safe%20Harbor%20Statement) This release contains forward-looking statements subject to risks and uncertainties that may cause actual results to differ materially from projections - Statements in the release that are not historical facts are 'forward-looking' statements under the Private Securities Litigation Reform Act of 1995[13](index=13&type=chunk) - These statements are subject to risks and uncertainties which could cause actual results to materially differ from those projected or implied[13](index=13&type=chunk) - Additional risks and uncertainties are discussed in Resmed's periodic reports on file with the U.S. Securities & Exchange Commission, and Resmed does not undertake to update its forward-looking statements[13](index=13&type=chunk) [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents unaudited condensed consolidated statements of operations for Q4 and FY2025/2024, detailing revenue, gross profit, operating income, net income, and EPS Condensed Consolidated Statements of Operations (USD thousands): | Metric | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :--------------------- | :------ | :------ | :------ | :------ | | Net revenue | $1,347,993 | $1,223,195 | $5,146,327 | $4,685,297 | | Gross profit | $820,070 | $715,527 | $3,054,970 | $2,655,303 | | Income from operations | $454,543 | $381,217 | $1,685,363 | $1,319,893 | | Net income | $379,705 | $292,237 | $1,400,723 | $1,020,951 | | Diluted earnings per share | $2.58 | $1.98 | $9.51 | $6.92 | [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides unaudited condensed consolidated balance sheets as of June 30, 2025, and 2024, outlining assets, liabilities, and equity Condensed Consolidated Balance Sheets (USD thousands): | Metric | June 30, 2025 | June 30, 2024 | | :--------------------- | :------------ | :------------ | | Total assets | $8,174,391 | $6,872,394 | | Total liabilities | $2,206,532 | $2,008,351 | | Total stockholders' equity | $5,967,859 | $4,864,043 | | Cash and cash equivalents | $1,209,450 | $238,361 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents unaudited condensed consolidated statements of cash flows for Q4 and FY2025/2024, detailing operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (USD thousands): | Metric | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :---------------------------------------- | :-------- | :-------- | :---------- | :---------- | | Net cash provided by operating activities | $538,766 | $440,113 | $1,751,588 | $1,401,260 | | Net cash used in investing activities | $(133,713) | $(46,510) | $(200,045) | $(269,784) | | Net cash used in financing activities | $(163,887) | $(393,282) | $(606,253) | $(1,119,287) | | Cash and cash equivalents at end of period | $1,209,450 | $238,361 | $1,209,450 | $238,361 | [Reconciliation of Non-GAAP Financial Measures](index=8&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) [Non-GAAP Gross Profit and Margin Reconciliation](index=8&type=section&id=Non-GAAP%20Gross%20Profit%20and%20Margin%20Reconciliation) This section reconciles GAAP to non-GAAP gross profit and margin, excluding amortization of acquired intangibles and field safety notification expenses Non-GAAP Gross Profit and Margin Reconciliation (USD thousands): | Metric | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :------------------ | :------ | :------ | :------ | :------ | | GAAP gross profit | $820,070 | $715,527 | $3,054,970 | $2,655,303 | | Non-GAAP gross profit | $827,925 | $723,514 | $3,085,574 | $2,702,528 | | GAAP gross margin | 60.8% | 58.5% | 59.4% | 56.7% | | Non-GAAP gross margin | 61.4% | 59.1% | 60.0% | 57.7% | [Non-GAAP Income from Operations Reconciliation](index=8&type=section&id=Non-GAAP%20Income%20from%20Operations%20Reconciliation) This section reconciles GAAP to non-GAAP income from operations, adjusting for amortization, restructuring, field safety, and acquisition expenses Non-GAAP Income from Operations Reconciliation (USD thousands): | Metric | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | GAAP income from operations | $454,543 | $381,217 | $1,685,363 | $1,319,893 | | Non-GAAP income from operations | $476,357 | $400,466 | $1,763,300 | $1,478,400 | [Non-GAAP Net Income and Diluted EPS Reconciliation](index=9&type=section&id=Non-GAAP%20Net%20Income%20and%20Diluted%20EPS%20Reconciliation) This section reconciles GAAP to non-GAAP net income and diluted EPS, adjusting for non-recurring items and associated tax effects Non-GAAP Net Income and Diluted EPS Reconciliation (USD thousands): | Metric | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :-------------------------- | :------ | :------ | :------ | :------ | | GAAP net income | $379,705 | $292,237 | $1,400,723 | $1,020,951 | | Non-GAAP net income | $374,545 | $306,341 | $1,406,777 | $1,139,294 | | GAAP diluted EPS | $2.58 | $1.98 | $9.51 | $6.92 | | Non-GAAP diluted EPS | $2.55 | $2.08 | $9.55 | $7.72 | [Management's Rationale for Non-GAAP Measures](index=9&type=section&id=Management's%20Rationale%20for%20Non-GAAP%20Measures) Resmed uses non-GAAP measures for better insight into core operations and consistent reporting, excluding non-recurring items for meaningful performance evaluation - Non-GAAP information is used internally for planning, forecasting, and evaluating operational results, and to compare current to past periods[22](index=22&type=chunk) - Believes non-GAAP information provides investors better insight into Resmed's performance from core operations and ensures consistent financial reporting[22](index=22&type=chunk) - Adjustments are made for items like amortization of acquired intangibles, restructuring expenses, field safety notification expenses, acquisition-related expenses, and associated tax effects to facilitate a more meaningful evaluation of ongoing operations[21](index=21&type=chunk)[22](index=22&type=chunk) [Revenue Breakdown by Product and Region](index=10&type=section&id=Revenue%20Breakdown%20by%20Product%20and%20Region) [Fourth Quarter Revenue Breakdown](index=10&type=section&id=Fourth%20Quarter%20Revenue%20Breakdown) Q4 2025 global revenue increased 10% (9% constant currency), with strong growth in Sleep and Breathing Health, Residential Care Software, Devices, and Masks Q4 2025 Revenue by Product and Region (USD millions): | Category | Q4 2025 | Q4 2024 | % Change | Constant Currency % Change | | :-------------------------------- | :------ | :------ | :------- | :------------------------- | | **Global Revenue** | **$1,348.0** | **$1,223.2** | **10%** | **9%** | | Total Devices | $693.9 | $635.1 | 9% | 8% | | Total Masks and other | $487.1 | $436.2 | 12% | 11% | | Total Sleep and Breathing Health | $1,181.0 | $1,071.3 | 10% | 9% | | Residential Care Software | $167.0 | $151.9 | 10% | 9% | | **U.S., Canada, and Latin America** | **$791.9** | **$727.4** | **9%** | | | Devices | $432.8 | $406.2 | 7% | | | Masks and other | $359.2 | $321.2 | 12% | | | **Combined Europe, Asia, and other markets** | **$389.0** | **$343.9** | **13%** | **9%** | | Devices | $261.1 | $228.8 | 14% | 10% | | Masks and other | $127.9 | $115.0 | 11% | 7% | [Full Year Revenue Breakdown](index=10&type=section&id=Full%20Year%20Revenue%20Breakdown) FY2025 global revenue increased 10% (constant currency) to $5,146.3 million, driven by strong growth across Sleep and Breathing Health, Residential Care Software, Devices, and Masks Full Year 2025 Revenue by Product and Region (USD millions): | Category | FY 2025 | FY 2024 | % Change | Constant Currency % Change | | :-------------------------------- | :------ | :------ | :------- | :------------------------- | | **Global Revenue** | **$5,146.3** | **$4,685.3** | **10%** | **10%** | | Total Devices | $2,665.2 | $2,444.0 | 9% | 9% | | Total Masks and other | $1,839.7 | $1,657.2 | 11% | 11% | | Total Sleep and Breathing Health | $4,504.9 | $4,101.2 | 10% | 10% | | Residential Care Software | $641.4 | $584.1 | 10% | 10% | | **U.S., Canada, and Latin America** | **$2,997.5** | **$2,722.6** | **10%** | | | Devices | $1,654.4 | $1,522.8 | 9% | | | Masks and other | $1,343.1 | $1,199.8 | 12% | | | **Combined Europe, Asia, and other markets** | **$1,507.4** | **$1,378.6** | **9%** | **9%** | | Devices | $1,010.8 | $921.3 | 10% | 9% | | Masks and other | $496.6 | $457.4 | 9% | 8% |

Core Insights - Resmed Inc. reported a strong performance for the fourth quarter of fiscal year 2025, with a 10% increase in revenue and significant growth in earnings per share, driven by robust demand for sleep and breathing health devices and an expanding digital health ecosystem [2][3][5] Financial Results and Operating Metrics - Revenue for the quarter reached $1.348 billion, a 10% increase compared to the previous year, with a 9% increase on a constant currency basis [4][6] - Gross margin improved to 60.8%, up 230 basis points year-over-year, while non-GAAP gross margin increased to 61.4% [4][6] - Non-GAAP diluted earnings per share rose by 23% to $2.55, with net income increasing by 30% to $380 million [6][14] - Operating cash flow for the quarter was $539 million, reflecting strong operational performance [5][14] Year-over-Year Performance - For the full fiscal year 2025, total revenue was $5.146 billion, marking a 10% increase from the previous year [6][25] - The company achieved a net income of $1.401 billion for the year, a 37% increase compared to the prior year [6][25] - Non-GAAP diluted earnings per share for the full year increased by 24% to $9.55 [6][25] Business Segments and Regional Performance - Revenue growth was driven by a 9% increase in the U.S., Canada, and Latin America, and a 9% increase in Europe, Asia, and other markets on a constant currency basis [9][25] - The Residential Care Software segment also saw a 9% increase in revenue, indicating strong organic growth [9][25] Strategic Initiatives - The company announced the acquisition of VirtuOx, enhancing its capabilities in at-home diagnostic services for sleep and respiratory conditions [14] - Resmed continues to invest in innovation and digital health capabilities to improve patient care and expand access to healthcare solutions [4][14] Dividend and Shareholder Returns - The board declared a quarterly cash dividend of $0.60 per share, representing a 13% increase from the previous quarter [11][14] - During the quarter, Resmed repurchased 419,000 shares for $100 million as part of its capital management strategy [14]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in relation to investments and financial instruments [1]. Group 1 - The website provides general news, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information should not be interpreted as recommendations or advice for any financial actions [1]. - The content is not tailored to individual financial situations or needs, highlighting the necessity for users to perform their own research [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and contracts for difference (CFDs), which carry a high risk of losing money [1]. - Users are encouraged to carefully consider their understanding of these instruments and their ability to bear potential losses [1]. - The website does not provide real-time information and may not guarantee the accuracy of the data presented [1].

Core Insights - ResMed is positioned to continue its earnings-beat streak, having surpassed earnings estimates in the last two quarters by an average of 3.04% [1][5] - The company reported earnings of $2.36 per share for the most recent quarter, slightly below the expected $2.37, but still achieved a surprise of 0.42% [2] - In the previous quarter, ResMed exceeded the consensus estimate of $2.30 per share by reporting $2.43, resulting in a surprise of 5.65% [2] Earnings Estimates and Predictions - Recent estimates for ResMed have been increasing, with a positive Earnings ESP of +5.16%, indicating bullish sentiment among analysts regarding the company's earnings prospects [5][8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat, with historical data showing that such combinations lead to positive surprises nearly 70% of the time [6][8] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7] - A negative Earnings ESP can reduce predictive power but does not necessarily indicate an earnings miss [9] Importance of Earnings ESP - Companies often beat consensus EPS estimates, but this is not the only factor influencing stock price movements; thus, checking the Earnings ESP is crucial for investment decisions [10]

Core Viewpoint - ResMed (RMD) has shown strong stock performance, with a 4.5% increase over the past month and a 16.9% gain since the start of the year, outperforming the Zacks Medical sector and the Zacks Medical - Products industry [1][2]. Financial Performance - ResMed has consistently beaten earnings estimates, reporting an EPS of $2.37 against a consensus estimate of $2.36 in its last earnings report [2]. - For the current fiscal year, ResMed is projected to earn $10.47 per share on revenues of $5.12 billion, with a year-over-year earnings growth of 10.17%. For the next fiscal year, earnings are expected to rise to $11.35 per share on revenues of $5.51 billion, reflecting a growth of 7.53% [3]. Valuation Metrics - ResMed's stock trades at a valuation of 25.6 times the current fiscal year EPS estimates, which is higher than the peer industry average of 19.1 times. On a trailing cash flow basis, it trades at 29 times compared to the peer group's average of 10.2 times. The PEG ratio stands at 1.67, indicating it is not among the top value stocks [7]. - The company has a Value Score of C, Growth Score of B, and Momentum Score of B, resulting in a combined VGM Score of B [6]. Zacks Rank - ResMed holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts. This aligns with the recommendation for investors to select stocks with Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, suggesting potential for ResMed shares in the near future [8]. Competitive Landscape - In comparison to industry peers, Phibro Animal Health Corporation (PAHC) also shows strong performance with a Zacks Rank of 1 (Strong Buy) and high scores across Value, Growth, and Momentum [9]. - PAHC is expected to post earnings of $2.30 per share on revenues of $1.28 billion for the current fiscal year, having beaten consensus estimates by 21.15% last quarter [10].

Core Insights - All three major U.S. stock indices rose on July 17, 2025, driven by positive retail sales data and a decline in unemployment claims [1][2][11] - Better-than-expected earnings from major tech companies like Netflix contributed to investor confidence [2] - The current market environment suggests a favorable outlook for investing in U.S. stocks, particularly in low-leverage companies [3] Economic Indicators - U.S. retail sales increased by 0.6% in June 2025, following a 0.9% decline in May, exceeding market expectations [1][11] - Labor data indicated a decline in unemployment claims, further supporting market optimism [1] Investment Recommendations - Recommended stocks include Novartis (NVS), ResMed Inc. (RMD), Wabtec (WAB), Elbit Systems (ESLT), and Ingredion Inc. (INGR), all of which are characterized by low leverage and strong earnings growth [3][11] - Each of these stocks holds a Zacks Rank 2, indicating a favorable investment outlook [11] Stock Analysis - Novartis reported a 12% year-over-year increase in net sales and a 29% improvement in earnings per share for Q2 2025 [15][16] - ResMed anticipates an 8.1% year-over-year increase in fiscal fourth-quarter sales, with a long-term earnings growth rate of 15.3% [17][18] - Wabtec's sales are expected to grow by 5.3% year-over-year, supported by a long-term earnings growth rate of 16% [19][20] - Elbit Systems forecasts a 13.8% increase in 2025 sales, with a four-quarter average earnings surprise of 21.12% [21] - Ingredion expects a 1% improvement in 2025 sales, with a long-term earnings growth rate of 11% [22][23]

Group 1 - Akebia Therapeutics (AKBA) is outperforming the Medical sector with a year-to-date return of approximately 104.2%, while the sector has returned an average of -5.7% [4] - The Zacks Consensus Estimate for AKBA's full-year earnings has increased by 65.4% in the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [4] - Akebia Therapeutics holds a Zacks Rank of 1 (Strong Buy), suggesting it has characteristics that may lead to outperformance in the market over the next one to three months [3] Group 2 - Akebia Therapeutics is part of the Medical - Drugs industry, which consists of 155 companies and currently ranks 96 in the Zacks Industry Rank, with an average gain of 4.1% this year [6] - Another Medical stock, ResMed (RMD), has returned 10.2% year-to-date and has a Zacks Rank of 2 (Buy), with a consensus EPS estimate increase of 1.4% over the past three months [5] - The Medical - Products industry, which includes ResMed, has 84 stocks and is ranked 166, with an average return of 4.8% since the beginning of the year [6]

Company Overview - Resmed is set to release its financial and operational results for the fourth quarter of fiscal year 2025 on July 31, 2025, after the NYSE closes [1] - The company is dedicated to creating innovative health technologies that enhance the quality of life for individuals in 140 countries [2] - Resmed's vision includes empowering people to achieve better sleep and breathing through personalized home healthcare solutions [2] Earnings Webcast Details - Following the earnings release, Resmed management will host a webcast to discuss the results and other forward-looking information [1] - The earnings webcast will be accessible via a specific link, with no outside phone lines used for access [1] - A replay of the webcast will be available on Resmed's investor relations website approximately two hours after the live event [2] Contact Information - For investor inquiries, Resmed provides a dedicated contact number and email [3] - Media inquiries can also be directed to a specific contact number and email [3] - Additional details regarding the webcast timing and international access are provided [3][4]