ResMed(US:RMD)2026-01-29 21:05Financial 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].