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]