Core Insights - ResMed Inc reported better-than-expected earnings for Q2, with earnings of $2.55 per share, surpassing the analyst consensus estimate of $2.46 per share [1] - The company achieved quarterly sales of $1.348 billion, exceeding the analyst consensus estimate of $1.321 billion [1] Company Performance - The strong finish to fiscal year 2025 is attributed to robust global demand for ResMed's sleep and breathing health devices and the expansion of its digital health ecosystem, as stated by the Chairman and CEO, Mick Farrell [2] - Following the earnings announcement, ResMed shares increased by 2.1%, trading at $277.70 [2] Analyst Ratings and Price Targets - Piper Sandler maintained a Neutral rating and raised the price target from $248 to $270 [7] - Keybanc maintained an Overweight rating and increased the price target from $274 to $298 [7] - UBS maintained a Buy rating and boosted the price target from $285 to $325 [7] - RBC Capital maintained an Outperform rating and raised the price target from $294 to $300 [7] - Stifel maintained a Hold rating and increased the price target from $240 to $270 [7] - Mizuho maintained an Outperform rating and raised the price target from $270 to $290 [7]

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]