Earnings

ResMed Buys Back $936 Million Of Stock In One Quarter, Holds Its Full-Year Outlook

The sleep-device maker's adjusted earnings rose 14% to $2.91 a share, with more than $1.0 billion returned to holders.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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ResMed Buys Back $936 Million Of Stock In One Quarter, Holds Its Full-Year Outlook

ResMed, which makes cloud-connected CPAP machines and software for sleep and breathing conditions, spent $936 million on share buybacks in its fiscal first quarter, up from $150 million a year earlier. The company reported the figure Thursday alongside results that left its fiscal 2027 forecast unchanged.

Sales up 6%, adjusted EPS up 14%

Revenue rose 6% to $1,415 million from $1,336 million a year earlier, or 7% on a core constant currency basis that strips out the Noctrix acquisition and the MatrixCare sale, the company said in its 8-K.

Diluted earnings per share were $2.92 on standard accounting, up 23% from $2.37, and $2.91 on an adjusted basis, up 14% from $2.55. Net income was $418 million. The standard-accounting figure includes a $62 million gain on the divestment of a subsidiary within other income; the adjusted measure removes it.

Adjusted gross margin widened 50 basis points (half a percentage point) to 62.5%, which the company tied mainly to its productivity program. Adjusted operating margin slipped 30 basis points to 35.8%, and the standard operating margin fell to 32.0% from 33.4%.

Operating cash flow fell 8% to $422 million and free cash flow fell 10% to $374 million.

MatrixCare proceeds fund the payout

ResMed closed the sale of its MatrixCare software business during the quarter, and the cash flow statement shows $450.8 million in net proceeds from divestments. Chairman and CEO Mick Farrell said the cash flow and sale proceeds let the company "both invest in innovation and return more than $1 billion to shareholders during the quarter."

Besides the buybacks, dividends paid were $95 million. Cash and equivalents ended September at $1,011 million, from $1,469 million at the end of June, and the company repaid $250 million of borrowings.

By segment, core constant currency revenue grew 7% in the Americas sleep and breathing business, 8% in the rest of the world, and 5% in Residential Care Software, the cloud software unit for home care providers.

Guidance steady, dividend declared

ResMed kept fiscal 2027 guidance as set on August 6: core constant currency revenue growth of 5% to 7%, reported revenue of $5.75 billion to $5.85 billion, and adjusted earnings per share of $12.00 to $12.25.

The board declared a quarterly dividend of $0.66 per share. It goes ex-dividend on November 11, with a record date of November 12 and payment on December 17, 2026.

The company also announced the U.S. launch of the AirTouch F40 fabric CPAP mask and named Carol Burt lead director effective November 15, 2026, following the planned retirement of director Ron Taylor.

The next payout is already set: $0.66 a share on December 17 to holders of record November 12.

Sources

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