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# ResMed Stops Selling Astral Ventilator, Takes $42 Million Reserve And Vows 'Best Recall' Ever
- URL: https://www.bullished.co/resmed-stops-selling-astral-ventilator-takes-42-million-reserve-and-vows-best-recall-ever-37c4789b/
- Published: 2026-10-30T05:08:10.000Z
- Updated: 2026-10-30T05:08:10.000Z
- Description: The decision costs about $75 million in full-year revenue, the CFO said, as life support device sales fell 94% in the Americas.
- Author: Matteo Parrino
- Tags: Earnings, RMD, Industry: Healthcare

[ResMed](https://www.bullished.co/tag/rmd/), which makes cloud-connected CPAP machines and other devices for sleep and breathing conditions, will no longer sell its Astral ventilator, CEO Mick Farrell said on the company's earnings call Thursday. The company will put all available components into servicing Astral units already with patients, he said.

## A $75 million hole in the outlook

Chief Financial Officer Aaron said on the call that dropping Astral is a headwind of about 130 basis points, or around $75 million, to full-year revenue growth. Guidance for core constant-currency growth stays at 5% to 7%. Excluding Astral, he said, it would be 6.3% to 8.3%.

The damage already shows in the first quarter. Life support device revenue fell 94% in the Americas and 79% in the rest of the world, Aaron said.

Total first-quarter revenue was $1.4 billion, up 6% as reported and 7% on a core constant-currency basis. Adjusted earnings per share rose [14% to $2.91](https://finance.yahoo.com/markets/stocks/articles/resmed-rmd-beats-q1-earnings-203505685.html?.tsrc=rss&ref=bullished.co). The company kept its full-year outlook for adjusted earnings per share at $12 to $12.25.

## Servicing by clinical acuity

Farrell said servicing will be prioritized by the highest clinical acuity, guided by clinical judgment. He said home care providers need to plan for future ventilation needs, which is why the company announced the end of Astral sales.

The company is running a field safety corrective action on Astral. "We're going to execute the best recall in the history of life support ventilation," Farrell said. He said ResMed took a $42 million reserve and that the latest data is "very good."

## Buybacks and a board change

ResMed bought back about $936 million of stock in the quarter, and with its dividend returned more than $1 billion to shareholders, which Farrell called a record. It funded this with proceeds from selling its MatrixCare business and cash on hand. The company still expects to return more than $1.85 billion over fiscal 2027.

Lead independent director Ron Taylor will not stand for reelection at the annual meeting on November 18, 2026\. Carol Burt becomes lead independent director effective November 15.

ResMed's market value stood at $35.2 billion as of the original report on Friday, with the Astral servicing effort still under way.

Learn

- [How To Read An Earnings Call Transcript: Start With Guidance, Then Find What's Missing →](https://www.bullished.co/learn/how-to-read-an-earnings-call/)  
How to read an earnings call transcript: check guidance first, look for dropped metrics, compare growth with last quarter, and watch hedged wording.

### Sources

- [ResMed (RMD) Beats Q1 Earnings and Revenue Estimates](https://finance.yahoo.com/markets/stocks/articles/resmed-rmd-beats-q1-earnings-203505685.html?.tsrc=rss&ref=bullished.co) — Yahoo Finance
- [ResMed: Fiscal Q1 Earnings Snapshot – WTOP News](https://wtop.com/national/2026/10/resmed-fiscal-q1-earnings-snapshot/?ref=bullished.co) — wtop.com
- [ResMed outlines FY 2027 $5.75B-$5.85B revenue outlook while targeting $1.85B+ shareholder returns (NYSE:RMD) | Seeking Alpha](https://seekingalpha.com/news/4661084-resmed-outlines-fy-2027-5%5F75b-5%5F85b-revenue-outlook-while-targeting-1%5F85b-shareholder-returns?ref=bullished.co) — seekingalpha.com
- [ResMed Non-GAAP EPS of $2.91 beats by $0.24, revenue of $1.4B beats by $10M (RMD:NYSE) | Seeking Alpha](https://seekingalpha.com/news/4660774-resmed-non-gaap-eps-of-2%5F91-beats-by-0%5F24-revenue-of-1%5F4b-beats-by-10m?ref=bullished.co) — seekingalpha.com
- [If You Invested $1000 In ResMed Stock 20 Years Ago, You Would Have This Much Today](https://www.benzinga.com/news/26/10/62681363/if-you-invested-1000-resmed-stock-20-years-ago-you-would-have-much-today?ref=bullished.co) — benzinga.com

### More on ResMed

- [ResMed's Marketing Push Added Nothing To Sales Last Quarter, CEO Says — 'Not Yet'](https://www.bullished.co/resmeds-marketing-push-added-nothing-to-sales-last-quarter-ceo-says-not-yet-5d489302/)
- [ResMed Buys Back $936 Million Of Stock In One Quarter, Holds Its Full-Year Outlook](https://www.bullished.co/resmed-buys-back-936-million-of-stock-in-one-quarter-holds-its-full-year-outlook-d4973ec4/)

[All ResMed (RMD) coverage →](https://www.bullished.co/tag/rmd/)