ResMed Posts 9% Revenue Growth as Digital Health Ecosystem Expands
The medical device maker reported strong Q4 results and outlined plans to capitalize on growing sleep health awareness driven by wearables and GLP-1 medications.
Strong Quarter Caps Fiscal 2026
ResMed Inc. delivered 9% headline revenue growth in its fiscal fourth quarter, or 8% on a constant currency basis, Chief Executive Michael Farrell told analysts on the company's earnings call (earnings call, 2026-08-06). Non-GAAP earnings per share rose 16% as the company continued to expand gross margins through supply chain efficiency initiatives.
For the full fiscal year 2026, which ended June 30, ResMed posted 10% revenue growth and 180 basis points of operating margin expansion, generating more than $1.6 billion in free cash flow (earnings call, 2026-08-06). The company returned over $1 billion to shareholders through share repurchases and dividends, a 72% increase versus the prior year.
Wearables and GLP-1s Drive Sleep Health Awareness
Farrell highlighted how consumer wearables and GLP-1 medications are creating tailwinds for ResMed's core sleep apnea business. A recent partnership with Aura, a ring-based wearable company, has already driven approximately 13,000 users to resmed.com, with thousands taking sleep assessments and "approximately 75% of those assessed identifying as previously undiagnosed" (earnings call, 2026-08-06).
The company's analysis of GLP-1 impact has expanded to include more than 2.5 million de-identified patients. The data shows patients with prescriptions for both positive airway pressure (PAP) therapy and GLP-1s are "approximately 11% more likely to start on PAP therapy" than those with PAP prescriptions alone (earnings call, 2026-08-06). These patients also show higher resupply rates at one and three years.
Farrell emphasized that sleep apnea "very often persists even after significant weight loss and still needs to be treated with gold standard therapy" (earnings call, 2026-08-06), positioning PAP devices as complementary to weight-loss medications rather than competitive.
Product Innovation and Platform Expansion
ResMed continued rolling out its AirSense 11 platform globally, including recent launches in China. During Q4, the company introduced the AirCurve 11ST and STA platforms in the United States for patients requiring bilevel therapy for complex breathing disorders (earnings call, 2026-08-06).
The company's new fabric mask technology is showing measurable patient outcomes, with data indicating the AirTouch N30i drives "6% higher 90-day compliance than its silicone equivalent" (earnings call, 2026-08-06). A GenAI-powered digital sleep coach in the MyAir app has fielded more than 1.5 million inquiries while reducing customer service calls.
Portfolio Realignment
ResMed closed its acquisition of Noctrix on June 1, gaining access to NIDA, an FDA-cleared device treating restless legs syndrome affecting an estimated 17 million people in the United States (earnings call, 2026-08-06). The company also announced plans to divest its MatrixCare business, expected to close around September 1, to sharpen focus on sleep health, breathing health, and connected home healthcare.
For fiscal 2027, management outlined three priorities: operational and innovation excellence, active portfolio management, and leveraging free cash flow for reinvestment and shareholder returns (earnings call, 2026-08-06). The company expects its Residential Care Software business to deliver high-single-digit revenue growth post-divestiture.
MarginX data shows ResMed will pay a $0.66 cash dividend on August 20, with Q1 2027 results expected October 29. Recent insider activity includes stock sales by CEO Michael Farrell and board member Peter Farrell.
This article was generated by MarginX from the earnings call on 2026-08-06. It is not investment advice.