The ResMed Inc (ASX: RMD) share price is rising on Friday morning.
At the time of writing, the sleep disorder treatment company's shares are up 2.5% to a record high of $43.47.
This follows the release of its fourth quarter and full year results before the market open.
ResMed share price higher on results day
For the three months ended 30 June, ResMed reported a 10% increase in revenue to US$1.3 billion, a 230 basis points increase in its gross margin to 60.8%, and a 19% lift in income from operations.
This led to the company posting a 10% increase in full year revenue to US$5.1 billion for FY 2025.
This reflects a 10% increase in US, Canada, and Latin America revenue to US$2,997.5 million and a 9% lift in Europe, Asia, and other market revenue to US$1,507.4 million.
Driving this growth was a 9% lift in device sales to US$2,665.2 million, an 11% lift in mask sales to US$1,839.7 million, and a 10% rise in Residential Care Software to US$641.4 million.
ResMed's gross margin improved 270 basis points over the 12 months to 59.4%, which underpinned an impressive 28% increase in income from operations to US$1,685.4 million.
This allowed the company to lift its final dividend by 13% to US$0.60 per share. This is the equivalent of 6 US cents per share for its ASX listed shares.
Management commentary
ResMed's chair and CEO, Mick Farrell, was pleased with the company's finish to the financial year. He said:
Our strong finish to fiscal year 2025 reflects ongoing momentum across our business, driven by robust global demand for our market-leading sleep and breathing health devices, as well as our expanding digital health ecosystem.
In the fourth quarter, we delivered 10% headline revenue growth, 230 basis points in non-GAAP gross margin expansion, and 23% non-GAAP EPS growth. These results are a testament to the value that our best-in-class solutions deliver to our customers, and the unwavering dedication of our global team. Our connected care platform continues to set the standard for digital health innovation, empowering millions of people to take control of their sleep and breathing health with hardware, software and healthcare solutions delivered in their own homes.
Looking ahead, Farrell appears positive on ResMed's prospects in FY 2026. He adds:
As we move into fiscal year 2026, we will continue to invest in innovation, scale our digital health capabilities, and partner with patients, providers, payers, and policymakers to ensure more people around the world have access to the care they need to sleep better, breathe better, and live longer and healthier lives.
