The Resmed CDI (ASX: RMD) share price is in focus after the company reported second quarter revenue up 11% to $1.4 billion and diluted earnings per share rising 15% to $2.68.
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What did Resmed report?
- Revenue rose 11% year-over-year to $1,422.8 million (up 9% in constant currency).
- Gross margin increased by 320 basis points to 61.8% (non-GAAP: 62.3%).
- Income from operations grew 18% to $491.7 million (non-GAAP: up 19%).
- Net income came in at $392.6 million, up 14% from the prior year period.
- Diluted earnings per share were $2.68 (non-GAAP: $2.81), up 15% and 16% respectively.
- Quarterly dividend declared at US$0.60 per share; $88 million returned to shareholders.
What else do investors need to know?
Resmed's second quarter growth was fuelled by robust demand for its sleep and respiratory care devices. Sales improved across most regions, with the US, Canada and Latin America seeing an 11% rise, and Europe and Asia posting 6% constant currency growth (excluding software).
The company reported a $6 million restructuring-related charge, linked to finalising workforce planning initiatives started earlier in the year. Despite slightly higher selling and administration costs, Resmed delivered strong operating cash flow of $340 million and continued its buyback program, repurchasing $175 million in shares.
What's next for Resmed?
Heading into the second half of FY26, Resmed plans to increase investment in digital health solutions and innovation, aiming to expand global access to home-based care. The company is strategically focused on scaling up its AI-enabled technology, following recent FDA clearance for its Smart Comfort device.
Management maintains a goal of sustainable, profitable growth supported by further product development and capital returns, with continued emphasis on research, operational efficiencies, and global market expansion.
Resmed share price snapshot
Over the past 12 months, Resmed shares have declined 10%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 5% over the same period.
