Resmed posts Q2 FY26 earnings growth, lifts dividend

Resmed posts double-digit revenue and profit growth in Q2 FY26, declares dividend, and outlines plans for innovation.

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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.

a bearded man sits at his desk with hands behind his head and feet on his desk smiling widely while looking at his computer screen which has market data on it, indicating a please share price rise.

Image source: Getty Images

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.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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