Oct 29, 2026 earnings call — ResMed reports Q1 growth, launches, and large buybacks
Total revenue was $1.4 billion for Q1, and the company returned more than $1 billion to shareholders.
Revenue $1.4B (est $1.4B) · EPS $2.91 (est $2.69) · Next-quarter revenue outlook $5.8B–$5.8B
Key quotes
"We're building the world's leading digital health ecosystem, encompassing sleep health, breathing health and health care technology delivered in the home."
"I'm also proud to share that we've produced our first Made in America CPAP device, and AirSense 11 has come off the line at our Atlanta, Georgia facility."
"As we've discussed before, patients on GLP-1s both initiate CPAP therapy more and stay on CPAP therapy longer, and they buy more stuff."
Analyst Q&A 9
Why gross margin beat expectations
Q (Chris Cooper · JPMorgan): Analyst asked whether modest price increases helped margins earlier than expected and what else drove the gross margin being ahead of guidance, including restructuring timing.
A: Management said productivity and supply-chain timing drove the benefit. They said pricing had no contribution in Q1 and will build through the year, and some U.S. build-out costs shifted from Q1 to Q2.
"And so that's the biggest factor. That's about a 30 basis point headwind quarter-over-quarter from Q1 to Q2." — Aaron Bloomer
Device fleet renewals in other countries
Q (David Low · UBS): Analyst asked for background on Rest of World, especially the France fleet renewals and whether other fleet programs exist.
A: Management said France has differentiated reimbursement favoring cloud-connected CPAPs and a 5-year renewal cycle that has driven renewals from AirSense 10 to AirSense 11. They noted other fleet markets like Japan exist and they will call out outperformance when material.
"And that renewal primarily from AirSense 10 now to AirSense 11 has been ongoing in France for a while." — Michael Farrell
Marketing and partnerships timing
Q (Craig Wong-Pan · RBC): Analyst asked whether recent marketing and partnership initiatives contributed to revenue in the quarter and when they might matter.
A: Management said these programs are aimed at the middle of the funnel and are early-stage. They reported no material contribution in Q1 but expect potential meaningful impact over the fiscal year if pilots scale.
"No material contribution in Q1. But as we look at fiscal year, I hope to be here in 12 months' time talking about some good material contribution from our marketing programs." — Michael Farrell
Impact of GLP-1 pills on patients/adherence
Q (David Rescott · Baird): Analyst asked whether the pill form of GLP-1 might change the types of patients, care settings, and impact on adherence or market expansion.
A: Management said the pill may bring a slightly older, more male cohort versus injectables, and they are tracking cohorts by drug type. They have about 3.1 million patients in their analysis and so far see no material change in the data for pill users.
"I think we're up to 3.1 million patients, 3 million patients in our cohort that we're analyzing here, and we separate by drug type, by injectable, by pill, early days on the pill, but we're not seeing a material change in those data." — Michael Farrell
Maintaining full-year guidance after beat
Q (Brett Fishbin · KeyBanc): Analyst asked why management kept full-year guidance after a strong Q1 and whether higher end of range is now more likely.
A: Management said it is early, they're one quarter in, and reiterating guidance is prudent. They view the midpoint as the most likely outcome and noted drivers that could push results up or down.
"I want to reiterate that the most likely outcome is still the midpoint of our guide when we go 5% to 7%." — Aaron Bloomer
M&A pipeline and approach
Q (Laura Sutcliffe · Citi): Analyst asked how portfolio optimization is progressing and whether there are many tuck-in opportunities in the target deal size and focus areas.
A: Management said they target tuck-ins in the sub-$500 million range and recently closed Nidra, focusing first on U.S. market access. They keep minority stakes in companies and will buy when strategic, financial and cultural fit align.
"And as those come to the right point where we say, actually, now ResMed is the best owner of that asset." — Michael Farrell
Defending market share with more competition
Q (Anthony Petrone · Mizuho Group): Analyst asked how ResMed would defend market share in the U.S. if competition increases and whether growth can continue.
A: Management said they welcome competition and expect to defend and grow share using their ecosystem: devices, masks, software, and data integration. They emphasized focusing on getting more patients into care and sustaining adherence long-term.
"We're not only going to defend our share, we're going to grow our share." — Michael Farrell
Mask fabric technology success
Q (Davinthra Thillainathan · Goldman Sachs): Analyst asked how the fabric mask range is performing, its effect on mask mix and market share.
A: Management said real-world data show a 6% increase in adherence for the early fabric masks after 12–18 months in market. They described the new AirTouch F40 as high-margin, addressing oral breathing, and early but promising.
"we've now got real-world data to show a 6% increase in adherence for those first launched, now 12, 18 months in market masks." — Michael Farrell
U.S. manufacturing capacity and costs
Q (Dan Hurren · MST): Analyst asked about U.S. manufacturing capacity versus legacy, the cost impact during ramp-up, and margin drag.
A: Management said they are building U.S. lines for devices, masks and distribution to reduce risk and aim to match delivered cost versus importing. They acknowledged start-up underutilization costs in Q2–Q3 but expect similar landed cost over time.
"we expect to be able to deliver a similar landed cost in the U.S. than what we would get importing." — Aaron Bloomer