ResMed Inc (ASX: RMD) has delivered a robust performance in the second quarter of fiscal year 2026, posting revenue of US$1.4 billion. The medical device manufacturer reported an 11 per cent increase in headline revenue, driven by strong demand across its sleep and respiratory care portfolio.
Figure 1: ResMed corporate logo [Source: ResMed]
The Company announced these ResMed Q2 FY26 results on 29 January 2026. Management highlighted continued momentum in its digital health ecosystem, which now spans more than 140 countries. The quarter also saw gross margin expansion of 320 basis points to 61.8 per cent.
ResMed Q2 FY26 Results: Revenue Climbs on Device Demand
ResMed recorded revenue of US$1,422.8 million for the three months ended 31 December 2025. This represents growth of 9 per cent on a constant currency basis compared to the prior year period.
The Company’s sleep and breathing health segment generated US$1,255.9 million in revenue, up 12 per cent year-over-year. Device sales reached US$726.2 million while masks and accessories contributed US$529.7 million. Residential care software added US$166.9 million, growing 5 per cent on a constant currency basis.
ResMed’s U.S., Canada, and Latin America operations delivered particularly strong results. Revenue in these regions grew 11 per cent to US$835.0 million, excluding residential care software. Europe, Asia, and other markets posted 6 per cent constant currency growth to US$420.9 million.
Margin Expansion Reflects Operational Excellence
ResMed revenue Q2 FY26 results revealed significant margin improvement across the business. Gross margin increased by 320 basis points to 61.8 per cent for the period ended 31 December 2025.
Non-GAAP gross margin rose 310 basis points to 62.3 per cent. Management attributed this expansion to manufacturing efficiencies, logistics improvements, and component cost reductions. The Company continues to benefit from scale advantages in its global operations.
Figure 2: Interior view of a ResMed facility highlighting its modern workspace and product display area [Source: Yahoo Finance]
Operating cash flow for the quarter reached US$340 million. ResMed generated this while investing in innovation and expanding its digital health capabilities. The Company maintains a disciplined approach to capital allocation.
Earnings Performance Exceeds Prior Year
ResMed revenue Q2 FY26 reported diluted earnings per share of US$2.68 for the three months ended 31 December 2025. This represents a 15 per cent increase compared to US$2.34 in the prior year period.
Non-GAAP diluted earnings per share reached US$2.81, up 16 per cent from US$2.43. Net income for the quarter totalled US$392.6 million while non-GAAP net income came in at US$411.5 million. Income from operations increased 18 per cent to US$491.7 million.
ResMed’s operating expenses rose 12 per cent on a constant currency basis. The increase primarily reflects costs associated with the VirtuOx acquisition, employee investments, and marketing initiatives. Selling, general, and administrative expenses represented 19.6 per cent of revenue.
Innovation Pipeline Strengthens Market Position
ResMed received FDA clearance for Smart Comfort, an AI-enabled digital medical device. The technology personalizes CPAP comfort settings and aims to improve patient adherence. This advancement demonstrates the Company’s commitment to integrating artificial intelligence into its product ecosystem.
Figure 3: FDA Cleared mark indicating regulatory approval for medical devices [Source: ChiroSight]
The Company published new research in the journal SLEEP during the quarter. The study involved more than 370,000 patients with obstructive sleep apnoea across all comorbidity cohorts. Results showed each additional hour of PAP use linked to a 4.1 to 6.2 per cent reduction in healthcare utilisation over 12 to 24 months.
ResMed CEO Mick Farrell presented at the J.P. Morgan Healthcare Conference in January 2026. He highlighted the Company’s long-term growth opportunities and connected-care ecosystem. The presentation reinforced ResMed’s leadership position in digital sleep and respiratory health.
Financial Position and Capital Management
ResMed revenue Q2 FY26 results revealed that the Company held cash and cash equivalents of US$1,417.1 million as on 31 December 2025. This compares to US$1,209.5 million as on 30 June 2025. Total assets stood at US$8,503.4 million at quarter end.
The Company repurchased 704,000 shares for US$175 million during the three months ended 31 December 2025. ResMed also paid US$88 million in dividends to shareholders. The board declared a quarterly cash dividend of US$0.60 per share with a record date of 12 February 2026.
Total debt decreased to US$663.8 million as of 31 December 2025 from US$668.3 million six months earlier. The Company maintains a conservative capital structure while pursuing strategic growth initiatives. Stockholders’ equity increased to US$6,320.9 million from US$5,967.9 million.
Six-Month Performance Demonstrates Consistency
ResMed revenue Q2 FY26 results showed six months ended 31 December 2025, the Company generated revenue of US$2,758.4 million. This represents 10 per cent growth, or 8 per cent on a constant currency basis. The ResMed earnings Q2 FY26 performance aligns with first-quarter momentum.
Figure 4: ResMed Q2 FY26 financial performance snapshot showing revenue, margins, and earnings growth [Source: ResMed]
Diluted earnings per share for the half-year reached US$5.05 compared to US$4.45 in the prior year. Non-GAAP diluted earnings per share came in at US$5.36, up 16 per cent from US$4.63. Net income totalled US$741.1 million while non-GAAP net income reached US$786.4 million.
Operating cash flow for the six-month period was US$797.1 million. The Company invested US$71.5 million in property, plant, and equipment during this time. ResMed earnings Q2 FY26 updates showed the the Company returned US$325.0 million to shareholders through share buybacks and US$175.3 million through dividends.
Management Commentary and Strategic Direction
Chairman and CEO Mick Farrell emphasised the Company’s mission to help people sleep better and breathe better. He noted that ResMed is advancing this goal while delivering sustainable, profitable growth. The ResMed Q2 FY26 results validate the strategy.
Management highlighted continued investment in innovation as a priority. The Company plans to scale its digital health capabilities during the second half of fiscal year 2026. Expanding global access to life-saving care remains central to the long-term vision.
Farrell pointed to the strength and resilience of ResMed’s global business. The leadership team maintains confidence in the Company’s competitive position. Strategic acquisitions like VirtuOx complement organic growth initiatives.
Share Price Performance and Market Valuation
ResMed shares closed at $37.740 on the Australian Securities Exchange following the earnings announcement. The stock has traded in a 52-week range of $32.040 to $45.250 per share. Market capitalisation stands at$53.02 billion.
Figure 5: ResMed (ASX: RMD) share price performance over the past year [Source: Australian Securities Exchange]
The Company’s shares trade on both the New York Stock Exchange and the Australian Securities Exchange under the ticker RMD. CDI holders on the ASX receive dividends in Australian currency based on the exchange rate. The ex-dividend date for the upcoming payment is 11 February 2026.
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FAQs
Q1. What were the ResMed Q2 FY26 results for revenue?
Ans. ResMed earnings Q2 FY26 updates showed revenue of US$1,422.8 million for the quarter ended 31 December 2025, representing 11 per cent growth or 9 per cent on a constant currency basis.
Q2. What was the Company’s gross margin in Q2 FY26?
Ans. The Company achieved a gross margin of 61.8 per cent, up 320 basis points year-over-year, driven by manufacturing efficiencies and component cost improvements.
Q3. How much did ResMed earn per share in the second quarter?
Ans. ResMed earnings Q2 FY26 results showed that the Company diluted earnings per share of US$2.68, and non-GAAP diluted earnings per share of US$2.81 for the quarter ended 31 December 2025.
Q4. What is the Company’s dividend for Q2 FY26?
Ans. The board declared a quarterly cash dividend of US$0.60 per share with a record date of 12 February 2026 and payment date of 19 March 2026.
