A maker of cloud-connected medical devices and software for sleep and breathing health, ResMed's CPAP machines (like the AirSense 11 and AirMini) and masks help people with sleep apnea, while its AirView and Brightree software supports care providers. The company traces back to 1981, when a Sydney professor built the first CPAP machine from a vacuum cleaner and a swimming-pool pipe; founder Peter Farrell bought the technology in 1989 and named the firm ResMed, short for "respiratory medicine." Its products reach people in over 140 countries.
10-K · Fiscal year ended Jun 30, 2026 · SEC filing ↗
ResMed's gross margin reached 61.1% in FY2026, the highest in at least a decade, as manufacturing efficiencies compounded.
crossed 61% for the first time in at least a decade. rose 10% to $5.65 billion and reached $10.43, as procurement and logistics efficiencies more than offset $42 million in field safety costs and a higher tax rate. The company is now selling its MatrixCare business to sharpen its focus, leaving it with a and an accelerating .
Key takeaways
widened 1.7 percentage points to 61.1%, driven by procurement, manufacturing, and logistics efficiencies, partially offset by $42 million in expenses for an Astral device field safety notification.
rose 10% to $5.65 billion, with the Sleep and Breathing Health up 10% on higher device and mask unit sales, while Residential Care Software grew 5%.
rose 9% to $1.52 billion, or $10.43 per diluted share, as the rose to 20.6% from 16.5% due to the new and the absence of prior-year IRS refunds.
Section summaries
Business
ResMed is a global leader in digital health and cloud-connected medical devices focused on sleep, breathing health, and residential care software.
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The company operates in two segments: Sleep and Breathing Health, which includes devices, masks, and diagnostics, and Residential Care Software, which provides cloud-based solutions for care providers.
The company agreed to sell its MatrixCare business for $490 million in cash, reclassifying $457 million in assets as held for sale; MatrixCare contributed $220 million in and $28 million in during the year.
ResMed acquired Noctrix Health for $335 million to enter the restless legs syndrome market, adding $202 million in , and recorded $22 million in restructuring charges for employee severance.
Capital allocation shifted decisively toward shareholders: the company repurchased $700 million in stock, up from $300 million the prior year, and paid $350 million in dividends, while ending the year with $1.47 billion in cash and only $399 million in .
What changed
The expansion flagged in FY2025 as potentially peaking continued to compound, rising from 59.4% to 61.1%, as manufacturing and logistics efficiencies proved durable rather than one-time.
Sleep and Breathing Health device growth, which decelerated to 6% in Q3 FY2025 before rebounding, settled at a 10% full-year rate, suggesting the post-recall demand environment has stabilized.
Residential Care Software growth slowed to 5% for the full year from 10% in FY2025, with the Senior Living and Long-Term Care verticals remaining a persistent flagged in prior quarters.
The company's cash deployment question was answered with a sharp acceleration in buybacks to $700 million from $300 million, while debt reduction slowed to a crawl as fell only $5 million sequentially in the second half.
The VirtuOx integration risk flagged in FY2025 was joined by a new $335 million Noctrix Health acquisition, while the planned $490 million MatrixCare sale signals a strategic narrowing of the software portfolio rather than further expansion.
What to watch
Whether can hold above 61% now that the Astral field safety notification expense has been absorbed and the manufacturing efficiency drivers are fully lapped.
The trajectory of Residential Care Software after the MatrixCare sale closes, given that the remaining business grew only 5% in FY2026 and the Senior Living and Long-Term Care headwinds have persisted for multiple quarters.
How the company deploys the $490 million in MatrixCare sale proceeds and its $1.47 billion cash balance — particularly whether the accelerated pace continues or shifts toward acquisitions like Noctrix.
The integration and regulatory exposure from the VirtuOx and Noctrix acquisitions, including compliance with the VirtuOx OIG Corporate Integrity Agreement through 2027, and whether the Pillar Two tax rate of 20.6% represents the new baseline.
In June 2026, ResMed agreed to sell its MatrixCare business for $490 million to sharpen its focus on core sleep and breathing health areas, and it acquired Noctrix Health to expand into restless legs syndrome treatment.
Devices accounted for approximately 51% of net in fiscal 2026, masks and accessories for 37%, and Residential Care Software for 12%.
ResMed sells products in over 140 countries through subsidiaries and distributors, with manufacturing facilities in Singapore, Australia, the U.S., Malaysia, China, and France.
The company's strategy emphasizes growing its core sleep apnea portfolio, accelerating market awareness, capitalizing on adjacent health markets, and investing in an integrated digital-health ecosystem.
Competition includes major medical device companies like Philips and Fisher & Paykel, as well as alternative therapies such as pharmaceuticals, surgery, and dental appliances.
ResMed faces material risks from competitive pressures including GLP-1 drugs, healthcare reimbursement changes, and integration of recent acquisitions VirtuOx and Noctrix.
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Competition from new technologies and pharmaceutical treatments like GLP-1s for weight loss could reduce OSA severity and demand for ResMed's devices.
Healthcare payment reforms, including the 2025 One Big Beautiful Bill Act's Medicaid cuts and CMS competitive bidding changes, may lower reimbursement and pricing.
The acquisitions of VirtuOx and Noctrix expose ResMed to direct federal healthcare oversight, fraud and abuse laws, and a pre-existing VirtuOx .
Global macroeconomic pressures, including reciprocal tariffs, supply chain constraints on rare earth materials from China, and foreign currency fluctuations, threaten profitability.
Evolving AI regulations and the need to integrate AI into products create operational and compliance risks, while cybersecurity threats could disrupt systems and expose sensitive data.
Integration of acquisitions and the planned separation of the MatrixCare business may divert management attention and fail to achieve expected strategic benefits.
Resmed operates a global network of 14 principal owned and leased properties totaling over 2.6 million square feet for manufacturing, R&D, warehousing, and sales.
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The corporate headquarters is an owned 230,000 sq. ft. facility in San Diego, California.
The largest single site is an owned 437,000 sq. ft. facility in Sydney, Australia, used for manufacturing, R&D, and administration.
Leased properties include a 467,000 sq. ft. manufacturing and distribution site in Atlanta, Georgia, and a 447,000 sq. ft. warehouse in Greenwood, Indiana.
A leased 61,000 sq. ft. Atlanta location is dedicated to Residential Care Software sales, administration, and R&D.
Operations in Chatsworth, California, were fully transitioned to the Calabasas, California, leased site during fiscal year 2027.
We are involved in various legal proceedings, claims, investigations and litigation that arise in the ordinary course of our business. See Note 15 – Legal Actions, Contingencies and Commitments of the Notes to Consolidated Financial Statements (Part II, Item 8) included in this…
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We are involved in various legal proceedings, claims, investigations and litigation that arise in the ordinary course of our business. See Note 15 – Legal Actions, Contingencies and Commitments of the Notes to Consolidated Financial Statements (Part II, Item 8) included in this report, which is incorporated by reference herein.
Litigation is inherently uncertain. Accordingly, we cannot predict with certainty the outcome of these matters. But we do not expect the outcome of these matters to have a material adverse effect on our consolidated financial statements when taken as a whole.
ResMed FY26 revenue grew 10% to $5.65B, driven by sleep health demand and gross margin expansion to 61.1%.
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Total net rose 10% (8% ) to $5.65B, with Sleep and Breathing Health up 10% and Residential Care Software up 5%.
improved to 61.1% from 59.4%, driven by procurement, manufacturing, and logistics efficiencies, partially offset by $42M in Astral field safety notification expenses.
Operating expenses grew, with R&D up 14% to $378M (6.7% of ) and SG&A up 13% to $1.12B (19.8% of revenue), including $11M in acquisition and portfolio review charges.
increased to $1.52B ($10.43 per diluted share) from $1.40B, while the rose to 20.6% from 16.5% due to global minimum tax and prior-year non-recurring benefits.
The company announced the sale of its MatrixCare business for $490M, which contributed $220M in and $28M in in FY26, and acquired Noctrix Health to expand its sleep portfolio.
was $1.81B; the company repurchased $700M in stock, paid $350M in dividends, and held $1.47B in cash with $1.5B available under its .
Quantitative and Qualitative Disclosures About Market Risk
ResMed is exposed to foreign currency risk from non‑USD operations and intercompany debt, hedged via cross‑currency swaps and a non‑designated option/forward program.
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Primary foreign currency exposures arise from Australian and Singapore manufacturing and international sales, with EUR, AUD, and SGD as key currencies.
Cross‑currency swaps designated as fair‑value hedges mitigate FX risk on USD/EUR intercompany debt, with changes in fair value recorded in Other, net.
Cross‑currency swaps designated as net‑investment hedges protect the value of foreign subsidiaries, with fair value changes recorded in OCI until sale or liquidation.
A separate non‑designated hedging program uses purchased options, collars, and forwards (maturity ≤3 years) to economically offset FX exposures on assets, liabilities, and cash flows.
Total notional of designated cross‑currency swaps was $3,412 million at June 30, 2026, up from $1,128 million a year earlier; non‑designated hedges totaled $1,285 million.
Interest rate risk is considered immaterial: a hypothetical 10% change in rates would not materially impact pretax income, and the company holds no interest‑rate hedges.
ResMed's FY2026 net revenue grew 10% to $5.65B, with net income rising to $1.52B, and the company announced a planned sale of its MatrixCare business.
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Total net increased 10% to $5.65 billion, driven by growth in both the Sleep and Breathing Health ($4.98B) and Residential Care Software segment ($676M).
rose to $1.52 billion, up from $1.40 billion in FY2025, while increased to $10.43 from $9.51.
The company recorded $22 million in for employee severance and completed the acquisition of Noctrix Health, LLC for $335 million, adding $202 million in .
A definitive agreement was signed to sell the MatrixCare business for $490 million in cash, with $457 million in related assets and $41 million in liabilities classified as held for sale at year-end.
decreased to $2.91 billion from $3.05 billion, primarily due to a $327 million reclassification of Residential Care Software goodwill to .
Cash and cash equivalents ended the year at $1.47 billion, and the company repurchased 2.9 million shares for $705 million during FY2026.