- Company name
- Resmed
- Sector
- Medical devices (sleep & respiratory care)
- About
- Resmed makes devices and software for people with sleep apnea and other breathing problems who are treated at home. Its main products are CPAP machines such as the AirSense 11, the masks and accessories that patients replace often, and ventilators such as Astral. It reports two segments: Sleep and Breathing Health, which is most of its revenue, and Residential Care Software, which includes Brightree in the U.S. and MEDIFOX DAN in Germany. Most of its devices connect to the cloud, and its AirView system lets doctors and equipment suppliers track how patients use therapy. Revenue was $5.65 billion in fiscal 2026, which ended on June 30, 2026. Its large base of connected patients and its scale in masks and devices help it keep share against other device makers. The company has its head office in San Diego and also trades on the ASX in Australia.
- Thesis
- The market prices Resmed for the risk that GLP-1 weight loss drugs reduce the number of people who need sleep apnea therapy. Injectable GLP-1 drugs are approved to treat sleep apnea in patients with obesity, and oral versions are in development, as Resmed itself says in its fiscal 2026 annual report. Investors fear that fewer new patients will start CPAP over time. The current results do not show this yet: revenue grew 9% in Q4 fiscal 2026, Americas Sleep and Breathing Health revenue grew 8%, and the non-GAAP gross margin rose to 62.3%. For the gap to close, three things must be true. Device and mask sales must keep growing at a high single digit rate, which shows that GLP-1 drugs bring more patients into diagnosis than they take out. The non-GAAP gross margin must stay near 62% despite costs such as the $42 million Astral field safety notification. Resmed must return more than $1.85 billion to shareholders in fiscal 2027, as planned, helped by the sale of MatrixCare. The Q1 fiscal 2027 report on October 29, 2026, gives the first test, and the next reports through 2027 give more. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is a fast spread of oral weight loss drugs, which could lower demand for new CPAP therapy over several years.
- Risks
- GLP-1 weight loss drugs are approved to treat sleep apnea in patients with obesity, and oral versions may follow. If many patients lose enough weight, fewer people may start or stay on CPAP therapy.
Resmed had a $42 million Astral field safety notification in Q4 fiscal 2026 and earlier had a field safety notification for masks with magnets. More product safety actions can bring costs and harm trust with doctors and suppliers.
Most U.S. revenue depends on payments from Medicare and private insurers to the equipment suppliers who buy Resmed products. Lower payment rates or competitive bidding can lower demand and prices.
Other device makers, surgical procedures, nerve stimulation devices and dental appliances compete with CPAP. New products from competitors can take share or lower prices.
- Balance sheet
- Cash: $1.5B
Debt: $660M
Net cash: $809M
Undrawn credit line: $1.5B, to June 2027
Debt due within 12 months: $260M
Last debt due: 2029
Resmed has more cash than debt. At June 30, 2026, cash and cash equivalents were $1.47 billion and debt was $660 million under its revolving credit agreement, term credit agreement and senior notes. Short-term debt of $260 million included $250 million of 3.24% senior notes, which Resmed repaid on July 10, 2026. The remaining senior notes of $250 million at 3.45% are due in July 2029. The $1.5 billion revolving credit facility was not drawn, and it and the term loan end on June 29, 2027. Operating cash flow was $1.81 billion and free cash flow was $1.65 billion in fiscal 2026. Resmed returned $1.0 billion to shareholders in fiscal 2026, including $700 million of share repurchases, and it started a $450 million accelerated share repurchase in September 2026.
As of 2026-06-30.
- Checkpoints
- Oct 29, 2026: Q1 fiscal 2027 results: device demand. Pending. Watch: Revenue growth near 8% or more in constant currency, with growth in U.S. devices and masks and a non-GAAP gross margin near 62%, passes; slower device growth or a lower margin fails.
Apr 2027 (estimate): Q3 fiscal 2027 results: new patient starts. Pending. Watch: Continued high single digit growth in device sales passes; flat or falling device sales, which would show the effect of weight loss drugs, fail.
- Recent events
- 2026-10-01: Resmed said it will report Q1 fiscal 2027 results after the market close on October 29, 2026.
2026-08-31: Resmed entered into a $450 million accelerated share repurchase agreement with Citibank. It plans to fund it with the money from the sale of MatrixCare and cash on hand.
2026-08-17: Resmed said that Carol Burt will become Lead Director on November 15, 2026, and that Ron Taylor, Lead Director since 2013, will not stand for reelection at the annual meeting on November 18, 2026.
2026-08-06: Resmed reported Q4 fiscal 2026 results. Revenue rose 9% to a record $1.46 billion. GAAP diluted EPS was $2.64 and non-GAAP EPS rose 16% to $2.95. The GAAP gross margin fell to 58.8% because of $42 million of Astral field safety notification costs, while the non-GAAP gross margin rose to 62.3%. Resmed raised its quarterly dividend by 10% to $0.66 and said it plans to return more than $1.85 billion to shareholders in fiscal 2027.
2026-07-07: Resmed agreed to sell its MatrixCare software business to Frazier Healthcare Partners. It expected the sale to close in the first quarter of fiscal 2027. Brightree and MEDIFOX DAN are not part of the sale.
2026-06-01: Resmed completed the purchase of Noctrix Health, which sells an FDA De Novo classified wearable device that treats restless legs syndrome.