Mixed Q4 Results and Strong Full-Year Performance: ResMed reported Q4 fiscal 2026 non-GAAP earnings of $2.95 per share, exceeding analyst forecasts, while revenue of $1.46 billion narrowly missed expectations. For the full fiscal year 2026, the company achieved strong results with total net revenue of $5.65 billion and non-GAAP EPS growth of 17%. This was supported by a robust $3.45 billion in gross profit and a $1.52 billion net income.
Conservative FY2027 Guidance with Headwinds: The company issued its first formal annual guidance, projecting core constant currency revenue growth of 5-7% for fiscal 2027, a deceleration from the prior year. This guidance includes an estimated $75 million revenue headwind and approximately $0.15 EPS impact due to the suspension of new Astral ventilator sales following a field safety action.
Strategic Portfolio Adjustments and Dilution: ResMed is divesting its MatrixCare software business (which generated $220 million in fiscal 2026 revenue), expected to be dilutive to FY2027 EPS by approximately $0.30. Additionally, the recent acquisition of Noctrix Health is anticipated to dilute FY2027 EPS by about $0.20. These actions are part of a strategy to focus on core sleep and breathing health.
Strong Growth Drivers and Margin Expansion: Demand for sleep health products, particularly devices and masks, remains a key growth driver, with sleep device revenue rising 8% in the Americas and 13% globally in Q4. Gross margin improved to 62.3% in Q4, driven by supply chain efficiencies and productivity gains, with management expecting low-double-digit gross margin expansion for FY2027.
Increased Shareholder Returns: The company plans to return over $1.85 billion to shareholders in fiscal 2027, a 75% increase year-over-year. This includes a 10% increase in the quarterly dividend to $0.66 per share and a $1.5 billion share repurchase program, leveraging strong cash generation which included $1.47 billion in cash and cash equivalents at quarter-end.

Overall Takeaway
The Q4 fiscal 2026 earnings call for ResMed was broadly neutral to slightly negative. While the company delivered a strong beat on non-GAAP EPS and demonstrated robust full-year financial performance, investor sentiment was dampened by a revenue miss and a more conservative outlook for fiscal year 2027. The anticipated headwinds from the Astral ventilator sales suspension and the dilutive effects of recent portfolio changes overshadowed the otherwise solid operational execution and increased shareholder return plans.

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