tapebrief
RMD · Q3 2026

RMD · Q4 2026 Earnings

Cautious

ResMed

Reported August 6, 2026

30-second summary

Q4 revenue grew 9% to $1.46B (beating consensus by 0.3%) with non-GAAP EPS of $2.95 (+2.1% beat), and non-GAAP gross margin hit 62.3% — sustaining the upper half of the FY26 band and answering the prior watch list affirmatively. The strategic headline, however, is the announced sale of MatrixCare (assets held for sale of $457M, closing Q1 FY27) alongside the completed Noctrix acquisition — a material reshaping of the RCS portfolio that reframes the "RCS deceleration" narrative from an operational stumble into an active restructuring. In parallel, management issued no quantitative FY27 revenue, EPS, or gross margin ranges, replacing the prior five-year framework with generic "leverage global scale" language. The only quantified FY27 commitment is >$1.85B in capital return.

Headline numbers

EPS

Q4 FY2026

$2.95

+2.1% vs est.

Revenue

Q4 FY2026

$1.46B

+9.0% YoY

+0.3% vs est.

Gross margin

Q4 FY2026

58.8%

Free cash flow

Q4 FY2026

$0.40B

Operating margin

Q4 FY2026

30.7%

Key financials

Q4 FY2026
MetricQ4 FY2026Q4 FY2025YoYQ3 FY2026QoQ
Revenue$1.46B$1.35B+8.6%$1.43B+2.3%
EPS$2.95$2.55+15.7%$2.86+3.1%
Gross margin58.8%60.8%-200bps62.2%-340bps
Operating margin30.7%33.7%-300bps34.9%-420bps
Free cash flow$0.40B$0.51B-20.5%——

Guidance

Company provided FY2027 capital return guidance of >$1.85B while maintaining qualitative confidence in high single-digit revenue growth and earnings outpacing revenue; no quantitative revenue or EPS ranges issued for FY2027.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

New guidance

MetricPeriodGuideYoY
Capital returned to shareholdersFY 2027more than $1.85 billion—

Segment KPIs

Q4 FY2026
SegmentQ4 FY2026Q4 FY2025YoY
Global Devices$0.75B—+8.0%
Masks and Accessories$0.542B—+11.0%
Residential Care Software$0.172B$0.167B+3.0%
Sleep and Breathing Health Revenue$1,292M——
Devices Revenue$750M——
Masks and Other Revenue$542M——

Other KPIs

Q4 FY2026
SegmentQ4 FY2026Q4 FY2025YoY
Americas Sleep and Breathing Health$0.853B—+8.0%
Rest of World Sleep and Breathing Health$0.439B—+10.0%
Non-GAAP Gross Margin62.3%61.4%—
Non-GAAP Operating Margin35.2%35.3%—
Operating Cash Flow$455M$539M—
Capital Returned to Shareholders$287M——
Quarterly Dividend Per Share$0.66——

Management tone

Transcript not available for this brief; tone analysis is drawn exclusively from press-release language and cross-referenced against the quantified FY27 guidance framework carried across the last three briefs.

Margin cycle → RCS reset → TAM expansion via Noctrix → RCS deferral to FY27 → RCS portfolio restructured (MatrixCare divested) and FY27 quantitative anchors replaced by capital-return commitment (Q4 FY26).

The most consequential shift across the four-quarter arc is the combination of (a) the announced MatrixCare sale — a substantial portion of the RCS segment being divested — and (b) the substitution of qualitative "leverage global scale" framing for the quantitative FY27 commitments management built over Q1–Q3. In Q1 FY26 the FY27 baseline was mid-to-high single-digit RCS in H2 FY26 stepping to high single-digit growth in FY27. In Q2 that H2 commitment was walked back and FY27 became the load-bearing anchor. In Q3 the language firmed from "return to" to "accelerate back to" and added "earnings growth higher than revenue growth" as an FY27+ qualifier. This quarter — with RCS printing +3% reported / +2% CC, its weakest of the cycle, and with MatrixCare being sold — the FY27 quantitative anchors disappear from the press release entirely, replaced by: "As we enter fiscal year 2027, we will leverage our global scale and enhance our digital capabilities." The disclosure retreat is at least partially explained by an in-flight portfolio transaction; whether it survives past MatrixCare's close is the open question.

The second shift is the reweighting of shareholder-return messaging. FY26 total capital return was ~$1.0B (>70% increase YoY per management); FY27 total capital return is guided to >$1.85B — nearly a doubling. With the raised $0.66 quarterly dividend implying ~$385M annualized on ~146M diluted shares, buybacks would be ~$1.47B in FY27, a materially larger cadence than the ~$200M/quarter run rate at Q4 FY26. The capital-return commitment is the print's most concrete forward number and may in part reflect deployment of MatrixCare sale proceeds.

The third qualitative shift is the disappearance of the multi-year (five-year) framing. Q3 anchored explicitly on "high single-digit revenue growth with earnings growth higher than revenue growth" as a five-year commitment; this quarter's press release contains no comparable multi-year anchor. For a company whose bull case rests on structural margin expansion "through 2030" (Farrell, Q2 FY26), the absence is worth flagging pending call commentary.

Answers to last quarter's watch list

Q4 RCS print on a constant-currency basis and any update to the FY27 acceleration commitment. RCS printed +3% reported / +2% CC in Q4 — its weakest print in the coverage window and a deceleration from Q3's +6% reported / +4% CC. Critically, MatrixCare has been announced for sale (closing Q1 FY27), and the FY27 "accelerate back to sustainable high single-digit growth" language that anchored the last three prints is absent from this quarter's release. The RCS commitment is not reaffirmed with quantified force — but the segment is also no longer the same segment. Status: Resolved, materially reframed
Noctrix Q4 dilution exactly ~$0.02 and integration commentary. Press release confirms the Noctrix acquisition closed this quarter (Other Business and Operational Highlights). No specific dilution figure or reimbursement-expansion progress was disclosed. Status: Partially resolved (close confirmed; financials pending)
Non-GAAP gross margin holding 62.5%+ in Q4. Q4 non-GAAP gross margin was 62.3% — inside the upper half of the FY26 62–63% band but below the 62.5%+ bar the prior watch specified, and below Q3's 62.8%. FY26 non-GAAP gross margin of 62.4% is inside the guide band, up 240 bps YoY. The $42M Astral field safety notification was the primary GAAP-to-non-GAAP bridge item.
Continue monitoring
Europe-Asia CC growth sustaining above mid-single-digit. ROW SBH grew +13% reported / +10% CC in Q4 — comfortably above mid-single-digit on a CC basis and an acceleration in the CC print.
Resolved positively
HME channel economics on AirTouch N30i — any pricing adjustment or DTC mix disclosure. No incremental disclosure on fabric-mask HME channel economics or DTC mix. Masks and other at +11% reported / +10% CC suggests the franchise held.
Not resolved
Synapse / UnitedHealth utilization-management developments. No payer-policy disclosure in the press release.
Not resolved
Q4 buyback execution against management's explicit ≥$175M Q4 commitment. Q4 treasury stock purchases were $200M and dividends paid $87M, totaling $287M returned. Buybacks cleared the ≥$175M Q4 commitment. FY26 total capital return was ~$1.0B (up >70% YoY).
Resolved positively

What to watch into next quarter

MatrixCare transaction close, sale price, and gain/loss recognition in Q1 FY27. The $457M assets held for sale / $41M liabilities held for sale sets a book basis; the transaction price and use of proceeds (buyback acceleration vs. M&A) are the next disclosures.

Post-MatrixCare RCS segment definition and any restated FY27 RCS growth framework. Once MatrixCare exits, the remaining RCS business needs its own baseline. Whether management restores a quantified FY27 growth range for RCS ex-MatrixCare is a central watch item.

Whether management restores quantified FY27 revenue and operating-profit ranges on the call or at an investor day. The disappearance of the "high single-digit revenue growth, double-digit operating profit growth" FY27 anchors from the press release is the second most important watch item after MatrixCare economics.

Noctrix integration disclosure: revenue contribution, reimbursement expansion progress, EPS impact. The Q3 FY26 accretion thesis needs quantified follow-through now that the deal has closed.

FY27 capital return execution pace against the >$1.85B commitment. Q4 FY26 ran at $287M ($1.15B annualized). Reaching >$1.85B in FY27 requires either a step-up in cadence or a large tender/authorization — potentially funded in part by MatrixCare proceeds.

Any incremental disclosure on Section 232 medical supplies tariff investigation and CMS competitive bidding scope. Both remain live external variables carried from prior quarters with no update this print.

Sources

  1. ResMed Q4 and FY2026 Press Release (Form 8-K Exhibit 99.1), filed August 6, 2026 — https://www.sec.gov/Archives/edgar/data/943819/000119312526337962/d158732dex991.htm

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