Did ResMed beat earnings in Q2 FY2026?

Yes. ResMed beat revenue estimates by 1.8% ($1.42B vs $1.40B expected) and non-GAAP EPS by 3.3% ($2.81 vs $2.72 expected), driven by strong masks growth and 310 bps of gross margin expansion.

What drove ResMed's margin expansion?

Gross margin expanded 310 basis points YoY to 62.3%, driven by manufacturing and logistics efficiencies plus component cost improvements. Management raised FY2026 guidance to 62-63%.

How did ResMed's masks business perform?

Masks and accessories revenue grew 16% YoY globally (14% constant currency), significantly outpacing device revenue growth of 7% CC, reflecting strong resupply demand and new fabric mask launches.

What did ResMed say about GLP-1 impact?

Claims data from 1.95M patients shows GLP-1 users are 10-11% more likely to start CPAP and have 6%+ higher resupply rates at 3 years. CEO called GLP-1s a 'tailwind' that brings motivated patients into the funnel.

RESMED (RMD)·Q2 2026 Earnings Summary

ResMed Beats on Revenue and EPS as Gross Margin Expansion Continues

January 29, 2026 · by Fintool AI Agent

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ResMed delivered a solid Q2 FY2026 with revenue of $1.42B (+11% YoY) and non-GAAP EPS of $2.81 (+16% YoY), beating consensus on both metrics. The standout was continued gross margin expansion—up 310 basis points YoY to 62.3%—driven by manufacturing efficiencies that have now delivered margin improvement for five consecutive quarters. Management raised FY2026 gross margin guidance to 62-63%.

Did ResMed Beat Earnings?

Yes, on both revenue and EPS.

Metric	Actual	Consensus	Surprise
Revenue	$1,422.8M	$1,398.1M*	+1.8%
Non-GAAP EPS	$2.81	$2.72*	+3.3%
GAAP EPS	$2.68	$2.72*	-1.5%

*Values retrieved from S&P Global

The GAAP EPS miss reflects $6M in restructuring charges related to workforce planning activities completed in Q1. Excluding these one-time costs, operating performance exceeded expectations.

Revenue Trend (Last 8 Quarters)

Metric	Q3 FY24	Q4 FY24	Q1 FY25	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26
Revenue ($M)	$1,197	$1,223	$1,225	$1,282	$1,292	$1,348	$1,336	$1,423
YoY Growth	—	—	—	—	8%	10%	9%	11%

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What Drove the Beat?

Masks Growth Outpacing Devices

The masks and accessories segment was the clear outperformer, growing 16% YoY globally versus 9% for devices. This higher-margin resupply business now represents 42% of Sleep and Breathing Health revenue.

Segment	Q2 FY26	Q2 FY25	YoY Growth	Constant Currency
Sleep & Breathing Health	$1,255.9M	$1,125.6M	+12%	+10%
— Devices	$726.2M	$669.3M	+9%	+7%
— Masks & Other	$529.7M	$456.3M	+16%	+14%
Residential Care Software	$166.9M	$156.5M	+7%	+5%
Total	$1,422.8M	$1,282.1M	+11%	+9%

Margin Expansion Engine Firing

Gross margin of 62.3% represents a 310 bps improvement YoY and 30 bps sequential improvement, continuing a multi-quarter trend:

Metric	Q2 FY25	Q3 FY25	Q4 FY25	Q1 FY26	Q2 FY26
Gross Margin	58.6%	59.9%	61.5%	62.0%	62.3%
Operating Margin	32.5%	33.0%	33.9%	34.6%	36.3%

FY2026 Guidance: 62-63% gross margin (raised from prior expectations).

Management attributed the improvement to component cost reductions and manufacturing/logistics efficiencies. CEO has challenged the supply chain team to deliver double-digit basis points improvement every year through 2030.

Geographic Performance

Americas continues to lead growth, with the U.S., Canada, and Latin America delivering 11% growth versus 6% constant currency for rest of world:

Region	Q2 FY26	Q2 FY25	Growth	CC Growth
Americas	$835.0M	$748.9M	+11%	—
Europe/Asia/Other	$420.9M	$376.6M	+12%	+6%
Software	$166.9M	$156.5M	+7%	+5%

What Changed From Last Quarter?

Three key developments:

FDA Clearance for AI-Enabled Device: ResMed launched "Comfort Match," the company's first FDA-cleared AI-enabled medical device. It's an AI comfort setting recommender within the myAir platform that helps patients personalize CPAP settings and improve adherence.
New Fabric Masks Launched: F30i Comfort and F30i Clear—the first compact full-face fabric masks from ResMed—launched in select markets with "incredibly positive" patient and provider feedback.
Brain Health Research Published: JAMA Neurology study (11M+ U.S. veterans) found OSA associated with higher incidence of Parkinson's disease, with early CPAP treatment potentially reducing risk. Growing evidence shows untreated moderate-to-severe OSA increases dementia likelihood by 30-45%.
CME Education Scaled Up: 60,000 training completions (50% increase QoQ), 35,000+ unique clinicians trained, 77% intend to change clinical practices on sleep apnea screening and referral.
Indiana Distribution Center: Lease signed and construction started; on track for calendar 2027. Will enable 90% of U.S. customers to receive shipments in <2 business days.
Restructuring Complete: $6M in restructuring charges finalized the workforce planning activities announced in Q1.

Capital Allocation

ResMed continues aggressive shareholder returns while maintaining investment capacity:

Q2 FY26	Amount
Operating Cash Flow	$340M
Dividends Paid	$88M
Share Repurchases	$175M (704K shares)
Quarterly Dividend	$0.60/share
Net Cash Position	$753M

CEO announced increased buyback commitment: ResMed will repurchase more than $600M in shares for FY2026, up from prior plans. The board declared a quarterly dividend of $0.60/share.

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The GLP-1 Question

The key investor debate around ResMed remains whether GLP-1 weight loss drugs will cannibalize sleep apnea device demand. Management has consistently argued the opposite—that GLP-1s are actually driving demand for CPAP therapy.

Updated claims data (1.95 million patients tracked):

Metric	GLP-1 + CPAP Patients	vs. CPAP-Only
CPAP Start Rate	10-11% higher	Baseline
Resupply at 1 Year	3%+ higher	Baseline
Resupply at 3 Years	6%+ higher	Baseline

"What we're finding is patients on a GLP-1 get on CPAP more and stay on CPAP therapy longer... It's encouraging to see that the motivation of these patients lasts and even accelerates over time." — Mick Farrell, CEO

The 3-year data is new this quarter and shows the GLP-1 tailwind accelerating over time rather than fading. Even if patients discontinue GLP-1s (where adherence is often only 30-40% at 1 year), they appear to stay motivated on CPAP therapy.

Q&A Highlights

On U.S. Masks Growth (16% YoY):

"Even without Virtuox, still double-digit growth, so still really strong... Some seasonality impact from high-deductible health plans clearing at quarter-end, but also early days for the new fabric mask launches—off to a good start." — Brett Sandercock, CFO

On Philips Re-Entry to U.S.:

"They're back in over 100 countries in Europe, Asia, rest of the world... and I don't know if you looked into the Europe, Asia, rest of the world device growth in the quarter, pretty solid. They're at 5%, right in line with market... We're holding share and competing well." — Mick Farrell, CEO

On SG&A Growth (15% headline):

"There was some impact from the Virtuox acquisition. If you excluded that, we would be at high single digits for SG&A growth. So tracking pretty close on revenue growth." — Brett Sandercock, CFO

On PCP Channel ROI:

"60,000 trainings we've done on CME with PCPs... it was the number one downloaded PCP training in the last quarter, and it was up 50% just in the quarter." — Mick Farrell, CEO

How Did the Stock React?

The stock closed at $257.67, essentially flat on the day, as results were released after market close. After-hours trading showed minimal movement (~$257.61).

Price Point	Value
Previous Close	$257.72
Today's Close	$257.67
After-Hours	$257.61
52-Week High	$293.81
52-Week Low	$199.92
Market Cap	$37.6B

The muted reaction likely reflects that the beat was in-line with the improving trend investors expected, with no major positive or negative surprises on guidance (ResMed does not provide formal quarterly guidance).

What to Watch Next

GLP-1 Demand Dynamics: The 3-year data showing 6%+ higher resupply suggests tailwind is accelerating—watch for continued claims data updates
Gross Margin Runway: New guidance of 62-63% for FY26; CEO has challenged supply chain to deliver double-digit bps improvement annually through 2030
U.S. Manufacturing Expansion: Indiana distribution center (CY2027) + Calabasas plant doubling capacity = "only made-in-America CPAP" positioning
Comfort Match Adoption: Impact of first FDA-cleared AI device on adherence metrics and patient engagement through myAir (11M users)
Philips U.S. Re-Entry: Timing still unknown, but ResMed has been competing well in 100+ international markets where Philips already returned

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ResMed's Q2 FY2026 earnings call webcast is available at 1:30 p.m. PT / 4:30 p.m. ET on January 29, 2026 at investor.resmed.com.

View Full Company Profile | View Q1 FY2026 Earnings | Read Q2 FY2026 Transcript