ResMed 2025 Q4 Earnings Strong Performance as Net Income Jumps 30%

ResMed (RMD) reported its fiscal 2025 Q4 earnings on July 31st, 2025. ResMed's results exceeded expectations, with revenue rising by 10.2% to $1.35 billion and net income jumping 30% to $379.70 million. The company maintained its growth trajectory, driven by strong demand for sleep and breathing health devices. ResMed's guidance for fiscal year 2026 remains optimistic, with plans to invest in digital health innovations and expand partnerships.

Revenue

ResMed experienced a notable 10.2% increase in total revenue for Q4 2025, reaching $1.35 billion compared to $1.22 billion in Q4 2024.

Earnings/Net Income

ResMed's EPS rose 30.2% to $2.59 in 2025 Q4 from $1.99 in 2024 Q4, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $379.70 million in 2025 Q4, marking 29.9% growth from $292.24 million in 2024 Q4. EPS performance indicates robust financial health.

Post-Earnings Price Action Review

The strategy of buying RMD shares when revenues exceed expectations and holding for 30 days resulted in a 29.15% return, significantly underperforming the benchmark return of 85.57%. Despite the moderate risk-adjusted return as indicated by the Sharpe ratio of 0.18, the strategy demonstrated a low-risk profile with a maximum drawdown of 0% and a volatility of 29.09%. However, the performance fell short of market standards, highlighting the need for a refined approach to capitalize on ResMed's earnings momentum. The strategy's modest risk-adjusted gains emphasize the importance of aligning investment strategies more closely with broader market trends.

CEO Commentary

"Our strong finish to fiscal year 2025 reflects ongoing momentum across our business, driven by robust global demand for our market-leading sleep and breathing health devices, as well as our expanding digital health ecosystem," said Mick Farrell, Chairman and CEO of ResMed. He noted a 10% headline revenue growth, 230 basis points in non-GAAP gross margin expansion, and a 23% increase in non-GAAP EPS, highlighting the value of their solutions and the dedication of their global team. Farrell emphasized their commitment to innovation and collaboration to improve access to healthcare for those with sleep and breathing health needs.

Guidance

As we move into fiscal year 2026, ResMed plans to continue investing in innovation and scaling digital health capabilities. The company aims to partner with patients, providers, payers, and policymakers to enhance access to care, ensuring that more people can achieve better sleep, breathing health, and overall well-being.

Additional News

ResMed has recently announced the acquisition of VirtuOx, a leading independent diagnostic testing facility for sleep, respiratory, and cardiac conditions. This strategic move aims to enhance ResMed's capabilities in providing at-home diagnostic services, supporting patients earlier in their healthcare journey. Additionally, ResMed has been named the Official Sleep Partner of the Qatar Airways British and Irish Lions Tour to Australia, launching the 'Tackle Your Sleep' campaign. This initiative focuses on promoting sleep health awareness globally. Furthermore, ResMed showcased its sleep science innovations at the SLEEP 2025 conference, highlighting research on PAP therapy adherence, gender disparities in OSA diagnosis, and patient-reported outcomes. These developments underscore ResMed's commitment to advancing sleep health research and enhancing its market presence.