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- **Revenue Beat Expectations**: 9% headline growth driven by U.S. device (8%) and mask (12%) resupply, with Europe, Asia masks returning to high single-digit growth.
- **Innovative Product Launches**: AirTouch F30i masks and AI tools (Dawn, Comfort Match) position ResMed as leader in patient comfort and adherence.
- **Gross Margin Expansion**: 280 bps YoY improvement to 62%, with FY26 guidance of 61%-63%.
- **U.S. Manufacturing Expansion**: $1.4 billion cash balance supports $150M/quarter share buybacks and strategic investments in U.S. manufacturing and AI.
- **Strategic Acquisitions Paying Dividends**: VirtuOx and NightOwl driving 8% U.S. device growth, with Europe, Asia masks poised for acceleration.

**【CEO Summary Section】**
- **Revenue Growth**: Q1 FY26 revenue of $1.34 billion, up 9% year-over-year (8% constant currency). U.S., Canada, and Latin America devices grew 8%, masks and other categories 12%; Europe, Asia, and Rest of World devices grew 7% (constant currency), masks and other 4%.
- **Product Launches**: Launched AirTouch F30i full-face masks (F30i Comfort and F30i Clear variants) in Australia and the U.S., featuring fabric-based patient interfaces for comfort and adherence. These masks target 30-40% of patients who breathe through both nose and mouth.
- **AI Innovations**: Introduced Dawn, a generative AI-powered digital assistant on the myAir platform, and Comfort Match, an AI-enabled comfort setting technology. These tools aim to improve patient adherence and outcomes.
- **Manufacturing Expansion**: Announced a third U.S. distribution center in Indianapolis to enhance product velocity and resilience, with 90% of customers receiving shipments within 2 days.
- **Strategic Acquisitions**: Continued integration of VirtuOx (home sleep apnea testing services) and NightOwl, driving 8% U.S. device growth and 12% mask resupply growth.

**【CFO Financial Commentary】**
- **Gross Margin Expansion**: 62% gross margin, up 280 basis points YoY, driven by component cost improvements and logistics efficiencies. FY26 gross margin expected to remain between 61%-63%.
- **Operating Profit**: Operating profit up 19% YoY, with operating margin improving to 36.1% (33.2% prior year). Non-GAAP EPS of $1.08, up 16% YoY.
- **Cash Flow**: $457 million cash flow from operations, with $1.4 billion cash balance. Returned $238 million to shareholders via dividends and buybacks.
- **Restructuring**: $16 million restructuring charge to align with 2030 strategy, impacting SG&A and R&D expenses.

**【Q&A Highlights】**
- **Mask Innovation**: F30i masks leverage fabric technology to improve comfort and adherence, targeting high-margin full-face category. Europe, Asia, and Rest of World masks expected to return to high single-digit growth.
- **U.S. Manufacturing**: Expanding U.S. manufacturing to 60%+ of global volume, including device production, to mitigate geopolitical risks and support Made in America policies.
- **Demand Generation**: CME programs educated 22,000+ PCPs, with 75% intending to change clinical practices. NightOwl and VirtuOx driving 8% U.S. device growth and 12% mask resupply growth.
- **Tax Impact**: Effective tax rate rose to 22.3% due to global minimum tax legislation, partially offset by Singapore R&D credits. FY26 rate expected to remain 21%-23%.
- **Competitive Bidding**: Confident HMEs will bid appropriately, focusing on cost-saving benefits of sleep apnea treatment for Medicare beneficiaries.

ResMed Inc. (RMD) Q1 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

RMD

RMD fundamentals

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