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ResMed posts higher FY2026 revenue, boosts dividend despite product setback
The company said its Astral ventilator sales pause under a field safety action is expected to cut fiscal 2027 revenue by about $75 million, even as free cash flow remains strong at $1.6 billion for the year.
ResMed reported fourth-quarter fiscal 2026 results on August 6, capping a year of double digit growth. Quarterly revenue increased 9% to $1.5 billion, and non-GAAP earnings per share rose 16% to $2.95, according to Yahoo Finance.
For the full fiscal year ended June 30, 2026, revenue grew 10% and free cash flow topped $1.6 billion. ResMed also raised its quarterly dividend by 10% to $0.66 per share and outlined plans to return more than $1.85 billion to shareholders in fiscal 2027, up over 75%.
Management pointed to momentum in sleep apnea care, including data from more than 2.5 million de-identified patients indicating people prescribed both a GLP-1 drug and PAP therapy were 11% more likely to start on PAP than those with a PAP script alone. The company also cited a partnership with Oura that has sent about 13,000 users to its sleep assessment, with roughly three quarters previously undiagnosed, plus continued expansion of AirSense 11 into China and new AirCurve 11 bilevel devices in multiple markets.
The quarter also included costs tied to an Astral-related field safety action. ResMed suspended new Astral sales to prioritize parts for existing patients, with life support device revenue down 45% in the Americas and 38% elsewhere, booked a $42 million provision, and said the pause is expected to shave about 130 basis points, or roughly $75 million, off fiscal 2027 revenue. Free cash flow fell 21% year over year to $404 million, pressured by the provision, higher receivables, and capital spending.