ResMed Q1 FY2027: EPS up 23% to $2.92, revenue up 6% to $1.41 billion
ResMed beat the $2.70 consensus EPS estimate with $2.91 of non-GAAP EPS, on revenue of $1.41 billion, up 5.9%, and gross margin up 30 basis points to 61.5%. The catch: operating margin fell to 32.0% and free cash flow dropped 9.8% to $373.7 million while $1.03 billion went back to shareholders. Read the scorecard as strong demand plus improving gross margin, partly offset by cost growth.
1 · Expected vs. Actual
Free preview belowNon-GAAP diluted EPS of $2.91 came in 7.8% above the $2.70 consensus and up 14% year over year, while GAAP diluted EPS rose 23% to $2.92. The two numbers land almost on top of each other because GAAP includes a $0.38 per-share gain on the MatrixCare sale that non-GAAP strips out, plus smaller add-backs for restructuring, amortization and acquisition costs. In other words, the beat came from operations, not from the divestiture.
Revenue rose 5.9% to $1.41 billion, and growth was 7% on a core constant currency basis after stripping out the Noctrix acquisition and the MatrixCare divestiture. Sleep and Breathing Health did the heavy lifting at $1.26 billion, up 8% reported and 7% core constant currency. Residential Care Software was $155.0 million, down 7% as reported but up 5% on a core constant currency basis.
Management left fiscal 2027 guidance exactly where it sat on August 6, 2026: revenue of $5.75–$5.85 billion and non-GAAP diluted EPS of $12.00–$12.25. A strong first quarter bought credibility rather than a raise, which is a conservative move but also means the company is now chasing a target it has already shown it can hit early. There is no guidance-history table in this filing, so past forecasting accuracy cannot be checked here.
Log in to read 35 analyses a week for free
Create a free account to read 35 full earnings analyses each week — all five steps: expected vs. actual, guidance tracker, money flow, balance sheet and risks. Members get unlimited access.
Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-03
Answers are based on the earnings release and the analysis above. Free accounts get 3 questions a week; members get 30 a day.