SAN DIEGO—Resmed Inc. reported a 19% increase in income from operations in the fourth quarter of its 2025 fiscal year, as well as a 10% revenue increase on a constant currency basis.
“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 Resmed’s chairman and CEO, Mick Farrell. “As we move into fiscal year 2026, we will continue to invest in innovation, scale our digital health capabilities, and partner with patients, providers, payers and policymakers to ensure more people around the world have access to the care they need to sleep better, breathe better and live longer and healthier lives.”
The company reported that revenue grew by 9% on a constant currency basis, driven by increased demand for sleep devices and masks. It was also reported gross margin increased by 230 basis points mainly due to procurement, manufacturing and logistics efficiencies as well as favorable foreign currency movements. Non-GAAP gross margin increased by 230 basis points due to the same factors, the company said.
Selling, general and administrative expenses (SG&A) increased by 8% on a constant currency basis. The increase in SG&A expenses was mainly due to increases in employee-related costs and marketing expenses, including investments associated with our recent global brand launch along with demand generation activities. SG&A expenses improved to 19.7% of revenue in the quarter, compared with 19.8% in the same period of the prior year.
Income from operations increased by 19% and non-GAAP income from operations increased by 19%. Net income for the quarter was $380 million and diluted earnings per share was $2.58. Non-GAAP net income increased by 22% to $375 million, and non-GAAP diluted earnings per share increased by 23% to $2.55, predominantly attributable to strong sales growth and gross margin improvement.
Operating cash flow for the quarter was $539 million, compared to net income in the current quarter of $380 million and non-GAAP net income of $375 million. During the quarter, the company paid $78 million in dividends to shareholders and repurchased 419,000 shares for consideration of $100 million as part of its ongoing capital management.
Fourth Quarter 2025 Highlights
All comparisons are to the prior year period
- Revenue increased by 10% to $1.3 billion; up 9% on a constant currency basis
- Gross margin improved 230 bps to 60.8%; non-GAAP gross margin improved 230 bps to 61.4%
- Income from operations increased 19%; non-GAAP income from operations up 19%
- Operating cash flow of $539 million
- Diluted earnings per share of $2.58; non-GAAP diluted earnings per share of $2.55
Full Year 2025 Highlights
All comparisons are to the prior year period
- Revenue increased by 10% to $5.1 billion; up 10% on a constant currency basis
- Gross margin improved 270 bps to 59.4%; non-GAAP gross margin improved 230 bps to 60.0%
- Income from operations increased 28%; non-GAAP income from operations up 19%
- Operating cash flow of $1.8 billion
- Diluted earnings per share of $9.51; non-GAAP diluted earnings per share of $9.55