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Highlights
- ResMed reports 21% surge in quarterly earnings
- Revenue hits US$1.29 billion on rising demand for sleep health devices
- Gross margin expands to 59.3% on product mix and operational efficiency
ResMed (ASX:RMD) shares climbed over 8% to $35.99 in early trading on the Australian Securities Exchange after the company delivered a strong performance in its March quarter, highlighting growth across its core segments and improved profitability. The dual-listed respiratory care leader also trades on the New York Stock Exchange.
In the three months ended March, ResMed posted revenue of US$1.29 billion (A$2.03 billion), an 8% increase compared to the same quarter last year. Net income rose 21% year-over-year, reaching US$365 million, while the company’s gross margin improved by 140 basis points to 59.3%. This performance reflects strategic gains from manufacturing efficiencies and favorable changes in its product mix.
The company’s strong quarter was primarily driven by higher demand for its sleep apnea devices and related masks. Additionally, the Residential Care Software business saw consistent growth, contributing to the overall revenue uptick. The company also benefited from confirmed exemptions on U.S. tariffs for its products, which supported its international sales outlook.
Operational efficiencies played a critical role in expanding margins. Manufacturing and logistics improvements, along with a favorable shift in the sales mix toward higher-margin products, were key contributors. However, the company also noted an increase in selling, general, and administrative expenses, largely due to rising employee and marketing-related costs.
In a statement, CEO Mick Farrell emphasized the significance of the results, noting that customers continue to value ResMed’s range of sleep health products and digital solutions. He highlighted the company’s ongoing efforts to broaden awareness and improve accessibility for patients, clinicians, and healthcare providers, ensuring that those in need can benefit from better respiratory care.
To reward shareholders, ResMed declared a quarterly cash dividend of 53 US cents per share, maintaining its consistent approach to capital returns.
Overall, ResMed’s third-quarter performance underscores its strategic strengths in respiratory and digital health, signaling positive momentum as it continues to expand its global reach and innovate within the healthcare technology space.
