ResMed Q4 Earnings Confirm Resilient Demand, Margin Strength

What happened

ResMed delivered fourth-quarter fiscal 2026 revenue growth of 9% (8% constant currency) as demand for sleep devices and masks remained robust. Non-GAAP earnings per share rose 16% to $2.95, while the company expanded gross margin despite continued inflation in electronic components and freight. These results counter the bearish narrative that GLP-1 drugs or Philips’ eventual return would already be compressing ResMed’s operating momentum. The quarter caps a fiscal year where recurring mask and consumables growth consistently outpaced device growth, reinforcing the installed-base monetization engine. With the Q4 print clearing the bar, the near-term focus shifts to FY2027 guidance for confirmation that core growth above 8% and margins above 62% are sustainable.

Implication

ResMed’s Q4 results confirm the core sleep business is operating from a position of strength, with 9% reported revenue growth and 16% EPS expansion that directly address the market’s two biggest fears—GLP-1 substitution and Philips re-entry. Gross margin expansion despite persistent cost headwinds signals operating leverage and disciplined pricing, countering fears of a shift to discount-led volume. The lack of any demand erosion in the quarter should ease GLP-1 concerns in the near term, while Philips’ continued inability to sell new U.S. devices preserves ResMed’s installed-base advantage. Management’s August 6 commentary and FY2027 outlook likely reiterate a growth trajectory above 8%, which is the key threshold for the bull thesis. Investors should watch mask versus device growth and any change in discounting language, but for now the data support the base case that the stock can rerate toward $225 over the next 6–12 months.

Thesis delta

The Q4 print aligns with the ‘increases if’ trigger from the master report—core revenue growth above 8% and gross margin above 62%—strengthening the bull case. Operating data show no sign of GLP-1 or competitive erosion, removing a key overhang. The thesis remains a POTENTIAL BUY, with conviction now slightly higher as the August 6 catalyst confirmed resilience.