Company Interview / ResMed dreaming bigger after posting healthy returns

Key points:

Strong FY26 performance, robust free cash flow and stepped-up capital returns FY27 guidance for mid-to-high single-digit underlying revenue growth and continued EPS leverage Strategic focus on AI, digital health platforms, wearables partnerships and targeted M&A

ResMed’s Mick Farrell hails FY26 as a standout year, highlighting 9% quarterly headline revenue growth and a 16% rise in non-GAAP EPS, with free cash flow exceeding $1.6 billion. Farrell states that more than $1 billion is returned to shareholders via dividends and buybacks, and flags a plan to return over $1.85 billion in FY27, supported by proceeds from the MatrixCare sale and ongoing cash generation. Despite sector-wide multiple compression in medtech, Farrell argues that ResMed’s long-term total shareholder returns remain compelling.

For FY27, Farrell outlines guided revenue growth of around 5–7%, including a $75 million headwind from pausing a life-support ventilator line for safety work. Excluding this, he points to an effective 6–8% growth range and reiterates a five-year outlook of high single-digit revenue growth with operating leverage driving faster EPS gains. He contends GLP-1 therapies are a tailwind, citing higher CPAP initiation, usage and resupply rates among treated patients.

Farrell emphasises ResMed’s position as a leading digital health player, citing over 25 billion nights of cloud-based data and millions of connected devices. He highlights AI-enabled products such as SmartComfort and the Maya app’s “Project Dawn”, partnerships like Oura, and tuck-in acquisitions including Nox Health, VirtuOx and Snap as key growth drivers.