Resmed Inc. reported first-quarter net income up 20% as revenue grew, but operating cash flow fell and the sleep-health company left its fiscal 2027 outlook unchanged.
Revenue totaled $1.4148 billion for the three months ended Sept. 30, compared with $1.3356 billion a year earlier. Net income rose to $418.4 million from $348.5 million. GAAP diluted earnings per share advanced to $2.92 from $2.37; non-GAAP diluted earnings per share reached $2.91, a 14% increase from $2.55.
Income from operations was $453 million, up 1%. Total other income reached $86.2 million, compared with $256,000 in the prior-year quarter.
Resmed linked sales gains mainly to customer demand for sleep devices and related masks and accessories. Its core growth measure, adjusted for exchange-rate movements and excluding the effects of the Noctrix acquisition and MatrixCare divestiture, increased 7%.
Within that measure, Americas Sleep and Breathing Health revenue gained 7%, while Rest of World Sleep and Breathing Health revenue increased 8%. Residential Care Software grew 5% on the same basis. In reported dollars, however, Residential Care Software revenue was $155 million, down from $166 million.
Operating cash flow fell to $422 million from $457 million, and free cash flow declined to $374 million from $414 million. Those decreases amounted to 8% and 10%, respectively. GAAP operating margin narrowed 140 basis points to 32%, while non-GAAP gross margin rose 50 basis points to 62.5%, from 62%.
Resmed left its fiscal 2027 forecast intact: reported revenue of $5.75 billion to $5.85 billion, core constant-currency growth of 5% to 7%, and non-GAAP diluted EPS between $12 and $12.25. The ranges match the outlook it set Aug. 6.
The company said MatrixCare sale proceeds and cash generation helped fund more than $1 billion in quarterly share repurchases and dividends. Resmed set Nov. 12 as the record date for its 66-cent quarterly dividend, which is payable Dec. 17.
