Resmed Inc.

Q1 FY27 performance: strong top/bottom-line momentum - Revenue: $1.4B, +6% reported / +7% core constant-currency YoY. - Earnings: Non-GAAP EPS $2.91 (+14% YoY); gross margin 62.5% (+50 bps YoY). - Cash returns: >$1B returned to shareholders in Q1 via ~$936M share repurchases + dividend; Mick called it a record for ResMed. - Why it matters: demonstrates continued operating leverage and cash-generation, supporting the company’s capital return stance.

Guidance / outlook for the full year FY27: reiterated, with Astral headwind - Revenue growth guidance: +5% to +7% core constant-currency (reported revenue guidance $5.75B to $5.85B). - EPS guidance: Non-GAAP EPS $12.00 to $12.25 (+~7% to +10% reported). Excluding MatrixCare divestiture dilution and Nidra acquisition, implies +12% to +14% core EPS growth. - Astral device policy impact: ResMed will no longer sell Astral; guidance includes an ~130 bps (~$75M) headwind. (So underlying device growth excluding Astral is higher: ~6.3% to 8.3% core constant-currency.) - Gross margin: expects low double-digit bps margin expansion for FY27, but warns of quarter-to-quarter variability from inflation and supply-chain timing.

Strategic themes: innovation + digital ecosystem driving adherence; portfolio reshaping - Product/device innovation: - AirCurve 11 ST/ST-A (bilevel platforms) launched into the U.S.; expands therapy coverage for complex breathing disorders including central sleep apnea, complex sleep apnea, and COPD+OSA. - AirTouch F40 (fabric mask) launched; 91% of patients rated it comfortable/very comfortable at initial fitting. - Fabric mask performance: ~6% therapy adherence improvement vs silicone equivalent. - Software / GenAI: - myAir refresh: >13M downloads; new features include updated myAir Score, nightly timelines, therapy control; Equipment Care helps patients request resupply. - GenAI sleep coach “Dawn”: 2.1M+ inquiries from patients, +40% QoQ, aimed at reducing customer-service burden and improving engagement. - Smart Comfort (AI-enabled comfort adjustment): early real-world data shows +4.3% increase in 30-day compliance vs defaults. - Active portfolio management: - MatrixCare divestiture closed Sept 1; company expects it to accelerate growth/profitability of Residential Care Services (RCS). - Nidra acquisition integration: Nidra (RLS therapy) expanding from a small base; ResMed focused on expanding commercial coverage and access via DME and VA channels.