ResMed Inc.

Solid Q1 performance + shareholder returns (good) - ResMed delivered strong Q1 FY2027 results: +7% revenue growth on core constant currency (and +6% reported), +50 bps YoY gross margin expansion, and +14% non-GAAP EPS to $2.91. - Returned >$1B to shareholders in the quarter via dividend + share repurchases. Repurchased ~$936M during Q1 (including an accelerated repurchase funded by MatrixCare divestiture proceeds). - Q1 free cash flow was $374M (down YoY) primarily due to higher inventory and increased cash tax prepaids—but cash ended around ~$1B.

Guidance reiterated: growth + EPS + margin expansion with Astral headwind (forecast/outlook) - FY2027 outlook reiterated: core constant currency revenue growth of 5%–7% YoY and non-GAAP EPS of $12.00–$12.25 (about +7% to +10% reported YoY, ~+12%–14% excluding dilution from MatrixCare divestiture and Nidra acquisition). - For revenue growth, management highlighted an ~130 bps (~$75M) headwind from deciding to no longer sell Astral (while continuing to service existing devices). - Gross margin: still expects low double-digit basis points expansion in FY2027, but with potential quarter-to-quarter variability from inflation and supply-chain/facility timing.

Key drivers of Q1 margin outperformance & what to expect next (surprising / operational) - Q1 non-GAAP gross margin was 62.5% (+50 bps YoY) and was ahead of expectation mainly due to phasing/timing of supply chain expansion investments (notably the Indiana/US facility build-out costs shifting into Q2). - Pricing contribution was minimal in Q1; management expects pricing benefits to build later in the year as price actions roll out.