ResMed Inc.

Strong Q3 results + operating momentum - Revenue: $1.43B (+11% YoY, +8% constant currency). - Profitability: Gross margin +290 bps YoY and +50 bps sequentially to 62.8%; operating margin improved to 36.7% from 34.4%. - Earnings & cash flow: Non-GAAP EPS +21%; non-GAAP operating income +18%; free cash flow $520M with >100% FCF conversion. - Why it matters: demonstrates ResMed’s “operational excellence machine” model—margin expansion + leverage alongside growth.

Supply chain/geopolitics: manageable so far; margin accretion outlook reiterated - ResMed is navigating external volatility (fuel/component costs), but highlighted sea freight via Pacific/Panama Canal as helping avoid disruption from Middle East-driven fuel/geopolitical shocks to its core flow. - Gross margin guidance for FY26: still expects 62%–63% (subject to currency). - Long-term: expects gross margin accretion through 2030 with double-digit basis points improvements each year (harder environment, but pipeline offsets).

Fabric mask leadership + adherence data (key growth driver; competitive “basis change”) - Continued rollout of fabric masks (AirTouch N30i; expanding to F30i Comfort and F30i Clear in full-face). - Surprising/important clinical-business link: real-world data show AirTouch N30i drives 6% higher 90-day compliance vs silicone equivalent; company frames this as very material to lifetime value. - Management believes this is increasing market share (masks growing faster than typical market expectations) and could expand further in full-face—higher-margin area.