ResMed Inc. presented its fiscal 2027 guidance at the Morgan Stanley Healthcare Conference, held on September 15, 2026. The company expects core constant-currency revenue growth of 5-7%, translating to roughly 6.3-8.3% organic growth, after accounting for a $75 million headwind from an Astral field safety notice. Core EPS growth is projected at 12-14%, described as low double digits. The first-quarter fiscal 2027 gross margin is expected to be slightly below 62.0%, with improvements anticipated throughout the year.
ResMed's market capitalization stands at $32.9 billion, with a price-to-earnings ratio of 22. The company's last twelve months gross profit margin was 61.62%, and its dividend yield is 1.18%, with 24.5% dividend growth over the past year. The company has raised its dividend for 14 consecutive years. U.S. devices revenue has grown at a 15% annual rate from fiscal 2021 to fiscal 2026. In the most recent quarter, sleep devices in the Americas grew by 8%, outperforming mid-single-digit targets, while masks and accessories outperformed high-single-digit guidance.
ResMed has made significant acquisitions and divestitures. The company invested $340 million in Noctrix for a restless legs syndrome treatment business and sold MatrixCare to Frazier Healthcare Partners for $490 million. Additionally, ResMed incurred a $42 million charge from an Astral global field safety notice, with the platform to be sunsetted after 15 years with no new sales in fiscal 2027.
The company's gross margin has expanded by more than 500 basis points over the past three years, with management expecting low double-digit basis-point improvements each fiscal year through 2030. Cost pressures cited include freight, fuel, and logistics inflation, as well as rising electromechanical component costs for older devices like the AirSense 10, due to structural competition from AI and consumer electronics companies.
ResMed's total addressable market (TAM) is 2.7 billion people, or roughly 1 in 4 people on the planet, across sleep and breathing health disorders. This includes 1 billion people with obstructive sleep apnea (OSA), 800 million with insomnia, 480 million with chronic obstructive pulmonary disease (COPD), and 400 million with restless legs syndrome.
The company is tracking 2.5 million de-identified patients with both CPAP and GLP-1 prescriptions. Findings from this cohort show that therapy start rates are 11 percentage points higher, resupply rates after 1 year are 300 basis points higher, and resupply rates after 3 years are 600 basis points higher, with no higher dropout rate observed. This data is expected to add 50 to 125 basis points to Americas sleep device growth.
ResMed has reached 95,000 primary care physician continuous medical education (CME) episodes across 55,000 unique clinicians, mostly primary care doctors. The myAir app has surpassed 10 million users, and Project Dawn, a generative AI sleep health concierge, has generated 1.5 million inquiries. An 87% adherence rate has been achieved in the first 90 days across its technologies.
Mick Farrell, CEO of ResMed, stated, "ResMed's philosophy has and will continue to be that we're gonna get the vast majority of our growth coming from volume. We believe that volume is the way to drive sustainable, durable revenue growth over time." He also noted, "We've got 2.5 million reasons that it's a tailwind. High start rate, high resupply at one year, and even higher than that resupply at three years." Farrell emphasized that ResMed is a growth company and a growth story, with strong and steady growth in the market. He concluded, "The net of all of that is that we are going to see low double-digit basis points improvements in ResMed's gross margin every fiscal year through 2030. We are remaining with that guidance."
