The Resmed (ASX: RMD) share price has risen 5% after announcing its FY26 second quarter update.
Resmed is best known for its devices that help people with sleep apnea to breathe easier at night. It also has digital health solutions.
FY26 second quarter update
The company reported how it performed in the three months to December 2025, which is the second quarter of the company’s 2026 financial year.
It revealed revenue increased by 11% year on year to $1.4 billion, or up 9% on a constant currency basis (if exchange rates hadn’t changed).
Resmed reported that its gross profit margin increased by 320 basis points (3.20%) to 61.8%, while the non-GAAP gross profit margin improved 310 basis points (3.10%) to 62.3%. This was primarily due to manufacturing and logistics efficiencies and component cost improvements.
The ASX healthcare share reported that income from operations (operating profit) increased 18% to $491.7 million. Its net profit also grew by 14% to $392.6 million. Earnings per share (EPS) grew 15% to $2.68.
Resmed decided to declare a quarterly cash dividend of $0.60 per share.
Revenue breakdown
The company reported that revenue in the US, Canada and Latin America, excluding residential care software, grew by 11%.
Revenue in Europe, Asia and other markets, excluding residential care software, grew by 6% on a constant currency basis.
Residential care software revenue increased by 5% on a constant currency basis.
Management commentary
The Resmed Chair and CEO Mick Farrell said:
Our second quarter results demonstrate the strength and resilience of our global business as we continue advancing our mission to help people sleep better, breathe better, and live longer and healthier lives in the comfort of their own home.
Year-over-year, we delivered 11% headline revenue growth, 310 basis points of non-GAAP gross margin expansion, and continued operating excellence, resulting in another quarter of mid-teens non-GAAP EPS growth. These results reflect strong ongoing demand for our market-leading sleep and respiratory care devices, as well as the growing impact of our digital health ecosystem that spans more than 140 countries.
As we move into the second half of fiscal year 2026, we will continue to invest in innovation to scale our digital health capabilities and expand global access to life-saving care, while delivering sustainable, profitable growth.
Is the Resmed share price a buy?
The company continues to do what it needs to do to grow revenue and earnings at more than 10% per year. If it continues growing at that pace it’ll be one to watch, particularly after dropping in the last few months.
I wouldn’t call it a great buy today, but I’d be happy as a shareholder to see it continuing to grow at this pace.
There are other ASX growth shares I’d rather invest in for the long-term.
