ResMed Reports Strong Q2 FY26 Results with Double-Digit Revenue & EPS Growth, Increased Share Buybacks, and Patent Lawsuit Dismissal
RMD sits 33% above its 52-week low of $199.92.
Summary
ResMed reported strong second-quarter fiscal year 2026 results with double-digit revenue and EPS growth, increased share repurchases, and the favorable dismissal of a patent infringement lawsuit.
Key Events · Earnings and Guidance · RMD
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Strong Q2 FY26 Financial Performance
Net revenue increased by 11% to $1.42 billion, and diluted EPS grew by 15% to $2.68 for the three months ended December 31, 2025, compared to the prior year. Gross margin expanded to 61.8% from 58.6%.
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Increased Share Repurchases
The company repurchased $325.0 million of treasury stock during the six months ended December 31, 2025, a significant increase from $125.0 million in the same period last year.
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Favorable Resolution of Patent Lawsuit
The patent infringement case filed by New York University against ResMed was dismissed with prejudice on November 12, 2025, following PTAB decisions invalidating the asserted patents.
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Restructuring Charges Incurred
ResMed recorded $21.7 million in restructuring-related charges for employee severance and one-time termination benefits during the six months ended December 31, 2025.
Analysis · RMD · Industrial Applications And Services
ResMed's latest 10-Q filing confirms robust financial performance for the second quarter of fiscal year 2026, building on the preliminary results announced yesterday. The company achieved significant revenue and EPS growth, driven by strong demand in both its Sleep and Breathing Health and Residential Care Software segments. The notable increase in share repurchases signals confidence in the company's valuation and capital allocation strategy. Furthermore, the dismissal of a key patent infringement lawsuit removes a legal overhang, which is a positive development for investors. While restructuring expenses were incurred, their impact is minor relative to the overall positive operational and legal news. Investors should monitor the progress of other ongoing legal matters and the integration of workforce planning activities.
At the time of this filing, RMD was trading at $266.20 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $37.6B. The 52-week trading range was $199.92 to $293.81. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.