ResMed Reports 8% Revenue Growth to $1.29 Billion and 21% Net Income Increase in Latest Quarter

ResMed Inc. reported a strong financial performance for the three months ended March 31, 2025, with net revenue reaching $1.29 billion, an increase of 8% compared to $1.20 billion in the same period last year. The company's net income also rose significantly, amounting to $365.0 million, up 21% from $300.5 million in the prior year. This resulted in diluted earnings per share of $2.48, compared to $2.04 in the previous year. For the nine months ended March 31, 2025, net revenue totaled $3.80 billion, a 10% increase from $3.46 billion, while net income surged 40% to $1.02 billion.

The company experienced notable growth in its Sleep and Breathing Health segment, which generated $1.13 billion in revenue for the quarter, up from $1.05 billion a year earlier. This growth was driven by increased demand and unit sales of devices and masks. The Residential Care Software segment also contributed positively, with revenue increasing to $161.2 million, reflecting a 9% rise from the previous year. ResMed's gross margin improved to 59.3% for the quarter, up from 57.9%, attributed to manufacturing efficiencies and a favorable product mix.

In terms of operational developments, ResMed's cash and cash equivalents rose to $932.7 million as of March 31, 2025, compared to $238.4 million at the end of the previous fiscal year. The company also reported a total asset value of $7.57 billion and stockholders' equity of $5.55 billion. ResMed's employee headcount remained stable, supporting its operational capabilities as it continues to expand its market presence.

Strategically, ResMed has focused on enhancing its product offerings and expanding its geographic reach. The company has invested $83.9 million in research and development during the quarter, representing 6.5% of net revenues, to drive innovation in its product lines. Additionally, ResMed has made significant acquisitions in recent years, including its purchase of MEDIFOX DAN in 2022, which bolstered its Residential Care Software business. The company has also implemented a new operating model aimed at accelerating growth and improving customer focus.

Looking ahead, ResMed remains optimistic about its growth trajectory, despite potential challenges from macroeconomic conditions and regulatory changes. The company anticipates continued demand for its products and services, supported by its ongoing investment in research and development and strategic acquisitions. ResMed's management emphasized the importance of adapting to market dynamics and maintaining operational efficiency to sustain its competitive edge in the healthcare sector.