Companies:

 

Articles:

 
ASX 200

ResMed delivers double-digit EPS growth on increasing demand for sleep apnoea devices

Go to Imelda Cotton author's page
By Imelda Cotton - 
Resmed ASX RMD 3Q25 Results
Copied

ResMed (ASX: RMD) has reported double-digit earnings per share (EPS) growth for the three months to March on the back of increasing market demand for its best-in-class sleep apnoea products and software solutions.

The company’s revenue for the period increased by 8% to US$1.3 billion (up 9% on a constant currency basis), while income from operations rose 14% from US$374.6 million to US$426.3m.

Revenue from ResMed’s residential care software solutions — developed for healthcare providers in non-hospital settings — increased by 10% on a constant currency basis, reflecting continued organic growth in that sector.

Operating cash flow

Operating cash flow for the quarter was US$579m, compared to net income in the current quarter of US$365m and non-GAAP (generally accepted accounting principles) net income of US$349m.

ResMed received US$107m in US government tax refunds, of which it had previously recorded US$100m.

Operating cash flow excluding the impact of these refunds was US$471m.

Improved performance

ResMed chief executive officer Mick Farrell said the quarter had demonstrated improved performance across the board.

“These results are evidence that sleep health customers recognise our products and software solutions as the gold standard for care,” he said.

“We remain focused on continuing to address a market of over 2.3 billion people around the world with sleep and breathing issues and all those who need world-class software for healthcare delivered at home.”

Home test kit

Mr Farrell said the company would continue its education and awareness outreach to physicians and care providers to ensure a strong pipeline of customers who need access to products and solutions to improve their quality of life.

ResMed announced during the period that its home sleep apnoea test NightOwl had become available to customers across the US.

The product offers healthcare providers a simplified, accurate and efficient way to diagnose obstructive sleep apnoea (OSA) from the comfort of a patient’s home.

Largest CPAP study

In March, medical journal The Lancet Respiratory Medicine published the largest ever meta-analysis study into the long-term benefits of CPAP (continuous positive airway pressure) therapy, which demonstrated that CPAP could significantly reduce the risk of death for people with OSA.

Supported by ResMed, the study analysed data from over one million sleep apnoea patients worldwide and provided the strongest evidence to date that CPAP therapy could alleviate OSA symptoms and prolong life.

OSA – a chronic sleep-related breathing disorder – affects over one billion people worldwide, with more than 80% of cases undiagnosed and untreated.

The condition can impair daily functioning and has been associated with serious health issues including hypertension, diabetes, cardiovascular disease and stroke.