Resmed Inc. (RMD) closed the previously announced sale of MatrixCare in the quarter ended September 30, 2026, and used the proceeds together with cash generation to return more than $1.0 billion to shareholders through share repurchases and dividends.

The sleep and breathing health technology company reported revenue of $1.415 billion, up 6% from $1.336 billion a year earlier, and up 7% on a core constant currency basis that excludes the Noctrix acquisition and the MatrixCare divestiture. GAAP diluted earnings per share rose 23% to $2.92 from $2.37. Non-GAAP diluted earnings per share increased 14% to $2.91. Net income was $418 million.

Chairman and Chief Executive Officer Mick Farrell said the company began fiscal year 2027 with a strong first quarter, driven by continued global demand for sleep and breathing health solutions and ongoing execution. The company said revenue growth was primarily driven by strong demand across sleep devices and masks and accessories.

GAAP total revenue growth was 6%, compared with 9% a year earlier. Non-GAAP core constant currency total revenue growth was 7%, compared with 8% a year earlier. On a core constant currency basis, Americas Sleep and Breathing Health revenue grew 7%, Rest of World Sleep and Breathing Health grew 8%, and Residential Care Software increased 5%.

Total Sleep revenue rose 10% to $1.256 billion, or 9% in core constant currency. Sleep Devices rose 9% to $716 million and Masks and other rose 10% to $540 million. Life Support Devices revenue fell 84% to $4 million. Total Sleep and Breathing Health rose 8% to $1.260 billion, or 7% in core constant currency.

Residential Care Software revenue declined 7% to $155 million, or 5% in core constant currency. Removing the MatrixCare business, the remaining software businesses Brightree and MEDIFOX DAN increased 8%.

GAAP gross margin was 61.5%. Non-GAAP gross margin expanded 50 basis points to 62.5%, which the company said was predominantly from productivity pipeline execution. GAAP operating margin compressed 140 basis points to 32.0%. Non-GAAP operating margin declined 30 basis points to 35.8%. GAAP income from operations was $453 million. Non-GAAP income from operations rose 5% to $506 million.

The company said non-GAAP earnings growth was predominantly attributable to strong revenue growth and gross margin improvement. Other income, net, was $86 million, including a $61.8 million gain on divestment of subsidiaries and $62.2 million of other, net income. Proceeds from the MatrixCare sale were $450.8 million net of cash divested.

Operating cash flow totaled $422 million and free cash flow totaled $374 million. Treasury stock purchases were $936.4 million and dividends paid were $95.0 million. Cash and cash equivalents ended the quarter at $1.011 billion. The company also repaid $250 million of borrowings.

Resmed revised the presentation of restructuring expenses and amortization of acquired intangibles in the quarter. Restructuring expenses are now classified within cost of sales, research and development, and selling, general and administrative expenses. Amortization of acquired intangibles relating to cost of sales is no longer a separate line item. Prior-period amounts were reclassified with no effect on previously reported income from operations, net income, earnings per share, or cash flows.

The company announced the U.S. launch of the AirTouch F40 fabric CPAP mask and a partnership with Eight Sleep to connect its technology with Resmed sleep insights in the United States and Australia. It also announced the appointment of Carol Burt as Lead Director, effective November 15, 2026, after the planned retirement of Director Ron Taylor.

Fiscal year 2027 guidance was unchanged from August 6, 2026: core constant currency revenue growth of 5% to 7%, reported revenue of $5.75 billion to $5.85 billion, and non-GAAP diluted earnings per share of $12.00 to $12.25. The board declared a quarterly cash dividend of $0.66 a share, with a record date of November 12, 2026, payable December 17, 2026.