stockrowWhat it does
ResMed makes medical devices, masks and software for people with sleep and breathing disorders. Founded in 1989 and headquartered in San Diego, the company is led by Chief Executive Officer Michael Farrell.
A central part of its business is treatment for obstructive sleep apnea, a condition in which the upper airway repeatedly narrows or closes during sleep. ResMed’s continuous positive airway pressure, or CPAP, devices deliver pressurized air through a mask to help keep the airway open. The company also sells other pressure and ventilation devices, diagnostic products, headgear, tubing and accessories. Its breathing products serve patients with chronic respiratory diseases, including people who need ventilatory support at home.
ResMed connects devices to software used by patients and care providers. Its myAir app offers therapy information and comfort tools to patients, while AirView helps clinicians monitor and manage patients remotely. Through VirtuOx, ResMed also provides technology for home and remote diagnostic testing in the United States.
A separate software business serves residential care providers. Brightree supports home medical equipment organizations with clinical workflows, billing and compliance, while MEDIFOX DAN provides care management software in Germany. ResMed also acquired Noctrix, whose Nidra wearable device treats certain adults with restless legs syndrome.
How it makes money
ResMed earns revenue through two segments: Sleep and Breathing Health and Residential Care Software. Sleep and Breathing Health accounted for 88.0% of fiscal 2026 revenue, while Residential Care Software accounted for 12.0%.
Fiscal 2026 net revenue was $5,653 million; first-quarter fiscal 2027 revenue was $1.4 billion.
The larger segment sells devices used to treat sleep apnea and breathing conditions, as well as masks, diagnostic products and accessories. Devices represented approximately 51% of net revenue in fiscal year 2026; masks, diagnostic products and accessories together represented approximately 37%. CPAP is not a cure and must be used nightly for as long as treatment is required. Patients also need replacement masks and other accessories, and ResMed’s Equipment Care service shows when these items are eligible for replacement and lets patients request resupply.
Residential Care Software supplies business management software as a service to healthcare providers. Its products support activities such as billing, electronic medical records, patient engagement and workforce management. The business included MatrixCare during fiscal 2026; ResMed completed the sale of that business on September 1. The continuing software operations include Brightree and MEDIFOX DAN.
Prices and reimbursement arrangements vary by market. In France, cloud-connected CPAP devices receive different reimbursement from non-connected devices, and distributors renew their fleets when the devices reach their life cycle. ResMed said pricing contributed minimally to its first-quarter fiscal 2027 results. It expects global price increases to contribute as the year progresses.
| Product or service | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| Sleep and Breathing Health | $5.0 billion | 88.0% | 10.5% |
| Residential Care Software | $675.8 million | 12.0% | 5.36% |
Customers and how it sells
ResMed’s products reach patients through healthcare providers and distribution channels as well as through its own digital tools. Home medical equipment providers, sleep clinics, physicians and other care providers help patients get diagnosed, begin therapy and manage treatment. ResMed sells its products through wholly owned subsidiaries and independent distributors.
Its residential care software customers include home medical equipment and home infusion providers, home health and hospice providers, skilled nursing facilities and senior living organizations. Brightree serves U.S. providers, while MEDIFOX DAN serves residential care providers in Germany. MatrixCare also served U.S. care providers before its sale.
The company sells products in more than 140 countries. The United States accounted for 63.0% of fiscal 2026 revenue, and the rest of the world for 37.0%. ResMed’s VirtuOx business provides testing services across the United States, including for sleep and respiratory conditions.
For sleep and breathing products, AirView gives clinicians access to remote patient monitoring, while myAir is designed for patients to follow their own therapy. ResMed also works with consumer sleep-technology companies to direct users toward sleep assessments and care pathways.
| Region | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| United States | $3.6 billion | 63.0% | 8.41% |
| Rest of the World | $2.1 billion | 37.0% | 12.4% |
Suppliers and costs
ResMed manufactures devices and masks across a network that includes Singapore, Malaysia and the United States. It has produced an AirSense 11 CPAP device at its Atlanta facility and is expanding manufacturing capacity in Singapore and Malaysia. A distribution center being developed in Indianapolis is intended to serve North American customers.
The company depends on suppliers for components and warns that supply disruptions could reduce sales and profitability. It has experienced inflation in some electronic components and expects those effects to build through the rest of fiscal 2027.
Fiscal 2026 gross margin was 61.1%, compared with 59.4% for fiscal 2025. Procurement, manufacturing and logistics efficiencies contributed to the increase, partly offset by expenses associated with an Astral device field safety notification. ResMed invested $378 million in research and development during fiscal 2026, equal to 6.7% of net revenues.
The company is also spending on manufacturing and distribution expansion. It expects some startup costs and underutilization as capacity is brought online.
- Revenue$5.7B
- Cost of revenue−$2.2B
- Research and development−$378.3M
- Selling, general and administrative−$1.1B
- Other operating costs−$67.2M
- Operating income$1.9B
Competitive position
ResMed competes in sleep and breathing health against Philips BV, Fisher & Paykel Healthcare, DeVilbiss Healthcare, Apex Medical, BMC Medical and React Health. Competition differs by geography, and some competitors are affiliated with ResMed customers. The company identifies product features, quality, reliability, price, customer support, reputation and distribution as competitive factors.
Alternatives to CPAP also include dental appliances, surgical treatments and electrical stimulation. Pharmaceutical treatments have been cleared for sleep apnea, with others under development. ResMed offers products across diagnosis, treatment and monitoring, including devices, masks and connected software.
Its AutoSet devices use patented technology to monitor breathing. AirView connects clinicians with patient information, and myAir provides patients with therapy support. ResMed also uses data from connected devices and patient tools in research and product development.
Our reading: The combination of devices, masks and software is a meaningful competitive asset because it connects patient therapy with providers’ workflows, although customers have other treatment and product choices. Our reading: Patented technology and the data generated by connected devices support product development, but neither removes competition over features, price and distribution.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Philips BV | Sleep and breathing health devices and products | Medium |
| Fisher & Paykel Healthcare Corporation Limited | Sleep and breathing health devices and products | Medium |
| DeVilbiss Healthcare | Sleep and breathing health devices and products | Medium |
| Apex Medical Corporation | Sleep and breathing health devices and products | Medium |
| BMC Medical Co. Ltd. | Sleep and breathing health devices and products | Medium |
| React Health Corporation | Sleep and breathing health devices and products | Medium |
Growth opportunities
ResMed is working to expand sleep apnea screening, diagnosis and treatment, including through simpler home testing and partnerships that direct consumers toward sleep assessments. The company believes sleep and breathing health are underpenetrated and expects demand for treatment to grow as awareness improves and digital technology supports care.
Its device and mask development includes new pressure-support products and fabric masks. ResMed introduced the AirCurve 11 ST and ST-A platforms in the United States for patients who need additional pressure support or have more complicated breathing disorders. It also launched the AirTouch F40 fabric mask. The company is developing digital features that help patients adjust comfort settings, follow therapy and request replacement supplies.
Beyond sleep apnea, ResMed is expanding its breathing-health offerings and integrating Nidra, acquired through Noctrix, for restless legs syndrome. It is also working to expand commercial coverage for Nidra. Its remaining residential care software operations, Brightree and MEDIFOX DAN, are another focus following the MatrixCare sale.
Sleep and Breathing Health revenue grew 10.5% in fiscal 2026. For fiscal 2027, ResMed expects revenue growth of 5% to 7% on a core constant currency basis. That outlook includes the effect of its decision to stop selling the Astral life-support device. The company also expects pressure on sleep device growth outside the Americas in the second half as a French fleet renewal concludes.
- $3.6BFY2022
- $4.2BFY2023
- $4.7BFY2024
- $5.1BFY2025
- $5.7BFY2026
- $5.8BFY2027 guidance
Structural risks
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Competition and treatment alternatives. ResMed’s inability to compete with new and existing technology may harm its business. It faces competitors across devices, masks and software, as well as alternative treatments for sleep apnea.
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Component supply. Disruptions in the supply of components could reduce sales and profitability. Intellectual property claims against suppliers could also interrupt the supply of components or other inputs.
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Coverage and reimbursement. Healthcare reform, cost-cutting measures or changes in coverage policies by government or commercial payors could materially affect ResMed’s industry and results. Changes in reimbursement also affect international operations.
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Device safety. ResMed is continuing an Astral field safety corrective action and will no longer sell the device. It is directing available components to service existing patients based on clinical acuity and judgment.
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International and technology operations. Currency fluctuations, tariffs, trade restrictions and differing medical-device regulations can affect international profitability. ResMed also depends on information technology systems and is subject to data privacy and security laws.
Bottom line
Our reading
ResMed is primarily a sleep and breathing device business, supported by masks, replacement accessories and connected software used by patients and providers (item1; item7). Its installed base and digital tools support ongoing patient engagement, while growth depends on diagnosis, treatment adoption and execution across products and markets (item1; call_prepared). Supply availability, reimbursement, competition and the Astral safety action remain important exposures (item1a; call_prepared).