Q: What is ResMed RMD Q4 2025 Earnings Call Transcript Summary?
ResMed (RMD) has reported its earnings for the fourth quarter of fiscal 2025, showcasing a mix of positive and negative financial indicators. The company demonstrated robust revenue growth and improved profitability, yet faced increased expenses and tax rates.
Here are the specific viewpoints from the earnings call:
Bullish Points:
- ResMed delivered strong financial performance with $1.35 billion in revenue for the fiscal fourth quarter, representing 10% headline and 9% constant currency growth.
- Gross margin increased to 61.4%, up 230 basis points year over year and 150 basis points sequentially.
- Operating profit increased by 19% with operating margin improving to 35% from 33%.
- Net income rose 22%; non-GAAP diluted EPS increased 23%, with a $0.05 per share benefit from foreign exchange rates.
- Free cash flow of $1.7 billion for fiscal 2025, providing flexibility for investments and shareholder returns.
- Over $610 million returned in fiscal 2025 via dividends and share repurchases; quarterly dividend raised to $0.60 per share, up 13%.
- Share repurchase plan increased to approximately $150 million per quarter in fiscal 2026, with an estimated buyback of about 1.5% of outstanding shares for the year.
- Projected gross margin guidance of 61%-63% for fiscal 2026.
- ResMed is expanding its digital strategy with AI and GenAI features in product and process innovation.
- Strong demand generation efforts resulted in increased engagement from primary care physicians in continuing medical education.
Bearish Points:
- SG&A expenses increased 9% headline and 8% constant currency; further guidance of 19%-20% in fiscal 2026.
- R&D expenses increased by 7% headline and constant currency; fiscal 2026 guidance of 6%-7% of revenue.
- Non-GAAP effective tax rate increased to 21.9% for the quarter versus 18.7% prior; fiscal 2026 guidance at 21%-23%.
For more information about ResMed's earnings call, you can read the relevant news: ResMed RMD Q4 2025 Earnings Call Transcript
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