ResMed Inc. (RMD) Income Statement

Revenue progression from $1.2B in 2024Q3 to $1.5B in 2026Q4 reflects a steady upward trajectory, with growth rates hovering in the high single digits to low teens. This consistency suggests a mature but resilient market, likely driven by recurring demand for masks and devices rather than one-time spikes. The slight deceleration in the most recent quarter (8.6% vs. 10.8% prior) may indicate a normalization after a period of catch-up demand, but the overall trend remains stable.

The upward drift in gross margin, despite a slight dip in the latest quarter, indicates that ResMed has been able to pass on costs or benefit from product mix shifts. The 2026Q4 gross margin of 58.4% is still above the 2024 levels, implying structural improvements. However, the recent decline from 62.2% to 58.4% warrants attention, as it may signal input cost pressures or competitive pricing actions, though the absolute level remains robust relative to peers like Philips (45.2%).

The operating margin trajectory shows that ResMed has been able to scale its operating income more rapidly than its top line, indicating positive operating leverage. This is likely due to disciplined SG&A and R&D spending relative to revenue growth. The recent dip in operating margin to 30.7% in 2026Q4, however, suggests that the leverage may be reversing, possibly due to increased investments or one-time costs. Investors should monitor whether this is a temporary blip or a trend.

R&D spending increased from $77.1M to $105.7M over the period, but as a percentage of revenue, it has remained relatively stable, indicating a commitment to innovation without over-spending. SG&A has also grown, but at a slower pace than revenue, leading to improved operating leverage. The cost structure appears well-managed, with the primary cost line being COGS, which has seen margin expansion. However, the recent uptick in R&D and SG&A in 2026Q4 may signal increased investment, which could pressure near-term margins.