ResMed (RMD) official guidance

We still expect capital expenditures in the range of $160 million-$180 million as we expand and further automate our U.S. and global manufacturing footprint to address the growing demand for our products.

In Q1, we made significant progress towards returning more than $1.85 billion to shareholders over the course of fiscal year 2027, including both share repurchases and dividends.

We still expect non-GAAP earnings per share to be in the range of $12-$12.25, an increase of approximately 7%-10% on a reported basis.

Excluding the dilution from the divestiture of the MatrixCare business and the acquisition of Nidra, guidance implies year-over-year core EPS growth would be in the range of 12%-14%.

We expect non-GAAP gross margin percent to be down slightly sequentially as certain expansion-related costs impact us in Q2 rather than in Q1.

For gross margin, we still expect low double-digit basis point margin expansion in fiscal year 2027.

Our expectations for a slight increase in operating margin percentage in fiscal year 2027 remain unchanged.

We also expect net other income to be down roughly $10 million from Q1.

We also anticipate R&D expenses to be largely flat from Q1 and SG&A expenses to sequentially increase, tied to the marketing campaigns Mick referenced earlier.

Our core constant currency growth includes range guidance translates to reported revenue in the range of $5.75 billion-$5.85 billion.

For fiscal year 2027, we are still planning for our RCS business to deliver high single-digit revenue growth, with operating leverage reflecting both improved mix and execution focus.

ResMed has historically experienced a mid-single-digit sequential increase in total revenue from fiscal Q1 to Q2, and we expect a similar seasonal pattern to occur this year, excluding the 2 months of MatrixCare revenue that we had in Q1.

We continue to expect year-over-year revenue growth in the range of 5%-7% on a core constant currency basis.

We also anticipate R&D expenses to be largely flat from Q1 and SG&A expenses to sequentially increase, tied to the marketing campaigns Mick referenced earlier.

We expect slight year-over-year contraction in gross margin in Q1 and anticipate operating expense dollars to be roughly flat with Q4.

We expect slight year-over-year contraction in gross margin in Q1 and anticipate operating expense dollars to be roughly flat with Q4.

ResMed has historically experienced some seasonality, including first quarter revenue, typically down a few percentage points sequentially from the fourth quarter. On an underlying basis, excluding the MatrixCare divestiture, the Noctrix acquisition, and revenue from Astral, we expect to see typical revenue seasonality again in the first quarter of FY 2027.

Our earnings per share guidance includes a total of $1.5 billion in share repurchases, including a $450 million accelerated share repurchase program that we intend to utilize with the proceeds from the divestiture of the MatrixCare business.

For Q4 FY 2026, we expect Noctrix Health to reduce non-GAAP EPS by approximately $0.02.

We still estimate our effective tax rate for fiscal year 2026 will be in the range of 21%-23%.