Resmed (0KW4) AI Stock Analysis

Company Guidance

For fiscal year 2027, ResMed reiterated year-over-year revenue growth of 5% to 7% on a core constant currency basis, including an approximately 130 basis point headwind or around $75 million from Astral; excluding Astral, core constant currency revenue growth would range from 6.3% to 8.3%. Reported revenue is expected to be $5.75 billion to $5.85 billion, assuming an approximately 60 basis point FX headwind, while non-GAAP earnings per share is expected to be $12 to $12.25, an increase of approximately 7% to 10% on a reported basis, or 12% to 14% core EPS growth excluding the dilution from the divestiture of the MatrixCare business and the acquisition of Nidra. ResMed still expects low double-digit basis point margin expansion, a slight increase in operating margin percentage, more than $1.85 billion returned to shareholders, and capital expenditures of $160 million to $180 million; for Q2, it expects a mid-single-digit sequential increase in total revenue excluding the 2 months of MatrixCare revenue in Q1, non-GAAP gross margin percent to be down slightly sequentially, R&D expenses to be largely flat, SG&A expenses to sequentially increase, and net other income to be down roughly $10 million from Q1.