ResMed profit beat dampened by restructuring costs, higher expenses

ResMed

30/10/2025 22:29

By Sruthi Narasimha Chari

Oct 30 (Reuters) - ResMed RMD.N exceeded analysts' expectations for first-quarter profit on Thursday, though results were weighed down by a $16 million restructuring charge related to company-wide workforce planning initiatives.

Shares of the San Diego, California-based company, which makes continuous positive airway pressure machines, a non-invasive treatment for sleep apnea, fell about 2.8% in extended trading.

The medical device maker also recorded a 7% increase in its quarterly expenses on a constant currency basis, driven by costs related to its acquisition of VirtuOx earlier this year, and growth in employee costs.

ResMed recognized losses of about $6 million associated with VirtuOx portfolio, negatively impacting its first-quarter profit by 4 cents.

Chief Financial Officer Brett Sandercock, on a post-earnings call, reaffirmed that the company's expenses would represent 19% to 20% of revenue in fiscal year 2026.

The company posted an adjusted profit of $2.55 per share for the quarter ended September 30, compared with analysts' average estimate of $2.50 per share, according to data compiled by LSEG.

Its quarterly revenue rose 9% to $1.34 billion, while analysts expected $1.33 billion.

 (Reporting by Sruthi Narasimha Chari in Bengaluru; Editing by Shilpi Majumdar)

 ((SruthiNarasimha.Chari@thomsonreuters.com))