Capex jumped 73.9%. ResMed's revenue did not come close: it grew 9.9% in the twelve months ended June 30, 2026.
The business grew on the income statement. Revenue rose to $5.7 billion from $5.1 billion, gross margin widened to 61.1%, and net income reached $1.5 billion. Sleep and Breathing Health supplied most of the growth, with revenue up 10.5%, while Residential Care Software grew at a slower pace.
The cash story is less tidy. Operating cash flow increased only 3.1% to $1.8 billion, and cash conversion slipped to 1.19 times from 1.25 times. Capital spending rose to $156.3 million from $89.9 million, taking a larger bite out of the year's sales.
ResMed gave the spending a broad explanation in its annual report:
"The $345 million increase in cash flow used in investing activities was primarily due to cash used for business acquisitions, including for the acquisition of Noctrix, increased purchases of property, plant and equipment, and lower net proceeds from maturity of foreign currency contracts during the year ended June 30, 2026."
10-K, Aug. 13, 2026
That matters because the investing cash drain was not just a factory-and-equipment story. Noctrix added acquisition spending to the bill, while property, plant and equipment purchases also increased. The company's cash balance still rose to $1.5 billion from $1.2 billion, so the balance sheet absorbed the outlay. The annual report does not separate the Noctrix cash payment from the broader investing increase in this receipt.
Working capital added another small drag. Accounts receivable grew 10.3%, faster than revenue, while inventory rose only 2.0%. ResMed described the operating-cash change this way:
"The $54 million increase in cash flow from operations was primarily due to increased net income, partially offset by higher working capital during the year ended June 30, 2026 compared to the year ended June 30, 2025."
10-K, Aug. 13, 2026
In plain English, profit did more of the lifting than cash conversion did. The cause of the receivables increase is not disclosed in the supplied filing receipt, but the comparison makes the working-capital burden visible.
There was also higher R&D spending during the year. Research and development expense rose 14.2%, and management said the increase came primarily from employee-related costs:
"The constant currency increase in research and development expenses was primarily due to increases in employee-related costs."
10-K, Aug. 13, 2026
Gross and operating margins improved, even as R&D and acquisition-related spending rose. Net margin edged down, partly because the effective tax rate increased after the implementation of the Pillar Two global minimum tax and the absence of certain prior-year tax benefits.
ResMed's shares closed at $226.72 on Aug. 13, up 0.3% that day, while the stock was down 20.0% over twelve months. At 23.8 times earnings, the company is still growing and carrying net cash, but the latest annual report also shows a higher investment load. ResMed's next annual report can clarify whether the investing cash outflow remains acquisition-heavy, capex-heavy, or both.
ResMed grew sales and margins, alongside a much bigger investment load.