The Resmed (ASX: RMD) share price has jumped 7% after reporting its FY25 third quarter update.
Resmed is a healthcare business that provides digital health technologies and cloud-connected medical devices which help people with sleep apnea, COPD, and other chronic diseases.
Resmed FY25 third quarter update
The healthcare business announced that revenue increased by 8% to $1.3 billion. The sales increase was 9% in constant currency terms.
Revenue in the US, Canada and Latin America, excluding residential care software, grew by 9%. Revenue in Europe, Asia and other markets, excluding residential care software, rose 8%. Residential care software revenue rose 10%.
The gross profit margin improved by 140 basis points (1.40%) to 59.3%, while the underlying gross profit margin also increased by 140 basis points (1.40%) to 59.9%. This happened thanks to manufacturing and logistics efficiencies, as well as favourable shifts in product mix.
Resmed reported that its operating profit grew by 13% to $426.3 million. Net profit grew by 21% to $365 million and underlying net profit rose 11% to $348.5 million.
The board of directors decided to declare a quarterly dividend of $0.53 per Resmed share, which will be paid on 12 June 2025.
Resmed also announced that its home sleep apnea test, NightOwl is now available in the US, which is an FDA-cleared home sleep apnea test designed to offer healthcare providers a “simplified, accurate and efficient way to diagnose obstructive sleep apnea from the comfort of an individual’s home.”
Leadership commentary
Resmed’s Chairman and CEO, Mick Farrell said:
Our positive fiscal year 2025 performance continued in the third quarter, with strong top-line revenue growth, margin expansion, and double-digit EPS growth resulting from solid customer demand for our best-in-class products and software solutions.
We delivered 9% constant currency revenue growth and 140 bps improvement in non-GAAP gross margin. These results are evidence that sleep health customers recognize our products and software solutions as the gold standard for care. Our continued growth was achieved by the incredible commitment of our team that has created a clear market-leading value proposition in connected digital health. We remain laser-focused on continuing to address the over 2.3 billion people around the globe with sleep health and breathing health issues and all those who need world-class software for healthcare delivered at home.
We will continue to drive increased patient flow as we accelerate education and awareness outreach to physicians, providers, patients, and beyond, ensuring a strong pipeline of people who need access to our products and solutions to improve their lives.
Final thoughts on Resmed shares
This healthcare business is still lower than it was at the start of 2025. Resmed is an interesting business to consider, with its ongoing financial growth.
It’s not the first ASX growth share I’d buy, but it is continuing to impress.
