ResMed Inc. reported strong financial results for the second quarter of fiscal year 2025, driven by increased demand for its sleep and breathing health products and digital health solutions. Revenue increased by 10% year-over-year to $1.3 billion, with a 10% rise on a constant currency basis. Gross margin improved to 58.6%, reflecting manufacturing efficiencies and lower component costs.

Operating income rose significantly by 52%, while non-GAAP income from operations increased by 19%. Net income surged 65% to $345 million, with diluted earnings per share rising to $2.34. Non-GAAP net income grew 29% to $358 million, with non-GAAP diluted EPS at $2.43. Operating cash flow for the quarter was a robust $309 million.

ResMed highlighted strong regional performance, with revenue in the U.S., Canada, and Latin America (excluding Residential Care Software) growing by 12%, while revenue in Europe, Asia, and other markets increased by 8% on a constant currency basis. Residential Care Software revenue also grew by 8%.

During the quarter, ResMed repurchased 307,000 shares for $75 million and paid $78 million in dividends. The company reaffirmed its commitment to expanding operations in Singapore and continued its focus on digital health innovations.

A quarterly cash dividend of $0.53 per share was declared, payable on March 20, 2025, with a record date of February 13, 2025.