Resmed’s shares fell by around 7% after the company forecast a softer than expected fiscal year 2027 (FY27) outlook due to suspended ventilator sales, ongoing macro uncertainty and inflation across electronic components and freight.
Releasing its FY26 and Q4 FY26 results concurrently, the California-based sleep apnoea specialist achieved revenues of around $5.65bn in FY26, denoting a year-over-year (YoY) uptick of 10%. Meanwhile, the company reported Q4 revenues of $1.46bn, indicative of a 9% uptick YoY.
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Resmed’s CEO, Mick Farrell, highlighted that Q4’s “strong” results reflected “continued momentum” for its global business, sustained product demand and “disciplined” execution of its ongoing strategy.
The company’s Q4, however, was marred by a correction and subsequent Class 1 recall from the US Food and Drug Administration (FDA) in July for certain of its Astral 100 and Astral 150 ventilators.
Citing other factors including fuel and freight costs, and ongoing macro uncertainty, Resmed now expects FY27 revenue to land in the $5.75bn to $5.85bn range, coming in below analysts’ expectations of $5.92bn, according to data compiled by the London Stock Exchange (LSEG) group and seen by Reuters.
Following the FDA notice, Resmed is suspending sales of its Astral ventilators as it takes corrective action. The company’s CFO, Aaron Bloomer, highlighted that it expects headwinds of $75m due to this, representing another contributing factor towards the lower than anticipated FY27 outlook.
Resmed’s correction notice relates to its identification that a component within the ventilators, which provide breathing support for adults and paediatric patients with chronic or acute respiratory failure and conditions such as chronic obstructive pulmonary disease (COPD), may leak over time, causing damage to specific circuitry that can result in the ventilator inadvertently entering a fail-safe state. As of 23 June, Resmed has reported five serious injuries and no deaths associated with this issue.
In an investor call, Bloomer said: “Prioritising patient care is central to our ongoing Astral field safety corrective action. We reaffirm our commitment to supporting patients as our number one priority, period. Patients come first. This includes patient-centric and quality-focused completion of the ongoing field action, while providing home care provider customers with the certainty needed to plan for future ventilation needs.”
Clarifying that the $75m headwind for FY27 means Resmed will not be selling any new Astral ventilators throughout FY27, Bloomer added that the company has not yet made any decisions regarding this action “for FY28 or beyond”.
