ResMed Inc. (ASX: RMD) shares are charging higher on Thursday.

In morning trade, the sleep disorder treatment company's shares are up 8% to $35.84.

This follows the release of another strong quarterly update from the company this morning.

ResMed shares jump on quarterly update

For the three months ended 31 March, ResMed reported an 8% increase in revenue to US$1.3 billion.

This was driven by increased demand for its sleep devices and masks portfolio, as well as solid growth across its Residential Care Software business.

Management revealed that this growth was consistent across the globe. Revenue in the U.S., Canada, and Latin America, excluding Residential Care Software, grew by 9%. Whereas revenue in Europe, Asia, and other markets, excluding Residential Care Software, grew by 8% in constant currency.

Residential Care Software revenue increased by 10% on a constant currency basis, reflecting continued organic growth in its Residential Care Software portfolio

Another positive was ResMed's gross margin, which increased by 140 basis points to 59.3%. This was mainly due to manufacturing and logistics efficiencies, as well as favourable shifts in product mix, partially offset by unfavourable foreign currency movements.

This ultimately led to the company's income from operations increasing by 14% to US$426.3 million and its non-GAAP net income rising 11% to US$348.5 million.

How does this compare to expectations?

According to a note out of Goldman Sachs, it was expecting ResMed to report total revenue of US$1,292 million (consensus: US$1,289 million) and non-GAAP net income of US$354 million (consensus: US$353 million).

This means it has delivered a result largely in line with expectations today.

Management commentary

ResMed's chair and CEO, Mick Farrell, was rightfully pleased with the quarter. He 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.

Farrel spoke positively about the future and highlighted the company's massive total addressable market. He adds:

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.