ResMed (RMD)
Market Price (11/8/2026): $235.16 | Market Cap: $33.1 BilInvestor Relations Sector: Health Care | Industry: Health Care Equipment
ResMed (RMD)
Market Price (11/8/2026): $235.16Market Cap: $33.1 BilSector: Health CareIndustry: Health Care Equipment
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.8% Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 33% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 31%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 28% Stock buyback supportStock Buyback 3Y Total is 2.1 Bil Low stock price volatilityVol 12M is 31% Megatrend and thematic driversMegatrends include Digital Health & Telemedicine. Themes include Remote Patient Monitoring, Health Data Analytics, and AI in Healthcare Management. | Weak multi-year price returns2Y Excs Rtn is -31%, 3Y Excs Rtn is -9.4% Meaningful short interestShort Interest Days-to-CoverDTC = (Short Interest Share Quantity) / (Average Daily Trading Volume). Reflects how many days it would take to cover (close out) the short interest based on average volumes. High DTC can signify an increased risk of a short squeeze. is 12.33 | Key risksRMD key risks include [1] the erosion of market share gains as a key competitor resolves its product recall and [2] new liabilities and regulatory challenges related to its increasing use of artificial intelligence (AI) in products. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 5.8% |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 33% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 31%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 28% |
| Stock buyback supportStock Buyback 3Y Total is 2.1 Bil |
| Low stock price volatilityVol 12M is 31% |
| Megatrend and thematic driversMegatrends include Digital Health & Telemedicine. Themes include Remote Patient Monitoring, Health Data Analytics, and AI in Healthcare Management. |
| Weak multi-year price returns2Y Excs Rtn is -31%, 3Y Excs Rtn is -9.4% |
| Meaningful short interestShort Interest Days-to-CoverDTC = (Short Interest Share Quantity) / (Average Daily Trading Volume). Reflects how many days it would take to cover (close out) the short interest based on average volumes. High DTC can signify an increased risk of a short squeeze. is 12.33 |
| Key risksRMD key risks include [1] the erosion of market share gains as a key competitor resolves its product recall and [2] new liabilities and regulatory challenges related to its increasing use of artificial intelligence (AI) in products. |
Qualitative Assessment
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ResMed (RMD) stock has gained about 10% since 7/31/2026 because of the following key factors:
1. Robust Fiscal Year 2026 Performance and Strategic Capital Returns.
ResMed concluded its fiscal year 2026 (ended June 30, 2026) with strong fourth-quarter results, reporting a 9% increase in reported revenue and a 16% rise in non-GAAP diluted earnings per share, demonstrating solid underlying business momentum. This strong performance was followed by the successful divestiture of its MatrixCare residential care software business on September 1, 2026, which yielded $470 million in net cash proceeds. The company subsequently committed to returning more than $1 billion to shareholders in fiscal year 2027, including significant share repurchases totaling $936 million during fiscal Q1 2027 alone. These strategic financial moves and shareholder-friendly capital allocation likely bolstered investor confidence.
2. Outperforming Fiscal Q1 2027 Earnings Expectations.
On October 29, 2026, ResMed announced its fiscal Q1 2027 results (for the quarter ended September 30, 2026), which surpassed analyst consensus estimates for both revenue and earnings per share. The company reported non-GAAP diluted earnings per share of $2.91, exceeding the $2.67 consensus estimate by 8.9% and representing a 14% year-over-year increase. Additionally, net revenue for the quarter reached $1.41 billion, outperforming the $1.39 billion consensus by 1.7% and marking a 5.9% year-over-year growth. This strong operational performance in its core business contributed positively to the stock's trend.
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ResMed (RMD) stock has gained about 10% since 7/31/2026 because of the following key factors:
1. Robust Fiscal Year 2026 Performance and Strategic Capital Returns.
ResMed concluded its fiscal year 2026 (ended June 30, 2026) with strong fourth-quarter results, reporting a 9% increase in reported revenue and a 16% rise in non-GAAP diluted earnings per share, demonstrating solid underlying business momentum. This strong performance was followed by the successful divestiture of its MatrixCare residential care software business on September 1, 2026, which yielded $470 million in net cash proceeds. The company subsequently committed to returning more than $1 billion to shareholders in fiscal year 2027, including significant share repurchases totaling $936 million during fiscal Q1 2027 alone. These strategic financial moves and shareholder-friendly capital allocation likely bolstered investor confidence.
2. Outperforming Fiscal Q1 2027 Earnings Expectations.
On October 29, 2026, ResMed announced its fiscal Q1 2027 results (for the quarter ended September 30, 2026), which surpassed analyst consensus estimates for both revenue and earnings per share. The company reported non-GAAP diluted earnings per share of $2.91, exceeding the $2.67 consensus estimate by 8.9% and representing a 14% year-over-year increase. Additionally, net revenue for the quarter reached $1.41 billion, outperforming the $1.39 billion consensus by 1.7% and marking a 5.9% year-over-year growth. This strong operational performance in its core business contributed positively to the stock's trend.
3. Sustained Demand for Core Sleep and Breathing Health Solutions.
ResMed continued to experience robust global demand for its market-leading sleep and breathing health solutions and products, contributing to a 7% organic revenue growth in fiscal Q1 2027. Particularly, the Resupply segment demonstrated strength by generating $540 million in Q1 FY2027, exceeding Street estimates of $526 million, partly due to a fleet refresh in France. The company also highlighted positive traction from new product launches, such as fabric masks which reportedly delivered a 6% improvement in adherence, and advancements in its digital health ecosystem. This consistent demand and innovation in its core offerings underscored the company's resilience and growth prospects.
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Stock Movement Drivers
Fundamental Drivers
The 11.8% change in RMD stock from 7/31/2026 to 11/7/2026 was primarily driven by a 5.0% change in the company's P/E Multiple.| (LTM values as of) | 7312026 | 11072026 | Change |
|---|---|---|---|
| Stock Price ($) | 210.38 | 235.30 | 11.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,538 | 5,733 | 3.5% |
| Net Income Margin (%) | 27.4% | 27.8% | 1.3% |
| P/E Multiple | 20.1 | 21.1 | 5.0% |
| Shares Outstanding (Mil) | 145 | 143 | 1.6% |
| Cumulative Contribution | 11.8% |
Market Drivers
7/31/2026 to 11/7/2026| Return | Correlation | |
|---|---|---|
| RMD | 11.8% | |
| Market (SPY) | -1.6% | 27.9% |
| Sector (XLV) | 13.7% | 42.5% |
Fundamental Drivers
The 10.7% change in RMD stock from 4/30/2026 to 11/7/2026 was primarily driven by a 6.2% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 4302026 | 11072026 | Change |
|---|---|---|---|
| Stock Price ($) | 212.57 | 235.30 | 10.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,398 | 5,733 | 6.2% |
| Net Income Margin (%) | 27.5% | 27.8% | 1.0% |
| P/E Multiple | 20.9 | 21.1 | 1.2% |
| Shares Outstanding (Mil) | 146 | 143 | 2.0% |
| Cumulative Contribution | 10.7% |
Market Drivers
4/30/2026 to 11/7/2026| Return | Correlation | |
|---|---|---|
| RMD | 10.7% | |
| Market (SPY) | 2.6% | 10.8% |
| Sector (XLV) | 27.1% | 48.9% |
Fundamental Drivers
The -3.7% change in RMD stock from 10/31/2025 to 11/7/2026 was primarily driven by a -15.0% change in the company's P/E Multiple.| (LTM values as of) | 10312025 | 11072026 | Change |
|---|---|---|---|
| Stock Price ($) | 244.30 | 235.30 | -3.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,257 | 5,733 | 9.0% |
| Net Income Margin (%) | 27.4% | 27.8% | 1.6% |
| P/E Multiple | 24.8 | 21.1 | -15.0% |
| Shares Outstanding (Mil) | 146 | 143 | 2.2% |
| Cumulative Contribution | -3.7% |
Market Drivers
10/31/2025 to 11/7/2026| Return | Correlation | |
|---|---|---|
| RMD | -3.7% | |
| Market (SPY) | 8.7% | 20.7% |
| Sector (XLV) | 29.8% | 49.1% |
Fundamental Drivers
The 71.6% change in RMD stock from 10/31/2023 to 11/7/2026 was primarily driven by a 34.1% change in the company's Net Income Margin (%).| (LTM values as of) | 10312023 | 11072026 | Change |
|---|---|---|---|
| Stock Price ($) | 137.11 | 235.30 | 71.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 4,375 | 5,733 | 31.0% |
| Net Income Margin (%) | 20.7% | 27.8% | 34.1% |
| P/E Multiple | 22.2 | 21.1 | -5.1% |
| Shares Outstanding (Mil) | 147 | 143 | 2.9% |
| Cumulative Contribution | 71.6% |
Market Drivers
10/31/2023 to 11/7/2026| Return | Correlation | |
|---|---|---|
| RMD | 71.6% | |
| Market (SPY) | 81.9% | 32.3% |
| Sector (XLV) | 55.4% | 40.1% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| RMD Return | 23% | -19% | -17% | 34% | 6% | -2% | 16% |
| Peers Return | 0% | -11% | -12% | 15% | -13% | 1% | -22% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 12% | 105% |
Monthly Win Rates [3] | |||||||
| RMD Win Rate | 50% | 50% | 58% | 50% | 58% | 55% | |
| Peers Win Rate | 55% | 48% | 48% | 50% | 43% | 51% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 45% | |
Max Drawdowns [4] | |||||||
| RMD Max Drawdown | -19% | -27% | -44% | -17% | -20% | -33% | |
| Peers Max Drawdown | -30% | -35% | -41% | -25% | -37% | -34% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: INSP, INGN, MDT, SYK, BDX. See RMD Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 11/6/2026 (YTD)
How Low Can It Go
| Event | RMD | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -12.8% | -18.8% |
| % Gain to Breakeven | 14.7% | 23.1% |
| Time to Breakeven | 16 days | 79 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -38.6% | -9.5% |
| % Gain to Breakeven | 63.0% | 10.5% |
| Time to Breakeven | 199 days | 24 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -26.0% | -24.5% |
| % Gain to Breakeven | 35.1% | 32.4% |
| Time to Breakeven | 891 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -35.3% | -33.7% |
| % Gain to Breakeven | 54.5% | 50.9% |
| Time to Breakeven | 94 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -12.3% | -19.2% |
| % Gain to Breakeven | 14.0% | 23.8% |
| Time to Breakeven | 37 days | 105 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -11.4% | -3.7% |
| % Gain to Breakeven | 12.9% | 3.9% |
| Time to Breakeven | 71 days | 6 days |
In The Past
ResMed's stock fell -12.8% during the 2025 US Tariff Shock. Such a loss loss requires a 14.7% gain to breakeven.
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| Event | RMD | S&P 500 |
|---|---|---|
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -38.6% | -9.5% |
| % Gain to Breakeven | 63.0% | 10.5% |
| Time to Breakeven | 199 days | 24 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -26.0% | -24.5% |
| % Gain to Breakeven | 35.1% | 32.4% |
| Time to Breakeven | 891 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -35.3% | -33.7% |
| % Gain to Breakeven | 54.5% | 50.9% |
| Time to Breakeven | 94 days | 140 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -43.6% | -53.4% |
| % Gain to Breakeven | 77.2% | 114.4% |
| Time to Breakeven | 409 days | 1085 days |
In The Past
ResMed's stock fell -12.8% during the 2025 US Tariff Shock. Such a loss loss requires a 14.7% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About ResMed (RMD)
ResMed Inc. (RMD) is a global medical device company specializing in developing, manufacturing, and marketing solutions for respiratory disorders and out-of-hospital care. The company operates in two main segments: Sleep and Respiratory Care, and Software as a Service. Its mission is to improve patient outcomes through innovative medical devices and digital health solutions.
In its Sleep and Respiratory Care segment, ResMed provides a comprehensive suite of products for conditions like sleep apnea and other respiratory disorders. This includes ventilation devices, diagnostic products, and various mask systems with associated accessories. Complementing its hardware, ResMed offers cloud-based software such as AirView for remote patient monitoring, myAir for personalized therapy management, and U-Sleep for streamlining compliance monitoring for home medical equipment (HME) providers.
Beyond respiratory devices, ResMed is a significant provider of out-of-hospital software solutions through its Software as a Service segment. These include Brightree for business management across various post-acute care settings like HME and pharmacy, MatrixCare for care management in senior living and skilled nursing facilities, and HEALTHCAREfirst for electronic health records and analytics in home health and hospice. ResMed markets its products and services primarily to sleep clinics, home healthcare dealers, and hospitals across approximately 140 countries.
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The high-tech Dyson for medical breathing and sleep devices.
A specialized Salesforce for out-of-hospital healthcare management.
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ResMed (RMD) offers a range of medical devices and cloud-based software solutions:
- Ventilation Devices: Medical devices providing respiratory support for various conditions.
- Diagnostic Products: Devices used for diagnosing respiratory disorders.
- Mask Systems: Essential components for delivering respiratory therapy in both hospital and home settings.
- Headgear and Other Accessories: Complementary items for mask systems and other medical devices.
- Dental Devices: Specialized devices used in dentistry, often for sleep-related issues.
- Connectivity Modules and Propeller Solutions: Components designed to enhance device connectivity and functionality.
- Cloud-based Informatics Solutions: Software platforms for managing patient outcomes and data related to respiratory care.
- AirView: A cloud-based system facilitating remote monitoring and adjustment of patients' device settings.
- myAir: A personalized mobile application for sleep apnea patients providing therapy management, support, and education.
- U-Sleep: A compliance monitoring solution helping home medical equipment (HME) providers streamline their sleep therapy programs.
- Brightree: Business management software and service solutions for out-of-hospital care providers including HME, pharmacy, and home infusion.
- MatrixCare: Comprehensive care management software and ancillary solutions for senior living, skilled nursing, and various home care agencies.
- HEALTHCAREfirst: Electronic health record (EHR) software, billing, coding, and analytics services specifically for home health and hospice agencies.
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ResMed (RMD) sells primarily to other companies and organizations within the healthcare sector. Its major customers, categorized by the types of businesses they represent, include:
- Sleep clinics
- Home Healthcare Dealers (also known as Home Medical Equipment or HME providers)
- Hospitals
- Distributors
- Various out-of-hospital care providers, particularly for its software solutions, including:
- Senior living, skilled nursing, and life plan communities
- Home health, home care, and hospice agencies
- Pharmacy, home infusion, orthotics, and prosthetics services providers
- Accountable care organizations
The provided company description does not include specific names of customer companies or their public symbols.
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Michael "Mick" Farrell, Chief Executive Officer and Chairman of the Board
Mick Farrell was appointed ResMed's CEO in March 2013 and became Chairman of the Board in January 2023. He joined ResMed in 2000 and served in various senior leadership roles, including president of the Americas region from 2011 to 2013, and senior vice president of the global sleep apnea business unit from 2007 to 2011. Before joining ResMed, Mr. Farrell worked in management consulting, biotechnology, chemicals, and metals manufacturing at companies such as Arthur D. Little, Genzyme Corporation (now part of Sanofi), The Dow Chemical Company, and BHP Billiton. He serves on the board of directors for the Advanced Medical Technology Association (AdvaMed) and Zimmer Biomet. He is the son of ResMed's founder, Dr. Peter Farrell.
Brett Sandercock, Chief Financial Officer
Brett Sandercock was appointed Chief Financial Officer in January 2006. His previous roles at ResMed include vice president of Treasury and Finance from 2004 to 2005, and group accountant and controller from 1998 to 2004. Prior to ResMed, Mr. Sandercock was a manager of Financial Accounting and Group Reporting at Norton Abrasives, a division of Saint-Gobain, and held finance and accounting positions at Health Care of Australia. He also worked at PricewaterhouseCoopers in Sydney, specializing in audits across various industries. From June 2019 to August 2021, he served as non-executive chairman of the board of directors of Osteopore Limited.
Justin Leong, Chief Product Officer
Justin Leong was appointed Chief Product Officer in November 2023, leading the development of a global portfolio of products, services, and business models. He joined ResMed in 2013 as vice president of Global Strategy and has held various roles, including president of Asia Growth Markets and senior vice president for Asia and Latin America. Before joining ResMed, Mr. Leong was a director at London-based private equity firm HgCapital from 2006 to 2012, where he was responsible for acquisitions, portfolio management, and served on the board of several European healthcare companies. Earlier in his career, he was a management consultant with Bain & Co. in Sydney, Boston, and New York.
Michael Rider, Chief Legal Officer
Michael Rider was appointed Chief Legal Officer in July 2023. He guides global legal strategy on intellectual property management, antitrust, anti-kickback, corporate governance, acquisitions, privacy, and litigation. He previously served as ResMed's senior vice president, deputy global general counsel, and legal business partner for ResMed's Sleep & Respiratory Care team from 2019 to 2023, and as vice president and general counsel-Americas since joining ResMed in 2012. Mr. Rider has nearly 40 years of legal experience, including serving as senior vice president, general counsel for Callaway Golf, senior attorney for American Airlines, and a litigation associate at Gibson Dunn & Crutcher.
Kylie Canaday, Chief Strategy Officer
Kylie Canaday was appointed Chief Strategy Officer in January 2026, responsible for the company's global corporate strategy and enterprise-wide strategic development. She has over 15 years of experience at ResMed, holding several senior leadership roles, including Vice President of Financial Planning & Analysis, Vice President of Corporate Strategy, Vice President of SaaS Strategy and Business Development, and Chief of Staff to the Executive Team. In these roles, she has driven strategic initiatives supporting ResMed's growth, digital transformation, and business development.
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The key risks to ResMed's business (RMD) include the emerging threat from weight-loss drugs, an increasingly competitive and complex regulatory landscape, and ongoing supply chain vulnerabilities.
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GLP-1 Competitive Risk: The primary and most significant emerging risk for ResMed stems from the potential impact of GLP-1 (Glucagon-like peptide-1) weight-loss drugs. As obesity is a major risk factor for obstructive sleep apnea (OSA), the approval of these drugs for treating OSA could lead to a meaningful reduction in demand for ResMed's core product offerings, such as CPAP (Continuous Positive Airway Pressure) therapy devices and associated consumables. This new class of therapeutics poses a direct challenge to the underlying demand for ResMed's devices, potentially altering the landscape of sleep apnea treatment.
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Market Competition and Regulatory Risks: ResMed operates in a highly competitive environment, and the normalization of the competitive landscape, especially with competitors like Philips Respironics rebuilding after past regulatory issues, could lead to market share stabilization and increased pricing pressure. Furthermore, an evolving regulatory landscape and reimbursement uncertainty present ongoing challenges. Changes in global safety standards, stricter compliance costs, and shifts in reimbursement policies from Medicare or private insurers for sleep devices and remote patient monitoring could negatively impact ResMed's margins, operational expenses, and patient access to its products.
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Supply Chain Vulnerabilities: ResMed has acknowledged and faced difficulties due to global supply chain disruptions, which have previously resulted in issues like "decommitment" on component purchase orders and the need to recalibrate sales forecasts. Despite ongoing efforts to diversify suppliers and improve supply chain resilience, including investments in new distribution centers, the company remains sensitive to disruptions caused by factors such as component shortages, geopolitical conflicts, and potential tariffs, particularly given that a significant portion of its revenue is generated outside North America.
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ResMed (symbol: RMD) operates in several large addressable markets for its main products and services across sleep and respiratory care, and software as a service (SaaS).
Sleep and Respiratory Care Products
- The total addressable market (TAM) for ResMed's portfolio of products, which includes solutions for sleep apnea, insomnia, and chronic obstructive pulmonary disease (COPD), is estimated by management to be over 2.3 billion people globally.
- For sleep apnea specifically, the global addressable market encompasses over 1 billion people.
- For insomnia, the global addressable market includes 860 million people.
- For chronic obstructive pulmonary disease (COPD), the global addressable market is 480 million people.
- The global sleep apnea devices market is projected to grow from $9.7 billion in 2025 to $24.4 billion by 2035. In 2025, the sleep apnea devices market was valued at approximately $7.11 billion. Another source indicates the sleep apnea devices market was valued at approximately USD 9.70 billion in 2024 and is expected to reach USD 10.30 billion in 2025.
- The North American sleep apnea devices market was valued at USD 3.26 billion in 2025 and represented approximately 49.28% of the global market in 2024.
- The global COPD treatment market was valued at USD 22.32 billion in 2024, with projections indicating a rise to USD 23.26 billion by 2025. North America led the COPD market with a 38.60% share in 2024.
Software as a Service (SaaS)
- ResMed's SaaS business is a significant and growing segment, with its Residential Care Software (RCS) segment accounting for 51% of its Q2 FY26 revenue.
- The company's digital health ecosystem connects a large patient base; it has a network of more than 34 million patients on its AirView platform.
- ResMed's residential care software network includes more than 170 million accounts.
- By 2025, ResMed manages over 18 million devices and influences more than 170 million lives through its SaaS and data analytics.
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Share Repurchases
- ResMed repurchased 419,000 shares for $100 million in the fourth quarter of fiscal year 2025 as part of its capital management.
- The company planned to increase its share buyback program to $100 million per quarter starting in Q4 FY2025, up from $75 million in Q3 FY2025.
- Over $610 million was returned to shareholders in fiscal year 2025 through a combination of dividends and share repurchases.
Share Issuance
- On November 19, 2025, stockholders approved an amendment to the 2009 Incentive Award Plan, increasing the number of common shares reserved for issuance by 2,400,000.
- The 2018 Employee Stock Purchase Plan was also amended on November 19, 2025, adding 3 million shares.
- Common stock issuance, net of taxes, for the twelve months ending December 31, 2025, was approximately $77.0 million (sum of $29.6M (Dec 2025), $8.2M (Sep 2025), $30.2M (Jun 2025), $9.0M (Mar 2025)).
Outbound Investments
- ResMed acquired VirtuOx, a leading independent diagnostic testing facility, for $140 million in May 2025, expanding its presence in home sleep apnea testing and virtual care.
- The company acquired the German-based MEDIFOX DAN group for approximately $1 billion, which significantly expanded its software portfolio for out-of-hospital care.
- ResMed acquired Inhealthcare in June 2024, further expanding its portfolio of digital health solutions.
Capital Expenditures
- Capital expenditures for fiscal year 2025 were approximately $90 million.
- For the last twelve months ending in February 2026, capital expenditures were approximately $122.89 million.
- Expected capital expenditures are forecast to be $146.2 million for 2026, $157.3 million for 2027, and $168.5 million for 2028, with a focus on expanding U.S. manufacturing with a new facility in Calabasas, California, and strengthening distribution capacity in North America with a new hub in Greenwood, Indiana, scheduled to open in 2027.
Peer Outperformance in Health Care Equipment
| Ticker | Name | Rev Growth 3Y Avg | P/E | 1Y | 3Y | 5Y | 5Y Gap |
|---|---|---|---|---|---|---|---|
| RMD | ResMed | 9.4% | 21.1x | -5.4% | 62.4% | -5.5% | — |
| ITGR | Integer | 6.8% | 41.5x | 85.4% | 47.4% | 39.8% | +45pp |
| BDX | Becton Dickinson | 7.1% | 61.9x | 55.4% | 12.0% | 24.0% | +29pp |
| STE | Steris | 10.3% | 29.7x | -3.3% | 26.1% | 17.9% | +23pp |
| Industry | Names | 1Y med | 3Y med | 5Y med | Top 3 by 5Y |
|---|---|---|---|---|---|
| Health Care Distributors | 6 | 6.4% | 54.7% | 91.6% | CAH 507% · MCK 390% · COR 176% |
| Health Care Services | 20 | 32.4% | 24.2% | 7.1% | HIMS 212% · RDNT 120% · DGX 100% |
| Managed Health Care | 8 | 55.2% | -1.0% | -2.4% | OSCR 80% · HQY 52% · ELV 8% |
| Health Care Facilities | 26 | 16.4% | 19.8% | -6.8% | THC 276% · NHC 212% · EHC 179% |
| Health Care Equipment ← | 50 | 4.0% | 12.4% | -18.2% | UFPT 361% · GKOS 294% · TMDX 180% |
| Pharmaceuticals | 61 | -8.8% | 11.8% | -37.3% | LQDA 975% · XERS 679% · KNSA 537% |
| Health Care Supplies | 11 | 23.1% | 16.0% | -41.2% | LNTH 248% · HAE 61% · MMSI 26% |
| Life Sciences Tools & Services | 108 | -6.4% | -14.3% | -74.5% | AXGN 264% · MEDP 189% · NTRA 168% |
| Biotechnology | 365 | -23.8% | -33.1% | -81.5% | ELVN 1194% · TRVI 1125% · DNTH 995% |
| Health Care Technology | 21 | -21.7% | -51.6% | -82.9% | VEEV -5% · DOCS -52% |
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 156.84 |
| Mkt Cap | 45.9 |
| Rev LTM | 14,491 |
| Op Inc LTM | 2,622 |
| FCF LTM | 2,049 |
| FCF 3Y Avg | 2,166 |
| CFO LTM | 2,516 |
| CFO 3Y Avg | 2,592 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 8.5% |
| Rev Chg 3Y Avg | 8.3% |
| Rev Chg Q | 5.7% |
| QoQ Delta Rev Chg LTM | 1.3% |
| Op Inc Chg LTM | 8.2% |
| Op Inc Chg 3Y Avg | 13.3% |
| Op Mgn LTM | 16.7% |
| Op Mgn 3Y Avg | 16.0% |
| QoQ Delta Op Mgn LTM | -0.1% |
| CFO/Rev LTM | 18.0% |
| CFO/Rev 3Y Avg | 18.1% |
| FCF/Rev LTM | 13.7% |
| FCF/Rev 3Y Avg | 14.6% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 45.9 |
| P/S | 3.0 |
| P/Op Inc | 18.0 |
| P/EBIT | 19.8 |
| P/E | 23.0 |
| P/CFO | 17.0 |
| Total Yield | 4.7% |
| Dividend Yield | 1.1% |
| FCF Yield 3Y Avg | 3.9% |
| D/E | 0.1 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 9.8% |
| 3M Rtn | 8.7% |
| 6M Rtn | 25.4% |
| 12M Rtn | -6.5% |
| 3Y Rtn | 18.9% |
| 1M Excs Rtn | 14.8% |
| 3M Excs Rtn | 11.9% |
| 6M Excs Rtn | 25.7% |
| 12M Excs Rtn | -14.0% |
| 3Y Excs Rtn | -51.0% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2026 | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|
| Sleep and Breathing Health | 4,978 | 4,505 | 4,101 | 3,725 | 3,177 |
| Residential Care Software | 676 | 641 | 584 | 498 | 401 |
| Total | 5,653 | 5,146 | 4,685 | 4,223 | 3,578 |
| $ Mil | 2026 | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|
| Sleep and Breathing Health | 2,204 | 1,964 | 1,681 | 1,447 | 1,280 |
| Residential Care Software | 218 | 205 | 154 | 116 | 94 |
| Masks with magnets field safety notification expenses | 0 | 2 | -6 | 0 | 0 |
| Acquisition and portfolio review related expenses | -11 | -2 | 0 | -11 | -2 |
| Restructuring expenses | -22 | 0 | -64 | -9 | 0 |
| Astral field safety notification expenses | -42 | 0 | -8 | 0 | 0 |
| Amortization of acquired intangible assets | -77 | -77 | -79 | -72 | -71 |
| Corporate costs | -383 | -406 | -358 | -338 | -300 |
| Total | 1,887 | 1,685 | 1,320 | 1,132 | 1,000 |
Price Behavior
| Market Price | $235.30 | |
| Market Cap ($ Bil) | 33.6 | |
| First Trading Date | 06/02/1995 | |
| Distance from 52W High | -14.0% | |
| 50 Days | 200 Days | |
| DMA Price | $231.86 | $223.56 |
| DMA Trend | up | indeterminate |
| Distance from DMA | 1.5% | 5.3% |
| 3M | 1YR | |
| Volatility | 32.2% | 30.7% |
| Downside Capture | 9.44 | 52.75 |
| Upside Capture | 77.71 | 43.84 |
| Correlation (S&P 500) | 27.0% | 20.6% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.41 | 0.78 | 0.86 | 0.24 | 0.47 | 0.68 |
| Up Beta | -2.36 | -1.36 | 0.09 | -0.14 | 0.24 | 0.68 |
| Down Beta | 3.95 | 2.80 | 2.93 | 1.17 | 0.72 | 0.57 |
| Up Capture | 103% | 34% | 70% | 15% | 29% | 46% |
| Bmk +ve Days | 12 | 18 | 28 | 62 | 130 | 427 |
| Stock +ve Days | 15 | 22 | 35 | 65 | 130 | 392 |
| Down Capture | 33% | 66% | 25% | -17% | 64% | 89% |
| Bmk -ve Days | 10 | 25 | 36 | 64 | 121 | 325 |
| Stock -ve Days | 7 | 21 | 29 | 61 | 121 | 360 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with RMD | |
|---|---|---|---|---|
| RMD | -3.0% | 30.7% | -0.09 | - |
| Sector ETF (XLV) | 28.6% | 16.9% | 1.31 | 49.3% |
| Equity (SPY) | 9.5% | 13.6% | 0.40 | 20.6% |
| Gold (GLD) | 1.6% | 28.7% | 0.05 | 18.3% |
| Commodities (DBC) | 38.4% | 21.2% | 1.42 | -17.2% |
| Real Estate (VNQ) | 11.3% | 14.2% | 0.51 | 38.6% |
| Bitcoin (BTCUSD) | -27.2% | 43.6% | -0.61 | 8.7% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with RMD | |
|---|---|---|---|---|
| RMD | -1.3% | 32.2% | 0.00 | - |
| Sector ETF (XLV) | 8.3% | 15.4% | 0.35 | 46.4% |
| Equity (SPY) | 11.3% | 17.3% | 0.48 | 41.7% |
| Gold (GLD) | 17.5% | 19.1% | 0.74 | 13.4% |
| Commodities (DBC) | 8.1% | 19.6% | 0.30 | 4.5% |
| Real Estate (VNQ) | 1.3% | 18.9% | -0.04 | 40.7% |
| Bitcoin (BTCUSD) | 4.0% | 51.6% | 0.26 | 16.6% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with RMD | |
|---|---|---|---|---|
| RMD | 16.0% | 32.0% | 0.53 | - |
| Sector ETF (XLV) | 12.2% | 16.8% | 0.59 | 52.7% |
| Equity (SPY) | 15.0% | 18.0% | 0.70 | 49.6% |
| Gold (GLD) | 11.9% | 16.5% | 0.59 | 11.9% |
| Commodities (DBC) | 7.5% | 18.1% | 0.33 | 11.5% |
| Real Estate (VNQ) | 5.9% | 20.7% | 0.24 | 41.6% |
| Bitcoin (BTCUSD) | 60.0% | 66.3% | 1.00 | 12.3% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 11/8/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 10/29/2026 | -9.1% | -5.3% | |
| 8/6/2026 | -5.1% | 1.6% | 2.6% |
| 4/30/2026 | -4.1% | -3.2% | -12.5% |
| 1/29/2026 | 0.3% | 3.7% | 0.1% |
| 10/30/2025 | -2.1% | -1.0% | -0.3% |
| 7/31/2025 | 2.7% | 3.0% | 1.2% |
| 4/23/2025 | 10.1% | 10.3% | 14.7% |
| 1/30/2025 | -8.3% | -7.9% | -9.3% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 9 | 11 | 11 |
| # Negative | 15 | 13 | 12 |
| Median Positive | 7.0% | 3.7% | 9.9% |
| Median Negative | -5.1% | -4.6% | -4.2% |
| Max Positive | 18.9% | 18.9% | 16.5% |
| Max Negative | -18.5% | -19.5% | -27.4% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 10/29/2026 | -9.1% | -5.3% | |
| 8/6/2026 | -5.1% | 1.6% | 2.6% |
| 4/30/2026 | -4.1% | -3.2% | -12.5% |
| 1/29/2026 | 0.3% | 3.7% | 0.1% |
| 10/30/2025 | -2.1% | -1.0% | -0.3% |
| 7/31/2025 | 2.7% | 3.0% | 1.2% |
| 4/23/2025 | 10.1% | 10.3% | 14.7% |
| 1/30/2025 | -8.3% | -7.9% | -9.3% |
| 10/24/2024 | 7.1% | 1.4% | 2.2% |
| 8/1/2024 | 4.2% | -0.2% | 14.5% |
| 4/25/2024 | 18.9% | 18.9% | 16.5% |
| 1/24/2024 | 8.5% | 10.7% | 7.4% |
| 10/26/2023 | -2.9% | 8.2% | 10.3% |
| 8/3/2023 | -18.5% | -19.5% | -27.4% |
| 4/27/2023 | 7.0% | 3.0% | -4.2% |
| 1/26/2023 | -3.3% | -2.4% | -8.6% |
| 10/27/2022 | -5.8% | -10.1% | -2.7% |
| 8/11/2022 | -0.4% | -1.8% | -1.0% |
| 4/28/2022 | -6.3% | -4.6% | -2.2% |
| 1/27/2022 | -3.9% | 5.4% | 9.9% |
| 10/28/2021 | -2.1% | -2.2% | -4.2% |
| 8/5/2021 | 2.7% | 2.9% | 10.8% |
| 4/29/2021 | -9.6% | -7.1% | -0.8% |
| 1/28/2021 | -6.7% | -5.5% | -9.2% |
| SUMMARY STATS | |||
| # Positive | 9 | 11 | 11 |
| # Negative | 15 | 13 | 12 |
| Median Positive | 7.0% | 3.7% | 9.9% |
| Median Negative | -5.1% | -4.6% | -4.2% |
| Max Positive | 18.9% | 18.9% | 16.5% |
| Max Negative | -18.5% | -19.5% | -27.4% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2026 | 10/30/2026 | 10-Q |
| 06/30/2026 | 08/13/2026 | 10-K |
| 03/31/2026 | 05/01/2026 | 10-Q |
| 12/31/2025 | 01/30/2026 | 10-Q |
| 09/30/2025 | 10/31/2025 | 10-Q |
| 06/30/2025 | 08/08/2025 | 10-K |
| 03/31/2025 | 04/24/2025 | 10-Q |
| 12/31/2024 | 01/31/2025 | 10-Q |
| 09/30/2024 | 10/25/2024 | 10-Q |
| 06/30/2024 | 08/09/2024 | 10-K |
| 03/31/2024 | 04/26/2024 | 10-Q |
| 12/31/2023 | 01/25/2024 | 10-Q |
| 09/30/2023 | 10/27/2023 | 10-Q |
| 06/30/2023 | 08/11/2023 | 10-K |
| 03/31/2023 | 04/28/2023 | 10-Q |
| 12/31/2022 | 01/27/2023 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 09/30/2026 | 10/30/2026 | 10-Q |
| 06/30/2026 | 08/13/2026 | 10-K |
| 03/31/2026 | 05/01/2026 | 10-Q |
| 12/31/2025 | 01/30/2026 | 10-Q |
| 09/30/2025 | 10/31/2025 | 10-Q |
| 06/30/2025 | 08/08/2025 | 10-K |
| 03/31/2025 | 04/24/2025 | 10-Q |
| 12/31/2024 | 01/31/2025 | 10-Q |
| 09/30/2024 | 10/25/2024 | 10-Q |
| 06/30/2024 | 08/09/2024 | 10-K |
| 03/31/2024 | 04/26/2024 | 10-Q |
| 12/31/2023 | 01/25/2024 | 10-Q |
| 09/30/2023 | 10/27/2023 | 10-Q |
| 06/30/2023 | 08/11/2023 | 10-K |
| 03/31/2023 | 04/28/2023 | 10-Q |
| 12/31/2022 | 01/27/2023 | 10-Q |
| 09/30/2022 | 10/28/2022 | 10-Q |
| 06/30/2022 | 08/12/2022 | 10-K |
| 03/31/2022 | 04/29/2022 | 10-Q |
| 12/31/2021 | 01/28/2022 | 10-Q |
| 09/30/2021 | 10/29/2021 | 10-Q |
| 06/30/2021 | 08/17/2021 | 10-K |
| 03/31/2021 | 04/30/2021 | 10-Q |
| 12/31/2020 | 01/29/2021 | 10-Q |
| 09/30/2020 | 10/30/2020 | 10-Q |
| 06/30/2020 | 08/13/2020 | 10-K |
| 03/31/2020 | 05/01/2020 | 10-Q |
| 12/31/2019 | 01/31/2020 | 10-Q |
Recent Forward Guidance
Updated 10/30/2026Latest: Q1 2027 Earnings Reported 10/29/2026
| Forward Guidance | Guidance Change | |||||||
|---|---|---|---|---|---|---|---|---|
| Metric | Source | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2027 Quarterly Cash Dividend | Reported | 0.66 | ||||||
| 2027 Core Constant Currency Revenue Growth | Reported | 5.0% | 6.0% | 7.0% | ||||
| 2027 Revenue | Reported | 5.75 Bil | 5.80 Bil | 5.85 Bil | ||||
| 2027 Non-GAAP Diluted EPS | Reported | 12 | 12.13 | 12.25 | ||||
Insider Activity
Updated 10/26/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 10082026 | 226.33 | 4,991 | 1,129,637 | 108,596,164 | Form |
| 2 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 9092026 | 222.44 | 4,991 | 1,110,191 | 103,713,285 | Form |
| 3 | Farrell, Peter C | Direct | Sell | 9032026 | 234.73 | 970 | 227,688 | 12,159,718 | Form | |
| 4 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 8102026 | 205.69 | 4,991 | 1,026,596 | 95,903,964 | Form |
| 5 | Farrell, Peter C | Direct | Sell | 8062026 | 225.00 | 8,000 | 1,800,000 | 11,873,925 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 10082026 | 226.33 | 4,991 | 1,129,637 | 108,596,164 | Form |
| 2 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 9092026 | 222.44 | 4,991 | 1,110,191 | 103,713,285 | Form |
| 3 | Farrell, Peter C | Direct | Sell | 9032026 | 234.73 | 970 | 227,688 | 12,159,718 | Form | |
| 4 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 8102026 | 205.69 | 4,991 | 1,026,596 | 95,903,964 | Form |
| 5 | Farrell, Peter C | Direct | Sell | 8062026 | 225.00 | 8,000 | 1,800,000 | 11,873,925 | Form | |
| 6 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 7082026 | 218.55 | 4,991 | 1,090,771 | 101,891,871 | Form |
| 7 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 6092026 | 193.96 | 4,991 | 968,064 | 90,435,946 | Form |
| 8 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 5112026 | 207.82 | 4,991 | 1,037,233 | 96,890,744 | Form |
| 9 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 4092026 | 225.50 | 4,991 | 1,125,486 | 105,134,778 | Form |
| 10 | Farrell, Peter C | Direct | Sell | 4022026 | 225.00 | 2,000 | 450,000 | 13,673,925 | Form | |
| 11 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 3102026 | 251.03 | 4,991 | 1,252,902 | 117,036,985 | Form |
| 12 | Farrell, Peter C | Direct | Sell | 3052026 | 260.22 | 2,000 | 520,440 | 16,334,790 | Form | |
| 13 | Sandercock, Brett | Chief Financial Officer | Direct | Sell | 3032026 | 254.30 | 1,000 | 254,300 | 21,487,078 | Form |
| 14 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 2102026 | 273.78 | 4,991 | 1,366,436 | 127,642,580 | Form |
| 15 | Farrell, Peter C | Direct | Sell | 2052026 | 251.31 | 2,000 | 502,620 | 16,278,103 | Form | |
| 16 | Rider, Michael J | Global General Counsel | Direct | Sell | 2052026 | 260.00 | 50 | 13,000 | 2,519,660 | Form |
| 17 | Sandercock, Brett | Chief Financial Officer | Direct | Sell | 2032026 | 257.03 | 1,000 | 257,030 | 21,974,780 | Form |
| 18 | Sandercock, Brett | Chief Financial Officer | Direct | Sell | 1052026 | 241.75 | 1,000 | 241,750 | 20,910,166 | Form |
| 19 | Rider, Michael J | Global General Counsel | Direct | Sell | 1052026 | 241.75 | 50 | 12,088 | 2,354,887 | Form |
| 20 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 12092025 | 251.41 | 4,991 | 1,254,796 | 117,213,917 | Form |
| 21 | Farrell, Peter C | Direct | Sell | 12042025 | 251.47 | 2,000 | 502,940 | 17,294,346 | Form | |
| 22 | Rider, Michael J | Global General Counsel | Direct | Sell | 12022025 | 244.16 | 50 | 12,208 | 2,390,571 | Form |
| 23 | Sandercock, Brett | Chief Financial Officer | Direct | Sell | 12022025 | 244.16 | 1,000 | 244,160 | 21,362,779 | Form |
| 24 | De, Witte Jan | Direct | Sell | 11262025 | 255.00 | 2,055 | 524,025 | 1,086,555 | Form | |
| 25 | Farrell, Peter C | Direct | Sell | 11132025 | 252.05 | 2,000 | 504,100 | 16,663,026 | Form | |
| 26 | De, Witte Jan | Direct | Sell | 11132025 | 250.25 | 487 | 121,872 | 1,331,080 | Form | |
| 27 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 11102025 | 249.75 | 8,011 | 2,000,773 | 116,851,031 | Form |
| 28 | Sandercock, Brett | Chief Financial Officer | Direct | Sell | 11042025 | 247.54 | 3,000 | 742,620 | 21,225,317 | Form |
| 29 | Farrell, Michael J | Chief Executive Officer | Direct | Sell | 10092025 | 282.85 | 8,009 | 2,265,332 | 132,314,172 | Form |
| 30 | Sandercock, Brett | Chief Financial Officer | Direct | Sell | 10022025 | 274.36 | 3,000 | 823,080 | 23,799,358 | Form |
| 31 | Rider, Michael J | Global General Counsel | Direct | Sell | 10022025 | 274.36 | 100 | 27,436 | 3,107,676 | Form |
Investor Activity (13F)
Updated Nov 8, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager |
|---|
RMD Trade Sentinel
Constructive
CONVICTION RATIONALE
ResMed's defensible ecosystem is capturing new patients from rising sleep health awareness. While recent device sales have slowed, the highly profitable recurring revenue from masks grew 10%. Management's reiterated full-year outlook for 5% to 7% revenue growth provides a clear benchmark against current market concerns, suggesting the core business remains on track.
STOCK ARCHETYPE
Consumable-Driven Durable Goods ('Razor/Razorblade')(Size of Device Installed Base) x (Mask & Accessory Resupply Rate) + (New Device Placements) Increasing the recurring, high-margin revenue stream from mask and accessory resupply by maximizing patient adherence via the digital ecosystem.
INVESTMENT THESIS
Evidence suggests yes. External tailwinds are expanding the market, and ResMed's ecosystem is effectively capturing this demand.
- The installed base of cloud-connected devices now exceeds 35 million.
- The myAir patient app has over 13 million downloads, driving engagement.
- Patients on GLP-1s are over 11% more likely to start CPAP therapy.
- New fabric masks have shown a 6% increase in 90-day therapy compliance.
PRIMARY RISK
Revenue growth has decelerated for three consecutive quarters to 5.9%, fueling concerns that new weight-loss drugs could structurally reduce the need for sleep apnea therapy over time.
- Latest-quarter revenue growth of 5.9% is down from 9% in the prior quarter.
- Company filings acknowledge GLP-1s may 'reduce the severity or existence of OSA'.
- Operating expenses grew 13.6% in the last year, outpacing 9% revenue growth.
- The stock fell 8.0% after the most recent earnings report.
| KPI | Status | Rationale |
|---|---|---|
| Masks and other Revenue Growth | 10% year-over-year growth for the quarter ended 9/30/2026 - Decelerating | Growth in the recurring 'Masks and other' segment, a proxy for patient resupply and adherence, remains strong at a double-digit rate. However, the 10% growth in the latest quarter represents a slight deceleration from the 12% growth reported for the prior quarter. Management attributes the ongoing strength to new product innovation, such as its fabric masks, which have been shown to improve therapy adherence. |
| Devices Revenue Growth | 6% year-over-year growth for the quarter ended 9/30/2026 - Stable | Device revenue growth, which reflects new patient system placements, has remained stable in the mid-to-high single digits. The 6% growth in the latest quarter is consistent with the rate from two quarters prior, normalizing after a stronger 9% in the fourth quarter. Management commentary highlights market expansion tailwinds from GLP-1 drug adoption and consumer wearables driving patient awareness. |
| myAir patient app downloads | over 13 million (as of Q1 FY2027 earnings call) | The scale of patient engagement with ResMed's digital ecosystem, which is a key driver of therapy adherence and recurring revenue. |
| Cloud-connected devices in use | over 35 million (as of 10/30/2026) | The size of the installed base that can be monetized through recurring sales of masks and accessories. |
| Clinician CME course completions | approximately 108,000 (as of Q1 FY2027 earnings call) | The company's progress in educating primary care physicians to expand the diagnostic and prescription funnel for sleep apnea. |
Deceleration vs. Durable Core
BULL VIEW
The 5.9% headline growth is temporary noise. The real story is the 10% growth in recurring mask revenue and a full-year outlook of 5-7% growth, proving the core business is healthy and capturing new patients.
CORE TENSION
Can strong 10% recurring mask growth and reiterated 5-7% guidance offset the clear deceleration in headline revenue to 5.9%?
PREVAILING SENTIMENT
The latest evidence favors the bull view. Management's decision to reiterate full-year guidance after Q1 provides a concrete, near-term anchor against more speculative long-term fears.
BEAR VIEW
The slowdown to 5.9% growth is the start of a structural decline. The 5-7% guidance is now a ceiling, and the market is correctly pricing in long-term risk from therapies that may reduce the patient population.
| Timeline | Event & Metric To Watch |
|---|---|
11/5/2026 | Peer Results Signal Market Slowdown Watch: Peer revenue growth rates and commentary on patient volumes, reimbursement, and overall OSA market demand. |
November 15, 2026 | Lead Director Change Watch: The company's Lead Independent Director will change, with Carol Burt succeeding Ron Taylor. |
November 18, 2026 | Annual General Meeting Watch: The company will hold its Annual General Meeting of Stockholders. |
no later than December 29, 2026 | Reduced Buyback Impact Watch: The company's announcement of the final ASR settlement and total shares repurchased versus initial estimates. |
no later than December 29, 2026 | ASR Final Settlement Watch: Final settlement of the $450 million accelerated share repurchase (ASR) agreement is expected. |
1/11/2027 | Peer Inspire Medical Earnings Watch: Peer Inspire Medical Systems (INSP) is scheduled to report earnings. |
1/27/2027 | Negative Earnings Reaction Watch: Revenue growth rate versus prior quarters, gross margin trend, and any change to full-year guidance. |
1/27/2027 | Next Earnings Report Watch: The company is scheduled to report its next quarterly earnings. |
No set date | Margin Pressure From Expansion Watch: Reported Q2 gross margin figures and any commentary on further costs related to U.S. manufacturing expansion. |
| Date | Event | Stock Impact |
|---|---|---|
2026-10-29 | Reported Q1 FY27 Results Details: On October 29, 2026, the company reported Q1 revenue growth of 6% to $1.4 billion and non-GAAP diluted EPS of $2.91. The stock had a -8.0% two-day reaction. | -8.1% $250.17 -> $229.94 |
2026-10-29 | Closed MatrixCare Divestiture Details: On September 1, 2026, the company closed the sale of its MatrixCare business. Proceeds were used to fund an accelerated share repurchase program. | -8.1% $250.17 -> $229.94 |
2026-10-19 | Launched AirTouch F40 Mask Details: On 2026-10-19, the company announced the U.S. launch of the AirTouch F40, a new full-face fabric CPAP mask, expanding its portfolio of fabric-based technology. | +2.7% $238.97 -> $245.50 |
2026-08-07 | Reported Q4 FY26 Results Details: On August 7, 2026, the company reported Q4 results and disclosed a $42 million expense for a field safety notification on its Astral respirators. The stock fell 5.06%. | -1.4% $222.60 -> $219.42 |
2026-07-07 | Announced MatrixCare Divestiture Details: On 2026-07-07, the company announced a definitive agreement to sell its MatrixCare business in an all-cash transaction as part of a portfolio optimization strategy. | -5.8% $217.78 -> $205.25 |
2026-06-01 | Completed Noctrix Health Acquisition Details: On 2026-06-01, the company completed its acquisition of Noctrix Health, expanding its portfolio into treatment for Restless Legs Syndrome with the Nidra therapy device. | -4.1% $190.02 -> $182.30 |
2026-04-30 | Reported Q3 FY26 Results Details: On 2026-04-30, the company announced Q3 revenue increased 11% to $1.4 billion with non-GAAP diluted EPS of $2.86. The stock had a -3.0% two-day reaction. | -3.3% $210.70 -> $203.83 |
Position Sizing
4% - 6%
NORMAL POSITION
Sizing is volatility-based: RMD trades at roughly 27% annualized realized (three-month) volatility versus about 10% for the S&P 500 (2.7x the market). A 4% - 6% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
MDT - a business partner
Diversified Med-Tech Leadera business partner offers exposure to a much broader range of medical technologies with revenue 6.5 times that of ResMed, providing greater scale and diversification away from the sleep apnea market.
INSP - a business partner
High-Growth Surgical Alternativea business partner provides a surgically implanted nerve stimulation therapy, representing a different treatment modality and risk profile compared to ResMed's non-invasive devices.
ResMed is a digital health platform company that uses medical devices as the entry point to a high-margin, recurring revenue ecosystem built on patient adherence.
ResMed's competitive advantage lies not in its devices alone, but in its integrated software ecosystem (AirView/myAir) that significantly boosts patient therapy compliance. This adherence creates a sticky installed base, driving predictable, high-margin recurring revenue from mask and accessory resupply. The company is benefiting from powerful external tailwinds as GLP-1 drugs and consumer wearables increase awareness of sleep apnea, feeding new patients into its well-established funnel.
Sustained double-digit growth in the 'Masks and other' category, data showing continued high therapy start-rates and adherence among GLP-1 users, and new partnerships with consumer tech companies.
A significant slowdown in mask and accessory growth, evidence that GLP-1s are reducing OSA severity to a point where therapy is no longer needed for a large patient segment, or a competitor successfully replicating the digital ecosystem and eroding ResMed's adherence advantage.
Short-term fluctuations in device sales due to fleet renewals in specific countries, like the one noted in France on the October earnings call.
Repricing Catalyst
Successful conversion of the increased patient awareness from GLP-1s and wearables into accelerated, sustainable revenue growth, and continued market share gains driven by new product innovations like the AirTouch fabric masks.
Sleep and Breathing Health
$5.0B TTM (88% of Total) · 44% MarginWhat It Is
Sells devices (CPAP, APAP, bilevel, ventilators like AirSense and AirCurve), masks (AirFit, AirTouch), and diagnostic products to HME providers, sleep clinics, and hospitals for patients with sleep-disordered breathing, COPD, and other chronic respiratory diseases.
Who Pays & How
HME providers purchase products to fulfill prescriptions, and are in turn reimbursed by government and private payors. They choose ResMed for its product innovation (e.g., comfortable fabric masks) and its integrated digital health platform (AirView/myAir) which has been shown to improve patient therapy compliance from 70% to 87%, creating provider stickiness and efficiency.
Competition
Residential Care Software
$676M TTM (12% of Total) · 32% MarginWhat It Is
Provides cloud-based software solutions (Brightree, MEDIFOX DAN) to out-of-hospital healthcare providers, including HME/DME providers, home health, hospice, and senior living facilities.
Who Pays & How
Residential care providers pay for the software to automate clinical workflows, optimize billing and compliance, manage their business, and improve patient engagement and efficiency.
Competition
ResMed — Investor Video Playlist
External Quote Links
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| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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