ResMed (RMD)
Market Price (4/19/2026): $228.95 | Market Cap: $33.4 BilSector: Health Care | Industry: Health Care Equipment
ResMed (RMD)
Market Price (4/19/2026): $228.95Market Cap: $33.4 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 5.5%, FCF Yield is 5.3% Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 34% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 35%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 33% Low stock price volatilityVol 12M is 24% 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 -14%, 3Y Excs Rtn is -69% 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 11.14 | 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 5.5%, FCF Yield is 5.3% |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 34% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 35%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 33% |
| Low stock price volatilityVol 12M is 24% |
| 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 -14%, 3Y Excs Rtn is -69% |
| 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 11.14 |
| 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
AI Analysis | Feedback
1. Muted Reaction to Q2 FY2026 Earnings Despite Beats. ResMed reported strong second-quarter fiscal year 2026 results for the period ending December 31, 2025, with revenue increasing 11% year-over-year to $1.4 billion, surpassing Wall Street estimates. Adjusted earnings per share of $2.81 also topped analysts' consensus. However, the stock experienced a marginal decline following the announcement on January 29, 2026, due to investor concerns about slower-than-average revenue growth compared to its competitors, leading to a loss of investor confidence.
2. Intensifying Competitive Landscape, Including Philips' Potential Re-entry. The prospect of increased competition, particularly the potential re-entry of Philips into the U.S. device market, has cast a shadow over ResMed's competitive positioning and long-term growth outlook. Analysts have raised questions regarding the impact on ResMed's market share and pricing power.
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Stock Movement Drivers
Fundamental Drivers
The -5.1% change in RMD stock from 12/31/2025 to 4/18/2026 was primarily driven by a -8.4% change in the company's P/E Multiple.| (LTM values as of) | 12312025 | 4182026 | Change |
|---|---|---|---|
| Stock Price ($) | 240.31 | 228.12 | -5.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,257 | 5,398 | 2.7% |
| Net Income Margin (%) | 27.4% | 27.5% | 0.6% |
| P/E Multiple | 24.4 | 22.4 | -8.4% |
| Shares Outstanding (Mil) | 146 | 146 | 0.2% |
| Cumulative Contribution | -5.1% |
Market Drivers
12/31/2025 to 4/18/2026| Return | Correlation | |
|---|---|---|
| RMD | -5.1% | |
| Market (SPY) | -5.4% | 37.4% |
| Sector (XLV) | -3.9% | 42.9% |
Fundamental Drivers
The -16.3% change in RMD stock from 9/30/2025 to 4/18/2026 was primarily driven by a -21.4% change in the company's P/E Multiple.| (LTM values as of) | 9302025 | 4182026 | Change |
|---|---|---|---|
| Stock Price ($) | 272.45 | 228.12 | -16.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,146 | 5,398 | 4.9% |
| Net Income Margin (%) | 27.2% | 27.5% | 1.1% |
| P/E Multiple | 28.5 | 22.4 | -21.4% |
| Shares Outstanding (Mil) | 146 | 146 | 0.4% |
| Cumulative Contribution | -16.3% |
Market Drivers
9/30/2025 to 4/18/2026| Return | Correlation | |
|---|---|---|
| RMD | -16.3% | |
| Market (SPY) | -2.9% | 31.2% |
| Sector (XLV) | 7.4% | 44.5% |
Fundamental Drivers
The 2.8% change in RMD stock from 3/31/2025 to 4/18/2026 was primarily driven by a 9.6% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 3312025 | 4182026 | Change |
|---|---|---|---|
| Stock Price ($) | 221.86 | 228.12 | 2.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 4,927 | 5,398 | 9.6% |
| Net Income Margin (%) | 25.3% | 27.5% | 8.6% |
| P/E Multiple | 26.1 | 22.4 | -14.2% |
| Shares Outstanding (Mil) | 147 | 146 | 0.7% |
| Cumulative Contribution | 2.8% |
Market Drivers
3/31/2025 to 4/18/2026| Return | Correlation | |
|---|---|---|
| RMD | 2.8% | |
| Market (SPY) | 16.3% | 49.9% |
| Sector (XLV) | 3.3% | 50.6% |
Fundamental Drivers
The 7.1% change in RMD stock from 3/31/2023 to 4/18/2026 was primarily driven by a 43.4% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 3312023 | 4182026 | Change |
|---|---|---|---|
| Stock Price ($) | 212.90 | 228.12 | 7.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,763 | 5,398 | 43.4% |
| Net Income Margin (%) | 21.5% | 27.5% | 28.0% |
| P/E Multiple | 38.6 | 22.4 | -42.0% |
| Shares Outstanding (Mil) | 147 | 146 | 0.6% |
| Cumulative Contribution | 7.1% |
Market Drivers
3/31/2023 to 4/18/2026| Return | Correlation | |
|---|---|---|
| RMD | 7.1% | |
| Market (SPY) | 63.3% | 34.8% |
| Sector (XLV) | 20.3% | 36.8% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| RMD Return | 23% | -19% | -17% | 34% | 6% | -6% | 11% |
| Peers Return | 0% | -11% | -12% | 15% | -13% | -10% | -31% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 3% | 87% |
Monthly Win Rates [3] | |||||||
| RMD Win Rate | 50% | 50% | 58% | 50% | 58% | 50% | |
| Peers Win Rate | 55% | 48% | 48% | 50% | 43% | 50% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| RMD Max Drawdown | -15% | -26% | -35% | -4% | -10% | -8% | |
| Peers Max Drawdown | -15% | -29% | -29% | -12% | -26% | -16% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | |
[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 4/17/2026 (YTD)
How Low Can It Go
| Event | RMD | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -54.7% | -25.4% |
| % Gain to Breakeven | 120.8% | 34.1% |
| Time to Breakeven | Not Fully Recovered days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -35.3% | -33.9% |
| % Gain to Breakeven | 54.5% | 51.3% |
| Time to Breakeven | 94 days | 148 days |
| 2018 Correction | ||
| % Loss | -22.3% | -19.8% |
| % Gain to Breakeven | 28.7% | 24.7% |
| Time to Breakeven | 133 days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -45.0% | -56.8% |
| % Gain to Breakeven | 81.9% | 131.3% |
| Time to Breakeven | 466 days | 1,480 days |
Compare to INSP, INGN, MDT, SYK, BDX
In The Past
ResMed's stock fell -54.7% during the 2022 Inflation Shock from a high on 9/8/2021. A -54.7% loss requires a 120.8% gain to breakeven.
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About ResMed (RMD)
AI Analysis | Feedback
The high-tech Dyson for medical breathing and sleep devices.
A specialized Salesforce for out-of-hospital healthcare management.
AI Analysis | Feedback
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.
AI Analysis | Feedback
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.
AI Analysis | Feedback
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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.
AI Analysis | Feedback
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.
AI Analysis | Feedback
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AI Analysis | Feedback
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.
AI Analysis | Feedback
ResMed Inc. (RMD) is positioned for future revenue growth over the next two to three years, driven by several strategic initiatives and market opportunities: * Increased Demand for Sleep and Breathing Health Products and Digital Health Solutions: ResMed anticipates continued strong demand for its sleep health and breathing health products, including its devices and masks. Product innovation, such as the launch of new mask designs like the AirFit F30i Comfort full-face fabric mask, is expected to fuel sales. Additionally, the company's resupply strategies for masks are contributing to sustained revenue growth. * Global Market Penetration and Expansion: ResMed identifies significant opportunities for growth by expanding its presence in international markets. With current market penetration for sleep apnea remaining under 10% in regions like Europe, Asia, India, and China, compared to over 10% in the U.S., the company is focusing on the global rollout of its AirSense 11 platform. Targeted primary care physician (PCP) education campaigns in various international markets are also underway to drive earlier diagnosis and intervention. * Growth of Software as a Service (SaaS) Business and Digital Health Ecosystem: The Software as a Service (SaaS) segment, encompassing solutions like Brightree, MatrixCare, and HEALTHCAREfirst, is a key driver for recurring revenue. ResMed is actively building an expansive digital health ecosystem, leveraging over 25 million connected devices and 18.5 billion nights of sleep data. This ecosystem supports AI-driven innovations, such as the FDA-cleared Comfort Match feature within the myAir platform, and is expanding to address various medical conditions beyond sleep apnea. * Expansion into Adjacent Medical Markets: ResMed is strategically diversifying its focus beyond its traditional sleep apnea market to address adjacent medical conditions. This includes efforts in areas such as chronic obstructive pulmonary disease (COPD), insomnia, and combined insomnia and sleep apnea (COMISA), aiming to open new revenue streams and leverage its existing expertise in respiratory care. * Strategic Acquisitions and Research & Development (R&D) Investments: The company emphasizes that ongoing investments in research and development and strategic acquisitions are crucial for future growth. Recent examples of tuck-in acquisitions, such as VirtuOx, NightOwl, and Somnoware, are expected to accelerate ResMed's progress towards its 2030 strategy by enhancing its product and software offerings.AI Analysis | Feedback
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.
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| 03202026 | WAT | Waters | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -0.4% | -0.4% | -3.3% |
| 03202026 | GILD | Gilead Sciences | Quality | Q | Momentum | UpsideQuality Stocks with Momentum and UpsideBuying quality stocks with strong momentum but still having room to run | 1.6% | 1.6% | -2.2% |
| 04302024 | RMD | ResMed | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 14.7% | 11.6% | -14.7% |
Research & Analysis
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 122.36 |
| Mkt Cap | 39.3 |
| Rev LTM | 13,661 |
| Op Inc LTM | 2,473 |
| FCF LTM | 2,204 |
| FCF 3Y Avg | 2,053 |
| CFO LTM | 2,654 |
| CFO 3Y Avg | 2,490 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 8.2% |
| Rev Chg 3Y Avg | 8.1% |
| Rev Chg Q | 9.9% |
| QoQ Delta Rev Chg LTM | 2.4% |
| Op Inc Chg LTM | 14.6% |
| Op Inc Chg 3Y Avg | 13.8% |
| Op Mgn LTM | 16.4% |
| Op Mgn 3Y Avg | 15.9% |
| QoQ Delta Op Mgn LTM | 0.6% |
| CFO/Rev LTM | 17.8% |
| CFO/Rev 3Y Avg | 18.0% |
| FCF/Rev LTM | 13.6% |
| FCF/Rev 3Y Avg | 14.5% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 39.3 |
| P/S | 2.6 |
| P/Op Inc | 17.4 |
| P/EBIT | 17.8 |
| P/E | 23.2 |
| P/CFO | 14.7 |
| Total Yield | 6.0% |
| Dividend Yield | 1.0% |
| FCF Yield 3Y Avg | 3.6% |
| D/E | 0.1 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 1.3% |
| 3M Rtn | -7.8% |
| 6M Rtn | -11.6% |
| 12M Rtn | 2.0% |
| 3Y Rtn | -6.0% |
| 1M Excs Rtn | -7.4% |
| 3M Excs Rtn | -11.2% |
| 6M Excs Rtn | -18.4% |
| 12M Excs Rtn | -31.0% |
| 3Y Excs Rtn | -79.3% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Sleep and Breathing Health | 4,101 | 3,725 | 3,177 | 2,823 | 2,602 |
| Residential Care Software | 584 | 498 | 401 | 374 | 357 |
| Total | 4,685 | 4,223 | 3,578 | 3,197 | 2,959 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Sleep and Breathing Health | 1,681 | 1,447 | 1,312 | 1,037 | |
| Residential Care Software | 154 | 116 | 93 | 93 | |
| Acquisition related expenses | 0 | -11 | -2 | ||
| Masks with magnets field safety notification expenses | -6 | 0 | |||
| Astral field safety notification expenses | -8 | 0 | |||
| Restructuring expenses | -64 | -9 | -9 | ||
| Amortization of acquired intangible assets | -79 | -72 | -71 | -76 | |
| Corporate costs | -358 | -338 | -332 | -141 | |
| Total | 1,320 | 1,132 | 1,000 | 904 |
Price Behavior
| Market Price | $228.12 | |
| Market Cap ($ Bil) | 33.3 | |
| First Trading Date | 06/02/1995 | |
| Distance from 52W High | -22.0% | |
| 50 Days | 200 Days | |
| DMA Price | $241.42 | $256.75 |
| DMA Trend | down | down |
| Distance from DMA | -5.5% | -11.2% |
| 3M | 1YR | |
| Volatility | 27.4% | 23.7% |
| Downside Capture | 0.48 | 0.44 |
| Upside Capture | 60.29 | 73.70 |
| Correlation (SPY) | 35.9% | 37.8% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.80 | 0.74 | 0.83 | 0.60 | 0.68 | 0.76 |
| Up Beta | -0.38 | -0.25 | 0.04 | 0.06 | 0.63 | 0.73 |
| Down Beta | 0.27 | 0.59 | 0.80 | 0.33 | 0.61 | 0.44 |
| Up Capture | 43% | 66% | 92% | 55% | 63% | 67% |
| Bmk +ve Days | 7 | 16 | 27 | 65 | 139 | 424 |
| Stock +ve Days | 8 | 20 | 33 | 61 | 127 | 392 |
| Down Capture | 147% | 118% | 104% | 104% | 89% | 101% |
| Bmk -ve Days | 12 | 23 | 33 | 58 | 110 | 323 |
| Stock -ve Days | 14 | 22 | 30 | 65 | 125 | 359 |
[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 | 7.6% | 23.6% | 0.25 | - |
| Sector ETF (XLV) | 9.6% | 16.0% | 0.39 | 45.1% |
| Equity (SPY) | 21.1% | 12.9% | 1.32 | 38.6% |
| Gold (GLD) | 50.9% | 27.5% | 1.49 | 14.2% |
| Commodities (DBC) | 25.2% | 16.2% | 1.40 | 5.4% |
| Real Estate (VNQ) | 17.5% | 13.7% | 0.93 | 38.3% |
| Bitcoin (BTCUSD) | -7.8% | 42.6% | -0.08 | 16.3% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with RMD | |
|---|---|---|---|---|
| RMD | 3.4% | 31.0% | 0.15 | - |
| Sector ETF (XLV) | 6.4% | 14.6% | 0.25 | 45.7% |
| Equity (SPY) | 10.8% | 17.1% | 0.49 | 43.9% |
| Gold (GLD) | 22.6% | 17.8% | 1.04 | 12.1% |
| Commodities (DBC) | 11.6% | 18.8% | 0.51 | 9.1% |
| Real Estate (VNQ) | 4.4% | 18.8% | 0.14 | 39.5% |
| Bitcoin (BTCUSD) | 5.2% | 56.5% | 0.31 | 16.3% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with RMD | |
|---|---|---|---|---|
| RMD | 15.9% | 31.4% | 0.54 | - |
| Sector ETF (XLV) | 9.8% | 16.5% | 0.48 | 52.8% |
| Equity (SPY) | 14.0% | 17.9% | 0.67 | 51.6% |
| Gold (GLD) | 14.3% | 15.9% | 0.75 | 10.1% |
| Commodities (DBC) | 8.5% | 17.6% | 0.40 | 15.2% |
| Real Estate (VNQ) | 5.6% | 20.7% | 0.24 | 41.8% |
| Bitcoin (BTCUSD) | 68.4% | 66.9% | 1.07 | 12.0% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 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% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 11 | 12 | 12 |
| # Negative | 13 | 12 | 12 |
| Median Positive | 6.9% | 4.5% | 10.1% |
| Median Negative | -5.8% | -5.0% | -4.2% |
| Max Positive | 18.9% | 18.9% | 17.0% |
| Max Negative | -18.5% | -19.5% | -27.4% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 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 |
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Sandercock, Brett | Chief Financial Officer | Direct | Sell | 1052026 | 241.75 | 1,000 | 241,750 | 20,910,166 | Form |
| 2 | Rider, Michael J | Global General Counsel | Direct | Sell | 1052026 | 241.75 | 50 | 12,088 | 2,354,887 | Form |
| 3 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 12092025 | 251.41 | 4,991 | 1,254,796 | 117,213,917 | Form |
| 4 | Farrell, Peter C | Direct | Sell | 12042025 | 251.47 | 2,000 | 502,940 | 17,294,346 | Form | |
| 5 | Rider, Michael J | Global General Counsel | Direct | Sell | 12022025 | 244.16 | 50 | 12,208 | 2,390,571 | Form |
RMD Trade Sentinel
AVOID (Score 1-2)
CONVICTION RATIONALE
The probability-adjusted skew of 0.67x is highly unattractive. The investment thesis hinges on overcoming a Type 5 (Structural/Obsolescence) risk from GLP-1s while simultaneously fending off the re-entry of its primary competitor. The risk of permanent TAM erosion and multiple compression outweighs the potential upside from continued solid execution in the near term. The stock is priced for a stable future, but faces significant structural uncertainty.
STOCK ARCHETYPE
Mature Cash CowResMed fits the 'Mature Cash Cow' archetype due to its oligopolistic market structure, strong recurring revenue from consumables, high and expanding gross margins (62.3%), and robust free cash flow generation. The business model focuses on a large, sticky installed base, prioritizing capital efficiency and pricing power.
INVESTMENT THESIS
ResMed's primary value driver is the accelerating, high-margin, recurring revenue from its Masks & Accessories segment, which is fueled by a massive and sticky installed base of patients locked into the proprietary AirView software platform. The multi-year recall of its primary competitor (Philips) allowed ResMed to capture dominant market share, creating a powerful moat based on high switching costs for the Durable Medical Equipment (DME) providers who are dependent on the platform for operational efficiency and reimbursement.
- Masks & Other revenue grew +16.1% in Q2 FY26, significantly outpacing the 8.5% growth in Devices and indicating the strength of the recurring revenue model.
- Non-GAAP Gross Margin expanded by 310 basis points year-over-year to 62.3% in Q2 FY26, driven by favorable product mix weighted towards high-margin consumables.
- The AirView platform creates high switching costs and monitors over 10 million cloud-connectable devices, a scale that competitors cannot easily replicate, securing the installed base.
- No single customer accounts for more than 10% of revenue, indicating a fragmented and stable customer base with limited pricing pressure.
PRIMARY RISK
The single greatest risk to ResMed's long-term growth is the adoption of GLP-1 weight-loss drugs (e.g., Tirzepatide, Semaglutide), which have been clinically shown to reduce the severity of obstructive sleep apnea (OSA). A new treatment paradigm where pharmaceuticals can potentially cure or significantly lessen the need for CPAP therapy in a large subset of the obese patient population threatens to structurally shrink ResMed's total addressable market (TAM).
- Late-stage clinical trial data (SURMOUNT-OSA) for Eli Lilly's Tirzepatide confirmed a statistically significant reduction in the Apnea-Hypopnea Index (AHI).
- Management acknowledged a slowdown in new patient setups in the Q2 2026 earnings call, citing the impact of GLP-1 drugs.
- Analyst consensus for new patient starts over the next 12-24 months has been revised downward by 5-7% in the last 90 days, directly linked to GLP-1 uncertainty.
| KPI | Threshold | Rationale |
|---|---|---|
| New Patient Setups / Devices Revenue Growth | Stabilization above mid-single digits (5-7% YoY) | This is the leading indicator for the impact of GLP-1 drugs on the patient funnel. A sustained trend below this level would confirm the bear case of TAM erosion. |
| Masks & Other Revenue Growth | Sustained double-digit growth (>12% YoY) | This metric reflects the health of the high-margin, recurring revenue stream from the installed base. Deceleration here would signal either competitive intrusion or a maturing base, threatening the core profit engine. |
| Non-GAAP Gross Margin | Remains above 62% | This is the clearest indicator of ResMed's pricing power against both DME channel pressure and the potential re-entry of Philips. Margin compression would signal the moat is eroding faster than expected. |
GLP-1 Threat vs. Ecosystem Resilience
BULL VIEW
The GLP-1 impact is a net positive, driving diagnosis and therapy adherence. The recurring revenue from the massive installed base, locked in by the AirView ecosystem, remains durable.
CORE TENSION
Can ResMed's sticky, high-margin consumables business withstand the structural threat of GLP-1 drugs potentially shrinking its total addressable market (TAM) for sleep apnea?
PREVAILING SENTIMENT
Management acknowledged a slowdown in new patient setups in the Q2 2026 earnings call, citing the impact of GLP-1 drugs.
BEAR VIEW
GLP-1s will structurally reduce the new patient funnel for CPAP therapy. This TAM erosion, combined with competitor re-entry, will lead to significant multiple compression.
| Timeline | Event & Metric To Watch |
|---|---|
Anytime | FDA Label Expansion for GLP-1s in OSA Watch: Official press release from FDA, Eli Lilly, or Novo Nordisk confirming Obstructive Sleep Apnea (OSA) as a treated indication. |
Next 3-6 Months | Philips Respironics U.S. Market Re-entry Watch: An official announcement from Philips or the FDA on the lifting of the consent decree, followed by ResMed's gross margin and market share guidance. |
Late April 2026 | Q3 FY2026 Earnings Report Watch: New Patient Setups / Devices Revenue Growth. A reading below 5% would confirm the bear thesis of TAM erosion. |
This Quarter / Next Quarter | Finalization of CMS 2026 Fee Schedule Watch: Final reimbursement rates for key CPAP product codes. Deeper cuts than proposed would pressure the DME channel. |
| Date | Event | Stock Impact |
|---|---|---|
2025-08-29 | Director Stock Sale Under 10b5-1 Plan Details: Director Peter Farrell sold stock under a pre-arranged trading plan adopted on August 12, 2025. Such pre-planned sales typically have minimal market impact. | Muted (-0.3%) $274.72 -> $273.85 |
2025-09-23 | Bank of America Global Healthcare Conference Details: ResMed participated in the Bank of America Global Healthcare Conference. The stock reaction was muted following the event, suggesting no major new disclosures. | Flat (0.4%) $273.75 -> $274.95 |
2025-10-30 | Q1 FY2026 Earnings Release Details: The company reported a 15% increase in net income and strong operating cash flow of $457 million. Despite the positive results, the stock fell as investor concerns over GLP-1s began to intensify. [2, 10] | Fell notably by -2.1% $251.66 -> $246.29 |
2025-12-08 | FDA Clearance for 'Smart Comfort' AI Device Details: ResMed announced FDA clearance for an AI-powered medical device to personalize CPAP therapy settings, reinforcing its technological lead. The stock saw a minor pullback on the day of the announcement. [5, 19] | Slight -1.4% pullback $250.04 -> $246.52 |
2026-01-29 | Q2 FY2026 Earnings Release Details: ResMed reported a beat on revenue ($1.42B vs $1.40B est.) and EPS ($2.81 vs $2.69 est.), with strong margin expansion. However, the stock was flat as management acknowledged a GLP-1-related slowdown. [1, 7] | Flat (0.3%) $257.61 -> $258.31 |
Position Sizing
1% - 3%
CONSERVATIVE
Stock trades at Moderate volatility (1.9x S&P). However, the Neutral sentiment, Speculative valuation, and Contested moat create low conviction. We cap exposure until the structural GLP-1 headwind improves.
Diversification Alternatives
UTHR
SECTOROffers exposure to the respiratory drug market, but its core business in pulmonary hypertension is not directly threatened by GLP-1 TAM erosion like ResMed's OSA market.
ISRG
SECTORA 'best-in-class' medical device leader with a wide, defensible moat in robotic surgery. Its growth is driven by secular trends in surgery and is completely insulated from GLP-1 risk.
ResMed is a durable medical equipment leader transitioning its razor-and-blade model (high-margin masks and accessories) into a digitally-connected ecosystem, creating high switching costs for providers and patients, while navigating the perceived long-term risk of GLP-1 drugs on its core sleep apnea market.
Filter all news through the lens of GLP-1 drug impact and competitive dynamics. Is ResMed successfully reframing GLP-1s as a patient-acquisition tailwind and defending market share against a re-emerging Philips?
Data showing GLP-1 users have higher CPAP initiation and adherence rates; masks and accessories revenue growth outpacing device growth; non-GAAP gross margin expansion above 62%; competitor Philips struggling to regain market share.
Clinical data proving GLP-1s cure a significant percentage of obstructive sleep apnea patients; Philips regaining significant market share with aggressive pricing; reimbursement rate cuts for home sleep apnea devices; SaaS segment growth falling below mid-single-digits.
Short-term fluctuations in device sales (masks are the key profit driver); quarterly R&D or SG&A spending within the guided 6-7% and 19-20% of revenue ranges, respectively; individual smartwatch sleep-tracking feature announcements.
Repricing Catalyst
Reframing the GLP-1 drug narrative from a long-term headwind to a near-term tailwind. Management cites claims data showing patients on GLP-1s are ~11% more likely to initiate CPAP therapy and have over 6% higher resupply rates after three years, potentially expanding the diagnosed-and-treated market. This narrative shift, combined with sustained high-margin recurring revenue from masks, aims to re-rate the stock away from the GLP-1 discount.
Sleep & Breathing Health - Devices (The 'Razor')
$2.9B TTM (51% of Total) · 62.3% MarginWhat It Is
Cloud-connected flow generators (CPAP, APAP, BiPAP) such as the AirSense 11 series; portable devices like AirMini; Ventilators.
Who Pays & How
Durable Medical Equipment (DME) providers (e.g., McKesson, Medline, Apria) and sleep labs pay for devices which are then provided to patients. Payment is secured via patient insurance reimbursement. The cloud-connected AirView platform creates lock-in by allowing providers to monitor patient adherence, a requirement for reimbursement, making it costly and inefficient to switch to a competitor's ecosystem.
Competition
Sleep & Breathing Health - Masks & Accessories (The 'Blade')
$2.1B TTM (37% of Total) · 62.3% MarginWhat It Is
Full-face, nasal, and nasal pillow masks (e.g., AirFit series, AirTouch series); heated tubing (ClimateLine); humidifiers; replacement cushions and headgear.
Who Pays & How
Patients and their insurance providers pay for replacement masks and supplies on a recurring schedule (e.g., every 3-6 months). This is a mandatory consumable for therapy to be effective and comfortable, creating a high-margin, recurring revenue stream from the installed base of device users.
Competition
Residential Care Software (SaaS)
$0.7B TTM (12% of Total) · 62.3% MarginWhat It Is
SaaS platforms for out-of-hospital care providers, including electronic health records (EHRs), billing, and practice management solutions (e.g., Brightree, MatrixCare, MEDIFOX DAN).
Who Pays & How
Home health agencies, hospice providers, and skilled nursing facilities pay subscription fees to streamline their operations, manage patient records, and handle billing and compliance.
Competition
External Quote Links
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| FinViz |
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