ResMed (RMD)
Market Price (7/31/2026): $206.0 | Market Cap: $29.9 BilInvestor Relations Sector: Health Care | Industry: Health Care Equipment
ResMed (RMD)
Market Price (7/31/2026): $206.0Market Cap: $29.9 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 6.1%, FCF Yield is 5.7% Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 35% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 34%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 31% Low stock price volatilityVol 12M is 27% 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 -36%, 3Y Excs Rtn is -65% | 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 6.1%, FCF Yield is 5.7% |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 35% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 34%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 31% |
| Low stock price volatilityVol 12M is 27% |
| 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 -36%, 3Y Excs Rtn is -65% |
| 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 lost about 5% since 3/31/2026 because of the following key factors:
1. Persistent concerns regarding the impact of GLP-1 weight-loss drugs on the sleep apnea market. The primary headwind for ResMed's stock throughout 2026 has been the ongoing narrative that GLP-1 drugs, such as Ozempic and Wegovy, could reduce the addressable market for sleep apnea treatment by promoting weight loss. This fear has led to a sustained sell-off in the stock since mid-January 2026. Despite ResMed's management presenting clinical evidence suggesting that CPAP users who also take GLP-1 therapy show higher adherence rates and that these drugs are increasing overall awareness of sleep disorders, the market has continued to price in a potential deterioration that has not yet been reflected in the company's financial results.
2. Market's muted reaction to stronger-than-expected Q3 Fiscal Year 2026 earnings. ResMed reported robust financial results for its fiscal Q3 2026 (which ended March 31, 2026) on April 30, 2026. The company exceeded analyst expectations, with non-GAAP diluted earnings per share (EPS) rising 21% year-over-year to $2.86 against a consensus estimate of $2.79 or $2.80, and revenue growing 11% to $1.43 billion, surpassing the consensus of $1.42 billion. Additionally, non-GAAP gross margin expanded by 290 basis points year-over-year to 62.8%. However, despite these strong company-specific results, the stock fell 4.1% the day after the earnings release, indicating that broader market sentiment driven by GLP-1 concerns overshadowed the positive financial performance.
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ResMed (RMD) stock has lost about 5% since 3/31/2026 because of the following key factors:
1. Persistent concerns regarding the impact of GLP-1 weight-loss drugs on the sleep apnea market. The primary headwind for ResMed's stock throughout 2026 has been the ongoing narrative that GLP-1 drugs, such as Ozempic and Wegovy, could reduce the addressable market for sleep apnea treatment by promoting weight loss. This fear has led to a sustained sell-off in the stock since mid-January 2026. Despite ResMed's management presenting clinical evidence suggesting that CPAP users who also take GLP-1 therapy show higher adherence rates and that these drugs are increasing overall awareness of sleep disorders, the market has continued to price in a potential deterioration that has not yet been reflected in the company's financial results.
2. Market's muted reaction to stronger-than-expected Q3 Fiscal Year 2026 earnings. ResMed reported robust financial results for its fiscal Q3 2026 (which ended March 31, 2026) on April 30, 2026. The company exceeded analyst expectations, with non-GAAP diluted earnings per share (EPS) rising 21% year-over-year to $2.86 against a consensus estimate of $2.79 or $2.80, and revenue growing 11% to $1.43 billion, surpassing the consensus of $1.42 billion. Additionally, non-GAAP gross margin expanded by 290 basis points year-over-year to 62.8%. However, despite these strong company-specific results, the stock fell 4.1% the day after the earnings release, indicating that broader market sentiment driven by GLP-1 concerns overshadowed the positive financial performance.
3. Broader macroeconomic pressures affecting the healthcare sector. The healthcare sector, including companies like ResMed, has experienced significant pressure throughout 2026. This downturn is attributed to broader macroeconomic factors such as rising inflation, increased cost of living, and regulatory uncertainty. This sector-wide weakness contributed to the general sell-off, impacting ResMed's stock movement beyond its individual company performance.
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Stock Movement Drivers
Fundamental Drivers
The -6.8% change in RMD stock from 3/31/2026 to 7/30/2026 was primarily driven by a -9.2% change in the company's P/E Multiple.| (LTM values as of) | 3312026 | 7302026 | Change |
|---|---|---|---|
| Stock Price ($) | 223.81 | 208.56 | -6.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,398 | 5,538 | 2.6% |
| Net Income Margin (%) | 27.5% | 27.4% | -0.3% |
| P/E Multiple | 22.0 | 19.9 | -9.2% |
| Shares Outstanding (Mil) | 146 | 145 | 0.3% |
| Cumulative Contribution | -6.8% |
Market Drivers
3/31/2026 to 7/30/2026| Return | Correlation | |
|---|---|---|
| RMD | -6.8% | |
| Market (SPY) | 14.0% | 1.7% |
| Sector (XLV) | 11.5% | 55.1% |
Fundamental Drivers
The -13.0% change in RMD stock from 12/31/2025 to 7/30/2026 was primarily driven by a -18.1% change in the company's P/E Multiple.| (LTM values as of) | 12312025 | 7302026 | Change |
|---|---|---|---|
| Stock Price ($) | 239.60 | 208.56 | -13.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,257 | 5,538 | 5.3% |
| Net Income Margin (%) | 27.4% | 27.4% | 0.3% |
| P/E Multiple | 24.4 | 19.9 | -18.1% |
| Shares Outstanding (Mil) | 146 | 145 | 0.6% |
| Cumulative Contribution | -13.0% |
Market Drivers
12/31/2025 to 7/30/2026| Return | Correlation | |
|---|---|---|
| RMD | -13.0% | |
| Market (SPY) | 9.1% | 16.8% |
| Sector (XLV) | 6.1% | 50.5% |
Fundamental Drivers
The -18.4% change in RMD stock from 6/30/2025 to 7/30/2026 was primarily driven by a -30.1% change in the company's P/E Multiple.| (LTM values as of) | 6302025 | 7302026 | Change |
|---|---|---|---|
| Stock Price ($) | 255.50 | 208.56 | -18.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,022 | 5,538 | 10.3% |
| Net Income Margin (%) | 26.2% | 27.4% | 4.9% |
| P/E Multiple | 28.5 | 19.9 | -30.1% |
| Shares Outstanding (Mil) | 147 | 145 | 0.9% |
| Cumulative Contribution | -18.4% |
Market Drivers
6/30/2025 to 7/30/2026| Return | Correlation | |
|---|---|---|
| RMD | -18.4% | |
| Market (SPY) | 21.1% | 20.2% |
| Sector (XLV) | 22.9% | 51.8% |
Fundamental Drivers
The -1.7% change in RMD stock from 6/30/2023 to 7/30/2026 was primarily driven by a -44.8% change in the company's P/E Multiple.| (LTM values as of) | 6302023 | 7302026 | Change |
|---|---|---|---|
| Stock Price ($) | 212.20 | 208.56 | -1.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 4,016 | 5,538 | 37.9% |
| Net Income Margin (%) | 21.5% | 27.4% | 27.7% |
| P/E Multiple | 36.1 | 19.9 | -44.8% |
| Shares Outstanding (Mil) | 147 | 145 | 1.1% |
| Cumulative Contribution | -1.7% |
Market Drivers
6/30/2023 to 7/30/2026| Return | Correlation | |
|---|---|---|
| RMD | -1.7% | |
| Market (SPY) | 73.2% | 31.9% |
| Sector (XLV) | 29.0% | 38.5% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| RMD Return | 23% | -19% | -17% | 34% | 6% | -11% | 6% |
| Peers Return | 0% | -11% | -12% | 15% | -13% | -9% | -29% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 7% | 95% |
Monthly Win Rates [3] | |||||||
| RMD Win Rate | 50% | 50% | 58% | 50% | 58% | 43% | |
| Peers Win Rate | 55% | 48% | 48% | 50% | 43% | 49% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 43% | |
Max Drawdowns [4] | |||||||
| RMD Max Drawdown | -19% | -27% | -44% | -17% | -20% | -33% | |
| Peers Max Drawdown | -30% | -35% | -41% | -25% | -37% | -32% | |
| 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 7/30/2026 (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.
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Peer Comparisons
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Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 125.58 |
| Mkt Cap | 38.4 |
| Rev LTM | 13,452 |
| Op Inc LTM | 2,505 |
| FCF LTM | 2,397 |
| FCF 3Y Avg | 2,176 |
| CFO LTM | 2,860 |
| CFO 3Y Avg | 2,605 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 8.6% |
| Rev Chg 3Y Avg | 7.6% |
| Rev Chg Q | 4.3% |
| QoQ Delta Rev Chg LTM | 1.0% |
| Op Inc Chg LTM | 9.1% |
| Op Inc Chg 3Y Avg | 11.6% |
| Op Mgn LTM | 16.6% |
| Op Mgn 3Y Avg | 15.8% |
| QoQ Delta Op Mgn LTM | 0.1% |
| CFO/Rev LTM | 19.0% |
| CFO/Rev 3Y Avg | 18.3% |
| FCF/Rev LTM | 14.6% |
| FCF/Rev 3Y Avg | 14.8% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 38.4 |
| P/S | 2.6 |
| P/Op Inc | 15.9 |
| P/EBIT | 18.3 |
| P/E | 21.4 |
| P/CFO | 13.5 |
| Total Yield | 5.6% |
| Dividend Yield | 1.0% |
| FCF Yield 3Y Avg | 4.0% |
| D/E | 0.1 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 9.4% |
| 3M Rtn | 2.3% |
| 6M Rtn | -7.5% |
| 12M Rtn | -7.8% |
| 3Y Rtn | -11.6% |
| 1M Excs Rtn | 10.3% |
| 3M Excs Rtn | -0.4% |
| 6M Excs Rtn | -14.4% |
| 12M Excs Rtn | -25.0% |
| 3Y Excs Rtn | -74.5% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Sleep and Breathing Health | 4,505 | 4,101 | 3,725 | 3,177 | 2,823 |
| Residential Care Software | 641 | 584 | 498 | 401 | 374 |
| Total | 5,146 | 4,685 | 4,223 | 3,578 | 3,197 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Sleep and Breathing Health | 1,964 | 1,681 | 1,447 | 1,312 | 1,037 |
| Residential Care Software | 205 | 154 | 116 | 93 | 93 |
| Masks with magnets field safety notification expenses | 2 | -6 | 0 | ||
| Astral field safety notification expenses | 0 | -8 | 0 | ||
| Restructuring expenses | 0 | -64 | -9 | -9 | |
| Acquisition related expenses | -2 | 0 | -11 | -2 | |
| Amortization of acquired intangible assets | -77 | -79 | -72 | -71 | -76 |
| Corporate costs | -406 | -358 | -338 | -332 | -141 |
| Total | 1,685 | 1,320 | 1,132 | 1,000 | 904 |
Price Behavior
| Market Price | $208.56 | |
| Market Cap ($ Bil) | 30.3 | |
| First Trading Date | 06/02/1995 | |
| Distance from 52W High | -28.5% | |
| 50 Days | 200 Days | |
| DMA Price | $199.16 | $231.47 |
| DMA Trend | down | down |
| Distance from DMA | 4.7% | -9.9% |
| 3M | 1YR | |
| Volatility | 37.5% | 27.5% |
| Downside Capture | -47.10 | 71.11 |
| Upside Capture | -49.86 | 25.21 |
| Correlation (SPY) | -2.9% | 21.0% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | -0.13 | -0.23 | 0.21 | 0.44 | 0.48 | 0.71 |
| Up Beta | -0.47 | 0.94 | 1.00 | 0.64 | 0.59 | 0.74 |
| Down Beta | 0.89 | 0.74 | 0.28 | 0.60 | 0.27 | 0.44 |
| Up Capture | -27% | -96% | -34% | 3% | 20% | 45% |
| Bmk +ve Days | 11 | 24 | 40 | 67 | 140 | 429 |
| Stock +ve Days | 11 | 18 | 31 | 63 | 124 | 388 |
| Down Capture | -51% | -86% | -9% | 65% | 83% | 99% |
| Bmk -ve Days | 10 | 17 | 23 | 58 | 112 | 321 |
| Stock -ve Days | 10 | 23 | 32 | 62 | 128 | 363 |
[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 | -24.2% | 27.5% | -1.02 | - |
| Sector ETF (XLV) | 23.3% | 15.9% | 1.13 | 52.5% |
| Equity (SPY) | 17.8% | 12.9% | 1.01 | 19.7% |
| Gold (GLD) | 23.3% | 28.1% | 0.73 | 15.8% |
| Commodities (DBC) | 29.4% | 19.7% | 1.19 | -14.5% |
| Real Estate (VNQ) | 12.7% | 13.9% | 0.62 | 43.5% |
| Bitcoin (BTCUSD) | -46.2% | 42.9% | -1.32 | 13.1% |
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 | -3.3% | 31.5% | -0.06 | - |
| Sector ETF (XLV) | 6.3% | 15.0% | 0.24 | 46.8% |
| Equity (SPY) | 12.7% | 17.1% | 0.57 | 42.1% |
| Gold (GLD) | 17.4% | 18.4% | 0.76 | 11.9% |
| Commodities (DBC) | 9.0% | 19.5% | 0.35 | 5.2% |
| Real Estate (VNQ) | 2.8% | 18.9% | 0.05 | 41.2% |
| Bitcoin (BTCUSD) | 14.5% | 53.3% | 0.45 | 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 | 13.4% | 31.7% | 0.47 | - |
| Sector ETF (XLV) | 10.0% | 16.6% | 0.49 | 52.8% |
| Equity (SPY) | 14.9% | 17.9% | 0.71 | 50.1% |
| Gold (GLD) | 11.6% | 16.1% | 0.59 | 11.1% |
| Commodities (DBC) | 7.2% | 18.0% | 0.32 | 12.6% |
| Real Estate (VNQ) | 5.0% | 20.7% | 0.20 | 42.0% |
| Bitcoin (BTCUSD) | 57.8% | 66.2% | 0.98 | 12.2% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 7/16/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/7/2026 | -6.3% | -12.2% | |
| 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% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 10 | 11 | 11 |
| # Negative | 15 | 14 | 13 |
| Median Positive | 6.9% | 5.4% | 10.3% |
| Median Negative | -5.8% | -5.0% | -4.2% |
| Max Positive | 18.9% | 18.9% | 17.0% |
| Max Negative | -18.5% | -19.5% | -27.4% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/7/2026 | -6.3% | -12.2% | |
| 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% |
| 10/29/2020 | 6.9% | 18.6% | 17.0% |
| 8/5/2020 | -13.5% | -13.4% | -12.2% |
| SUMMARY STATS | |||
| # Positive | 10 | 11 | 11 |
| # Negative | 15 | 14 | 13 |
| Median Positive | 6.9% | 5.4% | 10.3% |
| 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 |
|---|---|---|
| 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 |
| Report Date | Filing Date | Filing |
|---|---|---|
| 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 |
| 09/30/2019 | 10/25/2019 | 10-Q |
| 06/30/2019 | 08/08/2019 | 10-K |
Insider Activity
Updated 7/9/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 7082026 | 218.55 | 4,991 | 1,090,771 | 101,891,871 | Form |
| 2 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 6092026 | 193.96 | 4,991 | 968,064 | 90,435,946 | Form |
| 3 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 5112026 | 207.82 | 4,991 | 1,037,233 | 96,890,744 | Form |
| 4 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 4092026 | 225.50 | 4,991 | 1,125,486 | 105,134,778 | Form |
| 5 | Farrell, Peter C | Direct | Sell | 4022026 | 225.00 | 2,000 | 450,000 | 13,673,925 | 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 | 7082026 | 218.55 | 4,991 | 1,090,771 | 101,891,871 | Form |
| 2 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 6092026 | 193.96 | 4,991 | 968,064 | 90,435,946 | Form |
| 3 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 5112026 | 207.82 | 4,991 | 1,037,233 | 96,890,744 | Form |
| 4 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 4092026 | 225.50 | 4,991 | 1,125,486 | 105,134,778 | Form |
| 5 | Farrell, Peter C | Direct | Sell | 4022026 | 225.00 | 2,000 | 450,000 | 13,673,925 | Form | |
| 6 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 3102026 | 251.03 | 4,991 | 1,252,902 | 117,036,985 | Form |
| 7 | Farrell, Peter C | Direct | Sell | 3052026 | 260.22 | 2,000 | 520,440 | 16,334,790 | Form | |
| 8 | Sandercock, Brett | Chief Financial Officer | Direct | Sell | 3032026 | 254.30 | 1,000 | 254,300 | 21,487,078 | Form |
| 9 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 2102026 | 273.78 | 4,991 | 1,366,436 | 127,642,580 | Form |
| 10 | Farrell, Peter C | Direct | Sell | 2052026 | 251.31 | 2,000 | 502,620 | 16,278,103 | Form | |
| 11 | Rider, Michael J | Global General Counsel | Direct | Sell | 2052026 | 260.00 | 50 | 13,000 | 2,519,660 | Form |
| 12 | Sandercock, Brett | Chief Financial Officer | Direct | Sell | 2032026 | 257.03 | 1,000 | 257,030 | 21,974,780 | Form |
| 13 | Sandercock, Brett | Chief Financial Officer | Direct | Sell | 1052026 | 241.75 | 1,000 | 241,750 | 20,910,166 | Form |
| 14 | Rider, Michael J | Global General Counsel | Direct | Sell | 1052026 | 241.75 | 50 | 12,088 | 2,354,887 | Form |
| 15 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 12092025 | 251.41 | 4,991 | 1,254,796 | 117,213,917 | Form |
| 16 | Farrell, Peter C | Direct | Sell | 12042025 | 251.47 | 2,000 | 502,940 | 17,294,346 | Form | |
| 17 | Rider, Michael J | Global General Counsel | Direct | Sell | 12022025 | 244.16 | 50 | 12,208 | 2,390,571 | Form |
| 18 | Sandercock, Brett | Chief Financial Officer | Direct | Sell | 12022025 | 244.16 | 1,000 | 244,160 | 21,362,779 | Form |
| 19 | De, Witte Jan | Direct | Sell | 11262025 | 255.00 | 2,055 | 524,025 | 1,086,555 | Form | |
| 20 | Farrell, Peter C | Direct | Sell | 11132025 | 252.05 | 2,000 | 504,100 | 16,663,026 | Form | |
| 21 | De, Witte Jan | Direct | Sell | 11132025 | 250.25 | 487 | 121,872 | 1,331,080 | Form | |
| 22 | Farrell, Michael J | Chairman and CEO | Direct | Sell | 11102025 | 249.75 | 8,011 | 2,000,773 | 116,851,031 | Form |
| 23 | Sandercock, Brett | Chief Financial Officer | Direct | Sell | 11042025 | 247.54 | 3,000 | 742,620 | 21,225,317 | Form |
| 24 | Farrell, Michael J | Chief Executive Officer | Direct | Sell | 10092025 | 282.85 | 8,009 | 2,265,332 | 132,314,172 | Form |
| 25 | Sandercock, Brett | Chief Financial Officer | Direct | Sell | 10022025 | 274.36 | 3,000 | 823,080 | 23,799,358 | Form |
| 26 | Rider, Michael J | Global General Counsel | Direct | Sell | 10022025 | 274.36 | 100 | 27,436 | 3,107,676 | Form |
| 27 | Farrell, Michael J | Chief Executive Officer | Direct | Sell | 9092025 | 278.14 | 8,009 | 2,227,590 | 130,109,749 | Form |
| 28 | Sandercock, Brett | Chief Financial Officer | Direct | Sell | 9032025 | 270.77 | 3,000 | 812,310 | 23,758,714 | Form |
| 29 | Hernandez, John | Direct | Sell | 8192025 | 287.10 | 2,575 | 739,289 | 1,161,330 | Form | |
| 30 | Farrell, Michael J | Chief Executive Officer | Direct | Sell | 8082025 | 279.48 | 8,009 | 2,238,379 | 127,305,299 | Form |
| 31 | Sandercock, Brett | Chief Financial Officer | Direct | Sell | 8042025 | 281.90 | 3,000 | 845,700 | 23,477,478 | Form |
| 32 | Rider, Michael J | Global General Counsel | Direct | Sell | 8042025 | 281.90 | 50 | 14,095 | 2,392,203 | Form |
| 33 | Farrell, Michael J | Chief Executive Officer | Direct | Sell | 7082025 | 256.72 | 8,009 | 2,056,076 | 116,937,049 | Form |
| 34 | Farrell, Peter C | Direct | Sell | 7022025 | 255.49 | 945 | 241,438 | 17,443,069 | Form | |
| 35 | Sandercock, Brett | Chief Financial Officer | Direct | Sell | 7022025 | 256.99 | 3,883 | 997,892 | 21,659,888 | Form |
| 36 | Rider, Michael J | Global General Counsel | Direct | Sell | 7022025 | 256.99 | 66 | 16,961 | 2,193,667 | Form |
Investor Activity (13F)
Updated Jul 31, 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
Neutral / Watch
CONVICTION RATIONALE
ResMed's operational performance is excellent, with margins at five-year highs and strong cash flow. However, the central debate over GLP-1 drugs' impact on its core market creates significant uncertainty, reflected in the stock's deep underperformance. The investment case hinges on management's data-backed view that these drugs are a net positive, a thesis not yet accepted by the market.
STOCK ARCHETYPE
Recurring Consumption Franchise(Number of new patients) x (Device ASP) + (Installed base of patients) x (Mask resupply rate & ASP) + (SaaS subscriptions) Gross margin expansion driven by supply chain optimization, manufacturing efficiencies, favorable product mix, and disciplined operating expense management.
INVESTMENT THESIS
Evidence suggests GLP-1s are a net positive, increasing diagnosis rates and therapy adherence for ResMed's core products.
- Patients on GLP-1s are 11% more likely to start PAP therapy.
- Masks & Other sales, a proxy for adherence, grew 12% in the latest quarter.
- The company has a digital ecosystem of over 30 million connected devices.
- Management maintains a five-year outlook for high single-digit revenue growth.
PRIMARY RISK
The primary risk is that GLP-1s structurally reduce the severity of sleep apnea, permanently shrinking the addressable market for CPAP devices and making the therapy obsolete for many patients.
- Company filings identify pharmaceuticals like GLP-1s as a key risk.
- The stock has returned -28% over the last twelve months amid this debate.
- Device revenue growth decelerated sequentially to 6% from 11% in the prior quarter.
- Options markets price in unusually high uncertainty, at the 89th percentile.
| KPI | Status | Rationale |
|---|---|---|
| Device Revenue Growth | 6% year-over-year in constant currency for Q3 FY2026 - Decelerating | Device revenue growth decelerated in the latest quarter from a strong prior quarter but remains solid. The trend over the last three quarters shows fluctuation but is still indicative of healthy market growth and demand for the company's AirSense 11 platform, which recently launched in China. |
| Masks & Other Revenue Growth | 12% year-over-year in constant currency for Q3 FY2026 - Stable | Growth in the recurring-revenue Masks & Other segment remains robust and in the double-digits, driven by new product innovation like fabric-based masks and strong resupply dynamics. The slight sequential deceleration comes after a very strong prior quarter, and the overall trend remains strong. |
| Cloud-connected devices on AirView | More than 30 million (As of 7/27/2026 filing date) | Signals the scale of the company's digital health ecosystem, its data asset, and the stickiness of its platform for healthcare providers who monitor patients remotely. |
| myAir registered patients | Over 10 million (As of 7/27/2026 filing date) | Indicates the level of direct patient engagement with the company's therapy management application, which is designed to improve adherence and drive resupply. |
| Continuing Medical Education (CME) program completions | More than 80 thousand (Q3 FY2026) | Measures the success of the company's strategy to educate clinicians, particularly primary care physicians, about sleep apnea diagnosis and treatment, which is a key initiative to expand the patient funnel. |
Patient Funnel vs. Market Shrinkage
BULL VIEW
Bulls believe management's data that GLP-1s drive more patients to diagnosis and improve adherence, boosting high-margin recurring revenue from the 30 million-strong installed base.
CORE TENSION
Can strong mask growth (12%) prove GLP-1s are a tailwind, offsetting market fears reflected in the device growth slowdown from 11% to 6%?
PREVAILING SENTIMENT
The latest data on the installed base (12% mask growth) supports the bull view, but the new patient data (6% device growth) keeps the bear case credible.
BEAR VIEW
Bears see the recent slowdown in new device sales to 6% growth as the first sign that GLP-1s are shrinking the new patient pool, structurally impairing long-term growth.
| Timeline | Event & Metric To Watch |
|---|---|
8/6/2026 | Software Divestiture Disruption Watch: Revised segment guidance for the remaining Residential Care Software business and any disclosure of separation costs or disruption. |
8/6/2026 | GLP-1 Narrative Failure Watch: Deceleration in mask and accessory growth, which would contradict the company's data-driven thesis that GLP-1s are a tailwind. |
No set date | Competitive Bidding Resumption Watch: CMS announcements regarding the timing and product categories for the next round of the DMEPOS Competitive Bidding Program. |
No set date | Philips US Market Re-entry Watch: Announcements from Philips or the FDA regarding the status of the consent decree and plans for a full return to the U.S. flow generator market. |
| Date | Event | Stock Impact |
|---|---|---|
2026-07-07 | MatrixCare Divestiture Announced Details: ResMed announced a definitive agreement to sell its MatrixCare software business to Frazier Healthcare Partners for $490 million in cash. | -5.8% $218.40 -> $205.84 |
2026-06-01 | Noctrix Health Acquisition Completed Details: ResMed completed its acquisition of Noctrix Health, adding the Nidra Tonic Motor Activation (TOMAC) Therapy for Restless Legs Syndrome to its portfolio. | -4.1% $190.57 -> $182.82 |
2026-04-30 | CFO Retirement and Successor Details: The company announced that CFO Brett Sandercock planned to retire effective May 4, 2026, and that Aaron Bloomer was appointed as his successor. | -3.3% $211.30 -> $204.41 |
2026-03-10 | Analyst Consensus Reported Details: Press reports indicated a consensus recommendation of "Moderate Buy" from fourteen brokerages covering the firm. | -5.1% $252.18 -> $239.44 |
2026-02-24 | New Indiana Distribution Center Details: ResMed announced it is opening a new distribution center in Greenwood, Indiana, scheduled to begin operations in 2027. | -3.2% $260.02 -> $251.78 |
Position Sizing
2% - 4%
REDUCED POSITION
Sizing is volatility-based: RMD trades at roughly 31% annualized options-implied volatility versus about 15% for the S&P 500 (2.1x the market), around the 89th percentile of its own trailing year. A 2% - 4% 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, reducing single-therapy risk. Its absolute R&D spend of $2.9 billion dwarfs ResMed's, providing vast innovation scale.
INSP - a business partner
Alternative Therapy InnovatorInspire provides a pure-play investment in an alternative OSA treatment (neurostimulation), which directly competes with CPAP for certain patient segments and avoids the GLP-1 debate's direct impact.
The dominant, operationally-focused market leader in sleep apnea therapy, leveraging its vast digital ecosystem as a moat while capitalizing on new demand funnels created by big pharma and big tech.
ResMed is a mature med-tech firm executing a classic razor-and-blade model with connected devices and recurring mask resupply. It is successfully navigating supply chain challenges to expand margins and is now benefiting from external tailwinds like GLP-1 drugs and wearables that increase awareness of sleep apnea. The company is strategically refining its smaller software segment to focus on synergistic, high-growth assets while returning significant capital to shareholders, demonstrating disciplined capital allocation.
Continued gross margin expansion driven by operational efficiencies, market share gains in the mask category from new product launches, and tangible evidence of accelerated patient funnel growth from physician education and GLP-1 awareness.
A successful new competitive device launch that erodes market share, significant reimbursement cuts from government payers like Medicare, or clinical evidence showing GLP-1s durably reduce sleep apnea severity to a point where therapy is discontinued.
Short-term stock price volatility related to peer earnings or minor competitive announcements that do not fundamentally alter the market structure or ResMed's leadership position.
Repricing Catalyst
Sustained margin expansion that exceeds expectations, demonstrating durable operating leverage, and the successful execution of the software portfolio restructuring, which could improve the growth profile of the overall business.
Sleep and Breathing Health
$4.7B TTM (88% of Total)What It Is
This segment sells cloud-connected devices (CPAP, APAP, bilevel, ventilators), mask systems, and other accessories to treat sleep apnea, COPD, and other chronic respiratory diseases. Products are marketed to HME providers, sleep clinics, and physicians.
Who Pays & How
HME providers and clinics purchase the products, with sales heavily dependent on reimbursement from government health programs and private insurers. These third-party payors cover the products because they are a reliable and non-invasive first-line therapy for chronic conditions like obstructive sleep apnea (OSA).
Competition
Residential Care Software
$661M TTM (12% of Total)What It Is
This segment provides cloud-based software solutions to out-of-hospital healthcare providers, including HME providers, home health and hospice agencies, and skilled nursing facilities. Key platforms include Brightree and MEDIFOX DAN. The company announced an agreement in July 2026 to sell its MatrixCare business.
Who Pays & How
Residential care providers pay for the software to improve business performance, manage documentation, streamline workflows, and handle billing and reimbursement requirements. They choose these solutions to operate more effectively in an increasingly complex environment.
Competition
ResMed — Investor Video Playlist
External Quote Links
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| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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