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Resmed
(NYSE:RMD)
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Rating:79Outperform
Price Target:
$261.00
▲(10.71% Upside)
Action:Reiterated
Date:09/06/26
The score is driven primarily by strong financial performance (high margins, improving leverage, and robust cash generation). Earnings call guidance and capital return plans are constructive, though tempered by the Astral suspension headwind and elevated investment spend. Technicals are mildly positive but currently neutral, and valuation appears reasonable rather than clearly cheap.
Positive Factors
Strong growth and profitability
ResMed is growing revenue while expanding margins, indicating operating leverage and strong economics in its core business. This combination supports durable earnings growth and provides resources to fund innovation, market expansion, and shareholder returns over the next several quarters.
Negative Factors
Astral safety action
The Astral field-safety action is a structural near-term disruption because suspended sales directly reduce ventilator revenue and earnings. The issue may also require remediation and portfolio management, limiting growth while ResMed works through the corrective action and demand recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong growth and profitability
ResMed is growing revenue while expanding margins, indicating operating leverage and strong economics in its core business. This combination supports durable earnings growth and provides resources to fund innovation, market expansion, and shareholder returns over the next several quarters.
Read all positive factors
Resmed Key Performance Indicators (KPIs)
Any
Sleep and Breathing Health Products Revenue by Segment
Shows revenue from different segments of sleep and breathing health products, highlighting which areas are driving growth and where the company might focus its innovation or marketing efforts.
Shows revenue from different segments of sleep and breathing health products, highlighting which areas are driving growth and where the company might focus its innovation or marketing efforts.
Data provided by:
The Fly
The FlyResmed (RMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.94B
Dividend Yield1.08%
Average Volume (3M)1.43M
Price to Earnings (P/E)21.9
Beta (1Y)0.60
Revenue Growth9.85%
EPS Growth9.65%
CountryUS
Employees11,370
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)10.44
Shares Outstanding144,252,300
10 Day Avg. Volume1,287,006
30 Day Avg. Volume1,430,735
Financial Highlights & Ratios
PEG Ratio2.00
Price to Book (P/B)4.28
Price to Sales (P/S)4.99
P/FCF Ratio17.10
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$239.50Price Target Upside1.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)12.1
Revenue Forecast (FY)$5.82B
Resmed Business Overview & Revenue Model
Company Description
ResMed Inc. is a leading global medical technology enterprise engaged in the creation, production, distribution, and marketing of healthcare devices and connected digital solutions. The company operates through two primary segments: Sleep and Resp...
How the Company Makes Money
ResMed primarily makes money by selling sleep and respiratory care hardware and the recurring consumables used with that hardware, complemented by software and digital health revenue. The largest revenue stream comes from devices used to treat sle...
Resmed Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed solid underlying growth and margin expansion across the core sleep business, strong full-year cash generation, material shareholder returns, and continued product and software momentum (masks, AirSense/AirCurve rollouts, GenAI MyAir, Oura partnership). Key negatives were a sizeable Astral field-safety provision and the suspension of Astral sales (driving significant ventilator revenue declines and near-term revenue/EPS headwinds), higher near-term R&D and SG&A investment, and Q4 free cash flow compression. Management provided explicit FY2027 revenue and EPS guidance, actions to return capital, and plans to prioritize high-ROI investments while actively managing the portfolio—presenting a constructive execution path despite the discrete Astral-related disruption.Positive Updates
Q4 Revenue and EPS Growth
Group revenue of $1.5B in Q4, +9% headline and +8% constant-currency; non-GAAP EPS of $2.95 in Q4, +16% year-over-year.
Negative Updates
Astral Field Safety Action and Provision
Took a $42M provision in Q4 for Astral field safety corrective action; suspended Astral sales for fiscal 2027 resulting in an approximate 130 basis-point (≈$75M) revenue headwind and ~ $0.15 EPS headwind embedded in guidance.
Read all updates
Q4-2026 Updates
Positive
Negative
Q4 Revenue and EPS Growth
Group revenue of $1.5B in Q4, +9% headline and +8% constant-currency; non-GAAP EPS of $2.95 in Q4, +16% year-over-year.
Read all positive updates
Company Guidance
ResMed guided fiscal 2027 to core constant‑currency revenue growth of 5%–7% (after removing 10 months of MatrixCare and excluding Noctrix), noting an approximate 130‑basis‑point (~$75M) headwind from suspended Astral sales; reported revenue is expected to be $5.75–$5.85 billion (assumes ~50‑bp FX headwind). Non‑GAAP EPS is guided to $12.00–$12.25 (≈7%–10% reported growth) — which implies 12%–14% core EPS growth if you remove ~ $0.30 dilution from the MatrixCare divestiture and ~$0.20 from Noctrix; Astral suspension is ~ $0.15 EPS headwind. Management expects low‑double‑digit gross‑margin expansion and a slight operating‑margin improvement, RCS to deliver high‑single‑digit revenue growth, capital expenditures of $160–$180M, $1.5B in share repurchases (including a $450M accelerated buyback), a quarterly dividend of $0.66 (up 10%), and total shareholder returns north of $1.85B; they also flagged Q1 seasonality (sequential revenue dip), a slight YoY gross‑margin contraction in Q1, and OpEx dollars roughly flat with Q4.Resmed Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
86
Very Positive
Cash Flow
82
Very Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.65B | 5.15B | 4.69B | 4.22B | 3.58B |
| Gross Profit | 3.46B | 3.05B | 2.66B | 2.36B | 2.02B |
| EBITDA | 2.15B | 1.91B | 1.53B | 1.36B | 1.18B |
| Net Income | 1.52B | 1.40B | 1.02B | 897.56M | 779.44M |
Balance Sheet | |||||
| Total Assets | 8.97B | 8.17B | 6.87B | 6.75B | 5.10B |
| Cash, Cash Equivalents and Short-Term Investments | 1.47B | 1.21B | 238.36M | 227.89M | 273.71M |
| Total Debt | 825.92M | 851.81M | 873.93M | 1.58B | 917.55M |
| Total Liabilities | 2.38B | 2.21B | 2.01B | 2.62B | 1.74B |
| Stockholders Equity | 6.59B | 5.97B | 4.86B | 4.13B | 3.36B |
Cash Flow | |||||
| Free Cash Flow | 1.65B | 1.66B | 1.29B | 559.30M | 195.11M |
| Operating Cash Flow | 1.81B | 1.75B | 1.40B | 693.30M | 351.15M |
| Investing Cash Flow | -545.20M | -200.04M | -269.78M | -1.16B | -229.92M |
| Financing Cash Flow | -1.01B | -606.25M | -1.12B | 422.87M | -128.36M |
Resmed Technical Analysis
Positive
235.76
Price Trends
214.83
Positive
209.09
Positive
227.18
Positive
Market Momentum
5.22
Positive
53.58
Neutral
16.08
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMD, the sentiment is Positive. The current price of 235.76 is above the 20-day moving average (MA) of 229.43, above the 50-day MA of 214.83, and above the 200-day MA of 227.18, indicating a neutral trend. The MACD of 5.22 indicates Positive momentum. The RSI at 53.58 is Neutral, neither overbought nor oversold. The STOCH value of 16.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RMD.
Resmed Risk Analysis
Resmed disclosed 39 risk factors in its most recent earnings report. Resmed reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Resmed Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $32.94B | 21.87 | 23.88% | 1.08% | 9.85% | 9.65% | |
65 Neutral | $50.32B | 55.64 | 3.79% | 2.03% | -2.56% | -40.38% | |
64 Neutral | $48.11B | 42.55 | 5.45% | ― | 12.12% | -46.11% | |
59 Neutral | $5.86B | -5.94 | -31.83% | 0.98% | -14.49% | -644.98% | |
57 Neutral | $13.35B | -12.66 | -16.60% | 0.16% | 5.36% | -632.85% | |
57 Neutral | $4.19B | 139.65 | 1.41% | ― | -8.84% | ― | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
RMD
Resmed
228.35
-47.92
-17.34%
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Resmed Corporate Events
Business Operations and StrategyStock Buyback
ResMed Launches $450 Million Accelerated Share Repurchase
Positive
Sep 1, 2026
On August 31, 2026, ResMed Inc. entered into an accelerated share repurchase agreement with Citibank to buy back $450 million of its common stock under a long-standing board authorization for up to 20 million shares. The program will be funded usi...
Business Operations and StrategyExecutive/Board Changes
Resmed Announces Board Leadership Transition and Director Retirement
Positive
Aug 17, 2026
On August 13, 2026, Resmed director Ron Taylor informed the board that he would not stand for election at the 2026 annual meeting on November 18, 2026, and planned to retire from the board at that time after more than 21 years of service. The comp...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A TransactionsProduct-Related Announcements
Resmed Reports Strong Q4 Results and Dividend Increase
Positive
Aug 6, 2026
On August 6, 2026, Resmed reported strong fourth quarter and full‑year fiscal 2026 results, with Q4 revenue up 9% to a record $1.5 billion and full‑year revenue up 10% to $5.7 billion, alongside margin expansion and a 17% rise in non&#...
Business Operations and StrategyM&A Transactions
Resmed Divests MatrixCare to Refocus on Core Sleep Care
Positive
Jul 7, 2026
On July 7, 2026, Resmed announced a definitive agreement to sell its MatrixCare business to private equity firm Frazier Healthcare Partners, in a move designed to sharpen its focus on high-growth sleep health, breathing health and connected home-b...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.