Resmed (RMD) AI Stock Analysis

• Market Cap: $35.90B
• Dividend Yield: 0.92%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 25.2
• Beta (1Y): 0.76
• Revenue Growth: 9.36%
• EPS Growth: 29.56%
• Country: US
• Employees: 9,980
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 2.55
• Shares Outstanding: 145,966,300
• 10 Day Avg. Volume: 873,839
• 30 Day Avg. Volume: 1,012,690
• PEG Ratio: 0.72
• Price to Book (P/B): 6.34
• Price to Sales (P/S): 7.36
• P/FCF Ratio: 22.78
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 7.54
• Enterprise Value/Gross Profit: 12.56
• Enterprise Value/Ebitda: 19.99
• 1Y Price Target: $296.80
• Price Target Upside: 22.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 10.93
• Revenue Forecast (FY): $5.60B

• Rating: 76 Outperform
• Price Target: $283.00 ▲(16.68% Upside)

Resmed's strong financial performance and positive earnings call are the primary drivers of its overall score. The company's robust revenue growth and strategic expansions are significant strengths. However, technical indicators suggest caution, and the high P/E ratio reflects a premium valuation, which may limit upside potential.

Positive Factors

FDA Clearance for Smart Comfort

FDA clearance for Smart Comfort, an AI-enabled device, enhances Resmed's product portfolio, potentially increasing market share and patient adherence.

Strong Revenue Growth

Consistent revenue growth across regions and products indicates robust demand and effective market strategies, supporting long-term business expansion.

Gross Margin Improvement

Improved gross margins through supply chain efficiencies enhance profitability, providing more resources for reinvestment and competitive positioning.

Negative Factors

SaaS Business Growth Challenges

Slower SaaS growth, particularly in senior living segments, may hinder Resmed's digital health expansion and affect overall revenue diversification.

Global Minimum Tax Impact

Higher tax rates reduce net income, impacting cash flow and potentially limiting funds available for strategic investments and shareholder returns.

Restructuring Charges

Restructuring costs reflect strategic realignment but may indicate operational inefficiencies, affecting short-term financial performance and morale.

Resmed Business Overview & Revenue Model

Company Description

ResMed Inc. is a global leader in digital health and cloud-connected devices, specializing in the treatment of sleep apnea, chronic obstructive pulmonary disease (COPD), and other respiratory conditions. Founded in 1989 and headquartered in San Diego, California, ResMed develops innovative products including continuous positive airway pressure (CPAP) devices, cloud-connected monitoring solutions, and software applications that enhance patient care and adherence to therapy. The company operates primarily in two sectors: Sleep and Respiratory Care, providing both hardware and software solutions to improve the quality of life for patients worldwide.

How the Company Makes Money

ResMed generates revenue through multiple streams, primarily from the sale of medical devices and software solutions for sleep and respiratory care. Key revenue sources include the sale of CPAP machines, masks, and accessories, as well as ongoing revenue from cloud-based software solutions that enable remote patient monitoring and management. The company also benefits from a subscription-based model for its digital health services, which provide ongoing support and data analytics for healthcare providers. Significant partnerships with healthcare systems and insurers further bolster ResMed's market presence, allowing for wider distribution of their products and services. Additionally, the company leverages its extensive research and development capabilities to innovate and expand its product offerings, driving growth and enhancing revenue potential.

Resmed Financial Statement Overview

Summary

Resmed exhibits a robust financial position with strong profitability, efficient asset utilization, and solid cash flow generation. The company maintains a healthy balance sheet with low leverage, supporting its growth and stability in the medical instruments and supplies industry.

Income Statement

Resmed demonstrates strong profitability with a TTM gross profit margin of 60.08% and a net profit margin of 27.35%. The company has shown consistent revenue growth, with a TTM growth rate of 2.16%, indicating a stable upward trajectory. EBIT and EBITDA margins are robust at 33.37% and 37.74%, respectively, reflecting efficient operational management.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.14, suggesting conservative leverage. The return on equity is impressive at 25.13%, indicating effective use of shareholder funds. The equity ratio stands at 73.67%, highlighting a strong equity base relative to total assets.

Cash Flow

Cash flow performance is strong with a TTM free cash flow growth rate of 6.54%. The operating cash flow to net income ratio is 1.50, and the free cash flow to net income ratio is 0.94, both indicating healthy cash generation relative to earnings.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	5.26B	5.15B	4.69B	4.22B	3.58B	3.20B
Gross Profit	3.16B	3.05B	2.66B	2.36B	2.02B	1.84B
EBITDA	1.98B	1.91B	1.53B	1.36B	1.18B	1.10B
Net Income	1.44B	1.40B	1.02B	897.56M	779.44M	474.50M
Balance Sheet
Total Assets	8.31B	8.17B	6.87B	6.75B	5.10B	4.73B
Cash, Cash Equivalents and Short-Term Investments	1.38B	1.21B	238.36M	227.89M	273.71M	295.28M
Total Debt	846.35M	851.81M	873.93M	1.58B	917.55M	793.72M
Total Liabilities	2.19B	2.21B	2.01B	2.62B	1.74B	1.84B
Stockholders Equity	6.12B	5.97B	4.86B	4.13B	3.36B	2.89B
Cash Flow
Free Cash Flow	1.77B	1.66B	1.29B	559.30M	195.11M	619.89M
Operating Cash Flow	1.88B	1.75B	1.40B	693.30M	351.15M	736.72M
Investing Cash Flow	-254.77M	-200.04M	-269.78M	-1.16B	-229.92M	-158.46M
Financing Cash Flow	-685.77M	-606.25M	-1.12B	422.87M	-128.36M	-764.63M

Resmed Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 242.55
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMD, the sentiment is Negative. The current price of 242.55 is below the 20-day moving average (MA) of 250.61, below the 50-day MA of 254.53, and below the 200-day MA of 252.64, indicating a bearish trend. The MACD of -1.86 indicates Positive momentum. The RSI at 38.02 is Neutral, neither overbought nor oversold. The STOCH value of 13.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RMD.

Resmed Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMD	76 Outperform	$35.90B	25.17	25.41%	0.92%	9.36%	29.56%
HOLX	69 Neutral	$16.71B	30.18	11.12%	―	1.74%	-25.29%
WST	68 Neutral	$19.36B	39.86	16.94%	0.32%	4.90%	-0.26%
BDX	67 Neutral	$55.76B	33.59	6.54%	2.13%	8.23%	-2.04%
MASI	54 Neutral	$7.29B	-12.88	-17.93%	―	-16.03%	-813.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
BAX	45 Neutral	$9.92B	-36.57	-4.70%	2.70%	-21.20%	-325.40%

Resmed Corporate Events

ResMed Streamlines Governance at Annual Meeting

On November 19, 2025, ResMed Inc. held its annual meeting where significant decisions were made regarding the company’s governance and operational plans. Richard Sulpizio’s term on the board expired, leading to a reduction in board members from twelve to eleven. Additionally, stockholders approved several key proposals, including the election of eleven directors, the ratification of KPMG LLP as the independent auditor for the fiscal year ending June 30, 2026, and amendments to the 2009 Incentive Award Plan and the 2018 Employee Stock Purchase Plan. These decisions reflect ResMed’s ongoing efforts to streamline its governance and enhance its incentive structures, potentially impacting its strategic direction and stakeholder engagement.

Resmed Announces Quarterly Dividend Amid Strong Q1 Results

On October 30, 2025, Resmed announced a quarterly cash dividend of $0.60 per share, payable on December 18, 2025, with a record date of November 13, 2025. The company also reported strong financial results for the first quarter of fiscal year 2026, with a 9% increase in revenue to $1.3 billion and a 15% rise in income from operations. Resmed’s performance reflects its strategic focus on transforming home healthcare, with significant growth in revenue and gross margin, driven by increased demand for its sleep devices and accessories.