Resmed (RMD) AI Stock Analysis

• Market Cap: $35.79B
• Dividend Yield: 0.87%
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 25.1
• Beta (1Y): 0.81
• 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: 1,398,628
• 30 Day Avg. Volume: 1,086,350
• 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: 1.11
• Enterprise Value/Revenue: 7.54
• Enterprise Value/Gross Profit: 12.56
• Enterprise Value/Ebitda: 20.08
• 1Y Price Target: $302.10
• Price Target Upside: 20.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 10.93
• Revenue Forecast (FY): $5.60B

• Rating: 71 Outperform
• Price Target: $279.00 ▲(10.94% Upside)

Resmed's overall stock score is driven by strong financial performance and positive earnings call outcomes. However, bearish technical indicators and a high valuation weigh on the score. The company's strategic focus and innovation in product lines support a positive outlook, despite current market challenges.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Innovation Investment

Investment in innovation enhances competitive advantage and positions ResMed to lead in digital health solutions, driving future growth.

Cash Flow Generation

Strong cash flow generation supports strategic initiatives and shareholder returns, ensuring financial flexibility and operational resilience.

Negative Factors

Decelerating Revenue Growth

Slowing revenue growth could indicate market saturation or increased competition, potentially impacting long-term earnings potential.

Challenges in China

Persistent challenges in China may limit market expansion and revenue growth, affecting ResMed's global growth strategy.

Competitive Bidding Impact

Potential impacts from competitive bidding could pressure margins and revenue, affecting financial performance in key markets.

Resmed Business Overview & Revenue Model

Company Description

ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes. The company also provides AirView, a cloud-based system that enables remote monitoring and changing of patients' device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; U-Sleep, a compliance monitoring solution that enables home medical equipment (HME)to streamline their sleep programs; connectivity module and propeller solutions; and Propeller portal. It offers out-of-hospital software solution, such as Brightree business management software and service solutions to providers of HME, pharmacy, home infusion, orthotics, and prosthetics services; MatrixCare care management and related ancillary solutions to senior living, skilled nursing, life plan communities, home health, home care, and hospice organizations, as well as related accountable care organizations; and HEALTHCAREfirst that offers electronic health record, software, billing and coding services, and analytics for home health and hospice agencies. The company markets its products primarily to sleep clinics, home healthcare dealers, and hospitals through a network of distributors and direct sales force in approximately 140 countries. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.

How the Company Makes Money

ResMed generates revenue through several key streams, including the sale of medical devices, software solutions, and services. The Sleep and Respiratory Care segment contributes a significant portion of revenue through the sale of CPAP devices, masks, and other accessories, along with ongoing supplies needed for patient care. Additionally, the company has a robust SaaS model that provides cloud-based platforms for healthcare providers, enabling remote patient monitoring and data analysis, which adds a recurring revenue stream. ResMed also engages in partnerships with healthcare systems and providers to enhance patient care and drive adoption of its products. These partnerships, along with the increasing prevalence of sleep apnea and respiratory diseases, contribute to a growing customer base and recurring revenue from device rentals and supplies, bolstering the company’s earnings.

Resmed Financial Statement Overview

Summary

Resmed exhibits strong financial performance with robust profitability, a solid balance sheet, and healthy cash flow generation. The company maintains a low debt-to-equity ratio and high return on equity, though revenue growth has slightly decelerated.

Income Statement

Resmed's income statement shows strong profitability with a consistent gross profit margin around 59% and a net profit margin of approximately 27% in the TTM. Revenue growth is steady, with a 2.16% increase in the TTM, indicating stable demand. EBIT and EBITDA margins are robust, reflecting efficient operations. Overall, the company demonstrates solid revenue growth and profitability, though the growth rate has slightly decelerated compared to previous years.

Balance Sheet

The balance sheet reflects a healthy financial position with a low debt-to-equity ratio of 0.15 in the TTM, indicating conservative leverage. The return on equity is strong at 25.51%, showcasing effective use of equity to generate profits. The equity ratio is solid, suggesting a stable capital structure. However, the slight increase in debt over the years warrants monitoring.

Cash Flow

Cash flow analysis reveals a positive trend with a 6.54% growth in free cash flow in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy at 1.72, and the free cash flow to net income ratio is high at 0.95, reflecting efficient cash conversion. The company maintains a strong cash flow position, supporting its operational and strategic initiatives.

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	1.39B	1.21B	238.36M	227.89M	273.71M	295.28M
Total Debt	846.35M	882.32M	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: 251.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 251.49 is below the 20-day moving average (MA) of 259.60, below the 50-day MA of 268.46, and above the 200-day MA of 251.32, indicating a neutral trend. The MACD of -6.72 indicates Positive momentum. The RSI at 36.63 is Neutral, neither overbought nor oversold. The STOCH value of 37.28 is Neutral, 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
WST	76 Outperform	$20.40B	42.00	16.94%	0.31%	4.90%	-0.26%
RMD	71 Outperform	$35.79B	25.10	25.41%	0.87%	9.36%	29.56%
BDX	70 Outperform	$50.56B	31.72	6.54%	2.35%	8.23%	-2.04%
HOLX	69 Neutral	$16.52B	29.86	11.12%	―	1.74%	-25.29%
MASI	56 Neutral	$7.63B	―	-17.93%	―	-16.03%	-813.48%
BAX	53 Neutral	$9.23B	―	-4.70%	3.78%	-21.20%	-325.40%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Resmed Corporate Events

Resmed Inc. Reports Strong Start to Fiscal 2026

Resmed Inc., a leader in digital health solutions and cloud-connected devices, focuses on enhancing sleep and breathing health through innovative technologies. The company reported a strong start to fiscal year 2026 with a 9% increase in revenue, reaching $1.3 billion, and a significant improvement in gross margin. Key financial highlights include a 15% increase in income from operations and a 16% rise in non-GAAP diluted earnings per share, driven by robust sales growth and improved manufacturing efficiencies. Resmed’s strategic investments in innovation and operational excellence have contributed to these positive results. Looking ahead, Resmed remains committed to delivering sustainable growth by expanding access to its healthcare solutions worldwide, as evidenced by its recent initiatives and board changes.

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.

The most recent analyst rating on (RMD) stock is a Buy with a $304.00 price target. To see the full list of analyst forecasts on Resmed stock, see the RMD Stock Forecast page.

ResMed’s Nyx3 Study: A New Frontier in Sleep Technology

Study Overview: ResMed Inc. is conducting a study titled ‘Nyx3 Eye Mask Physiological Data Collection Study’ to evaluate data quality from the Nyx3 eye mask and its effect on sleep onset latency. This study aims to enhance understanding of sleep staging and improve sleep health solutions.

ResMed’s ASV Therapy Study: A New Hope for Insomnia?

Study Overview: ResMed Inc. has initiated a clinical study titled Evaluation of Adaptive Servo Ventilation Therapy for Insomnia Treatment Among Patients With Primary Insomnia. The study aims to assess the effectiveness of adaptive servo ventilation (ASV) therapy in reducing insomnia severity in patients with moderate to severe chronic insomnia. This research is significant as it explores a novel application of ASV therapy beyond its traditional use for obstructive sleep apnea.

ResMed’s New Study: Pioneering Non-Invasive Sleep Apnea Diagnosis

ResMed Inc. has announced a new clinical study titled ‘Innovation and Growth Network for Insightful Trends and Evaluation – Data Collection Study.’ The study aims to explore novel methods for diagnosing obstructive sleep apnea (OSA) by collecting data on facial scans, videos, and heart rate variability. This research is significant as it could lead to more efficient and non-invasive diagnostic tools for OSA, a condition affecting millions worldwide.

ResMed’s New Algorithm Study: A Potential Game-Changer for Sleep Apnea Treatment

Study Overview: ResMed Inc is conducting a study titled ‘Evaluation of a Novel Auto-Adjusting Positive Airway Pressure Algorithm for the Treatment of Obstructive Sleep Apnea Clinical Study.’ The study aims to assess the effectiveness of a new algorithm in treating obstructive sleep apnea, a condition that affects breathing during sleep. This research is significant as it seeks to improve treatment options for individuals suffering from this common sleep disorder.

ResMed Earnings Call: Strong Growth and Strategic Vision

ResMed’s recent earnings call exuded a positive sentiment, largely driven by the company’s impressive financial performance. The call highlighted significant revenue growth, gross margin expansion, and strategic acquisitions, painting a picture of a company well-poised for future success. Despite facing challenges such as competitive bidding concerns and market hurdles in China, the overall tone remained optimistic, underscoring ResMed’s strong balance sheet and operational excellence.

Resmed’s CCO Bobby Ghoshal Resigns for New Role

On July 28, 2025, Resmed announced the resignation of Bobby Ghoshal, their Chief Commercial Officer for the residential care software business, effective August 1, 2025. Ghoshal is leaving to become the Chief Operating Officer at a software company in a non-competitive industry, which may impact Resmed’s operations and industry positioning.

The most recent analyst rating on (RMD) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Resmed stock, see the RMD Stock Forecast page.

Resmed Inc. Reports Strong Q4 2025 Earnings Growth

Resmed Inc., a leader in digital health technologies and cloud-connected medical devices, specializes in treating sleep apnea, COPD, and other chronic diseases, offering solutions that enhance care and reduce healthcare costs globally.

Resmed Announces Increased Quarterly Dividend

On July 31, 2025, Resmed announced a quarterly cash dividend of $0.60 per share, reflecting a 13% increase, with payment scheduled for September 18, 2025. The company also reported a strong financial performance for the fourth quarter and the full fiscal year 2025, with a 10% revenue growth and a 19% increase in operating profit. These results highlight Resmed’s robust market position and the effectiveness of its digital health ecosystem, which continues to drive demand and innovation in sleep and breathing health solutions.

The most recent analyst rating on (RMD) stock is a Buy with a $290.00 price target. To see the full list of analyst forecasts on Resmed stock, see the RMD Stock Forecast page.