Resmed (RMD)
NYSE:RMD
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Resmed
(NYSE:RMD)
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Rating:80Outperform
Price Target:
$263.00
▲(14.91% Upside)
Action:ReiteratedDate:01/30/26
The score is driven primarily by strong financial performance (high margins, low leverage, and robust free cash flow) and a favorable earnings call emphasizing margin progress, clear FY26 operating targets, and substantial capital returns. Offsetting factors are a premium valuation (P/E ~26) with a low yield and only moderate technical momentum.
Positive Factors
High Profitability / Margin Expansion
Sustained high gross and net margins reflect durable product mix, pricing power and operating discipline. Elevated profitability provides a persistent buffer against cost swings, funds R&D and returns to shareholders, and supports a high ROE that can be sustained absent major product disruptions.
Negative Factors
Slowing Revenue Growth
A materially slower top‑line trajectory reduces operating leverage and increases reliance on margin expansion and buybacks to drive EPS. If supply‑chain productivity or pricing tailwinds abate, slower organic growth could pressure returns and force more dependence on M&A or new demand drivers to reaccelerate sales.
Read all positive and negative factors
Positive Factors
Negative Factors
High Profitability / Margin Expansion
Sustained high gross and net margins reflect durable product mix, pricing power and operating discipline. Elevated profitability provides a persistent buffer against cost swings, funds R&D and returns to shareholders, and supports a high ROE that can be sustained absent major product disruptions.
Read all positive factors
Resmed (RMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.34B
Dividend Yield0.92%
Average Volume (3M)989.04K
Price to Earnings (P/E)22.5
Beta (1Y)0.80
Revenue Growth9.36%
EPS Growth29.56%
CountryUS
Employees9,980
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)2.81
Shares Outstanding145,678,400
10 Day Avg. Volume843,953
30 Day Avg. Volume989,038
Financial Highlights & Ratios
PEG Ratio0.72
Price to Book (P/B)6.34
Price to Sales (P/S)7.36
P/FCF Ratio22.78
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue6.15
Enterprise Value/Gross Profit10.08
Enterprise Value/Ebitda16.02
Forecast
1Y Price Target
$287.91Price Target Upside25.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)11.03
Revenue Forecast (FY)$5.64B
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 v...
How the Company Makes Money
ResMed makes money primarily by selling sleep and respiratory care products and by providing software-as-a-service (SaaS) and related digital health services.
1) Device and mask/accessory sales (core revenue stream):
- Flow generators and ventila...
Resmed Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down overall revenue into specific business segments, providing insight into which parts of the company are performing well and contributing most to the bottom line.
Breaks down overall revenue into specific business segments, providing insight into which parts of the company are performing well and contributing most to the bottom line.
Data provided by:
The Fly
The FlyResmed Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call emphasized multiple strong operational and financial wins: double-digit headline revenue growth, expanded margins driven by supply-chain productivity, robust device and mask growth, healthy cash generation, continued innovation (new fabric masks, first FDA-cleared AI feature), and a sizable capital return program. Headwinds were present but generally moderate: SG&A growth (partly acquisition-related), a modest tax-rate headwind from global minimum tax, a small restructuring charge, and some lumpiness in ex-U.S. device comps and certain RCS verticals. On balance the highlights materially outweigh the lowlights, reflecting continued execution, margin expansion and strong cash returns to shareholders.Positive Updates
Revenue Growth
Group revenue of $1.42 billion, up 11% headline and 9% on a constant currency basis versus the prior-year quarter.
Negative Updates
RCS / Residential Care Software Headwinds
Residential Care Software revenue grew 5% (constant currency) but performance was partially offset by ongoing challenges in the senior living and long-term care verticals.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Group revenue of $1.42 billion, up 11% headline and 9% on a constant currency basis versus the prior-year quarter.
Read all positive updates
Company Guidance
ResMed provided several forward-looking metrics: for fiscal 2026 management now expects gross margin of 62%–63% (subject to currency), SG&A to run about 19%–20% of revenue and R&D about 6%–7% of revenue, and an effective tax rate of 21%–23%; the company plans more than $600 million of share repurchases in FY26 (Q2 buyback ~$175M and a declared quarterly dividend of $0.60/share), expects to maintain mid‑single‑digit growth in its RCS business through the March and June quarters while targeting a return to sustainable high‑single‑digit revenue growth and double‑digit operating profit growth in FY27, is pursuing ongoing gross‑margin productivity initiatives (310 bps YoY improvement in Q2 and a challenge to deliver double‑digit bps improvement annually through 2030), and noted a $6M restructuring charge treated as non‑GAAP.Resmed Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.40B | 5.15B | 4.69B | 4.22B | 3.58B | 3.20B |
| Gross Profit | 3.29B | 3.05B | 2.66B | 2.36B | 2.02B | 1.84B |
| EBITDA | 2.07B | 1.91B | 1.53B | 1.36B | 1.18B | 1.10B |
| Net Income | 1.49B | 1.40B | 1.02B | 897.56M | 779.44M | 474.50M |
Balance Sheet | ||||||
| Total Assets | 8.50B | 8.17B | 6.87B | 6.75B | 5.10B | 4.73B |
| Cash, Cash Equivalents and Short-Term Investments | 1.43B | 1.21B | 238.36M | 227.89M | 273.71M | 295.28M |
| Total Debt | 1.00B | 851.81M | 873.93M | 1.58B | 917.55M | 793.72M |
| Total Liabilities | 2.18B | 2.21B | 2.01B | 2.62B | 1.74B | 1.84B |
| Stockholders Equity | 6.32B | 5.97B | 4.86B | 4.13B | 3.36B | 2.89B |
Cash Flow | ||||||
| Free Cash Flow | 1.79B | 1.66B | 1.29B | 559.30M | 195.11M | 619.89M |
| Operating Cash Flow | 1.91B | 1.75B | 1.40B | 693.30M | 351.15M | 736.72M |
| Investing Cash Flow | -269.02M | -200.04M | -269.78M | -1.16B | -229.92M | -158.46M |
| Financing Cash Flow | -796.58M | -606.25M | -1.12B | 422.87M | -128.36M | -764.63M |
Resmed Technical Analysis
Neutral
228.87
Price Trends
244.21
Negative
246.97
Negative
257.42
Negative
Market Momentum
-4.67
Negative
44.55
Neutral
65.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RMD, the sentiment is Neutral. The current price of 228.87 is above the 20-day moving average (MA) of 226.58, below the 50-day MA of 244.21, and below the 200-day MA of 257.42, indicating a neutral trend. The MACD of -4.67 indicates Negative momentum. The RSI at 44.55 is Neutral, neither overbought nor oversold. The STOCH value of 65.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RMD.
Resmed Risk Analysis
Resmed disclosed 38 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $33.34B | 22.47 | 24.81% | 0.92% | 9.36% | 29.56% | |
72 Outperform | $18.48B | 40.29 | 16.68% | 0.32% | 4.90% | -0.26% | |
68 Neutral | $43.91B | 28.46 | 6.93% | 2.13% | 8.23% | -2.04% | |
64 Neutral | $9.31B | -45.07 | -17.21% | ― | -16.03% | -813.48% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $8.85B | -10.24 | -13.78% | 2.75% | -21.20% | -325.40% |
* Healthcare Sector Average
RMD
Resmed
228.87
16.25
7.64%
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Resmed Corporate Events
DividendsFinancial Disclosures
ResMed Announces Dividend and Strong Quarterly Earnings Growth
Positive
Jan 29, 2026
On January 29, 2026, Resmed’s board declared a quarterly cash dividend of US$0.60 per share, payable March 19, 2026, to shareholders of record on February 12, 2026, with payments made in U.S. dollars for NYSE-listed common stock and in Austr...
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.