ResMed (NYSE:RMD) Posts Earnings Results, Beats Expectations By $0.13 EPS

ResMed (NYSE:RMD) released its quarterly earnings data on Thursday. The medical equipment provider reported $2.81 earnings per share for the quarter, beating analysts’ consensus estimates of $2.68 by $0.13, FiscalAI reports. The firm had revenue of $1.42 billion during the quarter, compared to analyst estimates of $1.40 billion. ResMed had a return on equity of 25.68% and a net margin of 27.53%.The business’s quarterly revenue was up 11.0% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.43 earnings per share.

Here are the key takeaways from ResMed’s conference call:

• ResMed delivered a strong quarter with 11% revenue growth (9% constant currency), GAAP EPS up 16%, improved operating margin (36.3%), and robust operating cash flow of $340M, with net cash of $753M at quarter-end.
• Masks & accessories drove outsized growth (global masks/accessories up double digits; U.S. masks +16%), helped by Virtuox and early adoption of new fabric masks (F30i Comfort / F30i Clear) that management expects will gain strong traction.
• Supply-chain and manufacturing initiatives are expanding margins and capacity — management cited meaningful gross-margin improvement, a new Indiana distribution center (on track for CY2027), and a Calabasas plant expansion to double U.S. production, supporting long-term margin targets.
• Real-world claims data (~1.95M patients) show a potential secular tailwind: patients with GLP-1 scripts are ~10–11% more likely to start CPAP and have higher resupply rates at 1 and 3 years, which management views as accelerating the patient funnel.
• Costs and portfolio actions are near-term headwinds: SG&A grew faster than revenue (15% headline, 12% constant currency), a $6M restructuring charge was recorded, RCS is undergoing portfolio management with only mid-single-digit growth expected in FY26, and the effective tax rate has increased to ~21–23%.

ResMed Stock Up 0.1%

Shares of ResMed stock opened at $257.76 on Friday. ResMed has a 1 year low of $199.92 and a 1 year high of $293.81. The firm has a market cap of $37.62 billion, a price-to-earnings ratio of 25.50, a PEG ratio of 1.73 and a beta of 0.88. The company has a 50-day moving average of $251.04 and a 200 day moving average of $263.22. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.89 and a quick ratio of 2.13.

ResMed Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 19th. Stockholders of record on Thursday, February 12th will be given a $0.60 dividend. The ex-dividend date of this dividend is Thursday, February 12th. This represents a $2.40 dividend on an annualized basis and a dividend yield of 0.9%. ResMed’s dividend payout ratio is currently 24.56%.

Insiders Place Their Bets

In related news, Director Peter C. Farrell sold 2,000 shares of the company’s stock in a transaction that occurred on Wednesday, January 7th. The stock was sold at an average price of $248.83, for a total value of $497,660.00. Following the sale, the director owned 66,773 shares in the company, valued at $16,615,125.59. This represents a 2.91% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Michael J. Farrell sold 4,991 shares of ResMed stock in a transaction on Wednesday, January 7th. The shares were sold at an average price of $248.46, for a total value of $1,240,063.86. Following the transaction, the chief executive officer owned 466,223 shares of the company’s stock, valued at $115,837,766.58. The trade was a 1.06% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 21,594 shares of company stock worth $5,403,495. 0.65% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On ResMed

Institutional investors and hedge funds have recently modified their holdings of the stock. Imprint Wealth LLC bought a new stake in ResMed during the 3rd quarter valued at about $26,000. WFA of San Diego LLC purchased a new position in ResMed in the 2nd quarter worth approximately $26,000. Sunbelt Securities Inc. bought a new position in ResMed in the 3rd quarter valued at approximately $31,000. Kelleher Financial Advisors purchased a new stake in ResMed during the 3rd quarter valued at $66,000. Finally, MUFG Securities EMEA plc bought a new stake in shares of ResMed in the 2nd quarter worth $112,000. 54.98% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on RMD shares. Wells Fargo & Company increased their target price on shares of ResMed from $265.00 to $270.00 and gave the stock an “equal weight” rating in a report on Friday. Piper Sandler upped their price target on ResMed from $270.00 to $275.00 and gave the company a “neutral” rating in a research report on Friday. Robert W. Baird set a $281.00 price objective on ResMed in a report on Friday. UBS Group reissued a “buy” rating and set a $345.00 target price on shares of ResMed in a research note on Friday, December 12th. Finally, Stifel Nicolaus lifted their price target on shares of ResMed from $260.00 to $265.00 and gave the company a “hold” rating in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, ResMed currently has an average rating of “Moderate Buy” and a consensus price target of $297.91.

More ResMed News

Here are the key news stories impacting ResMed this week:

• Positive Sentiment: Q2 results beat consensus — GAAP diluted EPS of $2.68 (non‑GAAP $2.81) vs. Street estimates ~ $2.68, revenue $1.423B (+11% YoY), 320 bps gross‑margin improvement and $340M operating cash flow. These metrics support near‑term earnings credibility and cash generation. Read More.
• Positive Sentiment: Board declared a quarterly cash dividend of $0.60 per share (record Feb 12; payable Mar 19), signaling capital return commitment and supporting income investors. Read More.
• Positive Sentiment: Product/innovation catalysts: FDA cleared an AI‑enabled device (“Smart Comfort”) to personalize CPAP settings — strengthens digital/AI positioning and could boost adherence and recurring device/accessory demand. Read More.
• Positive Sentiment: Wells Fargo nudged its price target to $270 (from $265) with an “equal weight” rating — a modest analyst lift that implies limited near‑term upside from that shop. Read More.
• Neutral Sentiment: Analyst landscape remains mixed but generally favorable — several firms maintain outperform/buy views and available median targets sit materially above current price, leaving room for differing investor expectations. Read More.
• Neutral Sentiment: Company hosted the Q2 webcast and transcripts are posted — useful for hearing management’s guide/comments on demand, supply and margin outlook. Read More.
• Negative Sentiment: Expenses rose: SG&A and R&D both increased (~12% YoY) and the company recorded $6M in restructuring charges; higher operating costs could pressure margins if growth slows. Read More.
• Negative Sentiment: Notable insider selling activity was reported in recent months (multiple sales by senior executives), which some investors view as a modest governance/conviction caution. Read More.

About ResMed

ResMed (NYSE: RMD) is a global medical device and cloud-connectivity company focused on improving outcomes for people with sleep-disordered breathing and chronic respiratory conditions. Founded in 1989, the company is headquartered in San Diego, California, and develops, manufactures and distributes a range of devices and software used by patients, clinicians and providers worldwide.

ResMed’s product portfolio centers on noninvasive ventilation and sleep therapy equipment, including continuous positive airway pressure (CPAP) and bilevel devices, masks and related accessories for the treatment of obstructive sleep apnea and other respiratory disorders.