ResMed Inc.
- Open
- 233.18
- Day high
- 237.21
- Day low
- 230.87
- Prev close
- 231.36
- Volume
- 1.2M
- Mkt cap
- $33.3B
- P/E (TTM)
- 22.1
- EPS (TTM)
- $10.44
- P/B
- 5.1
- P/S
- 5.9
- Yield
- 1.07%
- Per share
- $2.46
- ▼Insiders net selling -$4.9M over the last 3 months (0 open-market buys, 4 sales)
- 🏛Institutions mixed (13F)
ResMed Inc. (RMD) is a Healthcare company listed on NYSE. The stock is down 13% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 4 sales (SEC Form 4). Drillr has 1 published research article covering RMD.
ResMed Inc. (RMD) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 10 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
RMD earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 6, 2026 | $2.89 | $2.95 | +2.0% | $1.5B | +0.1% |
| Apr 30, 2026 | $2.79 | $2.86 | +2.5% | $1.4B | +0.8% |
| Jan 29, 2026 | $2.74 | $2.81 | +2.4% | $1.4B | +1.6% |
| Oct 30, 2025 | $2.51 | $2.55 | +1.4% | $1.3B | -0.0% |
| Jul 31, 2025 | $2.55 | $2.55 | -0.0% | $1.3B | -0.1% |
| Apr 23, 2025 | $2.39 | $2.37 | -0.8% | $1.3B | +0.0% |
| Jan 30, 2025 | $2.32 | $2.43 | +4.7% | $1.3B | +1.0% |
| Oct 24, 2024 | $2.04 | $2.20 | +7.9% | $1.2B | +4.0% |
| Aug 1, 2024 | $2.06 | $2.08 | +0.7% | $1.2B | +0.3% |
| Apr 25, 2024 | $1.91 | $2.13 | +11.5% | $1.2B | +1.4% |
| Jan 24, 2024 | $1.81 | $1.88 | +3.8% | $1.2B | +1.2% |
| Oct 26, 2023 | $1.62 | $1.64 | +1.2% | $963M | -12.3% |
RMD insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 11, 2026 | Farrell Michael J.director, officer: Chairman and CEO | Option | 4,991 | $146.34 |
| Aug 11, 2026 | Farrell Michael J.director, officer: Chairman and CEO | Sell | 4,991 | $205.69 |
| Aug 6, 2026 | FARRELL PETER Cdirector | Sell | 8,000 | $225.00 |
| Jul 9, 2026 | Farrell Michael J.director, officer: Chairman and CEO | Sell | 4,991 | $218.55 |
| Jul 9, 2026 | Farrell Michael J.director, officer: Chairman and CEO | Option | 4,991 | $146.34 |
| Jun 9, 2026 | Farrell Michael J.director, officer: Chairman and CEO | Option | 4,991 | $146.34 |
| Jun 9, 2026 | Farrell Michael J.director, officer: Chairman and CEO | Sell | 4,991 | $193.96 |
| May 11, 2026 | Farrell Michael J.director, officer: Chairman and CEO | Sell | 4,991 | $207.82 |
| May 11, 2026 | Farrell Michael J.director, officer: Chairman and CEO | Option | 4,991 | $146.34 |
| Apr 9, 2026 | Farrell Michael J.director, officer: Chairman and CEO | Sell | 4,991 | $225.50 |
| Apr 9, 2026 | Farrell Michael J.director, officer: Chairman and CEO | Option | 4,991 | $146.34 |
| Apr 3, 2026 | Sandercock Brettofficer: Chief Financial Officer | Sell | 1,000 | $224.31 |
| Apr 2, 2026 | FARRELL PETER Cdirector | Sell | 2,000 | $225.00 |
| Mar 11, 2026 | Farrell Michael J.director, officer: Chairman and CEO | Sell | 4,991 | $251.03 |
| Mar 11, 2026 | Farrell Michael J.director, officer: Chairman and CEO | Option | 4,991 | $146.34 |
Source: RMD SEC Form 4 filings, latest Aug 11, 2026. For informational purposes only — not investment advice.
See the full RMD insider & 13F page →ResMed Inc. company profile
Overview
ResMed Inc. (NYSE:RMD) is a medical device company founded in 1989 and headquartered in San Diego, California. The company went public in 1995 and has evolved from a sleep apnea device manufacturer into a comprehensive digital health platform serving patients with sleep-disordered breathing and other respiratory conditions. ResMed operates globally across approximately 140 countries, developing cloud-connected medical devices and software solutions that serve both patients in their homes and healthcare providers managing out-of-hospital care.
Business
ResMed operates in the medical device industry, specifically focusing on sleep and respiratory care. The company's core business revolves around treating sleep apnea, a condition where people stop breathing repeatedly during sleep, affecting an estimated 1 billion people worldwide but with extremely low diagnosis rates (only 2.8% of potential patients currently receive treatment). The company operates through two primary business segments: 1. **Sleep and Respiratory Care (approximately 85-90% of revenue)**: This segment manufactures and distributes medical devices including CPAP (Continuous Positive Airway Pressure) machines, which are the gold standard treatment for sleep apnea. These devices deliver pressurized air through a mask to keep airways open during sleep. Key products include the AirSense 10 and newer AirSense 11 platforms, along with various mask systems like the AirFit series and the innovative AirTouch N30i with fabric-wrapped technology. The segment also produces ventilators for patients with more severe respiratory conditions and diagnostic equipment for sleep studies. 2. **Software as a Service (approximately 10-15% of revenue)**: This segment provides cloud-based software solutions for healthcare providers managing patients outside traditional hospital settings. Key offerings include Brightree (business management software for home medical equipment providers), MatrixCare (care management solutions for senior living and skilled nursing facilities), and HEALTHCAREfirst (electronic health records for home health and hospice agencies). ResMed's devices are increasingly cloud-connected, generating over 19 billion nights of medical data that feeds into their digital health ecosystem, including patient apps like myAir and provider platforms like AirView for remote monitoring.
Revenue model
ResMed generates revenue through multiple streams within its integrated healthcare ecosystem. The primary revenue model is product sales of medical devices, including CPAP machines, masks, and accessories, sold to sleep clinics, home healthcare dealers, and hospitals through both direct sales forces and distributor networks globally. The company benefits from a recurring revenue model through mask and accessory replacements, as patients typically need new masks every 3-6 months and other supplies regularly. This creates a steady revenue stream from the installed base of patients. Additionally, the Software as a Service segment generates subscription-based revenue from healthcare providers using their management platforms. Several factors influence ResMed's margins positively: manufacturing scale efficiencies as production volumes increase, favorable product mix shifts toward higher-margin devices like the AirSense 11 platform, and operational leverage in their software business. The company's gross margins have improved significantly, reaching 59.2% in recent quarters compared to historical levels in the low-to-mid 50s. Margin pressures can arise from component cost inflation, freight and logistics expenses, foreign exchange fluctuations given their global operations, and competitive pricing pressure. However, ResMed has demonstrated pricing power due to the clinical efficacy of their integrated digital health solutions and the critical nature of sleep apnea treatment. The company's strong market position, particularly following competitor Philips' device recall issues, has provided additional pricing flexibility and market share opportunities. The business model benefits from network effects, as more patient data improves their AI-driven insights and clinical outcomes, making their platform more valuable to both patients and healthcare providers.
Competitive moat
ResMed possesses a moderately strong moat built on several interconnected advantages. The company's primary competitive advantage stems from its integrated digital health ecosystem, combining cloud-connected devices with 19 billion nights of medical data and AI-driven patient management tools. This creates significant switching costs for both patients and healthcare providers who become embedded in ResMed's platform. The company benefits from regulatory barriers as medical devices require extensive FDA and international regulatory approvals, creating time and cost barriers for new entrants. ResMed's established relationships with sleep clinics, home medical equipment providers, and healthcare systems provide distribution advantages that are difficult to replicate quickly. Network effects strengthen the moat as more patients using ResMed devices generate better data insights, improving clinical outcomes and making the platform more valuable. The company's substantial R&D investment (6-7% of revenue) and manufacturing scale provide cost advantages over smaller competitors. However, the moat faces several challenges. Large technology companies like Apple and Samsung are incorporating sleep apnea detection into consumer wearables, potentially disrupting the traditional diagnosis pathway. The emergence of GLP-1 weight loss medications presents both opportunity and risk, as these drugs may reduce sleep apnea severity in some patients while potentially increasing treatment engagement in others. Competition from established medical device companies remains significant, and ResMed's pricing power, while currently strong due to Philips' recall issues, may face pressure as competitors recover. The company's software business faces competition from specialized healthcare IT providers, though ResMed's integrated approach provides differentiation. Overall, ResMed's moat is stronger in sleep apnea devices than in software, with sustainability dependent on continued innovation and successful navigation of digital health disruption.
Risks & safety
ResMed demonstrates a **strong margin of safety** with robust financial fundamentals and conservative capital structure. **Liquidity and Solvency:** - Cash position of $933 million with strong free cash flow generation ($555 million in Q3 2025) - Current ratio of 3.41x indicating strong short-term liquidity - Debt-to-equity ratio of only 0.15x, representing minimal financial leverage - No significant solvency concerns with strong balance sheet **Valuation Metrics:** - Trading at 22.5x P/E ratio, reasonable for a growing healthcare technology company - EV/EBITDA of 17.1x, reflecting premium but justified by growth and market position - Price-to-book ratio of 5.9x, elevated but supported by strong ROE of 6.6% - Graham number suggests potential undervaluation relative to earnings and book value **Other Considerations:** - Consistent profitability with 28% net income margins - Strong return on equity and efficient capital allocation - Diversified geographic revenue base reducing concentration risk - Recurring revenue streams provide earnings stability
Recent development
Over the past few years, ResMed has executed a comprehensive transformation from a traditional medical device company to a digital health platform. The company launched its "ResMed 2030" strategy with three key pillars: growing the core sleep and respiratory health business, expanding into adjacent therapeutic areas, and leveraging digital health leadership. Key product developments include the rollout of the AirSense 11 platform, which now represents over 50% of U.S. device sales and offers enhanced cloud connectivity and patient engagement features. The company introduced innovative mask technologies like the AirTouch N30i with fabric-wrapped frames and the AirFit F40 with AdaptiSeal technology. ResMed has significantly expanded its diagnostic capabilities through the launch of NightOwl, a fingertip-sized home sleep apnea test, and the acquisition of sleep diagnostic software companies. The company is also developing AI-driven solutions, including a generative AI sleep concierge called "Dawn." The company has been actively tracking and adapting to macro trends, particularly the potential impact of GLP-1 weight loss medications on sleep apnea treatment. Early data suggests these medications may increase patient motivation for CPAP therapy, with 10% higher propensity for patients on GLP-1 drugs to start treatment. ResMed has also expanded its software portfolio through acquisitions and organic development, strengthening its position in out-of-hospital care management. The company continues to invest heavily in manufacturing capacity, including a new facility in Calabasas, California, while maintaining R&D spending at 6-7% of revenue to support continued innovation.
RMD company profile · for informational purposes only — not investment advice.
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