ResMed (NYSE:RMD) Announces Quarterly Earnings Results, Beats Estimates By $0.06 EPS

ResMed (NYSE:RMD) posted its earnings results on Thursday. The medical equipment provider reported $2.95 earnings per share for the quarter, beating the consensus estimate of $2.89 by $0.06, FiscalAI reports. The company had revenue of $1.46 billion during the quarter, compared to analysts’ expectations of $1.46 billion. ResMed had a net margin of 26.94% and a return on equity of 25.86%. ResMed’s quarterly revenue was up 8.6% on a year-over-year basis. During the same period last year, the company posted $2.55 earnings per share.

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

• Q4 revenue rose 9% year over year, or 8% in constant currency, while non-GAAP EPS increased 16% to $2.95; full-year revenue grew 10%, EPS 17%, and free cash flow reached $1.6 billion.
• ResMed expects FY2027 reported revenue of $5.75 billion-$5.85 billion and non-GAAP EPS of $12.00-$12.25, with underlying core EPS growth of 12%-14% after excluding MatrixCare and Noctrix effects.
• Management sees continued demand tailwinds from rising sleep-health awareness, wearable partnerships, GLP-1 use, new AirSense and AirCurve platforms, fabric masks, and AI-enabled patient support; patients using both PAP and GLP-1 therapies showed better starts and resupply rates.
• The company plans to return more than $1.85 billion to shareholders in FY2027, including $1.5 billion in share repurchases and a 10% dividend increase to $0.66 per share, while continuing to invest in manufacturing capacity and innovation.
• ResMed will suspend new Astral ventilator sales throughout FY2027 to address a global field safety action, creating an estimated $75 million revenue headwind and approximately $0.15 EPS impact; Q4 included a $42 million provision for the recall.

ResMed Price Performance

Shares of NYSE:RMD traded down $11.39 on Friday, reaching $211.84. The company’s stock had a trading volume of 3,810,342 shares, compared to its average volume of 1,315,907. The company has a 50-day simple moving average of $200.49 and a 200 day simple moving average of $222.23. ResMed has a 52-week low of $180.26 and a 52-week high of $293.81. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.33 and a current ratio of 3.01. The company has a market cap of $30.73 billion, a P/E ratio of 18.97, a PEG ratio of 1.29 and a beta of 0.76.

ResMed Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 24th. Shareholders of record on Thursday, August 20th will be paid a $0.66 dividend. This represents a $2.64 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Thursday, August 20th. This is an increase from ResMed’s previous quarterly dividend of $0.60. ResMed’s dividend payout ratio is 23.14%.

Insider Activity

In other ResMed news, Director Peter C. Farrell sold 8,000 shares of the business’s stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $225.00, for a total transaction of $1,800,000.00. Following the sale, the director directly owned 52,773 shares of the company’s stock, valued at $11,873,925. The trade was a 13.16% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael J. Farrell sold 4,991 shares of the company’s stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $218.55, for a total value of $1,090,783.05. Following the sale, the chief executive officer owned 466,223 shares in the company, valued at approximately $101,893,036.65. This trade represents a 1.06% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 17,982 shares of company stock worth $3,858,837 over the last 90 days. Corporate insiders own 0.65% of the company’s stock.

Institutional Trading of ResMed

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. WFA of San Diego LLC purchased a new stake in shares of ResMed in the second quarter valued at $26,000. Imprint Wealth LLC bought a new stake in shares of ResMed in the 3rd quarter worth about $26,000. Sunbelt Securities Inc. purchased a new position in shares of ResMed during the 3rd quarter worth about $31,000. DV Equities LLC bought a new position in ResMed during the 4th quarter valued at about $49,000. Finally, Kelleher Financial Advisors bought a new position in ResMed during the 3rd quarter valued at about $66,000. Hedge funds and other institutional investors own 54.98% of the company’s stock.

Wall Street Analysts Forecast Growth

RMD has been the subject of several research reports. Royal Bank Of Canada increased their price objective on shares of ResMed from $234.00 to $244.00 and gave the company a “sector perform” rating in a report on Friday. Robert W. Baird set a $213.00 target price on ResMed in a report on Friday. UBS Group reiterated a “buy” rating and issued a $300.00 target price on shares of ResMed in a research report on Tuesday, July 21st. Morgan Stanley reissued an “equal weight” rating and set a $230.00 price target (down from $286.00) on shares of ResMed in a research note on Wednesday, June 17th. Finally, KeyCorp cut their price target on ResMed from $260.00 to $255.00 and set an “overweight” rating for the company in a report on Friday. Seven analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $240.17.

More ResMed News

Here are the key news stories impacting ResMed this week:

• Positive Sentiment: ResMed reported fiscal Q4 earnings of $2.95 per share, beating the approximately $2.89–$2.90 consensus and rising from $2.55 a year earlier. Revenue increased 8.6% year over year to $1.46 billion, in line with estimates. ResMed Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: The company raised its quarterly dividend from $0.60 to $0.66 per share, a 10% increase. The dividend is payable September 24 to shareholders of record on August 20, supporting ResMed’s income-investment appeal. ResMed Posts Strong Q4 Earnings and Lifts Dividend
• Positive Sentiment: Royal Bank of Canada raised its price target to $244 from $234 while retaining a “sector perform” rating, indicating potential upside from recent trading levels. Benzinga analyst action
• Neutral Sentiment: Analyst sentiment remains mixed. Piper Sandler lowered its target to $225 and Wells Fargo cut its target to $215; both maintain neutral or equal-weight ratings. The overall analyst consensus remains “Hold,” despite a consensus target near $246. ResMed Analyst Ratings
• Negative Sentiment: The primary pressure on RMD is forward guidance: fiscal 2027 revenue expectations reportedly trail consensus, raising concerns that growth may moderate even after the quarterly earnings beat. RMD Stock Down Despite Q4 Earnings Beat
• Negative Sentiment: Director Peter Farrell sold 8,000 shares worth $1.8 million. The sale was made under a pre-arranged Rule 10b5-1 plan, reducing its negative signaling value, but it may add modest short-term selling pressure. SEC Insider Trading Filing

ResMed Company Profile

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.