ResMed stock declines amid market weakness despite strong growth potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 14 2026
0mins
Source: NASDAQ.COM
ResMed Inc's stock fell by 3.00% as it hit a 20-day low, reflecting broader market trends with the Nasdaq-100 down 1.13% and the S&P 500 down 0.97%.
Despite the decline, ResMed reported an 11% year-over-year revenue growth in Q2 of fiscal 2026 and an 18% increase in operating income, indicating strong demand in the respiratory care device market. The company is also investing in next-generation masks and digital health software, which are expected to drive future growth. However, the stock's current forward-looking P/E ratio of 22 is below its five-year average of 29, making it appealing for value investors.
The implications of these developments suggest that while the stock is currently under pressure, the underlying fundamentals remain strong, and the company's strategic investments could position it well for future growth.
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Analyst Views on RMD
Wall Street analysts forecast RMD stock price to rise
11 Analyst Rating
6 Buy
5 Hold
0 Sell
Moderate Buy
Current: 203.420
Low
260.00
Averages
294.00
High
345.00
Current: 203.420
Low
260.00
Averages
294.00
High
345.00
About RMD
ResMed Inc. is a holding company. The Company, through its subsidiaries, in the development, manufacturing, distribution and marketing of medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders, including sleep disordered breathing (SDB), chronic obstructive pulmonary disease, neuromuscular disease and other chronic diseases. Its segments include Sleep and Breathing Health segment and the Residential Care Software segment. It also operates a Software as a Service (SaaS) business in the United States and Germany that includes out-of-hospital software platforms designed to support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. Its products and solutions are designed to improve patients' quality of life and reduce the impact of chronic disease. Its cloud-based digital health software applications, along with its devices, are designed to provide connected care.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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