ResMed Reports Strong Q2 2026 Earnings with 11% Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6h ago
0mins
Source: seekingalpha
- Significant Revenue Growth: ResMed reported total revenue of $1.42 billion for Q2, reflecting an 11% year-over-year increase and 9% growth in constant currency, showcasing strong performance across its device and mask portfolio, thereby reinforcing its leadership in the medical device market.
- Margin Improvement: The company's gross margin reached 32.3% in the December quarter, up 110 basis points year-over-year, with operating profit increasing by 19%, which not only reflects successful cost control but also lays a solid foundation for future profitability.
- Innovative Product Launch: ResMed introduced the F30i Comfort and F30i Clear mask ranges, described as the first compact full-face fabric masks, expected to attract more customers and enhance market share, further driving the company's technological leadership in respiratory therapy.
- Increased Shareholder Returns: In Q2, ResMed returned $263 million to shareholders, including a quarterly dividend of $0.60 per share and $175 million in share repurchases, demonstrating the company's commitment to creating value for shareholders while sustaining growth.
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Analyst Views on RMD
Wall Street analysts forecast RMD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RMD is 294.00 USD with a low forecast of 260.00 USD and a high forecast of 345.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
6 Buy
5 Hold
0 Sell
Moderate Buy
Current: 257.720
Low
260.00
Averages
294.00
High
345.00
Current: 257.720
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.
ResMed Q2 Earnings Announcement Scheduled
- Earnings Release Date: ResMed (RMD) is set to announce its Q2 earnings on January 29th after market close, with a consensus EPS estimate of $2.72, reflecting an 11.9% year-over-year increase, which could further solidify its market position in the medical device sector.
- Revenue Expectations: The consensus revenue estimate stands at $1.4 billion, representing a 9.4% year-over-year growth, and achieving this would demonstrate the company's sustained growth potential in the medical device market, especially amid increasing economic uncertainty.
- Historical Performance: Over the past two years, ResMed has beaten EPS estimates 100% of the time and revenue estimates 75% of the time, which enhances investor confidence and may attract more institutional interest in the stock.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen 9 upward revisions and 3 downward revisions, while revenue estimates have experienced 6 upward and 10 downward revisions, indicating market divergence regarding ResMed's future performance, which could impact short-term stock price volatility.
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ResMed Reports Strong Q2 2026 Earnings with 11% Revenue Growth
- Significant Revenue Growth: ResMed reported total revenue of $1.42 billion for Q2, reflecting an 11% year-over-year increase and 9% growth in constant currency, showcasing strong performance across its device and mask portfolio, thereby reinforcing its leadership in the medical device market.
- Margin Improvement: The company's gross margin reached 32.3% in the December quarter, up 110 basis points year-over-year, with operating profit increasing by 19%, which not only reflects successful cost control but also lays a solid foundation for future profitability.
- Innovative Product Launch: ResMed introduced the F30i Comfort and F30i Clear mask ranges, described as the first compact full-face fabric masks, expected to attract more customers and enhance market share, further driving the company's technological leadership in respiratory therapy.
- Increased Shareholder Returns: In Q2, ResMed returned $263 million to shareholders, including a quarterly dividend of $0.60 per share and $175 million in share repurchases, demonstrating the company's commitment to creating value for shareholders while sustaining growth.
Continue Reading