ResMed (NYSE:RMD) Issues Earnings Results

Posted by Geri Gentry on Oct 31st, 2026

ResMed (NYSE:RMD – Get Free Report) announced its earnings results on Thursday. The medical equipment provider reported $2.91 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.67 by $0.24, FiscalAI reports. ResMed had a net margin of 27.79% and a return on equity of 25.90%. The company had revenue of $1.41 billion for the quarter, compared to analysts’ expectations of $1.39 billion. During the same quarter in the previous year, the company posted $2.55 EPS. The firm’s quarterly revenue was up 5.9% on a year-over-year basis.

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

Strong Q1 performance: Revenue rose 7% on a core constant-currency basis to approximately $1.4 billion, while non-GAAP EPS increased 14% to $2.91, supported by demand across sleep devices, masks, and residential-care software.
Gross margin expanded 50 basis points to 62.5% as procurement, manufacturing, and distribution productivity gains more than offset foreign-exchange and inflationary pressures. Management maintained its expectation for low-double-digit-basis-point gross-margin expansion for fiscal 2027.
ResMed reiterated fiscal 2027 guidance for 5%-7% core constant-currency revenue growth and $12-$12.25 in non-GAAP EPS, but said the most likely outcome remains the midpoint. Growth could be helped by pricing and marketing initiatives, while France’s fleet refresh will create a back-half headwind and inflation remains a risk.
New ecosystem initiatives are showing encouraging early traction, including fabric masks that have delivered a reported 6% adherence improvement, SmartComfort’s 4.3% increase in 30-day compliance, and more than 2.1 million inquiries to the Dawn generative-AI sleep coach.
The company returned more than $1 billion to shareholders in Q1, including $936 million in share repurchases, and expects to return at least $1.85 billion during fiscal 2027. ResMed also highlighted continued investment in U.S. and global manufacturing capacity, though ramp-up costs will weigh on margins in coming quarters.

ResMed Trading Down 8.7%

Shares of NYSE RMD traded down $22.07 during trading on Friday, hitting $230.76. 3,445,161 shares of the company were exchanged, compared to its average volume of 1,128,447. ResMed has a 12-month low of $180.26 and a 12-month high of $277.67. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.42 and a current ratio of 3.10. The company has a fifty day moving average price of $231.87 and a 200-day moving average price of $225.43. The firm has a market capitalization of $32.45 billion, a PE ratio of 21.02, a P/E/G ratio of 1.55 and a beta of 0.75.

ResMed Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 17th. Shareholders of record on Thursday, November 12th will be paid a $0.66 dividend. The ex-dividend date of this dividend is Thursday, November 12th. This represents a $2.64 dividend on an annualized basis and a dividend yield of 1.1%. ResMed’s dividend payout ratio (DPR) is 24.04%.

Wall Street Analysts Forecast Growth

RMD has been the subject of a number of recent research reports. Citigroup increased their target price on shares of ResMed from $240.00 to $270.00 and gave the company a “neutral” rating in a research report on Friday. Robert W. Baird set a $213.00 price target on shares of ResMed in a research report on Friday, August 7th. Royal Bank Of Canada upped their price objective on shares of ResMed from $262.00 to $288.00 and gave the company an “outperform” rating in a research note on Friday. Piper Sandler cut their price objective on shares of ResMed from $233.00 to $225.00 and set a “neutral” rating for the company in a report on Friday, August 7th. Finally, Weiss Ratings raised shares of ResMed from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, October 8th. Seven investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $253.69.

Read Our Latest Analysis on ResMed

Insider Activity

In related news, General Counsel Michael Rider sold 400 shares of the company’s stock in a transaction dated Friday, October 23rd. The shares were sold at an average price of $255.00, for a total value of $102,000.00. Following the completion of the sale, the general counsel owned 12,318 shares of the company’s stock, valued at approximately $3,141,090. This represents a 3.15% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael Farrell sold 4,991 shares of the firm’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $205.69, for a total transaction of $1,026,598.79. Following the sale, the chief executive officer owned 466,256 shares of the company’s stock, valued at approximately $95,904,196.64. The trade was a 1.06% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 24,343 shares of company stock valued at $5,396,098. 0.58% of the stock is currently owned by insiders.

Key Stories Impacting ResMed

Here are the key news stories impacting ResMed this week:

Positive Sentiment: Quarterly results exceeded expectations. ResMed reported fiscal Q1 2027 adjusted earnings of $2.91 per share versus the $2.67 consensus estimate, while revenue rose 5.9% year over year to $1.41 billion, ahead of the $1.39 billion forecast. ResMed fiscal first-quarter results
Positive Sentiment: Profitability and demand trends improved. Sustained demand for sleep devices, productivity gains and gross-margin expansion supported the earnings beat. EPS increased from $2.55 in the year-ago quarter, and ResMed reported a 26.94% net margin. ResMed earnings and margin growth
Positive Sentiment: Analysts raised price targets. RBC increased its target from $262 to $288 and assigned an “outperform” rating. KeyCorp raised its target from $267 to $277 with an “overweight” rating, while Wells Fargo lifted its target from $215 to $250 and maintained “equal weight.” Citigroup raised its target from $240 to $270 but retained a “neutral” rating. Analyst target changes
Neutral Sentiment: ResMed declared a quarterly dividend of $0.66 per share, or $2.64 annualized, representing an approximately 1.1% yield. The dividend supports shareholder returns but is unlikely to be the primary near-term stock catalyst.
Negative Sentiment: Full-year guidance was unchanged. The lack of an outlook increase may have disappointed investors who expected the earnings beat and improving margins to result in raised expectations. The neutral ratings from Citigroup and Wells Fargo may also limit the impact of the higher price targets. ResMed maintains prior guidance

ResMed Company Profile

(Get Free Report)

ResMed Inc is a medical equipment and software company that develops solutions for sleep-disordered breathing, respiratory conditions and other chronic diseases. The company is best known for its positive airway pressure (PAP) devices used to treat obstructive sleep apnea, along with masks, accessories and related patient support services.

ResMed also provides cloud-connected health technology, including remote-monitoring platforms and software used by healthcare providers, medical equipment suppliers and care organizations.