Baader Bank Aktiengesellschaft decreased its stake in shares of ResMed Inc. (NYSE:RMD – Free Report) by 61.7% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 4,768 shares of the medical equipment provider’s stock after selling 7,696 shares during the quarter. Baader Bank Aktiengesellschaft’s holdings in ResMed were worth $1,045,000 as of its most recent SEC filing.
Several other large investors also recently added to or reduced their stakes in RMD. Jones Financial Companies Lllp raised its stake in shares of ResMed by 52.6% during the first quarter. Jones Financial Companies Lllp now owns 2,882 shares of the medical equipment provider’s stock valued at $645,000 after acquiring an additional 994 shares in the last quarter. Arrowstreet Capital Limited Partnership bought a new position in ResMed in the second quarter worth approximately $389,000. Brown Advisory Inc. increased its holdings in ResMed by 17.8% during the 2nd quarter. Brown Advisory Inc. now owns 1,586 shares of the medical equipment provider’s stock worth $409,000 after purchasing an additional 240 shares during the period. Cresset Asset Management LLC purchased a new position in ResMed during the 2nd quarter worth $206,000. Finally, Alliancebernstein L.P. raised its position in ResMed by 24.2% during the 2nd quarter. Alliancebernstein L.P. now owns 286,078 shares of the medical equipment provider’s stock valued at $73,808,000 after purchasing an additional 55,790 shares in the last quarter. 54.98% of the stock is owned by hedge funds and other institutional investors.
ResMed Trading Down 0.2% NYSE RMD opened at $198.55 on Tuesday. The company has a quick ratio of 2.33, a current ratio of 3.01 and a debt-to-equity ratio of 0.06. The firm has a market cap of $28.80 billion, a PE ratio of 19.15, a price-to-earnings-growth ratio of 1.19 and a beta of 0.78. The company has a 50 day moving average price of $199.39 and a 200 day moving average price of $226.21. ResMed Inc. has a 52 week low of $180.26 and a 52 week high of $293.81.
ResMed (NYSE:RMD – Get Free Report) last announced its earnings results on Thursday, April 30th. The medical equipment provider reported $2.86 earnings per share for the quarter, beating the consensus estimate of $2.79 by $0.07. ResMed had a net margin of 27.44% and a return on equity of 25.35%. The company had revenue of $1.43 billion during the quarter, compared to the consensus estimate of $1.42 billion. During the same period last year, the firm earned $2.37 earnings per share. ResMed’s revenue was up 10.8% compared to the same quarter last year. As a group, sell-side analysts forecast that ResMed Inc. will post 11.13 EPS for the current fiscal year.
ResMed Dividend Announcement The firm also recently disclosed a quarterly dividend, which was paid on Thursday, June 18th. Stockholders of record on Thursday, May 14th were issued a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a dividend yield of 1.2%. The ex-dividend date was Thursday, May 14th. ResMed’s dividend payout ratio is currently 23.14%.
Analyst Upgrades and Downgrades Several brokerages have weighed in on RMD. Mizuho lowered their target price on ResMed from $235.00 to $220.00 and set an “outperform” rating for the company in a report on Wednesday, July 15th. Evercore set a $255.00 price target on ResMed and gave the company an “outperform” rating in a research note on Monday, April 13th. The Goldman Sachs Group restated a “buy” rating on shares of ResMed in a report on Wednesday, July 1st. Royal Bank Of Canada lowered shares of ResMed from an “outperform” rating to a “sector perform” rating and set a $234.00 price objective for the company. in a research note on Thursday. Finally, Morgan Stanley reiterated an “equal weight” rating and set a $230.00 target price (down from $286.00) on shares of ResMed in a report on Wednesday, June 17th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $250.00.
Get Our Latest Analysis on RMD
Insider Buying and Selling at ResMed In related news, CEO Michael J. Farrell sold 4,991 shares of the business’s stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $218.55, for a total transaction of $1,090,783.05. Following the transaction, the chief executive officer directly owned 466,223 shares in the company, valued at $101,893,036.65. The trade was a 1.06% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 14,973 shares of company stock valued at $3,096,067. 0.65% of the stock is owned by company insiders.
ResMed Company Profile (Free Report)
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.
Further Reading Five stocks we like better than ResMed The Ugliest Stocks in the Market Just Got a Very Expensive Vote of Confidence Is Domino’s Stock Serving Up a Buying Opportunity? A $1T Black Hole: SpaceX Eyes Pentagon AI to Break Free Why Gold Miners Could Be the Market’s Biggest Comeback Story
Receive News & Ratings for ResMed Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for ResMed and related companies with MarketBeat.com's FREE daily email newsletter.
« PREVIOUS HEADLINEBank of New York Mellon Corp Trims Position in Chewy $CHWY
NEXT HEADLINE »Baader Bank Aktiengesellschaft Buys 4,529 Shares of Citigroup Inc. $C
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
We know earnings results are vital, but how a company performs compared to bottom line expectations can be even more important when it comes to stock prices, especially in the near-term. This means that investors might want to take advantage of these earnings surprises.
Hunting for 'earnings whispers' or companies poised to beat their quarterly earnings estimates is a somewhat common practice. But that doesn't make it easy. One way that has been proven to work is by using the Zacks Earnings ESP tool.
The Zacks Earnings ESP, ExplainedThe Zacks Expected Surprise Prediction, or ESP, works by locking in on the most up-to-date analyst earnings revisions because they can be more accurate than estimates from weeks or even months before the actual release date. The thinking is pretty straightforward: analysts who provide earnings estimates closer to the report are likely to have more information.
With this in mind, the Expected Surprise Prediction compares the Most Accurate Estimate (being the most recent) against the overall Zacks Consensus Estimate. The percentage difference provides the ESP figure. The system also utilizes our core Zacks Rank to provide a stronger system for identifying stocks that might beat their next quarterly earnings estimate and possibly see the stock price climb.
When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.
Most stocks, about 60%, fall into the #3 (Hold) category, and they are expected to perform in-line with the broader market. Stocks with a #2 (Buy) and #1 (Strong Buy) rating, or the top 15% and top 5% of stocks, respectively, should outperform the market, with Strong Buy stocks outperforming more than any other rank.
Should You Consider Cardinal Health?The final step today is to look at a stock that meets our ESP qualifications. Cardinal Health (CAH - Free Report) earns a #2 (Buy) 29 days from its next quarterly earnings release on August 11, 2026, and its Most Accurate Estimate comes in at $2.45 a share.
CAH has an Earnings ESP figure of +1.24%, which, as explained above, is calculated by taking the percentage difference between the $2.45 Most Accurate Estimate and the Zacks Consensus Estimate of $2.42. Cardinal Health is one of a large database of stocks with positive ESPs. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
CAH is just one of a large group of Medical stocks with a positive ESP figure. ResMed (RMD - Free Report) is another qualifying stock you may want to consider.
Slated to report earnings on August 6, 2026, ResMed holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $2.95 a share 24 days from its next quarterly update.
ResMed's Earnings ESP figure currently stands at +1.58% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $2.90.
CAH and RMD's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Key Takeaways Resmed will sell MatrixCare to Frazier Healthcare Partners, with closing expected in fiscal Q1 2027.The divestiture enables Resmed to focus its investments on sleep, breathing and connected home-based care.Brightree and MEDIFOX DAN remain central to Resmed's connected care strategy and are not part of the deal. Resmed (RMD - Free Report) has entered into a definitive agreement to sell its MatrixCare business to private equity firm Frazier Healthcare Partners. The divestiture aligns with the company's long-term strategy to sharpen its focus on higher-growth opportunities across sleep health, breathing health and connected home-based care. The transaction is expected to close in the first quarter of fiscal 2027, subject to regulatory approvals and customary closing conditions.
From an investor's perspective, the divestiture underscores Resmed's disciplined capital allocation strategy and reinforces its commitment to businesses with stronger long-term growth potential and higher scalability. By streamlining its portfolio and reallocating resources toward innovation in its core connected care ecosystem, the company is positioning itself to strengthen its competitive edge and drive sustainable value creation, while enabling MatrixCare to pursue growth under an owner dedicated to the long-term care software market.
Likely Trend of RMD Stock Following the NewsShares of RMD have traded flat since the announcement on July 7. In the year-to-date period, shares of the company have lost 13.5% compared with the industry’s 21.8% decline. The S&P 500 increased 9.5% in the same time frame.
The divestiture is likely to strengthen Resmed's long-term growth profile by enabling the company to concentrate investments on its core sleep and breathing care franchises, where it enjoys strong market leadership and significant innovation opportunities. The transaction should also enhance capital allocation flexibility, allowing Resmed to accelerate product development, expand its AI-powered digital health offerings and scale its connected home-care ecosystem.
By exiting a non-core software business, the company can simplify operations, improve strategic focus and better position itself to capitalize on the growing global demand for home-based healthcare and sleep therapy solutions.
RMD currently has a market capitalization of $29.86 billion.
Image Source: Zacks Investment Research
More on the NewsThe transaction covers the entire MatrixCare business, including Healthcare First, Citus and its home health and hospice software solutions, which together serve more than 15,000 providers across skilled nursing, senior living, life plan communities, home health and hospice settings. However, the deal does not include Resmed's other healthcare software businesses, Brightree in the United States and MEDIFOX DAN in Germany, both of which remain integral to the company's connected care strategy.
Management stated that MatrixCare will continue operating as part of Resmed until the transaction closes, with no disruption to customer service or support. Resmed also noted that it will provide additional details regarding the transaction's financial impact in its fiscal fourth-quarter 2026 regulatory filings and has furnished a Form 8-K with the SEC outlining the agreement.
For Frazier Healthcare Partners, the acquisition represents a strategic investment in the growing post-acute care technology market. The private equity firm, which focuses exclusively on healthcare investments, plans to invest aggressively in product innovation to strengthen MatrixCare's capabilities and support evolving customer needs across long-term and post-acute care settings.
Resmed believes the new ownership structure will allow MatrixCare to pursue its long-term growth ambitions with a dedicated strategic focus, while enabling it to devote greater attention and resources to advancing AI-powered digital health solutions, cloud-connected medical devices and other technologies aimed at improving sleep, breathing and home-based healthcare outcomes.
Favorable Industry Prospect for RMDGoing by the data provided by Grand View Research, the global home healthcare market size was valued at $485.3 billion in 2025 and is projected to grow from $504.8 billion in 2026 to $1015.8 billion by 2033, at a CAGR of 10.5% from 2026 to 2033.
The market is driven by rising demand for cost-effective alternatives to curb rising healthcare costs and the growing penetration of the virtual and remote care industry.
A Recent Development by RMDRecently, Resmed completed the acquisition of Noctrix Health to broaden its clinical sleep health portfolio with the addition of Nidra Tonic Motor Activation Therapy, an FDA De Novo-classified, non-invasive treatment for moderate-to-severe Restless Legs Syndrome RLS. The deal expands Resmed's presence into one of the most prevalent sleep disorders, complementing its core sleep therapy business while enhancing its ability to offer innovative, drug-free treatment options. The acquisition is also expected to accelerate patient access to the therapy by leveraging Resmed's global commercial and distribution capabilities.
Some better-ranked stocks from the broader medical space are Veracyte (VCYT - Free Report) , West Pharmaceutical (WST - Free Report) and Pacific Biosciences of California (PACB - Free Report) .
Veracyte, currently sporting a Zacks Rank #1 (Strong Buy), has an estimated earnings growth rate of 5.1% for 2026. VCYT’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 45.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Veracyte’s shares have gained 33.3% against the industry’s 14.2% decline in the year-to-date period.
West Pharmaceutical, currently carrying a Zacks Rank #2 (Buy), has an estimated long-term earnings growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.
West Pharmaceutical’s shares have gained 28.5% against the industry’s 1.2% decline in the year-to-date period.
Pacific Biosciences of California, currently carrying a Zacks Rank #2, has an estimated earnings growth rate of 22.6% for 2026. PACB’s earnings beat estimates in each of the trailing four quarters, the average surprise being 29.8%.
Pacific Biosciences’ shares have lost 19.8% compared with the industry’s 14.2% decline in the year-to-date period.
The move reflects ResMed’s 2030 strategy by focusing on high-growth, scalable opportunities in sleep health, breathing health and connected home-based healthcare.
• ResMed stock is showing downward pressure. What should traders watch with RMD?
The divestiture also strengthens ResMed’s ability to reallocate capital and resources toward innovation, operational scale, and long-term value creation across its connected, home-based care ecosystem.
MatrixCare Business and Financial ImpactMatrixCare provides software solutions to more than 15,000 providers and supports skilled nursing; senior living and long-term care; life planning communities and home health and hospice care.
The transaction is expected to close during the first quarter of ResMed’s fiscal year 2027.
Based on preliminary financial results for the full fiscal year 2026, the MatrixCare business represented approximately $220 million of revenue and approximately $55 million of adjusted operating profit.
In addition to the MatrixCare business-related financial considerations, ResMed’s recently completed Noctrix acquisition is expected to contribute approximately $30 million of revenue and reduce adjusted earnings by approximately 20 cents per share in fiscal year 2027.
ResMed continues to expect its Residential Care Software segment to accelerate to high single-digit percentage year-over-year revenue growth, along with operating leverage, in fiscal year 2027.
William Blair Sees Long-Term Benefit Despite Near-Term EPS DilutionWilliam Blair on Thursday wrote that, “even after buybacks, the deal will likely still be somewhat dilutive to EPS, but the sale of MatrixCare will divest an underperforming asset that created investor concerns around the durability of growth.”
Analyst Brandon Vazquez’s estimate suggests MatrixCare contributed about 29 cents to EPS.
While management has not disclosed the deal’s EPS impact, it plans to use the proceeds for an accelerated share repurchase program to return capital to shareholders.
The transaction’s effect on fiscal 2027 EPS remains uncertain, and we currently forecast 10% EPS growth for the year.
“We suspect investors will still want to see improving results from here, but we think this is a solid first step in improving the results in a key category for ResMed,” wrote Vazquez.
William Blair maintains an Outperform rating.
Noctrix Acquisition Supports ResMed’s Growth StrategyIn June, ResMed acquired Noctrix Health for $340 million.
Noctrix, an Angelini Ventures portfolio company, focuses on sleep health and respiratory care.
Angelini Ventures invested in Noctrix Health in 2024 as part of the company’s $40 million Series C financing round.
RMD Stock Price Activity: ResMed shares were up 0.94% at $207.81 at the time of publication on Thursday, according to Benzinga Pro data.
Photo by B..Robinson via Shutterstock
Market News and Data brought to you by Benzinga APIs
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: ResMed (RMD - Free Report) Resmed Inc. designs, manufactures and distributes devices, masks and related accessories used to treat sleep-disordered breathing (SDB) and other respiratory disorders. Sleep-disordered breathing includes obstructive sleep apnea and related conditions that occur during sleep. The company sells products across the United States, Canada and Latin America, and across combined Europe, Asia and other markets.
RMD is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Medical stock. RMD has a Momentum Style Score of B, and shares are up 11.6% over the past four weeks.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.01 to $11.11 per share. RMD boasts an average earnings surprise of +3.3%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, RMD should be on investors' short list.
SEATTLE--(BUSINESS WIRE)--Frazier Healthcare Partners ("Frazier"), a private equity firm focused exclusively on the healthcare industry, today announced it has entered into a definitive agreement to acquire MatrixCare (the “Company”) from Resmed (NYSE & ASX: RMD).MatrixCare is a leading provider of cloud-based EHR software purpose-built for out-of-hospital care settings, including skilled nursing, senior living, home health, hospice, and life plan communities. A multi-year winner of the Best.
SAN DIEGO, July 07, 2026 (GLOBE NEWSWIRE) -- Resmed (NYSE: RMD, ASX: RMD), the leading health technology company focused on sleep, breathing and care delivered in the home, today announced it has entered into a definitive agreement to sell its MatrixCare business to Frazier Healthcare Partners, a private equity firm focused exclusively on health care.
This move reflects Resmed’s 2030 strategy by focusing on high-growth, scalable opportunities in sleep health, breathing health and connected home-based healthcare. The divestiture also strengthens Resmed’s ability to reallocate capital and resources toward innovation, operational scale and long-term value creation across its connected, home-based care ecosystem.
MatrixCare provides software solutions to more than 15,000 providers and supports skilled nursing, senior living and long-term care, life planning communities and home health and hospice care.
“Today’s announcement is about our disciplined approach to portfolio management and our commitment to driving long-term growth,” said Mick Farrell, Chairman and CEO of Resmed. “By focusing on areas where we see the greatest opportunity for sleep health innovation and impact, we are strengthening our ability to deliver life-changing health technologies, improve patient outcomes and create value for our stakeholders. We are confident MatrixCare and its affiliated businesses will continue to support team members and drive growth under new ownership with a dedicated focus on the long-term care market.”
“Frazier has spent several years evaluating the post-acute care technology sector and believes MatrixCare has established itself as a leading platform serving skilled nursing, senior living and home health and hospice providers,” said Ryan Lucero, General Partner at Frazier Healthcare Partners. “We are thrilled to partner with the MatrixCare team and plan to invest aggressively in product innovation to help providers deliver better outcomes as the post-acute care landscape continues to evolve.”
The transaction includes MatrixCare and related software offerings historically sold under the MatrixCare brand, including Healthcare First, Citus and home health and hospice solutions (collectively defined as the “MatrixCare business”). It excludes Resmed’s other software businesses, Brightree in the U.S. and MEDIFOX DAN in Germany.
The transaction is expected to close during the first quarter of Resmed’s fiscal year 2027, subject to required regulatory approvals and customary closing conditions. Until closing, MatrixCare will continue to operate as part of Resmed, with no changes to customer service or support.
Resmed is providing additional information regarding this transaction through a Form 8-K furnished with the U.S. Securities and Exchange Commission (SEC). Supplementary materials related to this press release are available on Resmed’s Investor Relations website at investor.resmed.com.
Resmed will provide further updates regarding the financial impact of the transaction in its regulatory filings for the fourth quarter of its fiscal year 2026, consistent with regulatory requirements.
About Resmed
Resmed (NYSE: RMD, ASX: RMD) creates life-changing health technologies that people love. We’re relentlessly committed to pioneering innovative technology to empower millions of people in 140 countries to live happier, healthier lives. Our AI-powered digital health solutions, cloud-connected devices and intelligent software make home healthcare more personalized, accessible and effective. Ultimately, Resmed envisions a world where every person can achieve their full potential through better sleep and breathing, with care delivered in their own home. Learn more at Resmed.com and follow @Resmed.
About Frazier Healthcare Partners
Founded in 1991, Frazier Healthcare Partners is a private equity firm focused exclusively on the healthcare industry. Since its inception, Frazier has raised over $11 billion of capital for private funds and co-investment opportunities and has invested in more than 200 companies over 35 years. Frazier has a philosophy of partnering with strong management teams while leveraging its internal operating resources and network to build exceptional companies. Frazier is headquartered in Seattle, WA, with an office in New York City, and invests broadly across the U.S., Canada, and Europe. For more information about Frazier, visit www.frazierhealthcare.com/home.
U.S. dollar bills are seen in this illustration. August 28, 2018. REUTERS/Marcos Brindicci/File Photo Purchase Licensing Rights, opens new tab
CompaniesJuly 7 (Reuters) - ResMed (RMD.N), opens new tab said on Tuesday it would sell its software business MatrixCare to private equity firm Frazier Healthcare Partners for $490 million in cash, as the health technology company sharpens its focus on sleep, breathing and home-based care.
ResMed, which makes devices to manage sleep apnea, said it plans to use the net proceeds to return capital to shareholders, including through an accelerated share repurchase program, and for general corporate purposes.
Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.
The deal includes MatrixCare and related software offerings historically sold under the brand, including Healthcare First, Citus and home health and hospice solutions, but excludes ResMed’s Brightree business in the U.S. and MEDIFOX DAN in Germany.
MatrixCare provides software solutions to more than 15,000 providers across skilled nursing, senior living, long-term care, home health and hospice markets.
MatrixCare generated about $220 million in revenue and about $55 million in adjusted operating profit in fiscal year 2026, according to preliminary results filed by ResMed.
"This move reflects Resmed’s 2030 strategy by focusing on high-growth, scalable opportunities in sleep health, breathing health and connected home-based healthcare," said the company.
ResMed said transition services agreements with Frazier are expected to help ensure continuity across systems and operations and largely offset stranded costs in the first year after closing.
The transaction is expected to close in the first quarter of ResMed’s fiscal year 2027.
The company also said its recently completed Noctrix acquisition is expected to add about $30 million in revenue in fiscal 2027, while reducing adjusted profit per share by about 20 cents.
Reporting by Puyaan Singh in Bengaluru; Editing by Jonathan Ananda
Our Standards: The Thomson Reuters Trust Principles., opens new tab
ResMed (RMD) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock suggests that there could be more strength down the road.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? ResMed (RMD - Free Report) , which belongs to the Zacks Medical - Products industry, could be a great candidate to consider.
This maker of medical products for respiratory disorders has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 3.48%.
For the last reported quarter, ResMed came out with earnings of $2.86 per share versus the Zacks Consensus Estimate of $2.79 per share, representing a surprise of 2.51%. For the previous quarter, the company was expected to post earnings of $2.69 per share and it actually produced earnings of $2.81 per share, delivering a surprise of 4.46%.
Price and EPS Surprise
For ResMed, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
ResMed currently has an Earnings ESP of +1.78%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on August 6, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: ResMed (RMD - Free Report) Resmed Inc. designs, manufactures and distributes devices, masks and related accessories used to treat sleep-disordered breathing (SDB) and other respiratory disorders. Sleep-disordered breathing includes obstructive sleep apnea and related conditions that occur during sleep. The company sells products across the United States, Canada and Latin America, and across combined Europe, Asia and other markets.
RMD is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. RMD has a Growth Style Score of B, forecasting year-over-year earnings growth of 16.3% for the current fiscal year.
One analyst revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.01 to $11.11 per share. RMD also boasts an average earnings surprise of +3.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, RMD should be on investors' short list.
Investors might want to bet on ResMed (RMD - Free Report) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for ResMed basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for ResMed imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for ResMedFor the fiscal year ending June 2026, this maker of medical products for respiratory disorders is expected to earn $11.13 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for ResMed. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.3%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of ResMed to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Shares of ResMed (RMD - Free Report) have gained 6.6% over the past four weeks to close the last trading session at $194.88, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $249.86 indicates a potential upside of 28.2%.
The average comprises 14 short-term price targets ranging from a low of $180.00 to a high of $321.00, with a standard deviation of $42.83. While the lowest estimate indicates a decline of 7.6% from the current price level, the most optimistic estimate points to a 64.7% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
However, an impressive consensus price target is not the only factor that indicates a potential upside in RMD. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.
Price, Consensus and EPS Surprise
Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.
While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?
They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.
However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.
That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.
Why RMD Could Witness a Solid UpsideAnalysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 0%, as one estimate has moved higher compared to no negative revision.
Moreover, RMD currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Therefore, while the consensus price target may not be a reliable indicator of how much RMD could gain, the direction of price movement it implies does appear to be a good guide.
SAN DIEGO, June 30, 2026 (GLOBE NEWSWIRE) -- Resmed (NYSE: RMD, ASX: RMD) today announced it plans to release financial and operational results for the fourth quarter of fiscal year 2026 on Thursday, August 6, 2026, after the New York Stock Exchange closes. Following the release, Resmed management will host a webcast to discuss the results. Other forward-looking and material information may also be discussed during the webcast.
Earnings webcast details:
Location: https://investor.resmed.comDate: Thursday, August 6, 2026Time: 1:30 p.m. PT / 4:30 p.m. ETInternational: London, Thursday, August 6, 2026, 9:30 p.m. BST
Sydney, Friday, August 7, 2026, 6:30 a.m. AEST Please note, Resmed does not use outside phone lines to access the earnings call, the call is accessible via the above webcast link only.
A replay of the earnings webcast will be accessible on Resmed’s investor relations website and available approximately two hours after the webcast. In addition, a phone replay will be available approximately three hours after the webcast and will be accessible from August 6, 2026, until August 20, 2026, at:
U.S.: +1 877.660.6853International: +1 201.612.7415Conference ID: 13761408
About Resmed
Resmed (NYSE: RMD, ASX: RMD) creates life-changing health technologies that people love. We’re relentlessly committed to pioneering innovative technology to empower millions of people in 140 countries to live happier, healthier lives. Our AI-powered digital health solutions, cloud-connected devices and intelligent software make home healthcare more personalized, accessible and effective. Ultimately, Resmed envisions a world where every person can achieve their full potential through better sleep and breathing, with care delivered in their own home. Learn more about how we’re redefining sleep health at Resmed.com and follow @Resmed.
ResMed (RMD) exemplifies the razor-and-blade model, leveraging inevitability, brand loyalty, inexpensive recurring costs, and a superior user experience. RMD dominates the sleep apnea market with a 62% share in a vast, under-penetrated addressable market with huge future growth potential. RMD's financials are resilient, with consistent sales and earnings growth, no earnings misses in more than a decade, and a predictable business model.
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
Considering buying EFC stock? Here’s what analysts think:
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: ResMed (RMD - Free Report) Resmed Inc. designs, manufactures and distributes devices, masks and related accessories used to treat sleep-disordered breathing (SDB) and other respiratory disorders. Sleep-disordered breathing includes obstructive sleep apnea and related conditions that occur during sleep. The company sells products across the United States, Canada and Latin America, and across combined Europe, Asia and other markets.
RMD is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. RMD has a Growth Style Score of B, forecasting year-over-year earnings growth of 16.5% for the current fiscal year.
For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.08 to $11.13 per share. RMD boasts an average earnings surprise of +3.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, RMD should be on investors' short list.
ResMed Inc (RMD) Q3 2026 Earnings Call Highlights: Strong Revenue Growth and Strategic Acquisitions ResMed Inc (RMD) reports an 11% revenue increase and strategic acquisition plans, while navigating supply chain challenges and competitive pressures. Summary
Revenue: $1.43 billion, an 11% increase year-over-year, 8% in constant currency.Gross Margin: 62.8%, increased by 290 basis points year-over-year.Operating Margin: Improved to 36.7% from 34.4% in the prior year period.Net Income: Increased by 20% year-over-year.Non-GAAP Earnings Per Share: Increased by 21% year-over-year.Free Cash Flow: $520 million, with above 100% free cash flow conversion.Cash Flow from Operations: $554 million.Cash Balance: $1.7 billion at the end of the quarter.Net Cash: $996 million.Dividend: Quarterly dividend of $0.60 per share declared.Share Repurchases: Approximately 673,000 shares repurchased for $175 million.Device Sales Growth: 6% increase globally on a constant currency basis.Masks and Other Sales Growth: 12% increase globally on a constant currency basis.Residential Care Software Revenue Growth: 4% increase on a constant currency basis.SG&A Expenses: Increased to 19.5% of revenue from 19% in the prior year period.R&D Expenses: Increased to 6.6% of revenue from 6.5% in the prior year period.Acquisition: Agreement to acquire Noctrix Health for $340 million, expected to close on June 1, 2026.
Release Date: April 30, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points ResMed Inc RMD reported an 11% growth in headline revenue, or 8% growth on a constant currency basis, demonstrating strong financial performance.The company achieved a 21% growth in non-GAAP earnings per share, indicating effective cost management and operational efficiency.ResMed Inc (RMD) continues to expand its global digital health ecosystem, focusing on sleep health, breathing health, and healthcare technology delivered in the home.The company is investing in innovative products, such as the AirTouch N30i mask, which has shown a 6% higher 90-day compliance rate compared to its silicone equivalent.ResMed Inc (RMD) maintains a robust balance sheet with $1.7 billion in cash and a net cash position of $996 million, providing flexibility for future investments and shareholder returns. Negative Points ResMed Inc (RMD) faces challenges with component cost inflation and geopolitical uncertainties impacting supply chain logistics.The company's Residential Care software business experienced only a 4% growth, with ongoing challenges in the senior living and long-term care verticals.There are concerns about the profitability of the new fabric masks for traditional HME providers, potentially affecting adoption rates.The acquisition of Noctrix Health is expected to reduce non-GAAP EPS by approximately $0.02 in Q4 FY26, indicating short-term financial impact.ResMed Inc (RMD) is facing competitive dynamics in the US devices segment, with new product launches from competitors potentially impacting market share. Q & A Highlights Q: Could you discuss the changes you're seeing in component costs and freight, and any supply chain changes post-COVID?
A: Michael Farrell, CEO: We're not seeing any impacts from geopolitical uncertainty on our core supply chain. We've shifted from air freight to sea freight, and our supply chain improvement pipeline remains strong. We expect gross margin accretion through 2030 despite external challenges. Brett Sandercock, CFO: We've done well with component cost improvements, but it gets tougher. We focus on productivity, platform standardization, vendor management, and logistics efficiencies to offset cost inflation.
Q: Can you provide more details on the Noctrix acquisition, its impact on SG&A and R&D, and reimbursement opportunities?
A: Michael Farrell, CEO: Noctrix Health's Nidra device for restless leg syndrome is growing faster and has higher gross margins than ResMed. We will invest in R&D and sales and marketing. Our market access team will drive reimbursement further. Brett Sandercock, CFO: We'll continue to invest in SG&A and R&D, with expected EPS dilution guidance provided earlier.
Q: What is driving the strong growth in Europe/Asia revenue, particularly in masks?
A: Michael Farrell, CEO: Our teams in Western Europe and Asia Pacific have done well with partnerships and omni-channel approaches. The AirTouch N30i fabric technology mask is changing the basis of competition, contributing to robust mask growth. Our device growth is supported by macro trends and re-PAP programs.
Q: Are there any concerns about changes in funding models, such as Synap, affecting DME customers?
A: Michael Farrell, CEO: We see Synap as similar to past utilization management efforts like CareCentrix. We believe the ROI for payers and the low cost of CPAP therapy will mitigate concerns. We work closely with payers and HMEs to manage these changes, and we don't see it as a major issue.
Q: How does the educational program for primary care physicians convert into new prescribers for CPAP therapy?
A: Michael Farrell, CEO: We target PCPs already engaged in home sleep apnea testing. The goal is to increase their referral volume. Our VirtuOx data shows a double-digit increase in home sleep testing. The program is more about increasing existing engagement rather than converting brand-new prescribers.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways RMD Q3 EPS rose 20.7% to $2.86 and beat estimates, while revenues climbed 11% to $1.43B.RMD saw growth across Sleep and Breathing Health and Residential Care Software segments.RMD expanded margins, with gross margin up 289 bps and operating margin rising to 36.7%. Resmed Inc.’s (RMD - Free Report) adjusted earnings per share (EPS) in the third quarter of fiscal 2026 were $2.86, up 20.7% year over year. The metric beat the Zacks Consensus Estimate by 2.58%.
The adjustments include certain non-recurring expenses/benefits like the amortization of acquired intangibles, along with the income tax effect on those adjustments.
GAAP EPS in the reported quarter was $2.74, up 10.5% from the year-ago level.
RMD’s Revenue DetailsOn a reported basis, revenues increased 11% year over year (up 8% at the constant exchange rate or CER) to $1.43 billion. The figure topped the Zacks Consensus Estimate by 0.79%.
Following the earnings announcement yesterday, Resmed shares dropped 2.3% in the after-market session.
Resmed’s Q3 Sales: A Closer ViewResmed operated through two reporting units — Sleep and Breathing Health (formerly Sleep and Respiratory Care) and Residential Care Software (formerly Software as a Service).
Sleep and Breathing HealthTotal revenues improved 11% (up 8% at CER) from the prior-year period’s level to $1.26 billion.
Within this business, Devices revenues were $735.7 million, up 9% (6% at CER). This includes an increase of 6% year over year in the United States, Canada and Latin America, and a jump of 14% in combined Europe, Asia and other markets.
Revenues from Masks and other were $524.8 million, up 15% (12% at CER). This includes a rise of 14% year over year in the United States, Canada and Latin America, and 20% growth in combined Europe, Asia and other markets.
Residential Care SoftwareRevenues in this segment grew 6% year over year (up 4% at CER) to $170.9 million.
Resmed’s Q3 Margin PerformanceIn the fiscal third quarter, the company’s cost of sales (excluding amortization of acquired intangible) totaled $532.6 million, up 2% year over year. Adjusted gross margin was 62.8%, reflecting an expansion of 289 basis points (bps), supported by cost improvements and manufacturing and logistics efficiencies, alongside a minor positive impact of product mix and foreign currency movements.
Selling, general and administration expenses jumped 14.1% year over year to $279.8 million. Research and development expenses increased 12.3% to $94.3 million.
The adjusted operating profit was $524.8 million in the quarter, up 18% from the year-ago quarter’s level. The adjusted operating margin expanded 224 bps year over year to 36.7%.
RMD’s Financial UpdatesResmed exited the third quarter of fiscal 2026 with cash and cash equivalents of $1.66 billion compared with $1.42 billion at the end of the second quarter.
The cumulative net cash provided by operating activities at the end of the fiscal third quarter was $554.1 million compared with $578.7 million in the year-ago period.
The company paid out $87 million in dividends in the fiscal third quarter and also repurchased 673,000 shares for consideration of $175 million as part of its ongoing capital management.
Our Take on RMD StockResmed closed the fiscal third quarter on a solid note, with both earnings and revenues beating respective estimates. Performance reflects sustained global strength, driven by steady demand for the company’s products and strategic execution. Resmed benefited from continued growth in its mask portfolio and ReSupply, as well as incremental revenues from the VirtuOx acquisition. Growth in Residential care software revenues reflects the robust performance from the MediFox Dan software vertical.
Resmed continued the global rollout of its portfolio of novel fabric-based masks and also advanced the AirSense 11 platform rollout, most recently in the Latin America market. The expansion of both margins in the quarter is highly encouraging.
RMD’s Zacks Rank and Key PicksResmed currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , Intuitive Surgical (ISRG - Free Report) and Phibro Animal Health (PAHC - Free Report) .
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported fourth-quarter 2025 adjusted EPS of $1.28, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $826.4 million beat the Zacks Consensus Estimate by 4.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an earnings yield of 4.7% compared to the industry’s negative 1.4% yield. The company beat earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 18.79%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted first-quarter 2026 adjusted EPS of $2.50, exceeding the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion topped the Zacks Consensus Estimate by 6.2%.
ISRG has an earnings yield of 2.1% compared to the industry’s negative 0.9% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.82%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, posted second-quarter fiscal 2026 adjusted EPS of 87 cents, exceeding the Zacks Consensus Estimate by 27.01%. Revenues of $373.9 million outperformed the Zacks Consensus Estimate by 4.72%.
PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 20.15%.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.93% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: ResMed (RMD - Free Report) Resmed, Inc. holds a major position as designer, manufacturer, as well as a distributor in the worldwide market for generators, masks, and related accessories for the treatment of sleep-disordered breathing (SDB) and other respiratory disorders. SDB includes obstructive sleep apnea (OSA) and other respiratory disorders that occur during sleep.
RMD is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. RMD has a Growth Style Score of B, forecasting year-over-year earnings growth of 16.5% for the current fiscal year.
Five analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.09 to $11.13 per share. RMD also boasts an average earnings surprise of +3.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, RMD should be on investors' short list.
On May 11, 2026, ResMed Inc RMD shares fell 3.9% to a current price of $198.76. This decline comes amid broader market pressures, with the stock now trading close to its 52-week low of $198.64, significantly off its 52-week high of $293.81.
GF Value™ verdict: Current price is $198.76 versus GF Value™ of $270.01, indicating a 26.4% undervaluation.GF Score™ of 97/100 suggests a strong overall performance in key financial metrics.Notable signal: Insiders sold $4.9 million in stock over the last three months without any buying activity. Is RMD Overvalued or Undervalued? Currently, ResMed Inc RMD is trading at $198.76, which is significantly lower than its GF Value™ of $270.01. This translates to a 26.4% margin of safety, indicating that the stock is undervalued according to GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The GF Valuation label categorizes RMD as modestly undervalued, presenting an opportunity for potential investors. However, it is essential to consider the market dynamics and recent trends that have led to a notable decline in the stock's price.
The current undervaluation could provide a favorable entry point, but prospective investors should remain cautious, especially given the recent insider selling, which may reflect concerns about the company's future performance or market conditions.
How Does RMD's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 19.2x 32.7x Forward P/E 16.4x N/A ResMed's current P/E ratio of 19.2x is 41% below its 5-year median P/E of 32.7x, suggesting that the stock is trading below its historical valuation. This analysis aligns with the GF Value™ verdict, reinforcing the notion that RMD is undervalued at its current price.
What Does RMD's GF Score™ Tell Us? Metric Rating GF Score™ 97 Financial Strength 8/10 Profitability 10/10 Growth 10/10 Valuation 8/10 Momentum 5/10 The GF Score™ of 97/100 indicates a strong overall performance, particularly in profitability and growth, where the company scored 10/10. The financial strength rating of 8/10 also reflects solid fundamentals. However, the momentum rank of 5/10 suggests that the stock is not currently performing well in terms of price movement, which could be a concern for investors looking for short-term gains.
What Are Insiders Doing with RMD Stock? In the past three months, insiders have sold $4.9 million worth of ResMed stock, with no reported buying activity. This pattern of selling could indicate a lack of confidence among insiders regarding the company's short-term outlook. While insider selling does not always predict stock performance, it may suggest that those closest to the company are cautious about its future prospects.
What This Means for Investors Based on the analysis of GF Value™, ResMed Inc RMD is currently undervalued. However, potential investors should weigh this opportunity against recent insider selling and market conditions, which may impact future performance.
For the complete analysis, visit the ResMed Inc RMD stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is RMD's GF Score™?
RMD has a GF Score™ of 97/100, indicating a strong overall performance in key financial metrics, suggesting potential for higher long-term returns.
Is RMD overvalued or undervalued?
RMD is currently undervalued, trading at $198.76 compared to its GF Value™ of $270.01, which indicates a significant margin of safety.
What is RMD's P/E ratio?
RMD's P/E (TTM) ratio is 19.2x, which is 41% below its 5-year median P/E of 32.7x, further supporting the assessment of the stock as undervalued.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Oura Members can take action on changes in sleep or breathing patterns through educational resources from Resmed and pathways for accessing care May 19, 2026 09:00 ET | Source: Resmed, Inc.
SAN DIEGO, May 19, 2026 (GLOBE NEWSWIRE) -- Resmed (NYSE: RMD, ASX: RMD), the leading health technology company focused on sleep, breathing and care delivered in the home, and ŌURA, maker of the world’s leading smart ring, today announced they are partnering to expand access to sleep health education and pathways to care, helping more people sleep better and improve their overall health.
Sleep is increasingly recognized as a key pillar of long-term health, yet it remains widely underprioritized.1 Early signs of poor sleep are often dismissed, creating a gap between what people experience and when they seek support or clinical care.
At the same time, the use of wearable technology to track sleep is on the rise, increasing from 16% of adults in 20252 to 53% in 2026.3 Insights from wearable devices, including Oura Ring, can help people better understand their sleep patterns and encourage them to have informed conversations with their healthcare providers to learn more about potential sleep disorders, including obstructive sleep apnea (OSA). OSA is a chronic condition that disrupts breathing during sleep and often goes undiagnosed. In the U.S., an estimated 80% of people with OSA remain undiagnosed and untreated.4 Resmed and Oura are partnering to help close the awareness gap, turning insight into action.
Oura Members who experience a higher number of nighttime breathing disturbances can easily connect to trusted resources from Resmed, including:
Educational resources and a sleep assessment to understand more about sleep health.The option to connect with an independent healthcare provider, virtually or in-person, to address their sleep concerns.An informative guide to support discussions with their healthcare provider.
By connecting consumer-generated wellness insights with Resmed’s sleep health resources, Resmed and Oura are helping Oura Members take a more informed next step to better understand their sleep health.
"We're at an inflection point in how people engage with their sleep health, driven by rising awareness and more accessible technology," said Dr. Carlos Nunez, chief medical officer at Resmed. "By partnering with ŌURA, we are turning insight into action by guiding people across their sleep health journey and making it easier for them to seek clinical evaluation and care if they have concerns about their sleep.”
“High-quality sleep is one of the strongest foundations for long-term health, yet many people live for years with unrecognized sleep and breathing issues," said Dr. Ricky Bloomfield, chief medical officer at Oura. “By pairing Oura’s continuous insights into sleep and nighttime breathing with Resmed’s sleep expertise, we’re giving people clearer tools and education to spot when something might be off and to more easily access care so they can better understand and act on changes in their sleep health.”
Resmed’s connection with Oura is designed to reach individuals who may not recognize their sleep issues or engage with the healthcare system, making it easier for people to learn about their sleep health and connect with clinical resources when they need it. The experience is available to users of Oura Ring Gen3 and Oura Ring 4 who have an active Oura Membership in the U.S.
About Resmed
Resmed (NYSE: RMD, ASX: RMD) creates life-changing health technologies that people love. We’re relentlessly committed to pioneering innovative technology to empower millions of people in 140 countries to live happier, healthier lives. Our AI-powered digital health solutions, cloud-connected devices and intelligent software make home healthcare more personalized, accessible and effective. Ultimately, Resmed envisions a world where every person can achieve their full potential through better sleep and breathing, with care delivered in their own home. Learn more about how we’re redefining sleep health at Resmed.com and follow @Resmed.
About ŌURA
ŌURA delivers personalized health data, insights, and daily guidance with Oura Ring, the leading smart ring that helps you live healthier, longer. Guided by a mission to shift healthcare from sick care to prevention, ŌURA supports millions of members worldwide across sleep, activity, stress, readiness, women’s health, and heart health. Scientifically validated against medical gold standards, the lightweight Oura Ring tracks 50+ health metrics continuously, empowering both individuals and thousands of research teams, healthcare providers, and organizations. With 1,000 ecosystem partners across wellness and medicine, ŌURA is advancing the future of preventative health.
Founded in Finland in 2013, ŌURA has U.S. headquarters in San Francisco and E.U. headquarters in Oulu. ŌURA was last valued at approximately $11B—making it the world’s most valuable standalone wearable company. Learn more at ouraring.com or connect with ŌURA on Instagram, LinkedIn, and TikTok.
Oura Ring is not a medical device and is not intended to diagnose, treat, cure, monitor, or prevent medical conditions or illnesses.
Contacts Resmed For MediaFor InvestorsCaela ShaySalli [email protected]@[email protected]@resmed.com Oura [email protected] 1 Resmed Global Sleep Survey 2026. Available at: sleepsurvey.resmed.com
2 Resmed Global Sleep Survey 2025. Available at: sleepsurvey.resmed.com
3 Resmed Global Sleep Survey 2026. Available at: sleepsurvey.resmed.com
4 Kapur VK, Auckley DH, Chowdhuri S, et al. Clinical Practice. Guideline for Diagnostic Testing for Adult Obstructive Sleep Apnea: An American Academy of Sleep Medicine Clinical Practice Guideline. J Clin Sleep Med. 2017
The world’s population is aging rapidly, reshaping how healthcare systems, corporations and investors approach long-term growth opportunities. According to the latest data from the World Health Organization, the number of people aged 60 and older surpassed children under five globally in 2020, marking a historic demographic turning point. The world’s population of people aged 60 years and older will double from 1 billion in 2020 to 2.1 billion in 2050. The number of persons aged 80 years or older is expected to triple between 2020 and 2050 to reach 426 million.
This demographic transition continues to unlock a multitrillion-dollar healthcare opportunity. Global Market Insights estimates the global geriatric care services market to surpass $2.1 trillion by 2034, at a CAGR of 5.1%, driven by rising life expectancy, increasing chronic disease prevalence and growing demand for home-based and digitally connected care solutions.
The aging population is significantly altering healthcare consumption patterns and creating robust growth opportunities across pharmaceuticals, robotic surgery, cardiovascular devices, obesity care, sleep health and digital monitoring technologies.
Healthcare giants such as Eli Lilly and Company (LLY - Free Report) , Tandem Diabetes Care (TNDM - Free Report) , Intuitive Surgical (ISRG - Free Report) and ResMed (RMD - Free Report) are all capitalizing on this evolving landscape. By enhancing operational efficiency, they are increasingly expanding their presence in the Seniors & Aging Demographics domain.
As longevity improves globally, age-related conditions such as obesity, cardiovascular disease, diabetes, sleep apnea, neurodegenerative disorders and musculoskeletal complications are becoming more prevalent. Digital health solutions, artificial intelligence-driven diagnostics and home-based monitoring systems are transforming elder care, creating new revenue opportunities for healthcare firms.
Notably, Medtronic’s (MDT - Free Report) AccuRhythm AI platform is being deeply embedded directly into hospital electronic health records (EHRs). The cloud-side convolutional neural networks now automatically filter out 91% of false alerts for both Atrial Fibrillation (AF) and Pause (syncope) before they ever land in a doctor's inbox, saving clinics an average of 400 hours per year. Abbott (ABT - Free Report) , on the other hand, has introduced Lingo, a wearable device that monitors multiple biomarkers, including glucose levels.
From an investment perspective, healthcare continues to offer defensive characteristics during volatile economic environments. Demand for critical treatments, medical procedures and chronic disease therapies generally remains resilient regardless of macroeconomic cycles, supporting stable cash flows and long-term earnings visibility.
Ready to uncover more transformative thematic investment ideas? Explore 30 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
4 Seniors & Aging Demographics Stocks in the Spotlight
Eli Lilly has increasingly strengthened its position in aging-related healthcare through obesity, diabetes and neurodegenerative disease innovation. The company’s obesity franchise continues gaining momentum following the April 2026 FDA approval of Foundayo (orforglipron), the first GLP-1 oral obesity treatment that can be taken without food or water restrictions.
Lilly is also expanding its Alzheimer’s disease presence. In May 2026, the company launched its Alzheimer’s therapy Donanemab in India under the brand name Lormalzi, broadening global access to treatments designed to slow progression in early-stage Alzheimer’s disease. Beyond obesity and neuroscience, Lilly continues investing heavily in cardiometabolic diseases and chronic care therapies that disproportionately affect older adults. The stock currently carries a Zacks Rank #3 (Hold).
Tandem Diabetes continues to witness market share gains with the growing prevalence of diabetes as a major health condition in the aging population. Going by the American Diabetes Association’s data, over 29% of people over the age of 65 have diabetes. The number of older adults living with this condition is expected to increase rapidly in the coming decades.
In the near and long term, TNDM aims to strategically expand the adoption of the insulin pump by type 1 and type 2 diabetic patients across all its markets. The company’s t:slim X2 insulin pump software’s intuitive screen display has resonated strongly with Type 2 users and its 300-unit reservoir reduces the frequency of cartridge changes, helping ease the daily burden of diabetes management. Building on this positive feedback, the company has expanded its Type 2 commercial efforts, transitioning from a pilot program to full promotion of Control-IQ+ for people with Type 2 diabetes. The stock carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Intuitive Surgical continues to benefit from the rising adoption of robotic-assisted minimally invasive surgery, particularly for procedures commonly performed on older adults. The company’s da Vinci robotic surgery platform remains a leader in areas including urology, gynecology, thoracic and general surgery.
In January 2026, the FDA cleared the da Vinci 5 system for certain cardiac procedures, including mitral valve repair and cardiac revascularization-related applications. The latest-generation system incorporates advanced imaging, enhanced analytics and smart instrumentation designed to improve surgical precision and patient outcomes. Intuitive has also introduced real-time surgical insights and advanced force-feedback capabilities for da Vinci 5, leveraging data analytics and digital integration to improve operating-room efficiency and surgeon performance. The stock also carries a Zacks Rank #3.
ResMed is gaining from the growing awareness and diagnosis of sleep apnea and chronic respiratory disorders, both of which are highly prevalent among older adults. Sleep apnea affects nearly one billion people worldwide and is associated with elevated risks of cardiovascular disease, cognitive decline and metabolic disorders.
The company continues integrating artificial intelligence and digital health capabilities into its sleep-care ecosystem. In late 2025, ResMed received FDA clearance for Smart Comfort, an AI-enabled digital medical device that personalizes CPAP therapy settings using machine learning and real-world sleep data. The technology is designed to improve patient comfort and long-term therapy adherence. ResMed has also built one of the industry’s largest connected health networks, with more than 15 million cloud-connectable devices supporting remote patient monitoring and home-based care management. RMD carries a Zacks Rank #3.
SAN DIEGO, May 19, 2026 (GLOBE NEWSWIRE) -- Resmed (NYSE: RMD, ASX: RMD) today announced Mick Farrell, chairman and chief executive officer, and Aaron Bloomer, chief financial officer, will attend the 46th Annual William Blair Growth Stock Conference in Chicago, IL on Tuesday, June 2, 2026. Resmed’s webcast presentation will begin at approximately 4:40 p.m. (Central Time).
More information about this event, including access to the live, audio-only webcast, may be accessed by visiting https://investor.resmed.com. The audio-only webcast replay will be available approximately 24 hours after the live webcast ends and will be accessible for the following ninety (90) days.
About Resmed
Resmed (NYSE: RMD, ASX: RMD) creates life-changing health technologies that people love. We’re relentlessly committed to pioneering innovative technology to empower millions of people in 140 countries to live happier, healthier lives. Our AI-powered digital health solutions, cloud-connected devices and intelligent software make home healthcare more personalized, accessible and effective. Ultimately, Resmed envisions a world where every person can achieve their full potential through better sleep and breathing, with care delivered in their own home. Learn more about how we’re redefining sleep health at Resmed.com and follow @Resmed.
Investors in ResMed Inc. (RMD - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan. 15, 2026 $150 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for ResMed shares, but what is the fundamental picture for the company? Currently, ResMed is a Zacks Rank #3 (Hold) in the Medical – Products industry that ranks in the Bottom 35% of our Zacks Industry Rank. Over the last 30 days, one analyst has increased the earnings estimates for the to-be-reported quarter, while two have dropped the estimates. The net effect has taken our Zacks Consensus Estimate for the to-be-reported quarter from $2.86 per share to $2.85 in that period.
Given the way analysts feel about ResMed right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Picture a 55-year-old earning $400,000 with $1.5 million in a traditional 401(k). The plan’s summary plan description allows in-plan Roth conversions, and the box has sat unchecked for years. That single unchecked box is worth roughly $58,000 to $90,000 in avoided future taxes, and almost nobody at this income level is using it.
The mechanic is narrower than the better-known backdoor Roth IRA. An in-plan Roth conversion moves dollars from the traditional bucket of your 401(k) into the Roth bucket inside the same plan. The dollars stay inside the same plan, with no separate IRA, rollover, or new account involved. The plan administrator processes the conversion, issues a 1099-R coded for a taxable transfer, and the converted balance grows tax-free for life.
The Conversion Math at 55 Convert $100,000 of the traditional balance to Roth. That $100,000 lands on this year’s 1040 as ordinary income. For a household deep into the 24% bracket, with the 32% bracket starting at $403,551 for joint filers in 2026, most of the conversion sits in the 32% slice. The bill, blended with state tax aside, is about $32,000 federal in the conversion year.
Now follow the same $100,000 to age 73, when required minimum distributions begin. Eighteen years at a 7% return turns $100,000 into roughly $339,000. Inside the Roth 401(k), every dollar of that $339,000 is tax-free on withdrawal and exempt from RMDs starting in 2024 under SECURE 2.0. Left in the traditional bucket, the same $339,000 becomes RMD income taxed at whatever bracket you land in at 73, plus whatever Medicare IRMAA surcharge your two-year-lookback MAGI triggers.
The first IRMAA tier in 2026 begins at $109,000 MAGI for single filers and $218,000 for joint filers, and the surcharges scale from $81.20 per month for Part B up to $487 per month at the top tier, with Part D adders of $14.50 to $91. A 73-year-old pulling a large RMD on top of Social Security routinely walks into a 24% to 32% bracket plus an IRMAA bump, producing an effective marginal cost near 40 cents on the dollar. That is the spread the conversion captures.
How the In-Plan Conversion Differs From a Roth IRA Rollover Three features separate the in-plan conversion from a rollover to a Roth IRA:
It stays inside ERISA. The converted balance keeps the federal creditor protection of a 401(k). A Roth IRA leans on state-by-state protections that are weaker for high earners with civil exposure. No five-year clock per conversion if you are already 59½. A Roth IRA conversion starts its own five-year clock for principal access. An in-plan conversion uses the plan’s Roth account aging, so a participant past 59½ with a seasoned Roth 401(k) sub-account has cleaner liquidity. It is irreversible. SECURE 2.0 and the 2017 tax law together eliminated recharacterization for Roth conversions, including in-plan rollovers. If the market drops 30% the week after you convert, you owe the tax on the pre-drop figure. There is no undo button. Pay the Tax From Outside the Plan The $32,000 has to come from a taxable brokerage or savings account, not from the conversion itself. Pulling the tax from the 401(k) shrinks the Roth balance you just created and, if you are under 59½, layers a 10% penalty on the withheld portion. The strategy only works for people with enough non-retirement liquidity to write the check cleanly.
For households with an after-tax 401(k) contribution feature, the in-plan conversion pairs with the mega backdoor. After-tax dollars sweep into the Roth sub-account, often automatically each pay period, so growth never accrues in the after-tax bucket where it would be taxable on conversion. A $400,000 earner can stack the $24,500 employee deferral and, if age 60 to 63, an $11,250 super catch-up on top of after-tax contributions up to the overall annual additions limit.
Three Actions This Week Pull your summary plan description and search for “in-plan Roth rollover” or “in-plan Roth conversion.” If the language is absent, the feature is not available. IRS Notice 2013-74 governs the mechanics if your plan does offer it. Model the conversion amount that fills your current bracket without spilling into the next one. For joint filers, that often means converting up to the top of the 24% bracket each year through age 63, before Medicare IRMAA’s two-year lookback starts watching. Confirm you can pay the conversion tax from a taxable account. If you cannot, the conversion still works, but the math tightens considerably and a fee-only CPA review is worth the hour.
Picture a single 73-year-old retiree sitting on $1.3 million in a traditional 401(k), drawing $36,000 a year in Social Security, and feeling reasonably set for retirement. 2026 is the year required minimum distributions begin, and the IRS just handed this saver a tax bill they did not budget for. The first-year cost across federal, state, and Medicare runs close to $19,800, and almost none of it shows up on a brokerage statement.
This scenario surfaces constantly in retirement forums: someone in their early 70s who deferred taxes diligently for 40 years discovers that the deferral was a loan, and the IRS is the lender calling it in.
The RMD Math, Line by Line At age 73, the IRS Uniform Lifetime Table uses a divisor of 26.5. A $1.3 million balance divided by that figure produces a mandatory withdrawal of $49,057. That number is non-negotiable, and missing it triggers a 25% excise tax on the shortfall.
Layered on top, the RMD pushes provisional income high enough that 85% of the $36,000 Social Security benefit becomes taxable, adding roughly $30,000 to adjusted gross income. Total ordinary income lands near $85,000.
Deductions help, but only somewhat. A single 65-plus filer in 2026 gets the standard deduction of $16,100, plus the senior add-on of $2,050, plus the new $6,000 senior bonus deduction available in full while MAGI stays under $75,000 single. Stack those together and the retiree shelters $24,150 of income, leaving taxable income near $61,000.
What the Brackets Actually Take The federal bill stacks across three brackets: 10% on the first $11,925 equals $1,193, 12% on the next $36,550 equals $4,386, and 22% on the remaining $12,525 equals $2,756. Total federal liability comes in around $8,335.
That looks manageable until the rest of the cascade arrives. State income tax in most states adds another 3% to 6% on the same income. The 2026 IRMAA Medicare surcharge does not hit this filer yet because the first single bracket starts at $109,000 in MAGI, but the two-year lookback means a single bad year (selling a home, a Roth conversion, a larger RMD as the balance grows) can quietly add $1,100 to $7,000 in Part B and D premiums in 2028. Roll federal, state, and the embedded cost of higher provisional income together, and the cumulative first-year hit settles near $19,800.
The Senior Bonus Cliff Nobody Talks About The new $6,000 deduction phases out at 6 cents per dollar of MAGI above $75,000 single and disappears entirely at $175,000. This retiree sits just below the cliff, which means a portfolio rebalance, a capital gain, or a larger withdrawal in any year between 2025 and 2028 could shave or eliminate the deduction and quietly raise the effective marginal rate. Knowing where that line sits is worth real money.
Three Moves That Change the Outcome Roll the 401(k) to an IRA, then use a QCD to satisfy the RMD. Qualified charitable distributions of up to $111,000 per person in 2026 count toward the RMD but never hit AGI. For a retiree already giving to a church or charity, redirecting even $10,000 to $20,000 of the RMD as a QCD lowers taxable Social Security, preserves the senior bonus deduction, and protects future IRMAA brackets. 401(k)s cannot do this directly, only IRAs. Do partial Roth conversions in the years before 73. A saver at 65 with the same balance who converted $30,000 to $50,000 annually at the 12% bracket would have a smaller traditional balance, smaller RMDs, and a tax-free pool to draw from when IRMAA pressure builds. The window closes the moment RMDs start, because the RMD itself must come out before any conversion in the same year. Smooth the bracket in the year before RMDs begin. At 72, voluntary withdrawals filling the 12% bracket (up to roughly $48,475 of taxable income for singles) cost the same 12 cents on the dollar as the first slice of the first RMD, with no Social Security multiplier in play if benefits have been delayed. $1.3 million is plenty to retire on, provided the order in which the IRS, the SSA, and CMS take their cut gets the same attention as the portfolio itself.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: ResMed (RMD - Free Report) Resmed Inc. designs, manufactures and distributes devices, masks and related accessories used to treat sleep-disordered breathing (SDB) and other respiratory disorders. Sleep-disordered breathing includes obstructive sleep apnea and related conditions that occur during sleep. The company sells products across the United States, Canada and Latin America, and across combined Europe, Asia and other markets.
RMD is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. RMD has a Growth Style Score of B, forecasting year-over-year earnings growth of 16.5% for the current fiscal year.
For fiscal 2026, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.09 to $11.13 per share. RMD boasts an average earnings surprise of +3.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, RMD should be on investors' short list.
SAN DIEGO, June 01, 2026 (GLOBE NEWSWIRE) -- Resmed (NYSE: RMD, ASX: RMD), the leading health technology company focused on sleep, breathing and care delivered in the home, today announced it has completed its acquisition of Noctrix Health, Inc., a medical device company developing clinically validated wearable therapeutics for chronic neurological disorders.
The acquisition expands Resmed’s clinical sleep health portfolio into an adjacent area of significant unmet need — the treatment of Restless Legs Syndrome (RLS), the third most prevalent sleep disorder.1,2 For Noctrix Health, joining Resmed brings an opportunity to scale its innovation, expand patient access, and accelerate impact for providers, patients and health systems.
Noctrix’s Nidra® Tonic Motor Activation (TOMAC) Therapy is an FDA De Novo classified, non-invasive, non-pharmacologic treatment designed to reduce symptoms of moderate-to-severe RLS and improve sleep quality in adults who have not found sufficient relief with drug therapy.3,4 For many patients, this therapy can deliver meaningful improvement in daily life and overall sleep health. 5
Noctrix has rapidly built a strong foundation of clinical validation for its breakthrough therapy, including 10 peer-reviewed publications and inclusion in the American Academy of Sleep Medicine (AASM) clinical practice guidelines for the treatment of RLS — notable achievements that reflect both scientific validation and growing clinical adoption.
“Our acquisition of Noctrix Health marks an important step forward in advancing our 2030 strategy and expanding our clinical sleep health portfolio,” said Mick Farrell, Chairman and CEO of Resmed. “We are excited to welcome the Noctrix team to Resmed and scale solutions that improve lives through better sleep and home health technologies.”
Resmed plans to integrate Noctrix’s technology into its portfolio of connected devices and digital health solutions to help expand access, improve care pathways and enhance patient outcomes over time.
“Since founding Noctrix, our mission has been to deliver innovative, non-pharmacologic solutions for people living with RLS who have limited treatment options,” said Shri Raghunathan, President and CEO of Noctrix Health. “Joining Resmed will help us advance that mission, enabling us to expand access to TOMAC therapy and reach more patients with a clinically validated solution that can help meaningfully improve sleep and quality of life.”
Completion of Acquisition
Resmed’s acquisition of Noctrix Health, Inc. was previously announced on April 30, 2026, during Resmed’s Q3 FY26 earnings call. Upon completion of the acquisition today, Noctrix became a wholly owned subsidiary within the Resmed group.
About Resmed
Resmed (NYSE: RMD, ASX: RMD) creates life-changing health technologies that people love. We’re relentlessly committed to pioneering innovative technology to empower millions of people in 140 countries to live happier, healthier lives. Our AI-powered digital health solutions, cloud-connected devices and intelligent software make home healthcare more personalized, accessible and effective. Ultimately, Resmed envisions a world where every person can achieve their full potential through better sleep and breathing, with care delivered in their own home. Learn more at Resmed.com and follow @Resmed.
1 McArdle N, et al. Prevalence of common sleep disorders in a middle-aged community sample. J Clin Sleep Med. 2022;18:1503–1514. (Identifies insomnia, obstructive sleep apnea, and RLS as among the most common sleep disorders).
2 Winkelman JW, Wipper B. Restless Legs Syndrome: A Review. JAMA. 2026;335(8):703–714. (~8% of adults report RLS symptoms; associated with sleep disturbance and reduced quality of life).
3 U.S. Food and Drug Administration. De Novo Classification Request: NTX100 Tonic Motor Activation System (DEN220059). 2023. (Device indicated to reduce symptoms of moderate-to-severe RLS and improve sleep quality in adults refractory to medications).
4 Ryschon AM, et al. Cost-Effectiveness of Tonic Motor Activation Therapy for RLS. Neurology and Therapy. 2023. (Identifies TOMAC as a nonpharmacologic treatment for medication-refractory RLS).
5 Winkelman JW, Wipper B. Restless Legs Syndrome: A Review. JAMA. 2026;335(8):703–714. (~8% of adults report RLS symptoms; associated with sleep disturbance and reduced quality of life).
Noctrix Health acquisition validates Angelini Ventures’ strategy of investing in innovative healthcare companies addressing significant unmet medical needs and advancing connected health
Rome, Italy, 3rd June 2026 – Angelini Ventures, the corporate venture firm of Angelini Industries focused on investing in companies developing innovative solutions in BioTech and HealthTech, announces that portfolio company Noctrix Health has been acquired by ResMed (NYSE: RMD), a global leader in sleep health and respiratory care, in a transaction valued at $340 million.
The transaction further strengthens Angelini Ventures’ mission to support the next generation of healthcare innovators, combining capital with strategic expertise, operational capabilities and a global network of founders, investors and academic partners. It also reinforces Angelini Ventures’ strategy of backing differentiated healthcare technologies that address significant unmet medical needs and enable more connected and scalable models of care. Through ResMed’s planned integration of Noctrix Health’s technology into its broader sleep health ecosystem, the acquisition has the potential to expand patient access and enhance the delivery of care.
Founded in 2016, Noctrix Health is a medical technology company focused on developing wearable, clinically validated neuromodulation therapies for chronic neurological and sleep-related conditions. Its lead product, Nidra, is the first FDA-authorized non-invasive therapy for moderate-to-severe Restless Legs Syndrome (RLS), offering a differentiated treatment option for millions of patients affected by the condition globally.
Angelini Ventures invested in Noctrix Health in 2024 as part of the company’s $40 million Series C financing round, alongside leading healthcare investors, supporting the company’s next phase of clinical and commercial growth.
“This marks our first successful exit, reaffirming our strategy of backing disruptive healthcare companies with the potential to address significant unmet medical needs,” said Paolo Di Giorgio, CEO and Managing Director of Angelini Ventures. “Noctrix Health exemplifies the type of company we seek to support - combining cutting-edge science, technological innovation and clear clinical relevance. We are delighted to see that the company’s technology will become integrated into ResMed’s broader connected health ecosystem, creating new opportunities to expand patient access and impact at scale.”
“It has been a privilege to partner with the Noctrix team during such a pivotal phase of the company’s growth,” added Tanja Dowe, Managing Director at Angelini Ventures and Board Observer at Noctrix Health prior to the acquisition. “The speed and quality of execution across clinical development, regulatory approval and commercialization have been exceptional. We are proud to have supported the company as it advanced a first-in-class therapy for patients with Restless Legs Syndrome.”
Sergio Marullo di Condojanni, CEO of Angelini Industries, commented: “This milestone further reflects Angelini Industries’ commitment to support scientific and technological innovation capable of generating meaningful impact for patients and healthcare systems worldwide. Noctrix represents a compelling example of how breakthrough healthcare innovation can evolve into scalable solutions with global relevance.”
***
Notes to Editors
About Angelini Ventures
Angelini Ventures is a global venture capital firm and part of Angelini Industries, a leading Italian multi-sector industrial group. Launched in 2022 with an initial €300 million capital commitment, the firm invests in companies developing breakthrough solutions in biotechnology, medtech, and digital health. To date, Angelini Ventures has built a portfolio of 25 companies across Europe and North America dedicated to extending life expectancy and improving patient outcomes. In December 2025, the firm expanded its impact through a €150 million co-financing partnership with the European Investment Bank. Angelini Ventures is headquartered in Rome, with a strategic presence in Singapore and Boston, and employs a team of over 20 professionals located across key life sciences hubs in Europe, Asia, and North America. www.angeliniventures.com
Contacts
Angelini Ventures
Martina Palmese, Communications Coordinator [email protected]
Media contacts for Italy - SEC Newgate Italia
Daniele Pinosa, [email protected]; Tel. +39 3357233872
Fausta Tagliarini; [email protected]; Tel. +39 3476474513
Daniele Murgia; [email protected]; Tel. +39 3384330031
Media contacts outside Italy - MEDiSTRAVA
Sylvie Berrebi, Sandi Greenwood, Mark Swallow [email protected]
On June 04, 2026, ResMed Inc RMD shares rose 4.2% today, currently trading at $194.32. The stock has seen a 52-week range between $180.27 and $293.81, highlighting significant volatility over the past year. This recent uptick comes amidst a year-to-date decline of 18.9% and a one-year drop of 21.5%.
GF Value™ verdict: Current price of $194.32 is 28.4% below GF Value™ of $271.26, indicating potential upside.GF Score™ of 90/100 suggests strong overall performance and a promising outlook.Notable signal: Insider activity shows that insiders sold $4.6M in stock over the past three months, with no buying reported. Is RMD Overvalued or Undervalued? According to the GF Value™, ResMed Inc is currently undervalued, with a significant margin of safety. The current price of $194.32 is substantially below the estimated fair value of $271.26, leading to an undervaluation of approximately 28.4%. This presents an opportunity for potential investors, as the stock is classified under the GF Valuation label as "Modestly Undervalued." GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
The undervaluation signals potential growth opportunities, yet investors should remain cautious due to recent insider selling activity, which may indicate a lack of confidence from those closest to the company. Overall, while the undervaluation presents a buying opportunity, it is essential to consider the broader market conditions and insider sentiments.
How Does RMD's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 18.7x 32.4x Forward P/E 16.0x N/A ResMed's current P/E ratio of 18.7x is significantly below its 5-year median P/E of 32.4x, suggesting that the stock is trading at a lower valuation compared to its historical performance. The forward P/E of 16.0x further reinforces this observation, indicating that the market expects a rebound in earnings. This analysis aligns with the GF Value™ verdict, confirming the stock's undervaluation relative to its historical valuation metrics.
What Does RMD's GF Score™ Tell Us? Metric Rating GF Score™ 90/100 Financial Strength 7/10 Profitability 10/10 Growth 10/10 Valuation 4/10 Momentum 4/10 The GF Score™ of 90/100 indicates a strong overall performance, with notable strengths in Profitability and Growth, both rated at 10/10. These high scores suggest that ResMed has a robust business model and is likely to generate strong returns. However, the Valuation and Momentum ranks, both at 4/10, highlight potential weaknesses in the current market perception and recent stock performance. Together, the scores offer a comprehensive view of the company's strengths and areas requiring attention.
What Are Insiders Doing with RMD Stock? Insider activity in ResMed Inc has shown a trend of selling, with insiders having sold $4.6 million worth of shares in the last three months. This lack of buying may indicate caution among those with the most intimate knowledge of the company. Such selling activity could suggest that insiders are not optimistic about the stock's short-term prospects. However, it is important to consider that insider selling does not necessarily reflect the overall value proposition of the company.
What This Means for Investors Based on the GF Value™ analysis, ResMed Inc is currently undervalued, presenting a potential investment opportunity. However, investors should weigh this against recent insider selling and the broader market conditions before making any decisions.
For the complete analysis, visit the ResMed Inc RMD stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is RMD's GF Score™?
The GF Score™ for ResMed Inc is 90/100, indicating strong overall performance and a promising outlook for long-term returns.
Is RMD overvalued or undervalued?
RMD is currently undervalued according to GF Value™, with a market price that is approximately 28.4% below its estimated fair value.
What is RMD's P/E ratio?
RMD's P/E ratio (TTM) is 18.7x, which is significantly below its 5-year median P/E of 32.4x, indicating that the stock is trading at a lower valuation compared to its historical performance.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Key Takeaways RMD benefits from acquisition-led Residential Care Software expansion and mask innovation.RMD Residential Care Software revenues rose 4% CC, driven by MEDIFOX DAN, Home & Hospice, HME.Mask sales in the Americas rose 14%, while RMD maintains $1.66B cash and 5.9% debt-to-capital. Resmed (RMD - Free Report) benefits from the acquisition-led expansion of its Residential Care Software segment, which is poised to continue supporting its growth in the coming quarters. The company continues to expand its mask portfolio through product innovation and targeted initiatives that support resupply. Solid financial health further adds to the stock’s appeal. Yet, headwinds from macroeconomic pressures and intense competition may present operational risks for Resmed.
Over the past year, this Zacks Rank #3 (Hold) stock has dropped 23.6% compared with the 29.6% decline of the industry and the S&P 500 Composite’s 25.9% growth.
The renowned medical device company has a market capitalization of $28.44 billion. RMD has an earnings yield of 5.7% compared with the industry’s yield of 3.2%. RMD’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 3.26%.
Let’s delve deeper.
Upsides for RMD StockStrategic Pacts to Boost Residential Care Software Business: The Residential Care Software business remains a key synergistic enabler of Resmed’s Sleep and Breathing Health franchise. The company has historically used strategic buyouts to expand its SaaS footprint, including MEDIFOX DAN in 2022 to enter Germany. In 2018, RMD acquired HEALTHCAREfirst, while the addition of MatrixCare broadened its exposure to skilled nursing and senior living.
Image Source: Zacks Investment Research
In 2016, Resmed acquired Brightree to strengthen its connected healthcare software capabilities. The segment continues to show steady underlying demand in select verticals. In the third quarter of fiscal 2026, Residential Care Software revenues increased 4% on a constant-currency basis, driven by growth in the MEDIFOX DAN, Home and Hospice, and HME verticals, partially offset by weaker performance in Senior Living and Long-Term Care.
Mask Innovation and Resupply: Resmed has been a consistent innovator in small nasal, nasal pillows and full-face masks, improving patient comfort while reducing size and weight. The company continues to broaden its AirFit and AirTouch platforms and launch new designs that address fit, leak and adherence — all critical to long-term therapy usage.
Resmed also remains focused on expanding the mask portfolio with new platforms and driving mask resupply through education, awareness and execution across provider and direct-to-consumer channels. This resupply focus supports recurring revenues and helps the company retain patients as they move through the care pathway. In the third quarter of fiscal 2026, Americas masks and other sales increased 14%, reflecting continued growth in both the mask portfolio and resupply and incremental revenues from VirtuOx, which ResMed acquired in the fourth quarter of fiscal 2025.
Financial Flexibility: Resmed exited the third quarter of fiscal 2026 with $1.66 billion in cash and cash equivalents while maintaining a modest leverage profile. Short-term debt was $260 million, and long-term debt was $404 million at quarter-end. The company’s debt-to-capital ratio improved 0.1% sequentially to 5.9%, reflecting relatively contained balance sheet risk compared with many med-tech peers.
What Ails Resmed?Macroeconomic Sensitivity: Resmed remains exposed to macroeconomic conditions, geopolitical instability, and the impact of tariffs and trade actions on its suppliers and input costs. These factors can weigh on demand, influence pricing and raise operating costs through higher freight, labor or component expenses, while currency volatility can also affect reported results.
Competitive Landscape: The market for sleep-disordered breathing (SDB) is highly competitive on product price, features, reliability and supply performance. The disparity between Resmed’s resources and those of some competitors can widen as the healthcare industry consolidates, and large providers and payers increase purchasing leverage. Certain competitors are affiliated with customers, which can make it harder for Resmed to defend its share in specific channels. Competition can intensify as supply availability improves and providers reassess purchasing decisions, which can lead to pricing pressure in devices, masks and accessories, and can increase the cost of retaining accounts.
RMD Stock’s Estimate TrendThe Zacks Consensus Estimate for RMD’s fiscal 2026 earnings per share (EPS) has improved 0.4% to $11.13 in the past 60 days.
The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $5.65 billion, up 9.8% from the year-ago reported figure.
Key PicksSome better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Align Technology (ALGN - Free Report) and Integra LifeSciences (IART - Free Report) .
Globus Medical has an earnings yield of 5.9% compared to the industry’s negative 3.2% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 26.3%. GMED shares have rallied 27.4% against the industry’s 6% fall over the past year.
GMED sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology, sporting a Zacks Rank #1, has an estimated long-term earnings growth rate of 10.3% compared with the industry’s 9.6% growth. Shares of the company have dropped 8.5% against the industry’s 6.4% rise. ALGN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 7.8%.
Integra LifeSciences, carrying a Zacks Rank #2 (Buy), has an earnings yield of 14.2% against the industry’s negative 3.2% yield. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 16.7%. IART shares have rallied 21.2% against the industry’s 5.9% decline over the past year.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
