ResMed (NYSE:RMD) Releases Earnings Results, Beats Expectations By $0.24 EPS

ResMed (NYSE:RMD) announced its quarterly earnings data on Thursday. The medical equipment provider reported $2.91 EPS for the quarter, beating the consensus estimate of $2.67 by $0.24, FiscalAI reports. ResMed had a net margin of 27.79% and a return on equity of 25.90%. The firm had revenue of $1.41 billion for the quarter, compared to the consensus estimate of $1.39 billion. During the same period last year, the firm earned $2.55 EPS. The company’s revenue was up 5.9% on a year-over-year basis.

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

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

ResMed Price Performance

RMD stock opened at $230.76 on Friday. ResMed has a one year low of $180.26 and a one year high of $277.67. The company’s fifty day moving average price is $231.87 and its 200-day moving average price is $225.43. The company has a debt-to-equity ratio of 0.06, a quick ratio of 2.42 and a current ratio of 3.10. The company has a market capitalization of $32.45 billion, a PE ratio of 21.02, a price-to-earnings-growth ratio of 1.41 and a beta of 0.75.

ResMed Announces Dividend

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

Analyst Ratings Changes

Several research analysts recently weighed in on the stock. Royal Bank Of Canada upped their target price on shares of ResMed from $262.00 to $288.00 and gave the stock an “outperform” rating in a report on Friday. Mizuho set a $270.00 price target on ResMed in a research note on Friday. Piper Sandler decreased their price target on ResMed from $233.00 to $225.00 and set a “neutral” rating on the stock in a report on Friday, August 7th. Citigroup boosted their price objective on ResMed from $240.00 to $270.00 and gave the company a “neutral” rating in a research report on Friday. Finally, KeyCorp boosted their price objective on ResMed from $267.00 to $277.00 and gave the company an “overweight” rating in a research report on Friday. Seven equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $253.69.

Insider Buying and Selling

In other ResMed news, General Counsel Michael J. Rider sold 400 shares of ResMed stock in a transaction on Friday, October 23rd. The shares were sold at an average price of $255.00, for a total value of $102,000.00. Following the sale, the general counsel directly owned 12,318 shares in the company, valued at approximately $3,141,090. The trade was a 3.15% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Michael J. Farrell sold 4,991 shares of the business’s stock in a transaction on Friday, August 7th. The stock was sold at an average price of $205.69, for a total transaction of $1,026,598.79. Following the completion of the sale, the chief executive officer owned 466,256 shares in the company, valued at approximately $95,904,196.64. The trade was a 1.06% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 24,343 shares of company stock worth $5,396,098. 0.58% of the stock is owned by insiders.

Key Stories Impacting ResMed

Here are the key news stories impacting ResMed this week:

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

About ResMed

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

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