ResMed Inc. (RMD) AI Stock Analysis

ResMed Inc. develops, manufactures, and distributes medical devices and cloud-based software applications for healthcare markets worldwide. The company operates through two segments: Sleep and Respiratory Care, and Software as a Service. Its hardware portfolio features ventilation devices, diagnostic tools, and mask systems for hospitals and homes. ResMed also provides digital health platforms such as AirView, myAir, and U-Sleep for remote patient monitoring, therapy management, and compliance tracking. Through out-of-hospital software solutions including Brightree and MatrixCare, ResMed serves home medical equipment providers, pharmacies, and senior living communities across approximately 140 countries.

ResMed grew annual revenue from $3.58B in FY2022 to $5.65B in FY2026, reflecting a 5-year revenue CAGR of 12.1%. Gross margin expanded from 56.6% in FY2022 to 61.1% in FY2026, while operating margin widened from 28.0% to 33.8% over the same period. Net income climbed from $779.4M in FY2022 to $1.52B in FY2026, with EPS rising from $5.79 to $11.17. For the latest quarter ended June 30, 2026, quarterly revenue increased 8.6% year-over-year, and quarterly earnings grew 2.4% year-over-year.

As of June 30, 2026, ResMed held $1.47B in cash and short-term investments against total debt of $825.9M, resulting in net cash of $643.3M. The company reported a current ratio of 3.10 and a debt-to-equity ratio of 0.13 on shareholders' equity of $6.59B. In FY2026, operating cash flow reached $1.81B and free cash flow stood at $1.65B. ResMed allocated capital toward $156.3M in capital expenditures, $700.0M in share buybacks, and $349.7M in cash dividends.

ResMed closed at $238.97 on October 16, 2026, trading at a trailing P/E of 22.9x, which is lower than the 28.9x median of its S&P 500 Healthcare peers. Its forward P/E of 18.5x and price-to-sales multiple of 5.9x sit above the peer medians of 16.5x and 3.4x, respectively. The company has an EV to EBITDA ratio of 15.0x compared to the peer median of 15.7x. Over the past year, ResMed shares declined 10.6%, lagging the 16.8% return for the S&P 500.

ResMed pays a quarterly dividend with an annualized forward payout of $2.64 per share, resulting in a dividend yield of 1.10%. The company has paid consecutive dividends for 15 years, achieving a 5-year annualized dividend growth rate of 7.7%. Its payout ratio stands at 22.0%, and the last ex-dividend date was August 20, 2026.

Wall Street analysts hold 7 Strong Buy, 2 Buy, 10 Hold, 0 Sell, and 1 Strong Sell ratings on ResMed. The mean price target of $251.99 represents a 5.4% premium over the last close of $238.97. For the fiscal year ending June 30, 2027, consensus estimates project EPS of $12.08 and revenue of $5.80B. The company beat EPS expectations in all 4 of the trailing quarters, with its next earnings date scheduled for October 29, 2026.

This page is an AI-written research summary of ResMed Inc. (RMD). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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