Summary of ResMed's Conference Call Company Overview - **Company**: ResMed - **Market Cap**: Approximately $37 billion [2] - **Revenue**: $5.3 billion in the trailing 12 months with gross margins around 59-62% and net operating profit margins above 30% [3][30] - **Business Segments**: - Sleep health and breathing health solutions - Software business contributing 12% of revenue [3][4] - **Geographic Distribution**: 58% of revenue from the US, Canada, and Latin America; strong presence in Europe and Asia [3] Investment Opportunity - **Target Markets**: Large addressable markets including sleep apnea, insomnia, and chronic obstructive pulmonary disease [4][5] - **Megatrends**: - Integration of sleep apnea detection in wearables by Big Tech (e.g., Apple, Samsung) [5][44] - Increased patient flow into healthcare due to new GLP-1 drugs [6][22] - **Innovation and Operating Excellence**: Strong cash flow generation of $1.8 billion in the last 12 months, with a focus on R&D, share buybacks, and acquisitions [6][30] Product Innovations - **New Products**: - AirTouch N30i and AirTouch F30i masks with fabric technology for improved comfort [12][53] - AI-enabled medical devices to enhance patient adherence to therapy [13][15] - **Digital Health Initiatives**: Launch of a digital sleep health concierge named Dawn to assist patients in managing their sleep health [16] Market Dynamics - **Competitive Landscape**: - ResMed maintains a strong lead over competitors in the US and globally, with a focus on innovation and patient adherence [35][36] - A major competitor has returned to the market, but ResMed has continued to grow its market share [37] - **Regulatory Environment**: - CPAP therapy excluded from the latest round of competitive bidding, which is seen as a positive for the industry [38][39] Patient Engagement and Education - **Primary Care Physician Education**: - 60,000 CME courses on sleep apnea have been downloaded, with 77% of physicians indicating they will change their practice protocols [26] - **Patient Adherence**: - Patients on GLP-1 medications show higher adherence rates to CPAP therapy, with a 10.8% higher probability of starting CPAP treatment [23][50] Financial Performance - **Capital Distribution**: Over $3.7 billion distributed in the last three years, with a focus on R&D and shareholder returns [30][31] - **Share Repurchases**: Plans for at least $600 million in share repurchases in fiscal year 2026 [31] Future Outlook - **Growth Projections**: Anticipated high single-digit growth with continued leverage on the P&L [33] - **Manufacturing Expansion**: New facilities in the US to support increased manufacturing capacity, aligning with the "Made in America" initiative [29] Conclusion - ResMed is positioned as a compelling investment opportunity due to its strong market presence, innovative product offerings, and strategic focus on patient engagement and education [34]

Financial Performance & Growth - ResMed's Last Twelve Months (LTM) Q1 2026 revenue reached $5.3 billion[10] - The company's LTM Q1 2026 GAAP operating margin was 33%, and the non-GAAP operating margin was 35%[10] - Free cash flow for LTM Q1 FY26 was approximately $1.8 billion, representing a 31% year-over-year growth[16] - ResMed has a strong balance sheet with a net cash position of $715 million as of Q1 FY26[16] - Revenue grew at a Compound Annual Growth Rate (CAGR) of 12% (GAAP) and 14% (Non-GAAP) from LTM Q1 2021 to LTM Q1 2026[80] - EPS grew at a CAGR of 16% (GAAP) and 14% (Non-GAAP) from LTM Q1 2021 to LTM Q1 2026[80] Market & Strategy - ResMed targets a large and underpenetrated market, including over 1 billion people with sleep apnea and 480 million with COPD[17] - Less than 20% of the Obstructive Sleep Apnea (OSA) market is diagnosed or treated in the U.S., and less than 10% in the rest of the world[18] - ResMed invests 6% - 7% of revenue in Research and Development (R&D)[75] - The company anticipates high single-digit percentage revenue growth with earnings growth exceeding revenue growth, underpinned by its 2030 strategy[83]

Core Viewpoint - Resmed is set to release its financial and operational results for the second quarter of fiscal year 2026 on January 29, 2026, after market close, followed by a management webcast to discuss the results and other relevant information [1]. Company Overview - Resmed is dedicated to creating life-changing health technologies, focusing on innovative solutions that empower individuals in 140 countries to lead healthier lives [2]. - The company utilizes AI-powered digital health solutions, cloud-connected devices, and intelligent software to enhance home healthcare, making it more personalized and effective [2]. - Resmed envisions a future where everyone can achieve their full potential through improved sleep and breathing, with care provided in their own homes [2]. Earnings Webcast Details - The earnings webcast will take place on January 29, 2026, at 1:30 p.m. PST / 4:30 p.m. EST, with international times noted for London and Sydney [3]. - A replay of the webcast will be available on Resmed's investor relations website approximately two hours after the live event, with a phone replay accessible from January 29, 2026, until February 12, 2026 [2].

Core Insights - Resmed Inc. (RMD) is experiencing strong demand for its AirSense 10 and AirSense 11 sleep devices, with promising international market expansion supported by stable solvency [1][9] - The stock has increased by 5.1% over the past year, outperforming the industry which declined by 3.2%, while the S&P 500 rose by 19.5% during the same period [1] Company Performance - Resmed has a market capitalization of $36.23 billion and an earnings yield of 4.4%, which is favorable compared to the industry's flat yield [2] - The company has consistently surpassed earnings estimates in the last four quarters, with an average surprise of 3.04% [2] Growth Opportunities - The company is focusing on expanding into high-growth international markets such as China, South Korea, India, Brazil, and Eastern Europe, aiming to enhance patient quality of life and reduce healthcare costs [3] - In Q1 FY26, combined sales in the U.S., Canada, Latin America, Europe, and Asia increased by 10% [4] - Global device sales rose by 9% in Q1 FY26, with an 8% increase in the U.S., Canada, and Latin America, and an 11% increase in Europe, Asia, and other markets [5][9] - The AirSense 11 platform is being launched in more countries, including India, and a new version for sleep lab environments has been introduced [6] Financial Health - As of September 30, 2025, Resmed had a long-term debt of $408.7 million, significantly lower than its cash and cash equivalents of $1.38 billion, with a total debt-to-capital ratio of 6.3% [7][9] Challenges - Resmed's operations are affected by macroeconomic conditions, geopolitical instability, and supply chain constraints, which may lead to increased costs and impact profitability [10] - SG&A expenses rose by 9.5% year-over-year in the fiscal first quarter [10] Earnings Estimates - The Zacks Consensus Estimate for RMD's fiscal 2026 earnings per share (EPS) has increased by 0.2% to $10.84, with revenue estimates at $5.58 billion, reflecting an 8.4% increase from the previous year [11]

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Market Overview - The three major U.S. stock indices experienced a decline on December 29, 2025, primarily driven by a drop in large technology shares such as Oracle, Nvidia, and Palantir Technologies, which dampened expectations for a "Santa Claus rally" [1][10] Investment Strategy - Investors are advised to favor low-leverage stocks over high-growth technology stocks due to the recent market sell-off, with companies like Engie SA, Hamilton Insurance Group, Hecla Mining, Resmed, and Siemens Energy being recommended as safer options [2][10] - Low-leverage stocks are characterized by lower financial risk, making them more stable during market volatility [6][9] Low-Leverage Stocks - Leverage refers to the use of borrowed capital for business operations, but excessive reliance on debt can lead to significant losses, especially during economic downturns [4][5] - The debt-to-equity ratio is a key metric for assessing a company's financial risk, with a lower ratio indicating better solvency [7] Company Highlights - **Engie SA (ENGIY)**: Engie operates in the power and energy services sector and recently announced the full commercial operation of its largest onshore wind project, which is expected to enhance its position in the wind energy market. The Zacks Consensus Estimate for 2025 earnings indicates a 28.5% improvement from the previous year [14] - **Hamilton Insurance Group (HG)**: The company reported a 16.5% increase in net premiums and significant improvement in operating earnings, with a Zacks Consensus Estimate suggesting a 20.8% revenue increase for 2025 [15][16] - **Hecla Mining (HL)**: As a leading silver producer, Hecla announced progress on its Polaris Exploration Project, with a Zacks Consensus Estimate indicating a 42.1% revenue increase and a 281.8% earnings improvement for 2025 [17][18] - **Resmed (RMD)**: Resmed received FDA clearance for an AI-enabled medical device aimed at improving CPAP therapy adherence, with a projected 8.4% sales growth for fiscal 2026 [19][20] - **Siemens Energy (SMNEY)**: The company focuses on renewable energy and plans to repurchase shares worth approximately $6.9 billion, with a Zacks Consensus Estimate indicating a 16.9% revenue increase and a 158.2% earnings improvement for fiscal 2026 [21][22]

Core Insights - Boston Scientific (BSX) and Resmed (RMD) are significant players in the global medical devices market, with market capitalizations of $142.4 billion and $35.72 billion, respectively [2] - The medical devices market is projected to grow at nearly 7% CAGR from 2025 to 2030, prompting an evaluation of investment opportunities in both companies [3] Boston Scientific Overview - Boston Scientific is experiencing strong performance in its Cardiovascular and MedSurg segments, with expectations for above-market growth through 2025-2026 [4] - The WATCHMAN device is a leading product in percutaneous left atrial appendage closure (LAAC), with a projected market expansion of approximately 20% in the coming years [5] - The company is gaining market share in electrophysiology, particularly with the FARAPULSE Pulsed Field Ablation System, which received FDA approval for expanded use in July 2025 [6] - Recent acquisitions, including Intera Oncology and Elutia's BioEnvelope business, support Boston Scientific's growth strategy and expansion into high-growth areas [7] - Emerging markets accounted for 15% of Boston Scientific's consolidated net sales in the first nine months of 2025, indicating significant long-term growth potential [8] Resmed Overview - Resmed is witnessing strong demand for its mask portfolio, including the AirFit and AirTouch ranges, and is focusing on direct-to-consumer markets in regions like China and India [9] - The company has launched new variants of its AirTouch F30i mask and continues to see strong sales from its AirSense device platforms [9] - Resmed is advancing AI integration in its digital health products, including the launch of the personal sleep health digital assistant, Dawn, in the U.S. [11] - The company is optimizing operations to improve gross margins and has made acquisitions like Somnoware and Ectosense to support its 2030 growth strategy [12] Financial Estimates and Performance - The Zacks Consensus Estimate for Boston Scientific's 2025 EPS indicates a year-over-year increase of 21.1% to $3.04, with a slight upward revision in the last 60 days [13] - Resmed's fiscal 2026 EPS consensus estimate of $10.84 reflects a 13.5% improvement over 2025, with a 3.3% increase in estimates over the past 60 days [15] - In the last 12 months, BSX shares have increased by 6.8%, while RMD shares have risen by 5.8% [16] Investment Considerations - Boston Scientific is highlighted for its divisional strength, ongoing momentum with the WATCHMAN device, and strategic acquisitions in high-growth markets [18] - Resmed remains focused on innovation and strong demand for its products, but Boston Scientific is currently viewed as the more attractive investment option based on recent performance [18] - Boston Scientific holds a Zacks Rank 2 (Buy), while Resmed has a Zacks Rank 3 (Hold) [20]

Core Insights - The article highlights significant structural changes in retirement and healthcare financing in the U.S. by 2026, which will impact consumer payment methods for care and competition among medical device companies [1] Policy Changes - The IRS has increased Health Savings Account (HSA) contribution limits for 2026 to $4,400 for individuals and $8,750 for families, up from $4,300 and $8,550 in 2025 respectively [2] - The age-55 "catch-up" contribution remains at $1,000, reflecting cost-of-living adjustments aimed at preserving the tax-advantaged nature of HSAs [3] - Medicare Part B premiums are rising to $202.90 per month, an increase of nearly $18 from 2025, with the Part B deductible increasing to $283 [4] Implications of HSA and Medicare Changes - The rising HSA limits make HSAs more attractive for managing out-of-pocket healthcare costs, while higher Medicare premiums may lead to increased enrollment in Medicare plans and ancillary services [5] - HSAs can be used for both current medical costs and qualified medical device expenses, allowing consumers to save more tax-free dollars for durable medical equipment [6] - Higher premiums may increase demand for technologies that improve disease self-management and prevent costly complications, influencing total care costs [7] Companies Positioned to Benefit - DexCom, ResMed, and Masimo are identified as companies likely to benefit from these trends due to their focus on markets where out-of-pocket costs and reimbursement policies significantly affect adoption [8] - DexCom's continuous glucose monitoring (CGM) systems may see increased adoption as higher HSA limits help patients manage diabetes costs [9] - ResMed's devices for sleep and respiratory care align with the aging Medicare demographic and rising out-of-pocket care needs [9] - Masimo's monitoring tools support preventive care, which becomes more relevant as Medicare premiums rise [9] Company-Specific Insights - DexCom is a leader in CGM systems, providing real-time glucose data that aids in insulin delivery and lifestyle management, with a focus on expanding Medicare coverage for CGM devices [10][11] - Higher HSA limits allow diabetes patients to allocate more pre-tax savings for CGM systems, reducing financial barriers to adoption [12] - ResMed specializes in devices for sleep-disordered breathing, with rising premiums incentivizing seniors to use HSAs for optimal therapy devices [15][16] - Masimo develops non-invasive monitoring systems, with increased demand for preventive monitoring as Medicare beneficiaries face higher premiums [18][19]

Company Overview - ResMed is a medical equipment company based in San Diego, California, originally founded in Australia, specializing in cloud-connectable CPAP machines for obstructive sleep apnea treatment [2] - The company operates globally with over 10,000 employees and a presence in more than 140 countries, divided into two main business units: Sleep and Respiratory Care, and Software as a Service (SaaS) [3] - ResMed's products include industry-leading CPAP machines and software for durable medical equipment, focusing on out-of-hospital care [3][4] Market Performance - The ASX:RMD share price has decreased by 2.0% since the start of 2025 [1] - The S&P/ASX200 Healthcare Index has returned -4.53% per year over the last 5 years, contrasting with a 5.51% annual return from the broader ASX 200 [5] Revenue Stability - Healthcare spending is considered essential, leading to stable and consistent revenue streams, often referred to as 'sticky' revenue, which remains resilient during economic downturns [6] - Historical performance indicates that healthcare was the best-performing sector during the Global Financial Crisis (GFC) [6] Growth Potential - Global healthcare spending, particularly in the US, is projected to grow significantly, with estimates of 7% annual growth from 2022 to 2027, reaching US$819 billion [7] - Sub-sectors such as healthcare IT and SaaS are expected to see revenue growth exceeding 15% per year from 2024 to 2030, attracting investor interest [8] Ethical Investment Trends - A Morgan Stanley survey indicates that over half of investors plan to increase their allocation to sustainable investments in 2024, positioning healthcare sectors favorably for attracting new capital [9] Valuation Insights - ResMed shares currently have a price-to-sales ratio of 5.08x, below the 5-year average of 8.70x, suggesting that shares may be undervalued or that sales have increased [11]

Core Viewpoint - Resmed will present at the 44th Annual J.P. Morgan Healthcare Conference on January 12, 2026, highlighting its commitment to innovative health technologies [1]. Company Overview - Resmed (NYSE: RMD, ASX: RMD) develops health technologies aimed at improving the quality of life for individuals in 140 countries [3]. - The company focuses on AI-powered digital health solutions, cloud-connected devices, and intelligent software to enhance home healthcare [3]. - Resmed envisions a future where individuals can achieve better sleep and breathing through personalized care delivered at home [3]. Event Details - The presentation will be made by Mick Farrell, chairman and CEO, and Dr. Carlos Nunez, chief medical officer [1]. - Access to the live audio-only webcast of the event will be available on Resmed's investor relations website, with a replay accessible for 30 days post-event [2].