Financial Performance - Q1 FY26 - Revenue increased to $13356 million from $12245 million in Q1 FY25[34], representing an increase of approximately 9% - GAAP gross margin increased from 586% in Q1 FY25 to 615% in Q1 FY26[37] - Non-GAAP gross margin increased from 592% in Q1 FY25 to 620% in Q1 FY26[37] - GAAP operating income increased from $3873 million in Q1 FY25 to $4465 million in Q1 FY26[38] - Non-GAAP operating income increased from $4064 million in Q1 FY25 to $4821 million in Q1 FY26[38] - GAAP EPS increased from $211 in Q1 FY25 to $237 in Q1 FY26[40] - Non-GAAP EPS increased from $220 in Q1 FY25 to $255 in Q1 FY26[40] Business Segments & Regions - LTM 1Q26 - Devices accounted for 52% of revenue, Masks and Other for 36%, and RCS for 12%[8] - U S, Canada, & Latin America accounted for 58% of revenue, Europe, Asia, & Other for 30%, and RCS (U S & Germany) for 12%[10] Financial Strength - Free cash flow totaled approximately $18 billion for LTM Q1 FY26[50], up approximately 31% year-over-year[50] - The company has a net cash position of $715 million as of Q1 FY26[50]

Financial Performance - Revenue for the first quarter of fiscal year 2026 increased by 9% year-over-year to $1.335 billion, with an 8% increase on a constant currency basis[5] - Diluted earnings per share rose by 12% to $2.37, while non-GAAP diluted earnings per share increased by 16% to $2.55[12] - Income from operations increased by 15% to $446.5 million, with non-GAAP income from operations up 19% to $482.1 million[5] - Net income for the three months ended September 30, 2025, was $348,536,000, an increase of 12% from $311,355,000 in the same period of 2024[21] - Total revenue for the three months ended September 30, 2025, was $1,335,582,000, representing a 9% increase from $1,224,509,000 in 2024[23] - Non-GAAP diluted earnings per share increased to $2.55 in Q3 2025, compared to $2.20 in Q3 2024[25] Cash Flow and Financial Position - Operating cash flow for the quarter was $457 million, reflecting strong financial performance[12] - Total cash and cash equivalents at the end of the period increased to $1,383,848,000 from $426,361,000 at the end of the same period in 2024[21] - Cash flows from operating activities for Q3 2025 were $457,321,000, up from $325,538,000 in Q3 2024[21] - The company reported a net cash used in investing activities of $(52,578,000) for Q3 2025, compared to $2,146,000 in the same period of 2024[21] - The company’s total cash outflow from financing activities was $(230,274,000) in Q3 2025, compared to $(150,757,000) in Q3 2024[21] Market Performance - Revenue in the U.S., Canada, and Latin America grew by 10%, while revenue in Europe, Asia, and other markets increased by 6% on a constant currency basis[8] - Revenue from devices in the U.S., Canada, and Latin America was $413.4 million, an 8% increase from $384.5 million in the prior year[28] - Total revenue from masks and other products in the same region rose by 12% to $361.3 million from $322.8 million[28] Strategic Initiatives - The company declared a quarterly cash dividend of $0.60 per share, payable on December 18, 2025[10] - Resmed recorded $16 million in restructuring-related charges due to workforce planning activities aligned with its 2030 strategic priorities[8] - The company launched the Sleep Institute to promote independent research and elevate sleep health as a public health priority[12] - Resmed received dual Red Dot Product Design 2025 awards for the AirTouch N30i, highlighting its commitment to patient-centered innovation[12] Margins and Efficiency - Non-GAAP gross margin expanded by 280 basis points to 62.0%, driven by manufacturing efficiencies and component cost improvements[5] - GAAP gross margin improved to 61.5% in Q3 2025, up from 58.6% in Q3 2024[23]

Core Insights - Resmed Inc. reported a strong start to fiscal year 2026, with a 9% year-over-year revenue growth and significant improvements in gross margins and earnings per share [2][3][5] Financial Performance - Revenue for the quarter ended September 30, 2025, was $1,335.6 million, up from $1,224.5 million in the same quarter of 2024, reflecting a 9% increase [4][5][21] - Non-GAAP gross margin improved by 280 basis points to 62.0%, while GAAP gross margin increased by 290 basis points to 61.5% [5][21] - Non-GAAP diluted earnings per share rose by 16% to $2.55, compared to $2.20 in the prior year [5][19] Operational Highlights - Income from operations increased by 15% to $446.5 million, with non-GAAP income from operations rising by 19% to $482.1 million [5][19] - Operating cash flow for the quarter was $457 million, indicating strong cash generation capabilities [5][17] - The company declared a quarterly cash dividend of $0.60 per share, payable on December 18, 2025 [8] Market and Product Insights - Revenue growth was driven by increased demand for sleep devices, masks, and accessories, with U.S., Canada, and Latin America revenue growing by 10% [9][21] - The company launched the Sleep Institute to promote sleep health as a public health priority and published a study projecting a significant increase in obstructive sleep apnea cases by 2050 [9][11] Strategic Initiatives - Resmed is committed to ongoing operational excellence and strategic investments in innovation to ensure sustainable growth [4][9] - The company recorded $16 million in restructuring-related charges as part of workforce planning aligned with its 2030 strategic priorities [9]

Core Insights - Analysts project ResMed (RMD) will report quarterly earnings of $2.49 per share, reflecting a 13.2% year-over-year increase, with revenues expected to reach $1.32 billion, an 8.1% increase from the same quarter last year [1]. Earnings Estimates - There has been a downward revision of 0.1% in the consensus EPS estimate over the last 30 days, indicating a collective reconsideration by analysts [2]. - Revisions to earnings projections are crucial for predicting investor behavior and are strongly linked to short-term stock price performance [3]. Revenue Projections - The consensus estimate for 'Global revenue- Total Sleep and Breathing Health' is $1.15 billion, representing an 8.1% increase year-over-year [5]. - 'Global revenue- Residential Care Software' is forecasted to reach $170.38 million, indicating an 8.7% increase from the prior year [5]. - 'Global revenue- Total Devices' is estimated at $666.36 million, reflecting a 6.5% year-over-year change [5]. Regional Revenue Insights - 'Global revenue- Total Masks and other' is projected at $484.35 million, showing a 9.6% increase from the previous year [6]. - 'U.S., Canada, and Latin America- Devices' is expected to reach $409.20 million, with a year-over-year change of 6.4% [6]. - 'U.S., Canada, and Latin America- Masks and other' is likely to be $355.76 million, indicating a 10.2% increase year-over-year [7]. - 'Combined Europe, Asia, and other markets- Total' is estimated at $385.76 million, reflecting a 7% year-over-year change [7]. - 'Combined Europe, Asia, and other markets- Devices' is projected at $257.17 million, indicating a 6.6% increase from the prior year [8]. - 'Combined Europe, Asia, and other markets- Masks and other' is expected to reach $128.59 million, suggesting a 7.9% year-over-year change [8]. - 'U.S., Canada, and Latin America- Total' is projected to be $764.96 million, reflecting an 8.2% increase year-over-year [9]. Stock Performance - Over the past month, shares of ResMed have returned -6.3%, contrasting with the Zacks S&P 500 composite's +3.8% change [9]. - ResMed currently holds a Zacks Rank 3 (Hold), indicating that its performance may align with the overall market in the near future [9].

Core Thesis - ResMed Inc. has established itself as a durable medtech franchise, despite its stock lagging behind the S&P 500 due to investor focus on AI and mega-cap tech [2][4] Financial Performance - As of October 13th, ResMed's share price was $273.01, with trailing and forward P/E ratios of 29.09 and 25.91 respectively [1] - The company has a ten-year median ROIC of 18%, a debt-to-equity ratio of 14%, and an earnings yield around 4%, indicating strong financial discipline [2] - Revenue has compounded at approximately 12% historically, significantly outperforming medtech peers [3] Market Position - ResMed commands a 60% market share in sleep therapy devices, with a substantial total addressable market of over two billion people globally suffering from sleep apnea, most of whom are undiagnosed [3] - Recent easing of supply chain constraints and Philips' recall issues have allowed ResMed to consolidate market share [4] Growth Prospects - Management anticipates mid-teens revenue growth and potential margin recovery, highlighting the company's operational resilience [4] - The current stock price of $272 is seen as a modest discount compared to an intrinsic valuation of approximately $290, making it an attractive option for patient investors [4] Investment Sentiment - ResMed's stock has appreciated roughly 22% since a previous bullish thesis in April 2025, with structural growth remaining strong [5] - While ResMed is not among the 30 most popular stocks among hedge funds, interest has increased from 34 to 38 hedge fund portfolios [6]

Market Overview - Wall Street experienced a decline on October 9, 2025, as major stock indices fell due to investor uncertainty regarding AI-led growth and recession fears, despite Delta Air Lines exceeding expectations [1][10] Investment Recommendations - Recommended low-leverage stocks include ResMed Inc. (RMD), Safran (SAFRY), Pentair (PNR), Casey's General Stores (CASY), and Leonardo DRS, Inc. (DRS), which are considered safer options during market volatility [2][10] Significance of Low-Leverage Stocks - Low-leverage stocks are preferred as they are less risky, especially in volatile markets, and are characterized by lower debt-to-equity ratios [4][6] Debt-to-Equity Ratio Analysis - The debt-to-equity ratio is a key metric indicating a company's financial risk, with lower ratios reflecting better solvency [7] Company Profiles - **ResMed**: Focuses on sleep-disordered breathing and respiratory disorders, with a projected revenue increase of 7.8% for 2025 and a long-term earnings growth rate of 13.8% [15][16] - **Safran**: Engaged in aerospace and defense, with a sales growth estimate of 36.3% for 2025, supported by a recent contract with Singapore Airlines [17][18] - **Pentair**: Provides sustainable water solutions, with a sales growth estimate of 1.5% for 2025 following a strategic acquisition for $290 million [19][20] - **Casey's General Stores**: Reports a 4.3% increase in same-store sales and a 19.5% growth in earnings, with a sales improvement estimate of 10.6% for fiscal 2026 [20][21] - **Leonardo DRS**: Develops advanced defense products, with a sales growth estimate of 10.9% for 2025 and a long-term earnings growth rate of 17.3% [22][23]

Core Viewpoint - Resmed plans to release its financial and operational results for Q1 of fiscal year 2026 on October 30, 2025, after market close, followed by a management webcast to discuss the results and other relevant information [1]. Group 1: Earnings Release Details - The earnings release will occur on October 30, 2025, after the New York Stock Exchange closes [1]. - A webcast will be hosted by Resmed management to discuss the results and other forward-looking information [1]. - A replay of the earnings webcast will be available on Resmed's investor relations website approximately two hours after the live event [2]. Group 2: Company Overview - Resmed is dedicated to creating innovative health technologies aimed at improving the quality of life for individuals in 140 countries [2]. - The company focuses on AI-powered digital health solutions, cloud-connected devices, and intelligent software to enhance home healthcare [2]. - Resmed envisions a future where individuals can achieve better sleep and breathing through personalized care delivered at home [2].

Core Insights - ResMed Inc. is set to announce its fiscal Q1 earnings for 2026, with a current market cap of $41.1 billion [1] Financial Performance - Analysts anticipate a profit of $2.49 per share for the upcoming quarter, reflecting a 13.2% increase from $2.20 per share in the same quarter last year [2] - For fiscal 2026, expected profit is projected at $10.80 per share, a 13.1% rise from $9.55 per share in fiscal 2025, with further growth to $11.64 per share in fiscal 2027 [3] Stock Performance - ResMed's shares have increased by 20.3% over the past 52 weeks, outperforming the S&P 500 Index's 17.2% gain and the Health Care Select Sector SPDR Fund's 5% decline [4] Recent Developments - The company reported better-than-expected Q4 results, with revenue growing 10.2% year-over-year to $1.3 billion, exceeding consensus expectations by 2.3% [5] - Adjusted EPS for Q4 was $2.55, a 22.6% increase from the previous year, surpassing analyst estimates by 3.7% [5] Analyst Ratings - Wall Street analysts maintain a "Moderate Buy" rating for ResMed, with 17 analysts providing coverage: 8 recommend "Strong Buy," 2 suggest "Moderate Buy," 6 indicate "Hold," and 1 advises "Strong Sell" [6] - The mean price target for ResMed is $290.92, indicating a potential upside of 3.4% from current levels [6]

Group 1: Company Overview - Mineral Resources Limited (MIN) is a diversified Australian mining company focused on lithium and iron ore extraction in Western Australia [1][2] - ResMed (RMD) specializes in medical equipment, particularly cloud-connectable CPAP machines for treating obstructive sleep apnea, and is headquartered in San Diego, California [3][4] Group 2: Business Operations - MIN provides mining and engineering services through its subsidiary, CSI Mining Services, which operates across Western Australia, Queensland, and the Northern Territory [2] - ResMed operates two main business units: Sleep and Respiratory Care, and Software as a Service (SaaS), offering both medical equipment and software solutions for out-of-hospital care [4][5] Group 3: Financial Performance - MIN has experienced a revenue growth rate of 12.2% per year since 2021, reaching $5,278 million in FY24, but net profit has decreased from $1,270 million to $125 million, with a reported ROE of 3.2% [6][7] - RMD has seen a revenue growth rate of 13.6% per year since 2021, achieving $4,685 million in FY24, with net profit increasing from $475 million to $1,021 million, and a reported ROE of 22.7% [7]

Company Overview - ResMed is a global leader in cloud-connected and digital health, focusing on three verticals: Sleep Health, Breathing Health, and Health Care Technology delivered in the home [3] - The company has sold 13 million 100% cloud-connectable medical devices across 140 countries, emphasizing the significance of the bedside table as a critical location for health technology [4] Data and Achievements - ResMed has accumulated 23 billion nights of respiratory medical data from its devices, showcasing its extensive reach and data collection capabilities in the healthcare sector [4] - Founded in 1989, ResMed has established itself as a major player in the healthcare technology market [4]