ResMed: Digital Health Drives Q2 Growth

Core Insights - ResMed reported strong fiscal Q2 2025 earnings, exceeding analyst expectations with adjusted EPS of $2.43 and revenue of $1.282 billion [1][3] - The growth was driven by high demand for sleep-related products and advancements in digital health solutions [2][7] Financial Performance - Adjusted EPS increased by 29.3% year-over-year from $1.88 to $2.43 [3] - Revenue rose by 10.2% year-over-year from $1.163 billion to $1.282 billion [3] - Adjusted gross margin improved by 230 basis points to 59.2% [3][9] - Adjusted net income reached $358.3 million, up 29.2% from $277.3 million [3] - Income from operations increased by 52% to $417.2 million [3] Business Segments - The Sleep and Breathing Health segment generated $1.13 billion in revenue, an 11% increase year-over-year [8] - The Residential Care Software segment saw an 8% revenue increase due to the adoption of digital solutions [8] Strategic Focus - ResMed emphasizes maintaining technological leadership and expanding digital health offerings, leveraging platforms like AirView for remote patient monitoring [5][6] - The company is focused on expanding its digital health technologies and geographic presence, particularly in high-growth regions like China and South Korea [6][13] Innovation and R&D - ResMed continues to invest in innovation, launching new products like the AirTouch N30i mask to enhance patient comfort [10] - Approximately 19% of the workforce is engaged in R&D, contributing to the company's innovative edge [10] Future Outlook - Management remains optimistic about future growth, aiming to expand SaaS and digital health applications [12] - The strategic vision includes leveraging trends such as AI and machine learning to enhance product offerings and operational insights [12][13]