Analysts Maintain Bull Case On ResMed Despite Competition Concerns

Core Insights - ResMed Inc reported second-quarter fiscal 2026 adjusted earnings of $2.81, exceeding the consensus estimate of $2.72 [1] - Quarterly sales rose 11% year over year to $1.42 billion, surpassing the consensus estimate of $1.396 billion [1] - Sales increased 9% on a constant currency basis, driven by higher demand for sleep devices, masks, and accessories [1] - Residential Care Software revenue grew by 5% on a constant currency basis [1] Product Development - In December 2025, the FDA cleared ResMed's Personalized Therapy Comfort Settings (PTCS) for marketing as Smart Comfort, the first AI-enabled medical device for obstructive sleep apnea patients [2] - Smart Comfort is set to launch in early 2026 in a limited U.S. beta version for new users of the myAir app, with a broader rollout planned later in 2026 [3] Financial Performance - Gross margin increased by 320 basis points to 61.8%, driven by manufacturing and logistics efficiencies [3] - Adjusted gross margin rose by 310 basis points to 62.3% [3] - Adjusted operating income increased 19% to $517.2 million [4] Future Outlook - ResMed anticipates revenue growth at a high single-digit rate over the next five years, with earnings expected to outpace revenue growth [5] Analyst Reactions - Analysts from William Blair support the bull thesis for ResMed, projecting strong double-digit EPS growth of +15% this year [6] - Stifel raised the price forecast from $260 to $265, while Wells Fargo increased it from $265 to $270, and Piper Sandler from $270 to $275 [7] - ResMed shares were down 2.33% at $251.62 as of the last check on Friday [7]