Center to Create Local Jobs and Strengthen U.S. Healthcare Supply ResilienceSAN DIEGO, Feb. 24, 2026 (GLOBE NEWSWIRE) -- Resmed (NYSE: RMD, ASX: RMD), the leading health technology company focused on sleep, breathing and care delivered in the home, is opening a new distribution center in Greenwood, Indiana. Scheduled to begin operations in 2027, the center will expand Resmed’s U.S. presence and strengthen the company's distribution capacity to better serve patients and providers across North America. The Gr ...

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 [1] - The company has over 10,000 employees and operates in more than 140 countries, with two primary business units: Sleep and Respiratory Care, and Software as a Service (SaaS) [2] Product and Service Offering - The Sleep and Respiratory Care unit provides industry-leading CPAP machines for various patient needs, from those requiring therapy at night to those needing life-support ventilation [2] - The SaaS unit offers software for durable or home medical equipment, facilitating out-of-hospital care [2][3] Financial Performance - ResMed reported an annual revenue of $4,685 million, with a compound annual growth rate (CAGR) of 13.6% over the last three years [5] - The latest reported gross margin for ResMed was 57.4%, indicating strong profitability from core products and services [6] - The company reported a profit of $1,021 million in the last financial year, reflecting a CAGR of 29.1% compared to three years ago when the profit was $475 million [7] Financial Health - ResMed's current net debt is -$624 million, indicating that the company has more cash than debt, which can be seen as a safety buffer [9] - The debt/equity ratio stands at 18.0%, suggesting that ResMed has more equity than debt, indicating lower leverage [10] - The return on equity (ROE) for ResMed was 22.7% in FY24, demonstrating efficient capital allocation and value generation [11] Valuation Insights - ResMed shares currently have a price-to-sales ratio of 5.38x, below the 5-year average of 8.70x, suggesting that shares are trading at a lower valuation compared to historical averages [12]

Core Insights - Resmed Inc. reported adjusted earnings per share (EPS) of $2.81 for Q2 fiscal 2026, reflecting a 15.6% year-over-year increase and surpassing the Zacks Consensus Estimate by 4.59% [2] - The company's total revenue for the quarter reached $1.42 billion, marking an 11% year-over-year growth, also exceeding the Zacks Consensus Estimate by 2.30% [3] Revenue Performance - Revenues from the Sleep and Breathing Health segment increased by 11.6% year over year to $1.26 billion, with Devices revenues at $726.2 million, up 8.5% [5] - The Masks and other category generated $529.7 million, up 16.1% year over year, driven by strong growth in both the U.S. and international markets [6] - The Residential Care Software segment saw a revenue increase of 6.6% year over year, totaling $166.9 million [7] Margin and Profitability - The adjusted gross profit rose 17.3% to $890.5 million, with an adjusted gross margin of 62.6%, reflecting a 340 basis point expansion [8] - The adjusted operating profit for the quarter was $521.2 million, up 19.6% year over year, with an adjusted operating margin of 36.6%, expanding by 263 basis points [10] Financial Position - At the end of Q2 fiscal 2026, Resmed had cash and cash equivalents of $1.42 billion, an increase from $1.38 billion at the end of Q1 [11] - The cumulative net cash provided by operating activities was $797.1 million, compared to $634.2 million in the same period last year [11] - The company paid out $88 million in dividends and repurchased 704,000 shares for $175 million during the quarter [12] Strategic Developments - Resmed received FDA clearance for its Personalized Therapy Comfort Settings, marketed as Smart Comfort, aimed at enhancing CPAP comfort settings and improving patient adherence [15] - The performance of the Residential Care Software segment is bolstered by contributions from the Medifox DAN software vertical, targeting sustainable growth [14]

Company Overview - ResMed is a $37 billion company that positions itself as a "36-year-old startup" in the sleep and breathing health sector [1] - The company is the leading provider in over 140 countries, holding a market share of 50–60% in sleep apnea devices, including CPAP machines and masks [1] Investment Perspective - The company is focused on identifying undervalued stocks with a strong emphasis on balancing risk and reward [1] - There is a belief that the best investment ideas are often the simplest, and a contrarian approach may yield better results [1]

Company Overview - ResMed is a $37 billion company that positions itself as a "36-year-old startup" in the sleep and breathing health sector [1] - The company is the leading provider in over 140 countries, holding a market share of 50–60% in sleep apnea devices, including CPAP machines and masks [1] Investment Perspective - The company is focused on identifying undervalued stocks with a favorable risk-reward profile, emphasizing limited risks and potential for decent to high upside [1] - The belief is that the best investment ideas are often the simplest, with a contrarian approach being favored [1]

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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]

Financial Performance - Net revenue for Sleep and Breathing Health products reached $1,255,938, a 11.5% increase from $1,125,593 in the same quarter last year[11]. - Total net revenue for the six months ended December 31, 2025, was $2,758,390, up 10% from $2,506,598 in the prior year[11]. - Gross profit for the three months ended December 31, 2025, was $878,724, representing a gross margin of approximately 61.8%[11]. - Net income for the three months ended December 31, 2025, was $392,593, a 14% increase compared to $344,622 in the same quarter last year[11]. - Basic earnings per share for the three months ended December 31, 2025, was $2.69, up from $2.35 in the prior year[11]. - Comprehensive income for the three months ended December 31, 2025, was $423,446, significantly higher than $177,887 in the prior year[13]. - Net income for the six months ended December 31, 2025, was $741,129 thousand, an increase from $655,977 thousand in the same period of 2024, representing a growth of 13.0%[21]. - Total revenue for the six months ended December 31, 2025, was $2,758,390 thousand, up from $2,506,598 thousand in 2024, reflecting a year-over-year increase of 10.0%[28]. - Net revenue for the three months ended December 31, 2025 was $1.4 billion, an increase of 11% compared to $1.3 billion for the same period in 2024[125]. - Gross margin improved to 61.8% for the three months ended December 31, 2025, up from 58.6% in the prior year[125]. - Diluted earnings per share increased to $2.68 for the three months ended December 31, 2025, compared to $2.34 for the same period in 2024[125]. Assets and Liabilities - Total assets increased to $8,503,370 as of December 31, 2025, compared to $8,174,391 as of June 30, 2025[8]. - Total liabilities decreased to $2,182,491 from $2,206,532 over the same period[8]. - Retained earnings rose to $6,647,285 as of December 31, 2025, compared to $6,081,490 at the end of June 2025[8]. - Total current liabilities increased to $1,248,114, up from $1,019,120, marking a 22% rise[8]. - Total stockholders' equity increased to $6,320,879, compared to $5,967,859, reflecting a growth of 6%[8]. Cash Flow and Liquidity - Cash and cash equivalents at the end of the period increased to $1,417,069 thousand from $521,944 thousand, showing a significant rise of 171.5%[21]. - The company experienced a net cash provided by operating activities of $797,066 thousand for the six months ended December 31, 2025, compared to $634,161 thousand in 2024, a growth of 25.8%[21]. - Cash provided by operating activities increased to $797.1 million for the six months ended December 31, 2025, up from $634.2 million in 2024, marking a growth of 25.7%[183]. - Total cash and cash equivalents as of December 31, 2025, were $1,417.1 million, compared to $1,209.5 million as of June 30, 2025, indicating an increase of 17.2%[174]. - As of December 31, 2025, the company had $1,500.0 million available for drawdown under the revolving credit facility, contributing to a total liquidity of $2,917.1 million[175]. Research and Development - Research and development expenses for the Sleep and Breathing Health segment rose to $54,096, a 4.1% increase compared to $50,071 last year[55]. - Research and development investment was $91.0 million, representing 6.4% of net revenues for the three months ended December 31, 2025[123]. - Research and development expenses for the six months ended December 31, 2025 increased to $178.3 million, an increase of $17.4 million or 11% from $160.9 million for the same period in 2024[154]. Dividends - The company declared a dividend of $0.60 per share, an increase from $0.53 in the same quarter last year[11]. - The company declared dividends of $175,334 thousand for the six months ended December 31, 2025, compared to $155,586 thousand in 2024, reflecting an increase of 12.7%[21]. Segment Performance - Revenue from the Sleep and Breathing Health segment for the six months ended December 31, 2025, was $2,425,384 thousand, compared to $2,193,330 thousand in 2024, marking an increase of 10.6%[28]. - Net revenue from the Sleep and Breathing Health business for the three months ended December 31, 2025 was $1.3 billion, a 12% increase from the previous year[129]. - Net revenue from Residential Care Software increased to $166.9 million, a 7% increase compared to $156.5 million for the same period in 2024[134]. Expenses - Selling, general, and administrative expenses for the six months ended December 31, 2025 increased to $537.6 million, up $57.0 million or 12% from $480.6 million for the same period in 2024[149]. - The company reported stock-based compensation costs of $50,098 thousand for the six months ended December 31, 2025, compared to $42,790 thousand in 2024, an increase of 16.0%[21]. - Corporate costs amounted to $104,730, up from $101,679, reflecting a 2.0% increase[55]. Other Financial Metrics - The effective income tax rate for the three months ended December 31, 2025 was 20.9%, compared to 17.6% for the same period in 2024[162]. - The company recorded restructuring charges of $21.7 million for the six months ended December 31, 2025, related to workforce planning activities[158]. - The company reported a total of $1,206,539 in income before income taxes, which is a 15.3% increase from $1,046,199 in the previous year[55]. Market and Economic Factors - The company experienced a positive impact of approximately $22.5 million from currency movements on net revenue for the three months ended December 31, 2025[129]. - The increase in net revenue was primarily driven by increased demand and unit sales across devices and masks[136]. - Net revenue in combined Europe, Asia, and other markets increased to $815.6 million for the six months ended December 31, 2025, up $78.5 million or 11% from $737.1 million for the same period in 2024[138].

Core Insights - ResMed reported $1.42 billion in revenue for the quarter ended December 2025, marking an 11% year-over-year increase and a 2.3% surprise over the Zacks Consensus Estimate of $1.39 billion [1] - The earnings per share (EPS) for the same period was $2.81, compared to $2.43 a year ago, resulting in a 4.59% surprise over the consensus EPS estimate of $2.69 [1] Financial Performance Metrics - U.S., Canada, and Latin America - Devices revenue was $448 million, exceeding the estimated $441.42 million, reflecting an 8.1% year-over-year increase [4] - U.S., Canada, and Latin America - Masks and other revenue reached $387 million, surpassing the average estimate of $367.97 million, with a year-over-year change of 15.7% [4] - Combined Europe, Asia, and other markets - Total revenue was $420.9 million, above the estimated $408.04 million, showing an 11.8% year-over-year increase [4] - Combined Europe, Asia, and other markets - Devices revenue was $278.2 million, slightly above the estimated $275.44 million, with a 9.2% year-over-year change [4] - Combined Europe, Asia, and other markets - Masks and other revenue was $142.7 million, exceeding the average estimate of $132.59 million, reflecting a 17.2% year-over-year increase [4] - U.S., Canada, and Latin America - Total revenue was $835 million, surpassing the estimated $809.39 million, with an 11.5% year-over-year change [4] - Global revenue for Total Sleep and Breathing Health was $1.26 billion, exceeding the estimated $1.2 billion, marking an 11.6% year-over-year increase [4] - Global revenue for Residential Care Software was $166.9 million, slightly below the average estimate of $167.55 million [4] - Global revenue for Total Devices was $726.2 million, exceeding the estimated $716.86 million, with an 8.5% year-over-year change [4] - Global revenue for Total Masks and other was $529.7 million, surpassing the estimated $500.57 million, reflecting a 16.1% year-over-year increase [4] Stock Performance - ResMed shares have returned +7% over the past month, outperforming the Zacks S&P 500 composite's +0.8% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

分组1 - ResMed reported quarterly earnings of $2.81 per share, exceeding the Zacks Consensus Estimate of $2.69 per share, and showing an increase from $2.43 per share a year ago, resulting in an earnings surprise of +4.59% [1] - The company achieved revenues of $1.42 billion for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.30%, and up from $1.28 billion year-over-year [2] - ResMed has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] 分组2 - The stock has gained approximately 7% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] - The company's earnings outlook is crucial for future stock performance, with current consensus EPS estimates at $2.75 for the coming quarter and $10.86 for the current fiscal year [7] - The Zacks Industry Rank indicates that the Medical - Products sector is currently in the bottom 37% of over 250 Zacks industries, which may impact stock performance [8]