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]