Earnings Preview: What to Expect From ResMed’s Report
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ResMed Inc. (RMD), headquartered in San Diego, California, specializes in designing and delivering medical devices and cloud-connected software for the healthcare sector. With a market cap of $33.6 billion, the company’s core offerings include masks, ventilators, and accessories aimed at treating sleep-disordered breathing (SDB) and various respiratory conditions. ResMed is set to report its fiscal Q3 earnings on Wednesday, April 23.
Ahead of the event, analysts project the medical instruments provider to report a profit of $2.36 per share, up 10.8% from $2.13 per share in the year-ago quarter. Moreover, the company has consistently beaten Wall Street's bottom-line estimates in all of the last four quarters.
In the recent quarter, RMD’s adjusted EPS of $2.43 outpaced the consensus estimates by 5.7%. This outperformance was driven by strong demand for its sleep and respiratory products, particularly in the home healthcare segment, where ResMed continues to benefit from a growing shift toward at-home care solutions.
For the current year, analysts expect RMD to report an EPS of $9.47, up 22.7% from $7.72 in fiscal 2024. Moreover, in fiscal 2026, EPS is expected to grow 8.6% year-over-year to $10.28.
Shares of RMD have climbed 12.9% over the past 52 weeks, surpassing both the S&P 500 Index's ($SPX) 3.2% gain and the Health Care Select Sector SPDR Fund’s (XLV) 2.9% decline over the same period.
ResMed's shares dropped 8.3% the day after reporting its Q2 2025 results. The decline was largely driven by mounting concerns about the potential impact of GLP-1 drugs, recently approved for obstructive sleep apnea (OSA). On the bright side, the company reported a strong 29.3% increase in EPS and a rise in gross margin to 59.2%.
Wall Street analysts are moderately optimistic about ResMed’s stock, with a "Moderate Buy" rating overall. Among the 17 analysts covering the stock, nine recommend "Strong Buy," one gives a “Moderate Buy,” six suggest "Hold," and one indicates a “Strong Sell” rating.
The mean price target for RMD is $265.92, which indicates a modest 24.3% potential upside from the current levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.