WEBULL

How Earnings Beat Expectations And Growth Outlook At ResMed (RMD) Has Changed Its Investment Story

Simply Wall St · 5d ago
  • ResMed recently entered its fiscal second-quarter 2026 earnings season with analysts expecting diluted earnings of US$2.68 per share, implying low double-digit bottom-line growth compared with the same quarter a year earlier.
  • This upcoming report follows four consecutive quarters in which ResMed exceeded Wall Street’s earnings-per-share estimates, heightening attention on whether it can sustain that track record.
  • We’ll now examine how expectations for continued earnings growth and another potential earnings beat could influence ResMed’s broader investment narrative.

The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

ResMed Investment Narrative Recap

To own ResMed, you generally need to believe in long term growth in sleep and respiratory care, supported by high quality earnings and strong returns on equity. The upcoming Q2 FY2026 report, with US$2.68 diluted EPS expected, keeps the short term focus on whether earnings growth can continue, while competitive and reimbursement pressures remain the biggest risks. This earnings event does not materially change those underlying risks, but it could influence how much confidence investors place in the current growth narrative.

The most relevant recent announcement here is the FDA clearance of ResMed’s AI enabled Smart Comfort feature for AirSense 11, which is set for a phased U.S. rollout in 2026. If it meaningfully improves therapy adherence and patient experience, it could reinforce one of the company’s key catalysts: deepening its digital, cloud connected ecosystem and strengthening recurring, higher margin revenue tied to long term device usage rather than just initial hardware sales.

However, against this backdrop, investors should still be alert to the risk that tighter reimbursement policies or renewed competitive bidding could...

Read the full narrative on ResMed (it's free!)

ResMed's narrative projects $6.4 billion revenue and $1.9 billion earnings by 2028.

Uncover how ResMed's forecasts yield a $295.13 fair value, a 18% upside to its current price.

Exploring Other Perspectives

RMD 1-Year Stock Price Chart
RMD 1-Year Stock Price Chart

Seven members of the Simply Wall St Community currently see ResMed’s fair value between US$193.80 and US$295.13, reflecting very different expectations. When you set those views against the company’s reliance on favorable reimbursement and healthcare policy, it becomes clear why understanding several perspectives on future earnings resilience really matters.

Explore 7 other fair value estimates on ResMed - why the stock might be worth as much as 18% more than the current price!

Build Your Own ResMed Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your ResMed research is our analysis highlighting 4 key rewards that could impact your investment decision.
  • Our free ResMed research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ResMed's overall financial health at a glance.

Curious About Other Options?

The market won't wait. These fast-moving stocks are hot now. Grab the list before they run:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.