Resmed's Q2 Earnings on Deck: What's in Store for the Stock?

Resmed RMD is set to release its second-quarter fiscal 2026 results on Jan. 29, after the closing bell. 

The renowned sleep health device maker posted adjusted earnings per share (EPS) of $2.55 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 2.41%. The company topped earnings estimates in each of the trailing four quarters, the average surprise being 3.04%.

RMD’s Q2 Estimates

For the second quarter of fiscal 2026, the Zacks Consensus Estimate for Resmed’s revenues is pegged at $1.39 billion, indicating an increase of 8.3% from the year-ago reported figure.

The Zacks Consensus Estimate for the company’s second-quarter fiscal 2026 EPS suggests a 10.3% rise to $2.68.

Estimate Revision Trend Ahead of RMD’s Q2 Earnings

Estimates for Resmed’s fiscal second-quarter earnings have remained stable in the past 60 days.

Here’s a brief review of the company’s performance leading up to this announcement.

Factors Likely to Influence RMD’s Q2 Results

Sleep and Breathing Health

Within this segment, Resmed is likely to have benefited from strong demand for its mask portfolio across the United States, Canada and Latin America regions. Growth may have also accelerated in Europe, Asia and the rest of the world region after facing a strong prior-year comparable in the first quarter. In the fiscal second quarter, Mask and other sales are expected to have reflected continued growth in resupply and new patient setups, while the VirtuOx acquisition is likely to have also contributed incremental revenues. Greater mask resupply benefits patients, home care providers, payers and healthcare systems while supporting Resmed’s growth.

In addition, the company is strategically expanding its mask portfolio with product innovations. Recent introductions, such as the AirTouch F30i Comfort in Australia and the AirTouch F30i Clear in the United States, offer advanced comfort, mobility and interchangeability for patients and are expected to have favorably supported revenues in the fiscal second quarter.

ResMed Inc. Price and EPS Surprise

ResMed Inc. price-eps-surprise | ResMed Inc. Quote

Resmed’s use of ML, AI and generative AI technology in its digital health products, including the broader rollout of Dawn personal sleep health digital assistant into the myAir platform, may have positively impacted its overall top line. The company is also likely to have benefited from the widespread U.S. adoption of NightOwl — its fingertip-sized home sleep apnea test.

Meanwhile, Device sales are likely to reflect the ongoing combined availability of Resmed’s AirSense 10 and AirSense 11 sleep devices, supporting underlying global demand. The company is also expected to have introduced AirSense 11 to additional countries following regulatory clearances.

According to the Zacks Consensus Estimate, Sleep and Breathing Health revenues are expected to increase 6.3% in the fiscal second quarter.

Residential Care Software

The division, which supplies business management software as a service to out-of-hospital health providers, remains a key strategic enabler of the core Sleep and Breathing Health business. Resmed is likely to have executed on its RCS portfolio management strategy, channeling more investment in the high-growth, higher-margin parts of the portfolio while reducing exposure to the lower-growth, lower-margin areas, such as the services businesses.

The fiscal second-quarter performance may have been affected by a challenging growth environment for the skilled nursing facilities segment. However, it may have been offset by strong performance from the MEDIFOX platform, core Brightree platforms, as well as the favorable impact of the MatrixCare home health business.

The Zacks Consensus Estimate projects revenues in this segment to rise 7.1% in the second quarter of fiscal 2026.

What Our Model Unveils for RMD

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here, as you can see.

Earnings ESP: Resmed has an Earnings ESP of -0.81%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #2.

Top MedTech Picks

Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:

Veracyte VCYT has an Earnings ESP of +7.98% and a Zacks Rank #1. The company is expected to release fourth-quarter 2025 results soon.

VCYT’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 45.12%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS is expected to increase 13.9% from the year-ago quarter figure.

Cardinal Health CAH has an Earnings ESP of +2.30% and a Zacks Rank #2. The company is slated to release second-quarter fiscal 2026 results on Feb. 5. 

CAH’s earnings beat estimates in each of the trailing four quarters, the average surprise being 9.36%. The Zacks Consensus Estimate for CAH’s fourth-quarter EPS is expected to surge 20.7% from the year-ago reported figure.

Merit Medical Systems MMSI has an Earnings ESP of +2.09% and a Zacks Rank #2. The company is expected to release fourth-quarter 2025 results soon.

MMSI’s earnings topped estimates in each of the trailing four quarters, the average surprise being 14.1%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS is anticipated to increase 3.2% from the year-ago quarter’s figure.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research