On Thursday, ResMed Inc (NYSE:RMD) reported that second-quarter fiscal 2026 adjusted earnings of 2.81, beating the consensus of $2.72.
Quarterly sales increased 11% year over year to $1.42 billion, surpassing the consensus estimate of $1.396 billion.
Sales increased 9% on a constant currency basis, driven by increased demand for our portfolio of sleep devices, masks, and accessories.
Residential Care Software revenue increased by 5% on a constant currency basis.
In December 2025, the U.S. Food and Drug Administration (FDA) cleared ResMed’s Personalized Therapy Comfort Settings (PTCS) to be marketed as Smart Comfort.
Smart Comfort is the first FDA-cleared AI-enabled medical device that recommends personalized comfort settings for obstructive sleep apnea (OSA) patients to start and stay on CPAP therapy.
Smart Comfort will launch in early 2026 in a limited U.S. beta version for new users of myAir, ResMed’s consumer sleep companion app, paired with a ResMed AirSense 11 device. It will be followed by a broader U.S. rollout to new myAir users later in 2026.
Gross margin increased by 320 basis points to 61.8%, primarily driven by manufacturing and logistics efficiencies and component cost improvements. Adjusted gross margin increased by 310 basis points to 62.3%.
Adjusted operating income increased 19% to $517.2 million.
Five-Year Global Outlook:
ResMed said revenue is expected to grow at a high single-digit rate, with earnings projected to outpace revenue growth.
Analyst Reaction
William Blair on Friday wrote, “Altogether, we think fiscal second-quarter updates provide support for the bull thesis that ResMed can remain a durable high-single-digit grower with strong double-digit EPS growth (we model +15% this year).”
Some concerns, like competition and GLP-1, might linger simply because the company is fighting a ghost, but analyst Brandon Vazquez writes that continued execution should give confidence in the growth trajectory.
With shares at 20 times the calendar 2027 EPS estimate, William Blair remains at an Outperform rating.
Stifel analyst maintains ResMed with a Hold and raises the price forecast from $260 to $265.
Wells Fargo maintains an Equal-Weight on the company and raises the price forecast from $265 to $270.
Piper Sandler maintains ResMed with a Neutral and raises the price forecast from $270 to $275.
Price Action: ResMed stock is down 2.33% at $251.62 at the last check on Friday, according to Benzinga Pro data.
Photo by B..Robinson via Shutterstock
