The Top 5 Analyst Questions From ResMed's Q4 Earnings Call

ResMed’s fourth quarter performance drew a positive market reaction, with management attributing the outperformance to strong global demand for its masks and devices, as well as continued growth in its digital health software. CEO Michael Farrell highlighted double-digit growth in the U.S. mask segment—supported by the launch of new fabric mask products and expansion of direct-to-consumer initiatives. Management also pointed to operational efficiencies, particularly in supply chain and manufacturing, as key factors in margin expansion during the quarter. Notably, increased patient engagement, including those starting therapy after using GLP-1 medications, contributed to higher device adoption and resupply rates.

Is now the time to buy RMD? Find out in our full research report (it’s free for active Edge members).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From ResMed’s Q4 Earnings Call

• Jonathan Block (Stifel): Asked about the contribution of VirtuOx to U.S. mask growth and whether new product launches led to increased stocking. CEO Michael Farrell confirmed double-digit growth even excluding VirtuOx and noted early positive adoption of new masks.
• Anthony Petrone (Mizuho Group): Inquired about the impact of GLP-1 medications on patient inflow and CPAP adoption. Farrell described a motivated patient profile and noted that the effect persists over multiple years, increasing resupply rates.
• Dan Hurren (MST): Questioned the rise in SG&A expenses relative to revenue growth. CFO Brett Sandercock attributed the increase to the VirtuOx acquisition and marketing activities, emphasizing that underlying SG&A growth tracks closely with revenue.
• Laura Sutcliffe (Citi): Sought insight into which stages of the patient funnel have seen the most improvement. Farrell pointed to top-of-funnel gains from pharma and wearable tech awareness, while ongoing investments aim to improve diagnostic throughput.
• David Bailey (Morgan Stanley): Asked about the competitive impact of a potential Philips reentry to the U.S. device market. Farrell said timing remains uncertain and emphasized ResMed’s ability to compete based on its differentiated product ecosystem.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will monitor (1) the adoption trajectory of ResMed’s new fabric masks and AI-enabled digital tools, (2) progress on expanding the U.S. manufacturing and distribution infrastructure, and (3) the effectiveness of education and awareness campaigns in driving new patient inflow. Additionally, we’ll watch for regulatory updates and any shifts in competitive dynamics that could impact market share.

ResMed currently trades at $263.03, up from $257.61 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

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