ResMed Inc. (RMD) Stock Price & How to Invest

ResMed sells the equipment and software used to treat sleep apnea, chronic obstructive pulmonary disease and other respiratory conditions outside the hospital. The hardware side splits into flow generators (the AirSense and AirCurve device families, plus the Astral and Stellar life support ventilators) and the masks, cushions, tubing and filters patients replace on a rolling schedule. In fiscal 2026, the year ended June 30, 2026, Americas devices produced ~$1.77 billion and Americas masks and other ~$1.51 billion, while the rest of the world contributed ~$1.12 billion in devices and ~$572 million in masks. A third line, Residential Care Software, brought in ~$676 million from Brightree, MEDIFOX DAN and MatrixCare, the back office systems that home medical equipment dealers, out of hospital care providers and skilled nursing operators use for billing, resupply and scheduling. Roughly 11,370 employees support ~35 million cloud connected devices and ~37 million patients registered in AirView, the remote monitoring platform. Manufacturing is concentrated in Singapore, Sydney and Tijuana. The company is incorporated in Delaware, reports in US dollars, lists on the NYSE, and also trades in Australia as CHESS Depositary Interests.

The economics look less like a device maker than the sector label suggests. Gross margin reached 61.1% on a GAAP basis in fiscal 2026 and 62.4% non-GAAP, up 240 basis points year on year, helped by manufacturing efficiency and a mix shift toward masks. Operating margin was 33.4% GAAP, net income $1.52 billion, and diluted EPS $10.43 GAAP against $11.17 non-GAAP. Free cash flow came in at ~$1.65 billion on ~$1.81 billion of operating cash flow, which funded $700 million of buybacks and $350 million of dividends. The balance sheet carries ~$1.47 billion of cash against ~$659 million of debt, so the enterprise value of ~$32.8 billion sits slightly below the equity market capitalisation. What investors are actually paying for is the annuity: a patient set up on a device replaces cushions and masks for years, and Brightree sits inside the resupply workflow that triggers those reorders. What they are discounting is the pair of open questions on the tape: the Astral field safety action and GLP-1 substitution. Management guided fiscal 2027 to $5.75 billion to $5.85 billion of revenue and $12.00 to $12.25 of non-GAAP EPS, both after absorbing the Astral hit and the MatrixCare sale, and the shares changed hands near $231.52 in late August 2026, about 20% below where they traded a year earlier.

Philips is the single largest competitive variable. Its Respironics business exited most of the US new device market after the 2021 foam recall and the subsequent consent decree, handing ResMed several points of share it did not have to compete for. Any credible return of Philips capacity to the US sleep market would meet a ResMed that has been pricing and allocating capital against a diminished rival for five years, and mask share, where switching costs are lowest, would be the first place to show it. The GLP-1 question is genuinely open. ResMed's 2.5 million patient study is observational and self published, and it measures behaviour in the early years of drug adoption rather than the steady state after sustained weight loss; a cohort that loses enough weight to fall below the diagnostic threshold would leave the resupply base entirely. Quality systems are the second live risk. A Class 1 designation on 168,069 Astral units invites FDA scrutiny that can extend past the specific defect into inspection findings, warning letters or a consent decree, and Philips is the cautionary case for how far that can go. Reimbursement adds pressure from the other side: most US revenue passes through home medical equipment suppliers paid by Medicare and commercial plans, so competitive bidding rounds and prior authorisation tightening compress the distributor before they reach ResMed. Manufacturing is concentrated in Singapore, Sydney and Tijuana, which leaves the gross margin exposed to tariffs and freight. Roughly a third of revenue is non-US, so a stronger dollar reduces reported growth. Finally, ~10.9% short interest and a 52 week range of $180.27 to $293.81 mean sentiment, not fundamentals, has been setting the price.

16 analysts publish price targets on RMD, averaging $245.50 against a $231.52 price as of August 2026, or +6.0%. The published targets run from $175.00 to $320.00, a moderate spread, and the ratings split 7 buy, 11 hold, 1 sell. Over the last six months there has been 1 raise and 10 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full RMD forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on ResMed Inc.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. Resupply, not new device placements, carries the growth. Masks and other consumables grew 10% in the Americas and 12% internationally on a constant currency basis in the June 2026 quarter, faster than device revenue in both regions. The most optimistic published target, $320.00, assumes this works close to its best case.

The case against. Philips is the single largest competitive variable. The most pessimistic target, $175.00, is roughly what RMD is worth if this bites instead.

Read the full bull and bear case on RMD, including what would have to change to break either one. Walnut is not an investment adviser.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see ResMed Inc.'s investor relations page or your broker.

• Revenue (fiscal 2026, trailing twelve months): ~$5.65 billion for fiscal 2026, the twelve months ended June 30, 2026, up ~10% reported and ~8% in constant currency from ~$5.15 billion in fiscal 2025, ~$4.69 billion in fiscal 2024 and ~$4.22 billion in fiscal 2023. Fourth quarter revenue was ~$1.46 billion, a record, up 9% reported and 8% in constant currency, though slightly below the ~$1.47 billion consensus.
• Earnings and margins: GAAP net income of ~$1.52 billion and diluted EPS of $10.43, up ~10%; non-GAAP net income ~$1.63 billion and non-GAAP diluted EPS $11.17, up 17%. GAAP gross margin 61.1% (up 170 basis points) and non-GAAP 62.4% (up 240 basis points). GAAP operating margin 33.4%; non-GAAP 36.1%. Research and development ran ~$378 million and SG&A ~$1.12 billion. Fourth quarter GAAP EPS of $2.64 grew only 2% because of the $42 million Astral provision, while non-GAAP EPS of $2.95 rose 16%.
• Revenue mix (the line a screener misses): Fiscal 2026 devices totalled ~$2.89 billion (~$1.77 billion Americas, ~$1.12 billion rest of world), masks and other consumables ~$2.09 billion (~$1.51 billion Americas, ~$572 million rest of world), and Residential Care Software ~$676 million. Sleep and Breathing Health was ~$4.98 billion of the total. Masks grew 10% in the Americas and 12% internationally in the fourth quarter on a constant currency basis, against ~4% constant currency growth for software across the year.
• Cash flow and balance sheet: Operating cash flow of ~$1.81 billion in fiscal 2026 (up ~3%) and free cash flow of ~$1.65 billion (down ~1%). Cash and equivalents of ~$1.47 billion at June 30, 2026 against ~$659 million of total debt ($260 million short term, $399 million long term), for a net cash position and a debt to equity ratio near 0.13. Assets held for sale of ~$457 million reflect the pending MatrixCare disposal. Return on equity ran ~24% and return on invested capital ~26%.
• Capital returns: ResMed returned more than $1 billion to shareholders in fiscal 2026, roughly 70% more than the prior year: ~$700 million of buybacks and ~$350 million of dividends. The quarterly dividend was raised 10% to $0.66 per share in August 2026, an annualised $2.64 and a yield near 1.1% at ~$232, on a payout ratio around 25% of GAAP earnings. Management guided to more than $1.85 billion of combined buybacks and dividends in fiscal 2027.
• Market pricing: Shares changed hands near $231.52 in late August 2026, inside a 52 week range of $180.27 to $293.81 and down ~20% over twelve months, on ~144.25 million shares outstanding for a ~$33.4 billion market capitalisation and ~$32.8 billion enterprise value. That works out to ~22.2x trailing GAAP EPS, ~20.7x trailing non-GAAP EPS, ~19.2x forward earnings, ~15.6x EV/EBITDA and ~5.8x EV/sales. Beta sits near 0.75 and short interest near 10.9% of shares.

Fiscal 2027 guidance calls for revenue of $5.75 billion to $5.85 billion with core constant currency growth of 5% to 7%, and non-GAAP EPS of $12.00 to $12.25, up 12% to 14%. Both figures absorb the ~$75 million Astral headwind and the MatrixCare divestiture, so the underlying growth rate is higher than the headline. At ~19x that guidance ResMed prices closer to a mature medtech than to the ~30x it commanded before the GLP-1 debate began, which is the whole valuation argument in one number.

Other names that sit close to RMD: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get RMD exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so RMD sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where RMD fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

As of August 2026, ResMed is a high margin, cash generative franchise at ~22x trailing GAAP earnings and roughly 19x the midpoint of its own fiscal 2027 non-GAAP guidance, a discount to its own multi-year history. The gap reflects a known ~$75 million Astral revenue hole in fiscal 2027 and an unresolved GLP-1 debate, against a business that still grew revenue 10% and free cash flow to ~$1.65 billion last year.

Whether RMD is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is RMD a buy or a sell?, and where the stock could go from here in the RMD stock forecast.

For income investors, whether RMD pays a dividend and how the payout looks is covered in does RMD pay a dividend? And to weigh RMD against a peer, read the full side-by-side comparisons: RMD vs LLY and RMD vs NVO.