
ResMed (RMD) Stock Forecast & Price Target
ResMed (RMD) Analyst Ratings
Bulls say
ResMed has demonstrated strong financial performance with an operating margin increase of 80 basis points year-over-year, largely attributed to a 230 basis point gross margin expansion driven by pricing strategies, manufacturing efficiencies, and reduced component costs. The company reported respiratory sales growth of 12% in the Americas, amounting to $749 million, surpassing the 8% growth seen in the rest of the world, which posted respiratory sales of $377 million. Additionally, with the anticipated growth in wearables and the positive outlook on CPAP patient numbers, ResMed is expected to see significant improvements in both gross and operating margins as its supply chain stabilizes and its product mix shifts towards masks and accessories.
Bears say
ResMed's financial outlook is hindered by several structural challenges, including stagnant gross margins and anticipated revenue growth falling below 5% due to potential market share losses exacerbated by competitive pressures and the impact of GLP-1 weight loss drugs. Despite a slight earnings beat in F2Q25, organic revenue growth decelerated from 11% to 10%, which may indicate a trend towards slower growth amidst increasing market competition. Additionally, the company has lowered positive impact estimates from GLP-1s on CPAP patients, suggesting potential headwinds that could further depress future earnings estimates for FY26 and FY27, with the FY27 earnings per share estimate now positioned at a street-low level.
This aggregate rating is based on analysts' research of ResMed and is not a guaranteed prediction by Public.com or investment advice.
ResMed (RMD) Analyst Forecast & Price Prediction
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