Business Description
ResMed Inc. develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including technologies to be applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital and home, headgear and other accessories, dental devices, and cloud-based software informatics solutions to manage patient outcomes, as well as provides customer and business processes. The company also provides AirView, a cloud-based system that enables remote monitoring and changing of patients' device settings; myAir, a personalized therapy management application for patients with sleep apnea that provides support, education, and troubleshooting tools for increased patient engagement and improved compliance; U-Sleep, a compliance monitoring solution that enables home medical equipment (HME)to streamline their sleep programs; connectivity module and propeller solutions; and Propeller portal. It offers out-of-hospital software solution, such as Brightree business management software and service solutions to providers of HME, pharmacy, home infusion, orthotics, and prosthetics services; MatrixCare care management and related ancillary solutions to senior living, skilled nursing, life plan communities, home health, home care, and hospice organizations, as well as related accountable care organizations; and HEALTHCAREfirst that offers electronic health record, software, billing and coding services, and analytics for home health and hospice agencies. The company markets its products primarily to sleep clinics, home healthcare dealers, and hospitals through a network of distributors and direct sales force in approximately 140 countries. ResMed Inc. was founded in 1989 and is headquartered in San Diego, California.
Business History
Generated: Jun 7, 2026 5:11pmPrice Overview
Last updated: Jun 7, 2026 5:09pm (19d ago)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 9.55
Total Equity: $5.97B
Shares: 147,340,000
Total Debt: $668.29M
Cash: $1.21B
EBITDA: $1.91B
Total Debt: $668.29M
Cash: $1.21B
Revenue: $5.15B
Revenue: $5.15B
Revenue: $5.15B
Total Equity: $5.97B
Tax Rate: 16.5%
Equity: $5.97B
Total Debt: $668.29M
Cash: $1.21B
Current Liabilities: $1.02B
Long-Term Debt: $658.39M
Total Debt: $668.29M
Total Equity: $5.97B
Shares: 147,340,000
Shares: 147,340,000
CapEx: -$89.87M
Shares: 147,340,000
Stock Price: $196.04
Net Income: $1.40B
Industry Benchmarks
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 7, 2026 5:15pm (19d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $3.2B | $3.6B | $4.2B | $4.7B | $5.1B |
| Cost of Revenue | $1.4B | $1.6B | $1.9B | $2.0B | $2.1B |
| Gross Profit | $1.8B | $2.0B | $2.4B | $2.7B | $3.1B |
| Operating Expenses | $935.4M | $1.0B | $1.2B | $1.3B | $1.4B |
| Operating Income | $903.7M | $1.0B | $1.1B | $1.3B | $1.7B |
| Net Income | $474.5M | $779.4M | $897.6M | $1.0B | $1.4B |
| EBITDA | $1.1B | $1.2B | $1.4B | $1.5B | $1.9B |
| EPS | $3.27 | $5.34 | $6.12 | $6.94 | $9.55 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 7, 2026 5:11pm (19d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $295.3M | $273.7M | $227.9M | $238.4M | $1.2B |
| Total Current Assets | $1.6B | $1.9B | $2.4B | $2.4B | $3.5B |
| Total Assets | $4.7B | $5.1B | $6.8B | $6.9B | $8.2B |
| Current Liabilities | $911.8M | $689.3M | $758.5M | $910.7M | $1.0B |
| Long-Term Debt | $643.4M | $765.3M | $1.4B | $697.3M | $658.4M |
| Total Liabilities | $1.8B | $1.7B | $2.6B | $2.0B | $2.2B |
| Total Equity | $2.9B | $3.4B | $4.1B | $4.9B | $6.0B |
| Retained Earnings | $3.1B | $3.6B | $4.3B | $5.0B | $6.1B |
Cash Flow (Annual)
Last updated: Jun 7, 2026 5:15pm (19d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $736.7M | $351.1M | $693.3M | $1.4B | $1.8B |
| Capital Expenditure | -$116.8M | -$156.0M | -$134.0M | -$114.9M | -$89.9M |
| Free Cash Flow | $619.9M | $195.1M | $559.3M | $1.3B | $1.7B |
| Acquisitions (net) | -$39.1M | -$42.8M | -$1.0B | -$133.5M | -$139.2M |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | $0 | $0 | $0 | -$150.0M | -$300.0M |
| Net Change in Cash | -$167.9M | -$21.6M | -$45.8M | $10.5M | $971.1M |
Analyst Estimates (Annual)
Last updated: Jun 7, 2026 5:09pm (19d ago)| Metric | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|
| Revenue |
$6.1B $6.0B – $6.1B
|
$6.5B $6.5B – $6.5B
|
$7.0B $6.9B – $7.0B
|
$7.7B $7.6B – $7.8B
|
| EBITDA |
$2.4B $2.4B – $2.4B
|
$2.6B $2.6B – $2.6B
|
$2.8B $2.7B – $2.8B
|
$3.1B $3.0B – $3.1B
|
| Net Income |
$1.8B $1.7B – $1.8B
|
$2.0B $1.9B – $2.0B
|
$2.1B $2.1B – $2.2B
|
$2.4B $2.3B – $2.4B
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 7, 2026 5:15pm (19d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +11.9% | +18.0% | +10.9% | +9.8% |
| Gross Profit Growth | +10.1% | +16.4% | +12.7% | +15.1% |
| Operating Income Growth | +10.7% | +13.2% | +16.6% | +27.7% |
| Net Income Growth | +64.3% | +15.2% | +13.7% | +37.2% |
| EBITDA Growth | +6.6% | +15.5% | +12.9% | +24.8% |
Insider Trading (Recent)
Last updated: Jun 7, 2026 5:15pm (19d ago)All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-06-08 | Farrell Michael J. | M-Exempt | 4,991.00 | $146.34 | $730,383 |
| 2026-06-08 | Farrell Michael J. | S-Sale | 4,991.00 | $193.96 | $968,064 |
| 2026-06-08 | Farrell Michael J. | M-Exempt | 4,991.00 | $146.34 | $730,383 |
| 2026-05-07 | Farrell Michael J. | M-Exempt | 4,991.00 | $146.34 | $730,383 |
| 2026-05-07 | Farrell Michael J. | S-Sale | 4,991.00 | $207.82 | $1.0M |
| 2026-05-07 | Farrell Michael J. | M-Exempt | 4,991.00 | $146.34 | $730,383 |
| 2026-05-04 | Bloomer Aaron | 0.00 | $0.00 | $0 | |
| 2026-05-04 | Sandercock Brett | 0.00 | $0.00 | $0 | |
| 2026-04-07 | Farrell Michael J. | M-Exempt | 4,991.00 | $146.34 | $730,383 |
| 2026-04-07 | Farrell Michael J. | S-Sale | 4,991.00 | $225.50 | $1.1M |
| 2026-04-07 | Farrell Michael J. | M-Exempt | 4,991.00 | $146.34 | $730,383 |
| 2026-04-01 | Sandercock Brett | S-Sale | 1,000.00 | $224.31 | $224,310 |
| 2026-04-01 | FARRELL PETER C | S-Sale | 2,000.00 | $225.00 | $450,000 |
| 2026-03-09 | Farrell Michael J. | M-Exempt | 4,991.00 | $146.34 | $730,383 |
| 2026-03-09 | Farrell Michael J. | S-Sale | 4,991.00 | $251.03 | $1.3M |
| 2026-03-09 | Farrell Michael J. | M-Exempt | 4,991.00 | $146.34 | $730,383 |
| 2026-03-04 | FARRELL PETER C | S-Sale | 2,000.00 | $260.22 | $520,440 |
| 2026-03-02 | Sandercock Brett | S-Sale | 1,000.00 | $254.30 | $254,300 |
| 2026-02-09 | Farrell Michael J. | M-Exempt | 4,991.00 | $146.34 | $730,383 |
| 2026-02-09 | Farrell Michael J. | S-Sale | 4,991.00 | $273.78 | $1.4M |
Dividend History (Last 20)
Last updated: Jun 7, 2026 5:09pm (19d ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 2026-05-14 | $0.60 | 2026-04-30 | 2026-05-14 | 2026-06-18 |
| 2026-02-12 | $0.60 | 2026-01-29 | 2026-02-12 | 2026-03-19 |
| 2025-11-13 | $0.60 | 2025-10-30 | 2025-11-13 | 2025-12-18 |
| 2025-08-14 | $0.60 | 2025-07-31 | 2025-08-14 | 2025-09-18 |
| 2025-05-08 | $0.53 | 2025-04-23 | 2025-05-08 | 2025-06-12 |
| 2025-02-13 | $0.53 | 2025-01-30 | 2025-02-13 | 2025-03-20 |
| 2024-11-07 | $0.53 | 2024-10-24 | 2024-11-07 | 2024-12-12 |
| 2024-08-15 | $0.53 | 2024-08-01 | 2024-08-15 | 2024-09-19 |
| 2024-05-08 | $0.48 | 2024-04-25 | 2024-05-09 | 2024-06-13 |
| 2024-02-07 | $0.48 | 2024-01-24 | 2024-02-08 | 2024-03-14 |
| 2023-11-08 | $0.48 | 2023-10-26 | 2023-11-09 | 2023-12-14 |
| 2023-08-16 | $0.48 | 2023-08-03 | 2023-08-17 | 2023-09-21 |
| 2023-05-10 | $0.44 | 2023-04-27 | 2023-05-11 | 2023-06-15 |
| 2023-02-08 | $0.44 | 2023-01-26 | 2023-02-09 | 2023-03-16 |
| 2022-11-09 | $0.44 | 2022-10-27 | 2022-11-10 | 2022-12-15 |
| 2022-08-17 | $0.44 | 2022-08-11 | 2022-08-18 | 2022-09-22 |
| 2022-05-11 | $0.42 | 2022-04-28 | 2022-05-12 | 2022-06-16 |
| 2022-02-09 | $0.42 | 2022-01-27 | 2022-02-10 | 2022-03-17 |
| 2021-11-09 | $0.42 | 2021-10-28 | 2021-11-11 | 2021-12-16 |
| 2021-08-18 | $0.42 | 2021-08-05 | 2021-08-19 | 2021-09-23 |
Narrative Economics
market-narrative step).
Delvantic AI Findings
Looking at the raw quarterly tape first: revenue went $1.22B → $1.28B → $1.29B → $1.35B → $1.34B → $1.42B → $1.43B over seven quarters, a clean ~17% lift with net margin expanding from 23.9% to 27.9%. That's not a "mature earner" cadence — that's operating leverage on a post-Philips-recall demand pull. FY25 revenue of $5.15B is +9.8% on FY24's $4.69B, but net income grew from $1.02B to $1.40B (+37%), and FCF hit $1.66B against $89.9M capex — capital intensity is trivially low for a "device" company, which is the real tell that mix is shifting toward consumables, masks, and the AirView/myAir software tail. ROIC 19.6% and ROE 24.4% on a balance sheet with $1.21B cash and historically modest debt is genuinely high-quality compounding.
Where I disagree with the prior stack: the pre-flight model calling this a "high-growth-medical-device-platform" is overreaching — SaaS is a real but small contributor (Brightree + MEDIFOX DAN is sub-15% of revenue), and the 9.8% top-line is not "acceleration" so much as normalization after the 2024 Philips comp lapped. The synthesis verdict of "Reasonable Premium" at 18.9x TTM P/E and 13.1x EV/EBITDA is, however, defensible and probably right for the wrong reasons. The actual issue is that quarterly revenue confidence flags "decelerating" — Q/Q growth went 5.4% → 4.7% → -0.7% → 4.4% → -0.7% → 5.7% → 0.7%, i.e., the last two prints are weak sequentially. Margin is doing the EPS heavy lifting, not volume. That matters because at 7.4x sales, a single quarter where masks/devices growth slips to mid-single-digits and SaaS doesn't accelerate will compress the multiple meaningfully.
The contrarian case the models underweight: GLP-1s. Eli Lilly's SURMOUNT-OSA data showed tirzepatide reduced AHI by ~50% in obese OSA patients, and Zepbound got an FDA label for moderate-to-severe OSA in late 2024. Management has consistently argued GLP-1s expand the funnel (more diagnoses, mild cases still need CPAP), and so far new patient starts have held up — but this is a multi-year overhang that won't resolve cleanly, and it caps the terminal multiple. Second contrarian point: insider activity is uniformly sales (S-Sale, M-Exempt → S-Sale pattern through April–May 2026 at what appear to be elevated prices). The "Neutral Insider Activity" tag is too generous; this is programmatic selling but it's still net distribution, not accumulation. Third: the balance sheet tile is missing total debt and equity figures, which is a real gap — ResMed historically carried ~$700M-$1B in debt post-MEDIFOX, and the EV/EBITDA of 13.1x assumes a clean net cash position that may not be accurate.
Putting numbers to a fair value: FY26E revenue ~$5.65B (10% growth) at sustained 27% net margin = $1.52B NI, or ~$10.50 EPS on ~145M shares. At 20x — a reasonable multiple for a 10% grower with 19% ROIC and a chronic-disease patient base — that's $210. At 18x (de-rating for GLP-1 overhang plus decelerating Q/Q) it's $189. Current $196 splits the difference, so the synthesis "Reasonable Premium" call is approximately right, but I'd frame it more conservatively: this is fairly valued, not a buy. The 33% drawdown from highs the pre-flight model references already prices in the GLP-1 fear; further upside requires either (a) clean evidence that GLP-1 adoption is additive to patient funnel, or (b) SaaS revenue inflecting to >20% of mix. Neither is visible in the current data. I dissent mildly from the synthesis's implicit "buy the premium" tone — at 7.4x sales and decelerating sequential growth, the asymmetry isn't there. Wait for a $175 handle or a positive GLP-1 catalyst datapoint.
GPT Critique
In reviewing ResMed Inc.'s financials, several key points emerge from the data that shape my independent analysis. The company has shown solid revenue growth, with a noticeable increase from $3.58 billion in 2022 to $5.15 billion in 2025, marking a compound annual growth rate (CAGR) of approximately 12.9%. This growth is impressive and underscores the company's ability to expand its top line consistently. Furthermore, net income has increased significantly from $779.4 million in 2022 to $1.40 billion in 2025, reflecting robust profit expansion and margin improvement. The net margins have widened from 21.8% in 2022 to 27.2% in 2025, indicating effective cost management and operational efficiency. The company's strong free cash flow of $1.66 billion, juxtaposed with minimal capital expenditure, highlights a capital-light business model which is beneficial for sustaining long-term profitability. Additionally, ResMed's gross margin of 59.36% and operating margin of 32.75% demonstrate its strong competitive positioning within the medical devices sector.
I align with Opus's view that ResMed is fairly valued at its current price of $196. The company indeed benefits from a robust margin profile, with EPS growth driven more by margin improvements than volume. Opus rightly points out the deceleration in quarter-over-quarter revenue growth, indicating potential challenges in maintaining its recent growth trajectory. However, I diverge from the assertion that the SaaS component of ResMed's business is minor. While it may represent a smaller revenue share currently, the shift towards recurring revenue models through platforms like AirView and myAir can be significant growth levers in the future, potentially justifying a premium valuation if these services gain more traction. Additionally, I agree that the insider transaction pattern suggests a net distribution which should be monitored, but I find the term "neutral insider activity" somewhat dismissive of the potential implications.
A careful skeptic might argue that both my view and Opus's overlook the potential for significant disruption from GLP-1 obesity drugs, which could materially impact the sleep apnea market by reducing the prevalence of the condition. This factor represents a substantial risk to the long-term growth outlook for ResMed if the drugs gain widespread adoption and efficacy. Furthermore, the absence of detailed debt figures on the balance sheet could obscure the true financial leverage of the company, potentially impacting its valuation metrics like EV/EBITDA.