Upside case
Bull case
$289+37.7%
RMD would need investors to value it at roughly 26x earnings — about 7x more generous than today's 19x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
ResMed Inc. (RMD) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
35
analysts
16 bullish · 5 bearish · 35 covering RMD
Strong Buy
0
Buy
16
Hold
14
Sell
5
Strong Sell
0
Consensus Target
$281
+34.2% vs today
Scenario Range
$143 – $289
Model bear to bull value window
Coverage
35
Published analyst ratings
Valuation Context
19.0x
Forward P/E · Market cap $30.5B
RMD price targets
Three scenarios for where RMD stock could go
Current
~$210
Confidence
81 / 100
Updated
May 1, 2026
Where we are now
Current · $210
Bear
$143
Base
$283
Bull
$289
Market caseClosest to today
Base case
$283+35.0%
At 26x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$143-31.8%
If investor confidence fades or macro conditions deteriorate, a 6x multiple contraction could push RMD down roughly 32% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
ResMed Inc.
RMD · NYSEHealthcareMedical - Instruments & SuppliesJune year-end
ResMed is a medical technology company that develops devices and cloud-based software for sleep apnea and other respiratory disorders. It generates revenue primarily from selling medical devices like CPAP machines and masks (~70% of sales) and from its software-as-a-service platforms that manage patient data and therapy compliance. The company's competitive advantage lies in its integrated ecosystem of connected devices and cloud software that creates switching costs and sticky customer relationships.
Market Cap
$30.5B
Revenue TTM
$5.5B
Net Income TTM
$1.5B
Net Margin
27.4%
RMD Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
75%Exceptional
12 quarters tracked
Revenue Beat Rate
75%Exceptional
vs consensus estimates
Avg EPS Surprise
+2.5%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$2.55/$2.55
Revenue
$1.3B/$1.3B
Q4 2025
EPS
$2.55/$2.51
Revenue
$1.3B/$1.3B
Q1 2026
EPS
$2.81/$2.74
Revenue
$1.4B/$1.4B
Q2 2026
EPS
$2.86/$2.79
Revenue
$1.4B/$1.4B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $2.55/$2.55 | +0.0% | $1.3B/$1.3B | +0.0% |
| Q4 2025 | $2.55/$2.51 | +1.6% | $1.3B/$1.3B | +0.2% |
| Q1 2026 | $2.81/$2.74 | +2.6% | $1.4B/$1.4B | +1.6% |
| Q2 2026 | $2.86/$2.79 | +2.5% | $1.4B/$1.4B | +0.8% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$5.9B
+7.1% YoY
FY2
$6.6B
+10.7% YoY
EPS Outlook
FY1
$11.42
+10.5% YoY
FY2
$12.84
+12.4% YoY
Trailing FCF (TTM)$1.8B
FCF Margin: 31.7%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
RMD beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
RMD Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2024
Total disclosed revenue $4.7B
Product Mix
Latest annual revenue by segment or product family
Sleep And Respiratory
87.5%
+10.1% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
U [S]
63.6%
YoY unavailable
Tap, hover, or focus a slice to inspect segment detail.
Sleep And Respiratory is the largest disclosed segment at 87.5% of FY 2024 revenue, up 10.1% YoY.
U [S] is the largest reported region at 63.6%, with no year-over-year comparison yet.
RMD Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Significantly Undervalued
Fair value est. $310 — implies +51.1% from today's price.
Upside to Fair Value
51.1%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
RMD
22.0x
vs
S&P 500
25.2x
13% discount
vs Healthcare Trailing P/E
RMD
22.0x
vs
Healthcare
22.1x
In line with benchmark
vs RMD 5Y Avg P/E
Today
22.0x
vs
5Y Average
41.3x
47% discount
Forward PE
19.0x
S&P 500
19.1x
-0%
Healthcare
19.0x
-0%
5Y Avg
—
—
Trailing PE
22.0x
S&P 500
25.2x
-13%
Healthcare
22.1x
-0%
5Y Avg
41.3x
-47%
PEG Ratio
1.27x
S&P 500
1.75x
-27%
Healthcare
1.52x
-17%
5Y Avg
—
—
EV/EBITDA
15.7x
S&P 500
15.3x
+3%
Healthcare
14.1x
+11%
5Y Avg
24.7x
-36%
Price/FCF
18.4x
S&P 500
21.3x
-14%
Healthcare
18.7x
-1%
5Y Avg
63.7x
-71%
Price/Sales
5.9x
S&P 500
3.1x
+89%
Healthcare
2.8x
+108%
5Y Avg
8.2x
-28%
Dividend Yield
1.01%
S&P 500
1.88%
-46%
Healthcare
1.40%
-28%
5Y Avg
0.81%
+24%
| Metric | RMD | S&P 500 | Healthcare | 5Y Avg RMD |
|---|---|---|---|---|
| Forward PE | 19.0x | 19.1x | 19.0x | — |
| Trailing PE | 22.0x | 25.2x-13% | 22.1x | 41.3x-47% |
| PEG Ratio | 1.27x | 1.75x-27% | 1.52x-17% | — |
| EV/EBITDA | 15.7x | 15.3x | 14.1x+11% | 24.7x-36% |
| Price/FCF | 18.4x | 21.3x-14% | 18.7x | 63.7x-71% |
| Price/Sales | 5.9x | 3.1x+89% | 2.8x+108% | 8.2x-28% |
| Dividend Yield | 1.01% | 1.88% | 1.40% | 0.81% |
RMD trades above S&P 500 benchmarks on 1 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolRMD Financial Health
Verdict
Exceptional
RMD generates $1.8B in free cash flow at a 31.7% margin — 22.8% ROIC signals a durable competitive advantage · returns 2.0% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$5.5B
Revenue Growth
TTM vs prior year
+10.3%
Gross Margin
Gross profit as a share of revenue
61.7%
Operating Margin
Operating income divided by revenue
34.3%
Net Margin
Net income divided by revenue
27.4%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$10.33
Free Cash Flow (TTM)
Cash generation after capex
$1.8B
FCF Margin
FCF as share of revenue — the primary cash quality signal
31.7%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
22.8%
ROA
Return on assets, trailing twelve months
18.0%
Cash & Equivalents
Liquid assets on the balance sheet
$1.2B
Net Cash
Cash exceeds total debt — no net leverage
$358M
Debt Serviceability
Net debt as a multiple of annual free cash flow
Net cash ✓
ROE
Return on equity, trailing twelve months
24.4%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
2.0%
Dividend
1.0%
Buyback
1.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$300M
Dividend / Share
Annualized trailing dividend per share
$2.11
Payout Ratio
Share of earnings distributed as dividends
22.2%
Shares Outstanding
Declining as buybacks retire shares
146M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageRMD Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 11, 2026
High Risk
Regulatory & Reimbursement
ResMed faces risk that changes in government regulations or third‑party payer decisions could reduce coverage of its sleep‑apnea devices. Comparative effectiveness studies may lead to lower reimbursement rates, directly impacting sales volumes. The company’s compliance burden is amplified by recent acquisitions that bring additional healthcare oversight.
High Risk
Patent Litigation
ResMed is involved in patent infringement lawsuits, notably from Cleveland Medical, which could result in costly settlements or injunctions. A ruling against ResMed could restrict product sales or require costly redesigns. The litigation exposure is significant given the company’s reliance on proprietary technology.
Medium
Foreign Currency Exposure
A substantial portion of ResMed’s revenue comes from international markets, exposing the company to adverse currency fluctuations. Volatile exchange rates can erode gross margins and distort earnings. The company has not disclosed a robust hedging strategy to mitigate this risk.
Medium
Competition in Respiratory Care
The sleep‑apnea and respiratory‑care sector is becoming increasingly crowded, with both established players and new entrants offering comparable devices. Intensified competition could pressure pricing and reduce market share. ResMed’s product differentiation is critical to maintaining its revenue base.
Medium
Tax Audit Risk
ResMed is subject to tax audits, including a recent audit by the Australian Taxation Office, which could lead to material adjustments to its financial results. Unanticipated tax liabilities could affect profitability and cash flow. The audit exposure is heightened by the company’s global operations.
Lower
Valuation Sensitivity
ResMed trades at a premium valuation, making it vulnerable to market pullbacks if quarterly results fail to exceed high expectations or if broader multiples contract. A modest earnings miss could trigger a significant share price decline. The company’s valuation is closely tied to investor sentiment and market conditions.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why RMD Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 11, 2026
Robust Revenue & Earnings Growth
ResMed has consistently posted high single to low double‑digit year‑over‑year revenue growth, while earnings per share have repeatedly surpassed analyst expectations. Operating margins remain strong and gross margins are expanding thanks to manufacturing efficiencies and cost improvements.
Market Leadership & Resupply Momentum
As the leader in sleep and respiratory care, ResMed enjoys sustained demand and is gaining market share from competitors such as Philips. Resupply rates for CPAP therapy are rising, partly driven by patients on GLP‑1 medications.
Strong Financial Health & Shareholder Returns
The company maintains a healthy current ratio, a low debt‑to‑equity ratio, and robust cash flow from operations. It has increased its dividend for 13 consecutive years and returns capital through dividends and share buybacks with a sustainable payout ratio.
Product Innovation & Geographic Expansion
Growth is being fueled by ongoing product innovation and geographic expansion, increasing awareness of respiratory conditions and driving new customer acquisition.
Resilience in Recessionary Environments
ResMed’s steady topline growth, high margins, low debt, and substantial cash reserves make it resilient even during recessionary periods.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
RMD Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$209.64
52W Range Position
12%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$198.64
+5.5% from the low
52-Week High
$293.81
-28.6% from the high
1 Month
-6.80%
3 Month
-22.82%
YTD
-14.4%
1 Year
-13.4%
3Y CAGR
-3.4%
5Y CAGR
+1.7%
10Y CAGR
+14.0%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
RMD vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
19.0x
vs 17.6x median
+8% above peer median
Revenue Growth
+7.1%
vs +7.6% median
-7% below peer median
Net Margin
27.4%
vs 5.0% median
+447% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
RMD RMD ResMed Inc. | $30.5B | 19.0x | +7.1% | 27.4% | Buy | +34.2% |
PHG PHG Koninklijke Philips N.V. | $25.9B | 17.6x | -0.1% | 5.0% | Hold | — |
ITG ITGR Integer Holdings Corporation | $3.0B | 13.3x | +7.6% | 7.7% | Buy | +13.6% |
NVC NVCR NovoCure Limited | $1.9B | — | +6.5% | -25.7% | Buy | +103.1% |
INS INSP Inspire Medical Systems, Inc. | $1.3B | 24.5x | +20.6% | 14.3% | Hold | +99.8% |
TND TNDM Tandem Diabetes Care, Inc. | $1.2B | — | +7.9% | -20.2% | Buy | +75.4% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
RMD Dividend and Capital Return
RMD returns 2.0% total yield, led by a 1.01% dividend, raised 14 consecutive years. Buybacks add another 1.0%.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
2.0%
Dividend + buyback return per year
Buyback Yield
1.0%
Dividend Yield
1.01%
Payout Ratio
22.2%
How RMD Splits Its Return
Div 1.01%
Buyback 1.0%
Dividend 1.01%Buybacks 1.0%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$2.11
Growth Streak
Consecutive years of dividend increases
14Y
3Y Div CAGR
9.5%
5Y Div CAGR
7.7%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$300M
Estimated Shares Retired
1M
Approx. Share Reduction
1.0%
Shares Outstanding
Current diluted share count from the screening snapshot
146M
At 1.0%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.60 | — | — | — |
| 2025 | $2.26 | +11.9% | 0.8% | 1.6% |
| 2024 | $2.02 | +9.8% | 0.5% | 1.5% |
| 2023 | $1.84 | +7.0% | 0.0% | 0.8% |
| 2022 | $1.72 | +6.2% | 0.0% | 0.8% |
FAQ
7 questionsRMD Investor Questions
Common questions answered from live analyst data and company financials.
01Is ResMed Inc. (RMD) stock a buy or sell in 2026?
ResMed Inc. (RMD) is rated Buy by Wall Street analysts as of 2026. Of 35 analysts covering the stock, 16 rate it Buy or Strong Buy, 14 rate it Hold, and 5 rate it Sell or Strong Sell. The consensus 12-month price target is $281, implying +34.2% from the current price of $210. The bear case scenario is $143 and the bull case is $289.
02What is the RMD stock price target for 2026?
The Wall Street consensus price target for RMD is $281 based on 35 analyst estimates. The high-end target is $345 (+64.6% from today), and the low-end target is $225 (+7.3%). The base case model target is $283.
03Is ResMed Inc. (RMD) stock overvalued in 2026?
RMD trades at 19.0x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals significantly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for ResMed Inc. (RMD) stock in 2026?
The primary risks for RMD in 2026 are: (1) Regulatory & Reimbursement — ResMed faces risk that changes in government regulations or third‑party payer decisions could reduce coverage of its sleep‑apnea devices. (2) Patent Litigation — ResMed is involved in patent infringement lawsuits, notably from Cleveland Medical, which could result in costly settlements or injunctions. (3) Foreign Currency Exposure — A substantial portion of ResMed’s revenue comes from international markets, exposing the company to adverse currency fluctuations. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is ResMed Inc.'s revenue and earnings forecast?
Analyst consensus estimates RMD will report consensus revenue of $5.9B (+7.1% year-over-year) and EPS of $11.42 (+10.5% year-over-year) for the upcoming fiscal year. The following year, analysts project $6.6B in revenue.
06When does ResMed Inc. (RMD) report its next earnings?
A confirmed upcoming earnings date for RMD is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does ResMed Inc. generate?
ResMed Inc. (RMD) generated $1.8B in free cash flow over the trailing twelve months — a free cash flow margin of 31.7%. RMD returns capital to shareholders through dividends (1.0% yield) and share repurchases ($300M TTM).