Upside case
Bull case
$312+65.4%
RMD would need investors to value it at roughly 28x earnings — about 11x more generous than today's 17x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated Jun 18, 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
15 bullish · 5 bearish · 35 covering RMD
Strong Buy
0
Buy
15
Hold
15
Sell
5
Strong Sell
0
Consensus Target
$265
+40.4% vs today
Scenario Range
$149 – $312
Model bear to bull value window
Coverage
35
Published analyst ratings
Valuation Context
17.0x
Forward P/E · Market cap $27.5B
RMD price targets
Three scenarios for where RMD stock could go
Current
~$189
Confidence
62 / 100
Updated
Jun 18, 2026
Where we are now
Current · $189
Bear
$149
Base
$237
Bull
$312
Market caseClosest to today
Base case
$237+25.6%
At 21x 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
$149-20.9%
If investor confidence fades or macro conditions deteriorate, a 4x multiple contraction could push RMD down roughly 21% 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
$27.5B
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/$2.80
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/$2.80 | +2.1% | $1.4B/$1.4B | +0.8% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$5.9B
+7.0% YoY
FY2
$6.2B
+5.2% YoY
EPS Outlook
FY1
$10.99
+6.3% YoY
FY2
$11.56
+5.2% YoY
Trailing FCF (TTM)$1.8B
FCF Margin: 31.7%
Next Earnings
July 30, 2026
Expected EPS
$2.90
Expected Revenue
$1.5B
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
Cheap versus peers
Fair value est. $254 — implies +34.5% from today's price.
Upside to Fair Value
34.5%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
RMD
19.8x
vs
S&P 500
24.4x
19% discount
vs Healthcare Trailing P/E
RMD
19.8x
vs
Healthcare
22.1x
10% discount
vs RMD 5Y Avg P/E
Today
19.8x
vs
5Y Average
41.3x
52% discount
Forward PE
17.0x
S&P 500
18.8x
-10%
Healthcare
18.3x
-7%
5Y Avg
—
—
Trailing PE
19.8x
S&P 500
24.4x
-19%
Healthcare
22.1x
-10%
5Y Avg
41.3x
-52%
PEG Ratio
1.14x
S&P 500
1.66x
-31%
Healthcare
1.59x
-28%
5Y Avg
—
—
EV/EBITDA
14.1x
S&P 500
15.2x
-7%
Healthcare
14.2x
-1%
5Y Avg
24.7x
-43%
Price/FCF
16.5x
S&P 500
20.7x
-20%
Healthcare
18.5x
-11%
5Y Avg
63.7x
-74%
Price/Sales
5.3x
S&P 500
3.1x
+73%
Healthcare
2.6x
+103%
5Y Avg
8.2x
-35%
Dividend Yield
1.12%
S&P 500
1.91%
-42%
Healthcare
1.50%
-25%
5Y Avg
0.81%
+38%
| Metric | RMD | S&P 500 | Healthcare | 5Y Avg RMD |
|---|---|---|---|---|
| Forward PE | 17.0x | 18.8x | 18.3x | — |
| Trailing PE | 19.8x | 24.4x-19% | 22.1x-10% | 41.3x-52% |
| PEG Ratio | 1.14x | 1.66x-31% | 1.59x-28% | — |
| EV/EBITDA | 14.1x | 15.2x | 14.2x | 24.7x-43% |
| Price/FCF | 16.5x | 20.7x-20% | 18.5x-11% | 63.7x-74% |
| Price/Sales | 5.3x | 3.1x+73% | 2.6x+103% | 8.2x-35% |
| Dividend Yield | 1.12% | 1.91% | 1.50% | 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 2.2% 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
2.2%
Dividend
1.1%
Buyback
1.1%
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 June 18, 2026
High Risk
Valuation de-rating
AI models forecast a -6.7% price decline to $181.73 from $194.78, indicating potential overvaluation.
Medium
Competitive pressures
ResMed faces competition in the CPAP and respiratory device market, despite its leadership position.
Lower
Market saturation
As a leader in sleep apnea solutions, growth may slow due to high market penetration.
Medium
Regulatory risks
Medical device regulations could impact product approvals or cloud-connectable device compliance.
Lower
Dependence on CPAP
Heavy reliance on sleep apnea devices may limit diversification into other medical segments.
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 June 18, 2026
Innovative sleep apnea solutions
ResMed provides cutting-edge medical devices and cloud-connectable solutions for sleep apnea and respiratory conditions like COPD, improving patient outcomes.
Strong market leadership
ResMed is a leader in the CPAP industry, known for its innovative, user-friendly, and comfortable products that are trusted worldwide.
Wide economic moat
The company has a wide moat, supported by its strong brand, innovative technology, and leadership in the sleep apnea and respiratory care markets.
Cloud-connected medical devices
ResMed's cloud-connectable devices, like AirView, enable advanced remote monitoring and data-driven healthcare solutions, enhancing patient care and compliance.
Positive analyst sentiment
Bullish investment theses highlight ResMed's strong fundamentals, valuation multiples, and growth potential, with optimistic outlooks for 2026-2031.
Global trust and distribution
ResMed's products are widely trusted and distributed globally, with authorized retailers and a strong presence in key healthcare markets.
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
$188.63
52W Range Position
7%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$180.26
+4.6% from the low
52-Week High
$293.81
-35.8% from the high
1 Month
-7.60%
3 Month
-17.22%
YTD
-22.9%
1 Year
-24.8%
3Y CAGR
-4.5%
5Y CAGR
-4.5%
10Y CAGR
+12.2%
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
17.0x
vs 17.1x median
-1% below peer median
Revenue Growth
+7.0%
vs +8.6% median
-18% below peer median
Net Margin
27.4%
vs 5.5% median
+400% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
RMD RMD ResMed Inc. | $27.5B | 17.0x | +7.0% | 27.4% | Buy | +40.4% |
PHG PHG Koninklijke Philips N.V. | $25.5B | 17.1x | +1.6% | 5.5% | Hold | — |
ITG ITGR Integer Holdings Corporation | $3.1B | 15.0x | +8.9% | 7.7% | Buy | +18.7% |
NVC NVCR NovoCure Limited | $1.6B | — | +9.0% | -25.7% | Buy | +131.1% |
INS INSP Inspire Medical Systems, Inc. | $1.2B | 47.5x | +8.2% | 14.3% | Hold | +34.6% |
TND TNDM Tandem Diabetes Care, Inc. | $1.0B | — | +8.6% | -9.2% | Buy | +105.2% |
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 2.2% total yield, led by a 1.12% dividend, raised 14 consecutive years. Buybacks add another 1.1%.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
2.2%
Dividend + buyback return per year
Buyback Yield
1.1%
Dividend Yield
1.12%
Payout Ratio
22.2%
How RMD Splits Its Return
Div 1.12%
Buyback 1.1%
Dividend 1.12%Buybacks 1.1%
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
2M
Approx. Share Reduction
1.1%
Shares Outstanding
Current diluted share count from the screening snapshot
146M
At 1.1%/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 | $1.20 | — | — | — |
| 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, 15 rate it Buy or Strong Buy, 15 rate it Hold, and 5 rate it Sell or Strong Sell. The consensus 12-month price target is $265, implying +40.4% from the current price of $189. The bear case scenario is $149 and the bull case is $312.
02What is the RMD stock price target for 2026?
The Wall Street consensus price target for RMD is $265 based on 35 analyst estimates. The high-end target is $314 (+66.5% from today), and the low-end target is $225 (+19.3%). The base case model target is $237.
03Is ResMed Inc. (RMD) stock overvalued in 2026?
RMD trades at 17.0x 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 cheap versus peers. 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) Valuation de-rating — AI models forecast a -6. (2) Competitive pressures — ResMed faces competition in the CPAP and respiratory device market, despite its leadership position. (3) Regulatory risks — Medical device regulations could impact product approvals or cloud-connectable device compliance. 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 (+7.0% year-over-year) and EPS of $10.99 (+6.3% year-over-year) for the upcoming fiscal year. The following year, analysts project $6.2B in revenue.
06When does ResMed Inc. (RMD) report its next earnings?
ResMed Inc. is expected to report its next earnings on approximately 2026-07-30. Consensus expects EPS of $2.90 and revenue of $1.5B. Over recent quarters, RMD has beaten EPS estimates 75% of the time.
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 (1.1% yield) and share repurchases ($300M TTM).