RMD
RMD
ResMed Inc.Income Statement
| Period | Revenue | Operating Expense | Net Income | Net Profit Margin | Earnings Per Share | EBITDA |
|---|---|---|---|---|---|---|
| Q2-2026 | $1.42B ▲ | $387.06M ▲ | $392.59M ▲ | 27.59% ▲ | $2.69 ▲ | $566.43M ▲ |
| Q1-2026 | $1.34B ▼ | $374.28M ▲ | $348.54M ▼ | 26.1% ▼ | $2.38 ▼ | $503.28M ▼ |
| Q4-2025 | $1.35B ▲ | $365.53M ▲ | $379.7M ▲ | 28.17% ▼ | $2.59 ▲ | $532.34M ▲ |
| Q3-2025 | $1.29B ▲ | $340.14M ▲ | $365.04M ▲ | 28.26% ▲ | $2.49 ▲ | $469.6M ▼ |
| Q2-2025 | $1.28B | $334.03M | $344.62M | 26.88% | $2.35 | $479.01M |
What's going well?
Revenue and profit both grew nicely this quarter. Margins are improving, and expenses are well controlled. The company is highly profitable and keeps most of each sale as profit.
What's concerning?
R&D spending is only 6% of revenue, which could limit future innovation. No breakdown of marketing spend, so it's unclear how much is being invested in growth. Otherwise, no major red flags.
Balance Statement
| Period | Cash & Short-term | Total Assets | Total Liabilities | Total Equity |
|---|---|---|---|---|
| Q2-2026 | $1.43B ▲ | $8.5B ▲ | $2.18B ▼ | $6.32B ▲ |
| Q1-2026 | $1.38B ▲ | $8.31B ▲ | $2.19B ▼ | $6.12B ▲ |
| Q4-2025 | $1.21B ▲ | $8.17B ▲ | $2.21B ▲ | $5.97B ▲ |
| Q3-2025 | $944.84M ▲ | $7.57B ▲ | $2.02B ▲ | $5.55B ▲ |
| Q2-2025 | $521.94M | $7.14B | $1.89B | $5.25B |
What's financially strong about this company?
RMD has a large cash cushion, low debt, and a high current ratio, making it very safe. Shareholder equity keeps growing, and the company is buying back shares, showing confidence in its future.
What are the financial risks or weaknesses?
A sizable chunk of assets is goodwill and intangibles, which could be written down if acquisitions underperform. Debt has ticked up, though still at safe levels.
Cash Flow Statement
| Period | Net Income | Cash From Operations | Cash From Investing | Cash From Financing | Net Change | Free Cash Flow |
|---|---|---|---|---|---|---|
| Q2-2026 | $392.59M ▲ | $339.75M ▼ | $-50.94M ▲ | $-258.35M ▼ | $33.22M ▼ | $311.21M ▼ |
| Q1-2026 | $348.54M ▼ | $457.32M ▼ | $-52.58M ▲ | $-230.27M ▼ | $174.4M ▼ | $414.36M ▼ |
| Q4-2025 | $379.7M ▲ | $538.77M ▼ | $-133.71M ▼ | $-163.89M ▼ | $276.74M ▼ | $508.18M ▼ |
| Q3-2025 | $365.04M ▲ | $578.66M ▲ | $-31.79M ▲ | $-144.07M ▲ | $410.77M ▲ | $554.87M ▲ |
| Q2-2025 | $344.62M | $308.62M | $-36.69M | $-147.54M | $95.58M | $289.75M |
What's strong about this company's cash flow?
The company consistently generates strong cash from its core business, pays down debt, and returns lots of cash to shareholders through dividends and buybacks. Cash reserves are growing and more than cover business needs.
What are the cash flow concerns?
Cash flow from operations and free cash flow both dropped this quarter, mainly due to more money tied up in receivables and inventory. If this trend continues, it could limit flexibility.
Revenue by Products
| Product | Q1-2025 | Q2-2025 | Q1-2026 | Q2-2026 |
|---|---|---|---|---|
 Residential Care Software | $160.00M ▲ | $160.00M ▲ | $170.00M ▲ | $170.00M ▲ |
 Sleep And Respiratory | $1.07Bn ▲ | $1.13Bn ▲ | $1.17Bn ▲ | $1.26Bn ▲ |
Revenue by Geography
| Region | Q1-2025 | Q2-2025 | Q1-2026 | Q2-2026 |
|---|---|---|---|---|
 Combined Europe Asia And Other Markets | $360.00M ▲ | $380.00M ▲ | $390.00M ▲ | $420.00M ▲ |
 Global | $160.00M ▲ | $160.00M ▲ | $170.00M ▲ | $170.00M ▲ |
 Us Canada And Latin America | $710.00M ▲ | $750.00M ▲ | $770.00M ▲ | $840.00M ▲ |
Q2 2026 Earnings Call Summary
Read Call Summary5-Year Trend Analysis
A comprehensive look at ResMed Inc.'s financial evolution and strategic trajectory over the past five years.
ResMed combines steady revenue growth with expanding margins, strong earnings, and robust free cash flow. Its balance sheet has strengthened significantly, moving to a net cash position with ample liquidity, which supports resilience and optionality. Commercially, the company benefits from a leading position in sleep and respiratory care, a large installed base of connected devices, recurring consumables and software revenues, and a data‑rich digital ecosystem that is difficult for competitors to replicate. Ongoing, disciplined investment in R&D and acquisitions further supports its innovation engine and long‑term growth potential.
Key risks center around concentration in sleep and respiratory therapies, where changes in clinical practice, safety perceptions, or reimbursement policies could materially affect demand. The build‑up of goodwill and other intangibles from acquisitions adds balance sheet risk if any acquired businesses underperform. The company also faces intense competition, regulatory scrutiny, and pricing pressure in global healthcare markets. Its increasing reliance on software, cloud platforms, and AI introduces additional cybersecurity, data privacy, and regulatory compliance challenges, while swings in working capital and acquisition spending can create volatility in cash flows.
Based on the information provided, ResMed appears to be in a favorable phase of its corporate lifecycle: revenue and profits are growing, margins are improving, cash flows are strong, and the balance sheet is robust. The company is using its financial strength to invest in digital health, AI, and adjacent care areas that could extend its leadership and grow its addressable market. At the same time, it operates in a highly regulated, evolving healthcare environment, so sustained success will depend on continuing to innovate, managing payer and regulatory risks, and maintaining the quality and safety of its products and data platforms. Overall, the evidence points to a constructive long‑term setup, albeit with the usual execution and industry risks inherent in healthcare technology.
About ResMed Inc.
https://www.resmed.comResMed 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.
Income Statement
| Period | Revenue | Operating Expense | Net Income | Net Profit Margin | Earnings Per Share | EBITDA |
|---|---|---|---|---|---|---|
| Q2-2026 | $1.42B ▲ | $387.06M ▲ | $392.59M ▲ | 27.59% ▲ | $2.69 ▲ | $566.43M ▲ |
| Q1-2026 | $1.34B ▼ | $374.28M ▲ | $348.54M ▼ | 26.1% ▼ | $2.38 ▼ | $503.28M ▼ |
| Q4-2025 | $1.35B ▲ | $365.53M ▲ | $379.7M ▲ | 28.17% ▼ | $2.59 ▲ | $532.34M ▲ |
| Q3-2025 | $1.29B ▲ | $340.14M ▲ | $365.04M ▲ | 28.26% ▲ | $2.49 ▲ | $469.6M ▼ |
| Q2-2025 | $1.28B | $334.03M | $344.62M | 26.88% | $2.35 | $479.01M |
What's going well?
Revenue and profit both grew nicely this quarter. Margins are improving, and expenses are well controlled. The company is highly profitable and keeps most of each sale as profit.
What's concerning?
R&D spending is only 6% of revenue, which could limit future innovation. No breakdown of marketing spend, so it's unclear how much is being invested in growth. Otherwise, no major red flags.
Balance Statement
| Period | Cash & Short-term | Total Assets | Total Liabilities | Total Equity |
|---|---|---|---|---|
| Q2-2026 | $1.43B ▲ | $8.5B ▲ | $2.18B ▼ | $6.32B ▲ |
| Q1-2026 | $1.38B ▲ | $8.31B ▲ | $2.19B ▼ | $6.12B ▲ |
| Q4-2025 | $1.21B ▲ | $8.17B ▲ | $2.21B ▲ | $5.97B ▲ |
| Q3-2025 | $944.84M ▲ | $7.57B ▲ | $2.02B ▲ | $5.55B ▲ |
| Q2-2025 | $521.94M | $7.14B | $1.89B | $5.25B |
What's financially strong about this company?
RMD has a large cash cushion, low debt, and a high current ratio, making it very safe. Shareholder equity keeps growing, and the company is buying back shares, showing confidence in its future.
What are the financial risks or weaknesses?
A sizable chunk of assets is goodwill and intangibles, which could be written down if acquisitions underperform. Debt has ticked up, though still at safe levels.
Cash Flow Statement
| Period | Net Income | Cash From Operations | Cash From Investing | Cash From Financing | Net Change | Free Cash Flow |
|---|---|---|---|---|---|---|
| Q2-2026 | $392.59M ▲ | $339.75M ▼ | $-50.94M ▲ | $-258.35M ▼ | $33.22M ▼ | $311.21M ▼ |
| Q1-2026 | $348.54M ▼ | $457.32M ▼ | $-52.58M ▲ | $-230.27M ▼ | $174.4M ▼ | $414.36M ▼ |
| Q4-2025 | $379.7M ▲ | $538.77M ▼ | $-133.71M ▼ | $-163.89M ▼ | $276.74M ▼ | $508.18M ▼ |
| Q3-2025 | $365.04M ▲ | $578.66M ▲ | $-31.79M ▲ | $-144.07M ▲ | $410.77M ▲ | $554.87M ▲ |
| Q2-2025 | $344.62M | $308.62M | $-36.69M | $-147.54M | $95.58M | $289.75M |
What's strong about this company's cash flow?
The company consistently generates strong cash from its core business, pays down debt, and returns lots of cash to shareholders through dividends and buybacks. Cash reserves are growing and more than cover business needs.
What are the cash flow concerns?
Cash flow from operations and free cash flow both dropped this quarter, mainly due to more money tied up in receivables and inventory. If this trend continues, it could limit flexibility.
Revenue by Products
| Product | Q1-2025 | Q2-2025 | Q1-2026 | Q2-2026 |
|---|---|---|---|---|
| Residential Care Software | $160.00M ▲ | $160.00M ▲ | $170.00M ▲ | $170.00M ▲ |
| Sleep And Respiratory | $1.07Bn ▲ | $1.13Bn ▲ | $1.17Bn ▲ | $1.26Bn ▲ |
Revenue by Geography
| Region | Q1-2025 | Q2-2025 | Q1-2026 | Q2-2026 |
|---|---|---|---|---|
| Combined Europe Asia And Other Markets | $360.00M ▲ | $380.00M ▲ | $390.00M ▲ | $420.00M ▲ |
| Global | $160.00M ▲ | $160.00M ▲ | $170.00M ▲ | $170.00M ▲ |
| Us Canada And Latin America | $710.00M ▲ | $750.00M ▲ | $770.00M ▲ | $840.00M ▲ |
Q2 2026 Earnings Call Summary
Read Call Summary5-Year Trend Analysis
A comprehensive look at ResMed Inc.'s financial evolution and strategic trajectory over the past five years.
ResMed combines steady revenue growth with expanding margins, strong earnings, and robust free cash flow. Its balance sheet has strengthened significantly, moving to a net cash position with ample liquidity, which supports resilience and optionality. Commercially, the company benefits from a leading position in sleep and respiratory care, a large installed base of connected devices, recurring consumables and software revenues, and a data‑rich digital ecosystem that is difficult for competitors to replicate. Ongoing, disciplined investment in R&D and acquisitions further supports its innovation engine and long‑term growth potential.
Key risks center around concentration in sleep and respiratory therapies, where changes in clinical practice, safety perceptions, or reimbursement policies could materially affect demand. The build‑up of goodwill and other intangibles from acquisitions adds balance sheet risk if any acquired businesses underperform. The company also faces intense competition, regulatory scrutiny, and pricing pressure in global healthcare markets. Its increasing reliance on software, cloud platforms, and AI introduces additional cybersecurity, data privacy, and regulatory compliance challenges, while swings in working capital and acquisition spending can create volatility in cash flows.
Based on the information provided, ResMed appears to be in a favorable phase of its corporate lifecycle: revenue and profits are growing, margins are improving, cash flows are strong, and the balance sheet is robust. The company is using its financial strength to invest in digital health, AI, and adjacent care areas that could extend its leadership and grow its addressable market. At the same time, it operates in a highly regulated, evolving healthcare environment, so sustained success will depend on continuing to innovate, managing payer and regulatory risks, and maintaining the quality and safety of its products and data platforms. Overall, the evidence points to a constructive long‑term setup, albeit with the usual execution and industry risks inherent in healthcare technology.
CEO
Michael J. Farrell BE, MBA, SM
Compensation Summary
(Year 2025)
Upcoming Earnings
Split Record
| Date | Type | Ratio |
|---|---|---|
| 2010-08-31 | Forward | 2:1 |
| 2005-10-03 | Forward | 2:1 |
ETFs Holding This Stock
Summary
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Ratings Snapshot
Rating : A
Most Recent Analyst Grades
Citigroup
Buy
RBC Capital
Outperform
Wells Fargo
Equal Weight
Piper Sandler
Neutral
Stifel
Hold
Baird
Neutral
Grade Summary
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Price Target
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