DailyIQ
|
Sector:HealthcareAll sectors
Last updated 6 minutes ago

RMD·ResMed Inc.

$.
-. (-.%)
After Hours
High
$209.36
Open
$208.61
Market Cap
29.75B
52W High
$293.81
Low
$203.40
P. Close
$203.85
P/E
19.58
52W Low
$180.26
Fwd P/E
16.92
DailyIQ Est.
$261.42
Technical Score (1D)
45
NEUTRAL
News Sentiment
69
BULLISH
ResMed announced the sale of its MatrixCare post‑acute care software unit to a private‑equity buyer, a move that signals a strategic pivot toward its core sleep‑apnea and respiratory‑care device portfolio. By shedding non‑core software, the company intends to concentrate capital and R&D on product adoption and data‑driven services, tightening its product mix. This shift may reduce recurring software revenue, which could influence short‑term earnings expectations. Traders should monitor the integration timeline of the sale and any subsequent guidance on device sales growth to gauge the impact on the company’s financials. Meanwhile, analysts project double‑digit earnings growth for ResMed’s Q4 2026 results, reflecting robust revenue and margin expansion. The upcoming earnings release could serve as a catalyst for short‑term price action, particularly if the company confirms the effect of the divestiture on its earnings profile. Watch the earnings report for confirmation that the guidance aligns with the anticipated focus on device sales and connected‑health data. Keep an eye on any updates regarding the integration of the sale and potential changes to recurring revenue projections, as these will shape the next 1–10 trading days.
Earnings Summary
ResMed Inc. is a global medical technology company that develops and distributes devices and software solutions for respiratory health, focusing on sleep apnea and breathing disorders through its Sleep and Breathing Health segment. The company operates in the healthcare sector, specifically within medical instruments and supplies, offering diagnostic devices, cloud‑based platforms like AirView, and patient engagement software such as myAir to streamline care workflows. In the most recent quarters, ResMed’s earnings have shown a steady upward trajectory: Q3 2025 reported EPS of $2.55 versus an estimate of $2.49874, and Q3 2026 delivered $2.86 against an estimate of $2.79832, while revenue rose from $1.335 billion in Q3 2025 to $1.431 billion in Q3 2026, a 7.5 % increase; the company also beat estimates in each of the last four quarters, underscoring a pattern of earnings surprises. Historically, ResMed has maintained a consistent beat streak, with EPS growth accelerating from $2.43 in Q4 2024 to $2.86 in Q3 2026 and revenue expanding year‑over‑year, reflecting robust demand for its core device portfolio and data‑driven services. Recent news highlights the sale of its MatrixCare post‑acute care software unit for $490 million, a strategic pivot that concentrates capital and R&D on its core sleep‑apnea devices; analysts note that the divestiture is not expected to materially alter current revenue or profitability guidance, but it may free resources for future product innovation and margin improvement. Investors should watch the upcoming earnings release for confirmation of guidance on device sales growth, the integration timeline of the MatrixCare sale, and any updates on recurring software revenue projections, as these factors will shape short‑term valuation and margin expectations.

EPS

EstBeatMiss
$2.23$2.41$2.59$2.78$2.96Q4'24Q1'25Q2'25Q3'25Q3'26Q4'26
QtrEstActual+/−
Q4'26$2.87 - -
Q3'26$2.80$2.86+2.2%
Q3'25$2.50$2.55+2.1%
Q2'25$2.48$2.55+2.8%
Q1'25$2.36$2.37+0.4%
Q4'24$2.31$2.43+5.0%

Revenue

EstBeatMiss
$1.3B$1.3B$1.4B$1.4B$1.5BQ4'24Q1'25Q2'25Q3'25Q3'26Q4'26
QtrEstActual+/−
Q4'26$1.5B - -
Q3'26$1.4B$1.4B+0.6%
Q3'25 - $1.3B -
Q2'25 - $1.3B -
Q1'25 - $1.3B -
Q4'24 - $1.3B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
→

Market Data

RMD Stock Snapshot

RMD is currently trading at $203.80, giving ResMed Inc. a market cap of 29.75B and a P/E ratio of 19.6. Today's range spans $203.40–$209.36, with shares opening at $208.61 and moving down $0.05 (0.0%) from the prior close. DailyIQ's technical score sits at 45/100 (HOLD) with a news sentiment reading of 69/100.

Over the past year RMD has traded between $180.26 and $293.81 - the current price is +13.1% off the 52-week low and -30.6% from the high. 25 analysts cover the stock with a Buy consensus and a mean 12-month target of $257.07 (range $180.00–$325.00), implying upside of +26.1%.

Sector rotation context matters for RMD's HOLD phase (45/100, HOLD): in Healthcare, large-cap names (29.75B market cap) with neutral technicals and bullish sentiment (69/100) are often in a staging area ahead of a rotation trade. The current P/E ratio stands at 19.6. Price: $203.80 (in the lower half of its 52-week range in $180.26–$293.81). When sector flows resume, names that consolidated cleanly rather than correcting sharply tend to lead the next leg - and RMD's current setup fits that pattern.

In neutral phases, large-cap Healthcare names like RMD are often where sector rotation debates play out quietly — at 29.75B in capitalization, the stock receives incremental allocation from funds reducing mega-cap exposure without the volatility of a small-cap entry. The 45/100 (HOLD) and bullish sentiment (69/100) at $203.80 (in the lower half of its 52-week range) describe a stock that is being considered rather than avoided.