Overview
Sleep device maker's Q2 revenue rose 11%, meeting analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company repurchased 704,000 shares for $175 mln
Outlook
Resmed plans to invest in innovation to scale digital health capabilities
Company aims for sustainable, profitable growth in the second half of fiscal 2026
Result Drivers
DEVICE DEMAND - Strong demand for sleep and respiratory care devices drove revenue growth
MARGIN IMPROVEMENT - Gross margin increased due to manufacturing and logistics efficiencies and component cost improvements
SG&A EXPENSES - SG&A expenses rose due to VirtuOx acquisition, employee costs, and marketing and technology investments
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Meet | $1.40 bln | $1.40 bln (16 Analysts) |
Q2 Adjusted EPS | Beat | $2.81 | $2.72 (15 Analysts) |
Q2 EPS | $2.68 | ||
Q2 Adjusted Gross Margin | 62.30% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 7 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"
Wall Street's median 12-month price target for Resmed Inc is $299.00, about 16% above its January 28 closing price of $257.72
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 25 three months ago
Press Release: ID:nGNX6GVSKC
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)