ResMed shares tumbled 6.83% in after-hours trading on Thursday, as investors focused on moderating revenue growth despite the company reporting fourth-quarter fiscal 2026 earnings that exceeded analyst expectations.

While ResMed posted Q4 adjusted earnings of $2.95 per diluted share, surpassing the $2.89 analyst consensus, and revenue of $1.46 billion, its revenue growth of approximately 8% year-over-year marked a deceleration from the roughly 10% growth seen in the prior quarter. This slowdown in momentum fueled concerns among investors, overshadowing the company's positive earnings beat and its announcement of plans to return over $1.85 billion to shareholders in fiscal 2027 alongside a 10% dividend increase.

The sell-off also comes against a backdrop of recent headwinds, including competitive pressures from GLP-1 weight-loss drugs and the re-entry of a rival device into the market, which have led to multiple analyst downgrades and price target reductions in recent months.