Abstract

ResMed will report fiscal Q2 2026 results on October 29, 2026 Post Market; this preview summarizes consensus expectations for revenue, gross margin, net margin, and adjusted EPS alongside the company’s business mix and analyst sentiment.

Market Forecast

Based on the company’s latest guidance framework and compiled estimates, ResMed’s current quarter revenue is forecast at $1.40 billion, up 10.11% year over year, with EBIT estimated at $0.50 billion and adjusted EPS at $2.72, implying year-over-year growth of 17.27%; consensus expects continued gross profit margin resilience and a stable net profit margin trajectory. The main business is expected to be driven by Sleep and Respiratory Care devices and masks, supported by ongoing demand normalization and supply chain stability, while cloud-connected software and digital solutions should extend subscription growth and cross-sell opportunities. The most promising segment is Sleep and Respiratory Care, projected to deliver $1.17 billion in revenue last quarter with healthy momentum; software and services contributed $0.17 billion with improving year-over-year growth.

Last Quarter Review

ResMed’s previous quarter delivered revenue of $1.34 billion, a gross profit margin of 62.04%, GAAP net profit attributable to the parent of $0.35 billion, a net profit margin of 26.10%, and adjusted EPS of $2.55, rising 15.91% year over year. Pricing discipline, product mix, and favorable logistics costs supported gross margins, while operating leverage helped expand EBIT above estimates. In the main business, Sleep and Respiratory Care generated $1.17 billion and software services delivered $0.17 billion, highlighting broad-based demand and rising patient adherence; the overall revenue rose 9.07% year over year.

Current Quarter Outlook

Main Business: Sleep and Respiratory Care Devices and Masks

Demand for devices and mask systems remains supported by replacement cycles and new patient setups, with steady prescription trends in obstructive sleep apnea and chronic respiratory conditions. The pricing environment appears constructive as channel inventories are balanced and premium connected devices sustain value capture. Gross margin should be aided by lower freight and component costs compared with the elevated levels of the prior year, while product mix tilts toward higher-margin masks and accessories. The company’s execution on supply continuity and regional demand balancing remains central to sustaining quarter-over-quarter revenue stability, with particular focus on North America volumes and adherence-driven mask replenishments. A key watch point is how volumes respond to incremental competitor capacity recovery, which has gradually normalized, yet estimates embed ongoing share retention supported by digital engagement and ecosystem differentiation.

Most Promising Business: Software and Digital Solutions

Cloud-based SaaS offerings that support homecare providers and patient management continue to add recurring revenue with attractive gross margin profiles. The segment benefits from subscription growth, integration depth across care pathways, and increased adoption of digital adherence tools that improve patient outcomes and reduce provider friction. Cross-selling from the installed base of connected devices supports a durable funnel for upsell features and modules, while analytics and workflow automation strengthen pricing power. The quarter’s revenue contribution is smaller than devices and masks, yet it provides consistency to earnings and valuation resilience; further penetration into medium-sized providers can lift annual contract values and reduce churn. Sustained attention to interoperability and data security should help address buyer priorities and preserve the growth runway.

Key Stock Price Drivers This Quarter

Earnings-per-share trajectory will be driven by the balance of gross margin resilience and operating efficiency as revenue scales. Investors will focus on EBIT delivery versus estimate at $0.50 billion, looking for confirmation of disciplined operating spending and R&D prioritization aligned with product launch cycles. Mix between devices and masks could nudge margins, with masks offering relatively higher profitability, while component and logistics costs set the baseline for cost of goods sold. Subscription momentum in software may provide incremental upside to consolidated margin quality through recurring high-margin revenue, even as hardware volumes normalize. Management commentary on channel inventory, competitive dynamics, and pacing in new therapy setups will likely shape post-earnings stock reaction.

Analyst Opinions

Most recent institutional views have leaned positive, citing resilient device and mask demand, margin discipline, and recurring software revenue scaling; bullish opinions outnumber cautious or bearish takes across previews. Analysts highlight upside potential if EBIT surpasses the $0.50 billion mark and EPS meets or exceeds $2.72, underpinned by freight normalization and product mix. Several well-followed research desks point to continued tailwinds from connected device ecosystems and mask replenishment cycles, noting that software subscription growth increases visibility into forward cash flows. The constructive stance emphasizes execution consistency, limited pricing pressure, and supply continuity, while acknowledging that competitor normalization is a variable to watch; the majority view expects a modest beat-or-meet quarter and stable guidance, favoring a cautiously positive interpretation of the setup.