ResMed (RMD) shares plunged 8.78% in 24-hour trading on Friday, as investors reacted negatively to the company's fiscal fourth-quarter 2026 earnings report. The stock tumbled despite reporting adjusted earnings that exceeded analyst expectations, with the market instead focusing on a notable deceleration in revenue growth.

ResMed posted adjusted earnings of $2.95 per share, surpassing the consensus estimate of $2.89, while revenue of $1.46 billion matched expectations, representing an 8.1% year-over-year increase. However, revenue growth slowed from approximately 10% in the prior quarter to around 8%, fueling concerns about the company's growth trajectory. The slowdown overshadowed positive announcements, including plans to return over $1.85 billion to shareholders in fiscal 2027 and a 10% increase in the quarterly dividend to $0.66 per share.

The sell-off also comes amid ongoing 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. Piper Sandler cut its target price to $225 from $233, while the consensus target has declined from above $300 to approximately $263.