ResMed (RMD)
NYSEHealth CareMedical - Instruments & SuppliesSnapshot 2026-09-04
$228.35-0.37%
Close 2026-09-04 · 1-day change
NYSEHealth CareMedical - Instruments & SuppliesSnapshot 2026-09-04
Broken: Primary pillar broken — Maintain gross margin near 62-63%: FY26 gross margin 61.1% vs 62-63% target; Q4 58.8% < 60% trip.
ResMed grows revenue about 11% yearly, reaching $1.43B in Q3 2026. Profit margins stay strong near 62.5%. The company invests steadily in innovation and digital health. Free cash flow yield is solid at 5%.
Margins face pressure, as recent guidance cuts and downgrades suggest. Revenue growth could slow below 10%. Management changes and software business sale may disrupt execution.
The price is about 7% below our fair value near $237 and 7% below the Street median. Analysts expect roughly 10% revenue growth, which aligns with our view. The market fairly values current growth and margin outlook.
Breaks if: Gross margin falls below 60% in FY26
Maintain gross margin in the range of 62-63% for fiscal year 2026.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on innovation and digital health. The current thesis state is stable, supported by strong financial results and ongoing management priorities.
The market appears to price RMD as justified, with a low expectations gap compared to peers. Valuation suggests that RMD is relatively cheap versus its industry counterparts.
Fundamentals are expected to remain strong, driven by management's focus on innovation and cost efficiencies. Recent financial performance shows solid growth, although there is a moderate risk of missing future estimates.
The thesis hinges on management's ability to maintain guidance and navigate potential economic challenges. Key factors include sector performance from major players and the impact of macroeconomic conditions on RMD's business.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the company's strong performance. However, margin pressures and guidance concerns threaten future growth.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Investment in innovation stalls or digital health growth reverses
Breaks if: YoY revenue growth falls below ~10% next year
Overall, RMD's position looks stable for the next 1 to 3 years, but investors should monitor sector trends and management execution closely. Not investment advice.