ResMed Reports Strong Q2 2026 Earnings with 11% Revenue Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2026
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Should l Buy RMD?
Source: seekingalpha
- Significant Revenue Growth: ResMed reported total revenue of $1.42 billion for Q2, reflecting an 11% year-over-year increase and 9% growth in constant currency, showcasing strong performance across its device and mask portfolio, thereby reinforcing its leadership in the medical device market.
- Margin Improvement: The company's gross margin reached 32.3% in the December quarter, up 110 basis points year-over-year, with operating profit increasing by 19%, which not only reflects successful cost control but also lays a solid foundation for future profitability.
- Innovative Product Launch: ResMed introduced the F30i Comfort and F30i Clear mask ranges, described as the first compact full-face fabric masks, expected to attract more customers and enhance market share, further driving the company's technological leadership in respiratory therapy.
- Increased Shareholder Returns: In Q2, ResMed returned $263 million to shareholders, including a quarterly dividend of $0.60 per share and $175 million in share repurchases, demonstrating the company's commitment to creating value for shareholders while sustaining growth.
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Analyst Views on RMD
Wall Street analysts forecast RMD stock price to rise
11 Analyst Rating
6 Buy
5 Hold
0 Sell
Moderate Buy
Current: 258.280
Low
260.00
Averages
294.00
High
345.00
Current: 258.280
Low
260.00
Averages
294.00
High
345.00
About RMD
ResMed Inc. is a holding company. The Company, through its subsidiaries, in the development, manufacturing, distribution and marketing of medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders, including sleep disordered breathing (SDB), chronic obstructive pulmonary disease, neuromuscular disease and other chronic diseases. Its segments include Sleep and Breathing Health segment and the Residential Care Software segment. It also operates a Software as a Service (SaaS) business in the United States and Germany that includes out-of-hospital software platforms designed to support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. Its products and solutions are designed to improve patients' quality of life and reduce the impact of chronic disease. Its cloud-based digital health software applications, along with its devices, are designed to provide connected care.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Analyst Confidence Boost: KeyBanc Capital Markets raised ResMed's price target from $299 to $302 while maintaining an Overweight rating, reflecting increased confidence in the company's future performance.
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- Gross Margin Guidance Raised: The company raised the low end of its gross margin guidance for fiscal 2026, indicating improving profitability expectations, with a current gross margin of 60.69%, which further boosts investor confidence.
- Strong Market Performance: RBC Capital Markets increased ResMed's price target from $311 to $314, highlighting double-digit revenue and earnings growth across markets, while maintaining an Outperform rating, indicating a positive outlook for shareholder returns.
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