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ResMed shares drop 6% after weak 2027 revenue outlook and ventilator recall
ResMed Inc. shares fell about 6% in early trade after the company projected fiscal 2027 revenue of $5.75‑$5.85 billion, below analysts’ $5.92 billion expectation. The guidance reflects a suspension of sales of its Astral ventilators following an FDA‑mandated recall tied to five serious injuries, with an estimated $75 million impact. The firm said it will not sell Astral units in 2027 and has not decided on a 2028 restart.
ResMed also cited rising component and freight costs, planning price increases for 2027, and highlighted competition from Eli Lilly’s weight‑loss drug Zepbound and emerging Apple Watch sleep‑apnea detection. Despite the weaker outlook, the company reported fourth‑quarter adjusted earnings of $2.95 per share, beating estimates, and revenue of $1.46 billion, up 9% year‑over‑year.
Analyst houses Piper Sandler, Keybanc and Wells Fargo cut their price targets, lowering the average target to $232 from $233‑$255, and the stock closed at $209.51 on volume of 1.8 million shares. The combined news underscores pressure on ResMed’s growth and valuation amid product safety issues and competitive challenges.
Entities
Aaron Bloomer · Astral ventilator · Eli Lilly · Mick Farrell · Piper Sandler · ResMed Inc. · U.S. Food and Drug Administration
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 2 SOURCES] ResMed forecast fiscal 2027 revenue of US$5.75‑5.85 billion, below analysts' expectation of US$5.92 billion. wkzo.com · wtvbam.com
- [○ 1 SOURCE] ResMed's fiscal 2026 revenue increased 10% to US$5.7 billion. themarketonline.com.au
- [● 2 SOURCES] The suspension of Astral ventilator sales is expected to impact earnings by US$75 million. wkzo.com · wtvbam.com
- [● 2 SOURCES] ResMed suspended sales of its Astral ventilators for fiscal 2027 following an FDA recall. wkzo.com · wtvbam.com
- [● 2 SOURCES] ResMed reported fourth‑quarter adjusted profit of US$2.95 per share, beating the estimate of US$2.89. wkzo.com · wtvbam.com
- [○ 1 SOURCE] ResMed reported fourth‑quarter revenue of US$1.5 billion, up 8% on a constant‑currency basis. themarketonline.com.au
- [● 2 SOURCES] ResMed plans to increase product prices in fiscal 2027 due to rising component and freight costs. wkzo.com · wtvbam.com
- [○ 1 SOURCE] ResMed returned US$1.0 billion to shareholders through share repurchases and dividends in fiscal 2026. themarketonline.com.au