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ResMed earnings and stock outlook

Updated 2 times since CLSTR started tracking revisions of this situation.

What changed

2026-08-08 00:44 UTC → 2026-08-11 22:25 UTC · added ~~removed~~

In early August, ResMed’s shares had fallen about 30% from a year earlier, trading at the lowest forward‑earnings multiple in more than a decade. The decline was linked to concerns over emerging GLP‑1 weight‑loss drugs, new U.S. healthcare tariffs and upcoming competition from Philips, yet the company posted solid FY26 third‑quarter results – revenue up 11%, higher gross margins and a 21% rise in non‑GAAP EPS – and announced a dividend and a share‑repurchase program, prompting a buy rating from analysts. A week later, ResMed reported record fourth‑quarter revenue of US$1.5 billion and a 10% increase in its quarterly dividend, but its FY2027 revenue guidance fell short of analyst expectations. The weaker outlook triggered a roughly 6% drop in the stock price. The company also disclosed a suspension of Astral ventilator sales after an FDA‑linked recall that caused serious injuries, estimating a US$75 million impact, and said it would raise product prices in FY2027 to offset higher component and freight costs. On 6 August, the share decline repeated, with the stock slipping about 6% after ResMed projected FY2027 revenue of $5.75‑$5.85 billion, below the $5.92 billion consensus. The guidance reflected the ongoing suspension of Astral ventilator sales and the $75 million recall impact. The firm announced price increases for 2027 to counter rising component and freight costs and noted competitive pressure from Eli Lilly’s Zepbound weight‑loss drug and Apple Watch sleep‑apnea detection. Despite the softer outlook, Q4 adjusted earnings were $2.95 per share, beating estimates, and revenue rose 9% YoY to $1.46 billion. Analyst houses cut price targets, lowering the average target to $232, and the stock closed at $209.51. By 10 August, ResMed reported record quarterly revenue of US$1.461 billion and a 14% rise in net profit to US$429 million.

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