Zacks Research Has Optimistic Outlook of ResMed Q1 Earnings

ResMed Inc. (NYSE:RMD - Free Report) - Equities research analysts at Zacks Research boosted their Q1 2026 earnings per share estimates for ResMed in a research report issued on Thursday, May 22nd. Zacks Research analyst R. Department now anticipates that the medical equipment provider will post earnings of $2.37 per share for the quarter, up from their prior forecast of $2.36. The consensus estimate for ResMed's current full-year earnings is $9.47 per share. Zacks Research also issued estimates for ResMed's Q2 2026 earnings at $2.48 EPS, Q3 2026 earnings at $2.51 EPS, FY2026 earnings at $9.83 EPS and FY2027 earnings at $10.71 EPS.

ResMed (NYSE:RMD - Get Free Report) last issued its quarterly earnings results on Wednesday, April 23rd. The medical equipment provider reported $2.37 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.36 by $0.01. ResMed had a net margin of 25.34% and a return on equity of 26.17%. The firm had revenue of $1.29 billion for the quarter, compared to the consensus estimate of $1.28 billion. During the same quarter in the previous year, the company earned $2.13 EPS. The company's revenue for the quarter was up 7.9% on a year-over-year basis.

Other analysts also recently issued reports about the company. Royal Bank of Canada increased their price target on ResMed from $247.00 to $255.00 and gave the stock a "sector perform" rating in a report on Thursday, April 24th. Wall Street Zen downgraded ResMed from a "buy" rating to a "hold" rating in a report on Saturday, May 24th. Piper Sandler dropped their price target on ResMed from $260.00 to $248.00 and set a "neutral" rating on the stock in a research note on Thursday, April 24th. Needham & Company LLC reaffirmed a "hold" rating on shares of ResMed in a research report on Friday, January 31st. Finally, Citigroup upgraded shares of ResMed from a "neutral" rating to a "buy" rating in a research report on Wednesday, March 5th. One investment analyst has rated the stock with a sell rating, six have issued a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $259.33.

ResMed Trading Down 0.2%

NYSE RMD traded down $0.47 during mid-day trading on Monday, reaching $244.65. 34,329 shares of the stock were exchanged, compared to its average volume of 1,018,862. The stock has a market cap of $35.87 billion, a P/E ratio of 28.90, a P/E/G ratio of 1.53 and a beta of 0.78. The company has a debt-to-equity ratio of 0.13, a current ratio of 3.33 and a quick ratio of 2.29. ResMed has a one year low of $179.42 and a one year high of $263.05. The stock has a 50 day simple moving average of $229.74 and a 200-day simple moving average of $234.23.

ResMed Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, June 12th. Shareholders of record on Thursday, May 8th will be issued a dividend of $0.53 per share. This represents a $2.12 dividend on an annualized basis and a yield of 0.87%. The ex-dividend date of this dividend is Thursday, May 8th. ResMed's dividend payout ratio is currently 23.79%.

Insider Transactions at ResMed

In related news, Director Peter C. Farrell sold 2,000 shares of the stock in a transaction on Wednesday, March 5th. The stock was sold at an average price of $227.71, for a total value of $455,420.00. Following the completion of the sale, the director now directly owns 75,218 shares of the company's stock, valued at approximately $17,127,890.78. This represents a 2.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Kaushik Ghoshal sold 9,113 shares of the firm's stock in a transaction on Monday, March 3rd. The shares were sold at an average price of $235.40, for a total value of $2,145,200.20. Following the transaction, the insider now owns 9,725 shares in the company, valued at approximately $2,289,265. This trade represents a 48.38% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 50,949 shares of company stock valued at $11,822,260 over the last ninety days. 0.71% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. lifted its position in shares of ResMed by 1.8% during the 1st quarter. Vanguard Group Inc. now owns 18,493,702 shares of the medical equipment provider's stock worth $4,139,815,000 after buying an additional 320,240 shares in the last quarter. Geode Capital Management LLC increased its position in shares of ResMed by 2.2% during the fourth quarter. Geode Capital Management LLC now owns 3,944,084 shares of the medical equipment provider's stock valued at $899,860,000 after acquiring an additional 85,270 shares during the last quarter. Invesco Ltd. lifted its holdings in ResMed by 32.2% during the fourth quarter. Invesco Ltd. now owns 2,325,009 shares of the medical equipment provider's stock worth $531,706,000 after acquiring an additional 566,046 shares during the period. Northern Trust Corp lifted its holdings in ResMed by 2.5% during the first quarter. Northern Trust Corp now owns 1,744,541 shares of the medical equipment provider's stock worth $390,516,000 after acquiring an additional 41,951 shares during the period. Finally, Charles Schwab Investment Management Inc. boosted its position in ResMed by 4.3% in the first quarter. Charles Schwab Investment Management Inc. now owns 998,128 shares of the medical equipment provider's stock worth $223,431,000 after purchasing an additional 41,108 shares during the last quarter. 54.98% of the stock is currently owned by hedge funds and other institutional investors.

About ResMed

ResMed Inc develops, manufactures, distributes, and markets medical devices and cloud-based software applications for the healthcare markets. The company operates in two segments, Sleep and Respiratory Care, and Software as a Service. It offers various products and solutions for a range of respiratory disorders, including ApneaLink Air, a portable diagnostic device that measures oximetry, respiratory effort, pulse, nasal flow, and snoring; and NightOwl, a portable, cloud-connected, and disposable diagnostic device that measures AHI based on derived peripheral arterial tone, actigraphy, and oximetry over several nights.