Zacks Research Weighs in on ResMed's Q1 Earnings (NYSE:RMD)

Key Points

• Zacks Research has revised up its Q1 2026 earnings per share (EPS) estimate for ResMed to $2.47, reflecting confidence in the company's financial performance.
• The consensus target price for ResMed shares is currently $292.91, with a majority of analysts rating the stock as a "Moderate Buy."
• ResMed recently increased its quarterly dividend to $0.60, resulting in an annual yield of 0.9% and a payout ratio of 25.24%.

ResMed Inc. (NYSE:RMD - Free Report) - Investment analysts at Zacks Research increased their Q1 2026 EPS estimates for shares of ResMed in a research note issued on Friday, October 17th. Zacks Research analyst Team now expects that the medical equipment provider will post earnings of $2.47 per share for the quarter, up from their prior forecast of $2.46. 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 $2.61 EPS, Q3 2026 earnings at $2.64 EPS, Q4 2026 earnings at $2.65 EPS, FY2026 earnings at $10.37 EPS, FY2027 earnings at $11.08 EPS and Q1 2028 earnings at $3.06 EPS.

A number of other research analysts have also recently weighed in on RMD. Wells Fargo & Company started coverage on shares of ResMed in a research note on Monday, October 13th. They set an "equal weight" rating and a $280.00 target price on the stock. Piper Sandler lifted their target price on shares of ResMed from $248.00 to $270.00 and gave the company a "neutral" rating in a research note on Friday, August 1st. KeyCorp lifted their target price on shares of ResMed from $274.00 to $298.00 and gave the company an "overweight" rating in a research note on Friday, August 1st. William Blair upgraded shares of ResMed to a "strong-buy" rating in a research note on Friday, August 1st. Finally, Weiss Ratings restated a "buy (b-)" rating on shares of ResMed in a research note on Wednesday, October 8th. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $292.91.

ResMed Trading Down 0.8%

Shares of RMD stock opened at $267.96 on Monday. ResMed has a 1 year low of $199.92 and a 1 year high of $293.81. The firm has a fifty day moving average price of $277.13 and a 200-day moving average price of $257.67. The company has a debt-to-equity ratio of 0.11, a current ratio of 3.44 and a quick ratio of 2.53. The company has a market cap of $39.11 billion, a price-to-earnings ratio of 28.18, a PEG ratio of 1.79 and a beta of 0.83.

ResMed (NYSE:RMD - Get Free Report) last issued its quarterly earnings data on Thursday, July 31st. The medical equipment provider reported $2.55 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.47 by $0.08. ResMed had a net margin of 27.22% and a return on equity of 25.62%. The firm had revenue of $1.35 billion during the quarter, compared to the consensus estimate of $1.33 billion. During the same quarter in the previous year, the firm posted $2.08 EPS. The company's revenue for the quarter was up 10.2% compared to the same quarter last year.

ResMed Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 18th. Shareholders of record on Thursday, August 14th were paid a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 0.9%. The ex-dividend date was Thursday, August 14th. This is an increase from ResMed's previous quarterly dividend of $0.53. ResMed's dividend payout ratio is presently 25.24%.

Insiders Place Their Bets

In other news, General Counsel Michael J. Rider sold 100 shares of the business's stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $274.36, for a total value of $27,436.00. Following the sale, the general counsel directly owned 11,327 shares in the company, valued at $3,107,675.72. The trade was a 0.88% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Michael J. Farrell sold 8,009 shares of the business's stock in a transaction dated Tuesday, October 7th. The stock was sold at an average price of $282.85, for a total transaction of $2,265,345.65. Following the completion of the sale, the chief executive officer owned 467,792 shares in the company, valued at approximately $132,314,967.20. This trade represents a 1.68% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 18,743 shares of company stock worth $5,284,514 in the last 90 days. 0.65% of the stock is currently owned by corporate insiders.

Institutional Trading of ResMed

A number of large investors have recently made changes to their positions in the business. WFA of San Diego LLC bought a new position in ResMed during the 2nd quarter valued at about $26,000. Golden State Wealth Management LLC lifted its position in shares of ResMed by 384.8% in the 1st quarter. Golden State Wealth Management LLC now owns 160 shares of the medical equipment provider's stock worth $36,000 after purchasing an additional 127 shares during the period. Zions Bancorporation National Association UT purchased a new stake in shares of ResMed in the 1st quarter worth approximately $45,000. Groupe la Francaise purchased a new stake in shares of ResMed in the 1st quarter worth approximately $45,000. Finally, Harbour Investments Inc. lifted its position in shares of ResMed by 264.2% in the 2nd quarter. Harbour Investments Inc. now owns 244 shares of the medical equipment provider's stock worth $63,000 after purchasing an additional 177 shares during the period. 54.98% of the stock is currently owned by institutional investors.

ResMed Company Profile

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.

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