GET DAILY SIGNALSResMed (RMD) Delivers Steady Q1 Growth and Reaffirms Outlook
Key Takeaways
- ResMed reported revenue of approximately $1.415 billion for the first quarter of fiscal 2027, up 6% year over year and 7% on a core constant currency basis, topping consensus estimates near $1.39 billion.
- GAAP diluted EPS rose 23% to $2.92, while non-GAAP diluted EPS increased 14% to $2.91, both above analyst expectations.
- Non-GAAP gross margin expanded 50 basis points to 62.5%, driven by strong demand across sleep devices and masks and accessories.
- The company returned more than $1.0 billion to shareholders through share repurchases and dividends and closed the divestiture of its MatrixCare business.
- Full-year fiscal 2027 guidance was reaffirmed, including core constant currency revenue growth of 5% to 7% and non-GAAP diluted EPS of $12.00 to $12.25.
- For more detail on ResMed's Major News, Today's Price Move, Price Targets, and Forecast, explore the dedicated pages for the ticker.
- Explore Trending AI Robots to discover AI-driven trading strategies and market insights.
Why These Results Matter
ResMed's first-quarter results mark the start of fiscal 2027 and highlight a business that has delivered consistent mid-to-high single-digit growth in its core sleep and breathing health segment. With a large installed base of cloud-connected devices and recurring revenue from masks and accessories, the quarter provides insight into patient demand, pricing trends, and market share dynamics. The report is especially relevant after the divestiture of the MatrixCare software business, which sharpens focus on the respiratory franchise and frees up capital for innovation and returns to shareholders. I think these figures help gauge whether steady demand can continue to offset currency pressures and competition.
Breaking Down the Reported Numbers
ResMed reported net revenue of approximately $1.415 billion for the first quarter of fiscal 2027, ended September 30, 2026, representing a 6% increase from the prior-year period. On a core constant currency basis that adjusts for currency moves and excludes the Noctrix acquisition and MatrixCare divestiture, revenue grew 7%. The result surpassed the roughly $1.39 billion consensus estimate. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
On the bottom line, GAAP diluted EPS rose 23% to $2.92, while non-GAAP diluted EPS climbed 14% to $2.91, both exceeding analyst forecasts. GAAP gross margin stood at 61.5%, and non-GAAP gross margin widened 50 basis points to 62.5%. Operating cash flow reached $422 million, with free cash flow at $374 million.
Management reaffirmed its full-year fiscal 2027 outlook of 5% to 7% core constant currency revenue growth, reported revenue between $5.75 billion and $5.85 billion, and non-GAAP diluted EPS of $12.00 to $12.25. The board also approved a quarterly cash dividend of $0.66 per share.
Market Reaction and Sentiment
ResMed shares moved modestly higher after the report, reflecting a quarter that exceeded both revenue and earnings expectations while maintaining full-year guidance. The combination of top-line strength, gross margin improvement, and a steady outlook was viewed positively, though the measured response suggests much of the performance had already been priced in. From what I see, investor sentiment remains supported by reliable demand for sleep and breathing health products along with a consistent capital-return program. Background risks include foreign exchange headwinds, competition in the sleep device space, and the rollout of new products such as the AirTouch F40 fabric mask.
Looking Ahead: Factors to Watch
Going forward, attention will center on whether ResMed can maintain core constant currency growth within the 5% to 7% range for fiscal 2027. Management continues to highlight expansion of its digital health ecosystem and greater patient connectivity to home-based care, points emphasized during the earnings call.
Margin trends also warrant monitoring. The 50-basis-point gain in non-GAAP gross margin stemmed from productivity improvements, and sustained progress here will matter as the company integrates recent product launches and manages supply-chain and cost factors.
Capital allocation is another key element. After returning more than $1.0 billion to shareholders in the quarter, partly funded by MatrixCare proceeds, ResMed is balancing reinvestment in innovation with cash returns. Near-term catalysts include traction for new mask products, adoption of software and digital health solutions, and any updates on competitive or regulatory developments in global markets.
How Tickeron’s AI Screener Supports My Research
In my day-to-day analysis, Tickeron’s AI Screener serves as a practical tool for scanning the market and spotting relevant signals. It allows filtering by technical patterns, fundamentals, and performance metrics, helping surface ideas across sectors without manual effort. For names like ResMed, it provides a structured way to compare opportunities and stay informed on evolving conditions. Learn more about Tickeron’s AI Screener.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
RMD's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for RMD turned positive on October 08, 2026. Looking at past instances where RMD's MACD turned positive, the stock continued to rise in 25 of 39 cases over the following month. The odds of a continued upward trend are 64%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 07, 2026. You may want to consider a long position or call options on RMD as a result. In 56 of 94 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 60%.
RMD moved above its 50-day moving average on October 07, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for RMD crossed bullishly above the 50-day moving average on October 14, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 50%.
The 50-day moving average for RMD moved above the 200-day moving average on October 08, 2026. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a +3.08% 3-day Advance, the price is estimated to grow further. Considering data from situations where RMD advanced for three days, in 181 of 315 cases, the price rose further within the following month. The odds of a continued upward trend are 57%.
The Aroon Indicator entered an Uptrend today. In 126 of 218 cases where RMD Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 58%.
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 13 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 14 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where RMD declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 58%.
RMD broke above its upper Bollinger Band on October 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 40 (best 1 - 100 worst), indicating steady price growth. RMD’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 40 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 57 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 67 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.538) is normal, around the industry mean (5.000). P/E Ratio (24.148) is within average values for comparable stocks, (37.535). Projected Growth (PEG Ratio) (1.289) is also within normal values, averaging (4.143). Dividend Yield (0.010) settles around the average of (0.005) among similar stocks. P/S Ratio (5.896) is also within normal values, averaging (56.876).
The Tickeron Profit vs. Risk Rating rating for this company is 97 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. RMD’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 94, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a manufacturer of devices for evaluation and treatment of sleep disorders
Industry PharmaceuticalsOther
Advertisement