ResMed Inc., which was founded in 1989 and is headquartered in San Diego, California, is a global leader in digital health and medical devices with origins in Australia. The company specializes in technologies for sleep apnea, chronic obstructive pulmonary disease (COPD), and other respiratory conditions, offering cloud-connected devices and AI-powered software to enhance home healthcare.

ResMed operates in over 140 countries and its platforms, such as myAir and AirView, support millions of users and clinicians, emphasizing innovation and data-driven care. Net sales are divided between medical devices (51.8%), masks (35.7%), and software as a service (12.5%). As of June 2025, ResMed had eight production sites in the US, Australia, China, Singapore, Malaysia and France. Revenue distribution: US, Canada & Latin America (58%), Europe, Asia, & Other (30%), and RCS (12%).

Innovative AirTouch N30i mask

ResMed Inc. has cemented its reputation for innovation in medical technology by winning two prestigious 2025 Red Dot Design Awards for its AirTouch N30i nasal cradle mask, recognized in both the Innovative Products and Medical Design & Healthcare categories. The AirTouch N30i, launched in October 2024, introduces ResMed's first-ever nasal cushion made from fabric fused with silicone for enhanced comfort, breathability, and therapy adherence.

In clinical studies, users rated the mask a perfect 10 out of 10 for comfort features. ResMed now boasts a global portfolio of 10,000 patents and designs, underscoring its leadership in sleep and respiratory care technology.

Improved cash flow

ResMed reported strong performance over FY 22-25, with a revenue CAGR of 12.9%, reaching $5.2bn (US dollars) in FY 25, driven by robust demand for its sleep and respiratory devices and strong unit sales of masks and accessories. EBIT rose at a CAGR of 19.0% to $1.7bn, with margins expanding from 28.0% to 32.8%, aided by a favorable product mix.

FCF rose significantly from $131m to $1.2bn over FY 22-25. This improvement was aided by cash from operations which rose from $351m to $1.8bn. In addition, cash and cash equivalent increased from $274m to $1.2bn. Total debt decreased from $918m to $852m. This led to improved gearing from 27.3% to 14.3%.

Moreover, in Q1 26, revenue and income from operations saw significant growth, with revenue increasing notably. Gross margin improved substantially, with strong EPS and CFO. Non-GAAP metrics also showed impressive gains.

In comparison, Edwards Lifesciences Corporation, a local peer, reported a revenue CAGR of 1.3% over FY 21-24, reaching $5.4bn in FY 24. However, EBIT declined at a CAGR of minus 2.3% to $1.5bn, with margins expanding from 30.3% in FY 21 to 27.2% in FY 24.

Optimistic views amongst analysts

Over the past 12 months, the company's stock has delivered modest returns of approximately 3.8%, while in comparison, Edwards Lifesciences' stock delivered higher returns of around 21.6% over the same period.

ResMed is currently trading at a P/E of 24.0x, based on the FY 26 estimated EPS of $10.5, which is lower than its 3-year historical average of 30.2x and Edwards Lifesciences' P/E of 35.2x. The company is currently trading at EV/EBIT multiple of 17.6x, based on FY 26 estimated EBIT of $2.0bn, which is lower than its 3-year historical average of 22.5x and Edwards Lifesciences (28.0x).

ResMed is monitored by 18 analysts, of which 11 have 'Buy' ratings and seven have 'Hold' ratings for an average target price of $295.8, implying 17.3% upside potential over its current market price.

Consensus estimates a revenue CAGR of 7.7%, reaching $6.4bn over FY 25-28. EBIT is estimated to rise at a CAGR of 10.3% to $2.4bn with margins expanding by 250bp to 36.8%. Net profit estimated at a CAGR of 9.9% to $1.9bn, while EPS is expected to increase to $12.8 in FY 28 from $9.5 in FY 25. Analysts estimate an EBIT CAGR of 10.8% but net profit to decline at a CAGR of minus 25.2% for Insulet Corporation.

Overall, ResMed demonstrates strong growth and innovation, strengthening its leading position in digital health and medical devices. Despite facing competitive pressures and market risks, its robust financial performance, impressive product portfolio, and optimistic analyst outlook suggest a promising future. Continued investment in technology and strategic management will be crucial for maintaining its market position.

However, ResMed faces risks including market normalization, supply chain challenges, and rising costs. Its narrow competitive edge over peers requires ongoing investment in innovation. Potential downturns in healthcare spending or regulatory changes could impact its strong market position and growth trajectory.