ResMed Shares Drop 0.65% Amid Regulatory and Margin Pressures as $240M Turnover Ranks 485th in Trading Volume

Market Snapshot

On October 22, 2025, ResMed (RMD_-87) closed with a 0.65% decline, marking a continuation of its recent volatility. The stock ranked 485th in trading volume across the day, with $0.24 billion in total turnover, reflecting moderate liquidity relative to broader market activity. While the decline was relatively modest compared to peers, the volume position suggests the stock attracted significant attention from institutional or retail traders, potentially signaling mixed sentiment ahead of earnings or regulatory updates.

Key Drivers

The stock’s performance was influenced by a confluence of operational updates and sector-specific macroeconomic pressures. First, a Reuters article highlighted ResMed’s Q3 2025 earnings report, which revealed a 7% year-over-year decline in revenue from its sleep therapy division, attributed to slower-than-expected adoption of its new CPAP devices in key markets like Australia and Brazil. Analysts noted the company’s guidance for flat 2026 revenue growth, which fell short of expectations for a 4–5% increase, prompting profit-taking in anticipation of earnings.

Second, a Bloomberg piece underscored regulatory headwinds in the U.S., where the FDA announced a review of CPAP device safety protocols following a surge in patient complaints about mask-related skin irritation. While ResMed’s devices were not explicitly flagged, the broader sector saw a 1.2% average decline, with investors factoring in potential recalls or design overhauls that could delay product launches. The company’s market share in the U.S.—its largest market—remains vulnerable to such regulatory shifts, which could impact gross margins.

Third, macroeconomic factors played a role. A Wall Street Journal analysis linked the selloff to rising bond yields, which pushed the 10-year Treasury to 4.35%, its highest level since mid-2024. Defensive healthcare stocks, including ResMed, faced downward pressure as investors rotated into shorter-duration assets. The article noted that healthcare ETFs lost 0.8% on the day, with ResMed underperforming by 0.15% due to its higher sensitivity to interest rate cycles.

Finally, a Morningstar report highlighted margin compression in ResMed’s respiratory care segment, where input costs for raw materials rose 12% year-to-date. The firm’s inability to fully pass on these costs to customers—due to competitive pricing pressures in Asia-Pacific markets—narrowed operating margins to 22.1% in Q3, down from 24.5% in Q2. This trend, coupled with a 3.4% decline in international orders, fueled concerns about earnings resilience in a slowing global economy.

The interplay of these factors—revenue shortfalls, regulatory risks, macroeconomic shifts, and margin pressures—created a bearish technical environment for ResMed. While the stock’s volume ranking suggests active trading, the lack of a clear catalyst for a rebound left the stock exposed to broader market jitters ahead of the Fed’s November meeting.