Is Resmed Stock the Right Pick for Your Portfolio Now?

Resmed Inc. RMD keeps expanding its mask portfolio through product innovation and targeted initiatives to drive mask resupply. The company is gaining from the global supply of AirSense10 and AirSense11 cloud-connected platforms. It also has sufficient liquidity to meet its short-term debt obligations. However, macroeconomic challenges and intense competitive pressures raise concerns for Resmed’s operations.

In the past year, this Zacks Rank #2 (Buy) stock has risen 4.7% against the 20.4% decline of the industry and the S&P 500 composite’s 21.5% growth.

The renowned medical device company has a market capitalization of $33.63 billion. RMD has an earnings yield of 4.8% compared with the industry’s yield of 2.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 2.74%.

Let’s delve deeper.

Upsides for RMD Stock

Robust Mask Sales: Resmed is focused on the continued strategic expansion of the mask portfolio with new product innovation while driving mask resupply through education, awareness and execution. Increased mask resupply benefits patients, home care providers, as well as payers and health care systems, and also contributes to the company’s business. In the second quarter of fiscal 2026, revenues from Masks and other businesses grew 16% year over year across the United States, Canada and Latin America.

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Incremental revenues also came from VirtuOx, an independent diagnostic testing facility (IDTF) for sleep, respiratory and cardiac conditions that Resmed acquired in 2025. The company also rolled out two new variants under its AirTouch F30i mask platform, marking the first of their kind in the market. The F30i comfort debuted in Australia, while the F30i Clear was introduced in the U.S. markets, both designed to help more people start and maintain CPAP therapy for life.

Recovery in Device Sales: Resmed’s increased device sales continue to drive overall revenue growth, reflecting the ongoing combined availability of AirSense 10 and AirSense 11 sleep devices to support strong underlying global demand. Global device constant-currency sales increased 7% in the second quarter of fiscal 2026, including 8% growth across the United States, Canada and Latin America, and an increase of 5% in combined Europe, Asia and other markets.

The company continues to increase the availability of the AirSense 11 platform to more countries by securing market-by-market regulatory clearances. Resmed launched Airsense11 in India in calendar year 2025. It also introduced the AirSense 11version of VPAP Tx, a sleep lab testing and titration platform built specifically for both hospital and outpatient sleep lab environments.

Favorable Solvency: Resmed exited the second quarter of fiscal 2026 with cash and cash equivalents of $1.42 billion and $260 million in current debt. Long-term debt dropped 1.2% sequentially to $404 million. The company’s debt-to-capital ratio was 6% at the end of the fiscal second quarter, down 0.3% on a sequential basis.

What Concerns Resmed?

Challenging Macroeconomic Scenario: Resmed’s operations remain exposed to global macroeconomic conditions, geopolitical instability, the impact of tariffs and trade wars on its suppliers and other factors. These factors can potentially lower demand for its products and prices, reduce reimbursement rates by third-party payers and raise operating costs. The global supply chain may be affected, mainly through constraints on or the increased cost of acquiring raw materials and electronic components, resulting in higher costs.

Competitive Landscape: The market for SDB products is highly competitive with respect to product price, features and reliability. The disparity between the company's resources and those of its competitors may increase due to consolidation in the healthcare industry. Some of Resmed's competitors, such as Löwenstein Medical GmbH + Co. KG, are affiliates of its customers, which may make it difficult for it to compete with them.

RMD Stock Estimate Trend

The Zacks Consensus Estimate for RMD’s fiscal 2026 earnings per share (EPS) has moved up 1 cent to $10.98 in the past 30 days.

The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $5.62 billion, up 9.2% from the year-ago reported figure.

Other Key Picks

Some other top-ranked stocks in the broader medical space are Globus Medical GMED, Intuitive Surgical ISRG and Phibro Animal Health PAHC.

Globus Medical has an earnings yield of 4.9%, well ahead of the industry’s -0.7% yield. Its earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 18.8%. The company’s shares have rallied 19.8% against the industry’s 8.4% fall in the past year.

GMED sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Intuitive Surgical, carrying a Zacks Rank #2, has an earnings yield of 2.1% against the industry’s -0.7% yield. Shares of the company have dropped 0.1% compared with the industry’s 8.5% fall. ISRG’s earnings topped estimates in each of the trailing four quarters, the average surprise being 13.2%.

Phibro Animal Health, carrying a Zacks Rank #2, has an earnings yield of 6.1% compared with the industry’s 2.6% yield. Shares of the company have climbed 136.7% against the industry’s 20.3% decline. PAHC’s earnings beat estimates in each of the trailing four quarters, the average surprise being 20.2%.

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Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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