ResMed Stock Rallies 2.67% on $500M Volume Despite Mixed Earnings Tops 500 Most-Traded List

ResMed (RMD) rose 2.67% on August 1, 2025, with a trading volume of $500 million, despite mixed quarterly results. The company reported fiscal Q4 2025 earnings of $2.55 per share, exceeding estimates of $2.48, while revenue fell short at $1.3 billion versus $1.33 billion expected. Gross margin expanded 230 basis points to 61.4%, and free cash flow for the year reached $1.7 billion. CEO Mick Farrell emphasized operational efficiency, including a 13% dividend increase and $150 million in quarterly share buybacks.

ResMed’s 10% year-over-year revenue growth was driven by a 23% rise in non-GAAP diluted EPS and strong demand for sleep and breathing health devices. The company’s global digital health ecosystem now serves over 154 million users. Strategic acquisitions, such as VirtuOx for $140 million, aim to enhance diagnostic pathways and streamline patient care. However, the stock dipped 1.98% post-earnings, reflecting investor caution over revenue misses and macroeconomic pressures.

Management outlined FY2026 guidance, targeting a gross margin of 61-63% and maintaining SG&A expenses at 19-20% of revenue. Operational initiatives, including logistics optimization and AS10-to-AS11 platform transitions, are expected to sustain margin expansion. ResMed also plans to boost R&D investments in AI and GenAI technologies to enhance personalized healthcare solutions, aligning with its ResMed 2030 strategy to improve 500 million lives by 2030.

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