ResMed Surpasses Expectations with FY25 Earnings, Revenue Up 9.8%

ResMed reported FY 2025 earnings with revenue of $5.15b, up 9.8% from FY 2024, and net income of $1.40b, up 37% from FY 2024. EPS was $9.55, surpassing analyst estimates by 2.2%. The primary driver of revenue was the Sleep and Breathing Health segment, and the largest operating expense was General & Administrative costs. Revenue is forecast to grow 7.1% p.a. over the next 3 years.

Title: ResMed Reports Strong FY 2025 Earnings with Revenue Growth and Analyst Price Target Hikes

ResMed Inc. (RMD), a leading provider of sleep and respiratory care solutions, has reported robust financial results for its fiscal year 2025. The company's revenue reached $5.15 billion, representing a 9.8% increase from the previous year. Net income surged by 37% to $1.40 billion, while earnings per share (EPS) of $9.55 surpassed analyst estimates by 2.2% [3].

The primary driver of ResMed's revenue was the Sleep and Breathing Health segment, which accounted for approximately 52% of total net revenues [3]. The company's gross profit margin improved to 59.4%, up from 56.7% in the previous year. Operating income stood at $1.685 billion, reflecting operational efficiencies and cost management strategies [3].

ResMed's quarterly earnings report for the second quarter of 2025 also exceeded expectations. The company reported earnings per share (EPS) of $2.55, surpassing the $2.47 forecast and generating $1.35 billion in revenue. Analysts have raised their average price targets to $274.83, with 11 "buy" ratings and two "strong buy" ratings, citing strong demand for sleep and respiratory care solutions [1].

Institutional investors have shown continued confidence in ResMed by increasing their stakes. LPL Financial LLC, Invesco Ltd., and Northern Trust Corp. have significantly boosted their holdings, reflecting a 20-32% increase in institutional stakes [1]. Insiders, however, sold $4.82 million worth of shares, signaling mixed confidence in the company's prospects.

ResMed's strategic initiatives include expanding its product offerings and geographic reach, particularly in the Sleep and Breathing Health segment. The company is also investing in its Residential Care Software business and maintaining a strong liquidity position with $1,209.5 million in cash and cash equivalents [3].

Despite the positive outlook, ResMed faces several challenges, including competitive pressures, healthcare industry changes, macroeconomic conditions, and foreign currency risks. The company is actively addressing these challenges through innovation, strategic acquisitions, and cost management strategies.

ResMed's stock has experienced ongoing volatility, with a 52-week range of $199.92 to $293.08. However, the company's strong financial performance and strategic initiatives position it well for future growth.

References:
[1] https://www.ainvest.com/news/resmed-ranks-453rd-260m-volume-institutional-buys-earnings-beat-fuel-analyst-price-hikes-2508/
[2] https://medtrade.com/news/respiratory-sleep/revenue-up-at-resmed-4/
[3] https://www.tradingview.com/news/tradingview:4846feb5b7fc6:0-resmed-inc-sec-10-k-report/