Is the ResMed share price too cheap to ignore?

Insulet (PODD) reported Q2 revenue of $801.7M, up 23.5% YoY, beating estimates by 1.9% but missing next quarter's guidance. Peers iRhythm (IRTC), ResMed (RMD), and DexCom (DXCM) also reported earnings, with mixed market reactions. PODD is down 11.6% since reporting, while DXCM is up 20.6%.

iRhythm (IRTC) reported Q2 revenue of $224.2M, up 20.1% YoY, beating estimates. ResMed (RMD) reported $1.46B in revenue, up 8.6% YoY, in line with expectations. Insulet (PODD) reported $801.7M in revenue, up 23.5% YoY, beating estimates but missing guidance. IRTC stock is down 4.4%, RMD up 3.4%, and PODD down 11.6% since reporting.

ResMed (RMD) has nine 'Strong Buy' ratings. Analysts' average price target is $238.27, a 1.4% premium to current levels. Wells Fargo cut its target to $215, keeping an 'Equal Weight' rating.

ResMed (RMD) reported Q4 FY2026 results on Aug. 6. Quarterly revenue rose 9% to $1.5B and non-GAAP EPS increased 16% to $2.95. Full-year revenue grew 10% and free cash flow exceeded $1.6B. The company cited sleep growth drivers but said Astral sales were paused due to a field safety action, with a $42M provision.

ResMed (RMD) issued its first full annual guidance for FY27, targeting $5.75B to $5.85B revenue and non-GAAP EPS of $12.00 to $12.25, with 5% to 7% core constant-currency revenue growth and 12% to 14% core EPS growth after an Astral ventilator sales suspension. Q4 results included $1.5B revenue and $2.95 non-GAAP EPS. Analysts’ mean target is $247.20 vs. $224.46 close.

ResMed reported fiscal 2026 net revenue of $5.65B, up 9.9% from $5.15B, with net income of $1.52B and diluted EPS of $10.43, according to its FY2026 10-K. The company cited device and mask growth, gross margin rising to 61.1%, R&D of $378M, and moves including acquiring Noctrix and divesting MatrixCare.