Medical device company ResMed (NYSE: RMD) met Wall Street’s revenue expectations in Q2 CY2026, with sales up 8.6% year on year to $1.46 billion. Its non-GAAP profit of $2.95 per share was 2% above analysts’ consensus estimates.
Is now the time to buy ResMed? Find out by accessing our full research report, it’s free.
ResMed (RMD) Q2 CY2026 Highlights:
- Revenue: $1.46 billion vs analyst estimates of $1.46 billion (8.6% year-on-year growth, in line)
- Adjusted EPS: $2.95 vs analyst estimates of $2.89 (2% beat)
- Operating Margin: 30.7%, down from 33.7% in the same quarter last year
- Free Cash Flow Margin: 27.6%, down from 37.7% in the same quarter last year
- Constant Currency Revenue rose 8% year on year (9% in the same quarter last year)
- Market Capitalization: $32.32 billion
Company Overview
Founded in 1989 to address the then-underdiagnosed condition of sleep apnea, ResMed (NYSE: RMD) develops cloud-connected medical devices and software solutions that treat sleep apnea, COPD, and other respiratory disorders for home and clinical use.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Thankfully, ResMed’s 12.1% annualized revenue growth over the last five years was solid. Its growth beat the average healthcare company and shows its offerings resonate with customers, a helpful starting point for our analysis.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. ResMed’s annualized revenue growth of 9.8% over the last two years is below its five-year trend, but we still think the results were respectable. 
We can dig further into the company’s sales dynamics by analyzing its constant currency revenue, which excludes currency movements that are outside their control and not indicative of demand. Over the last two years, its constant currency sales averaged 8.9% year-on-year growth. Because this number aligns with its reported revenue growth, we can see that foreign exchange has not had a meaningful impact on topline. 
This quarter, ResMed grew its revenue by 8.6% year on year, and its $1.46 billion of revenue was in line with Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 5% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is above average for the sector and indicates the market is forecasting some success for its newer products and services.
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions.
ResMed’s EPS grew at 15.9% compounded annual growth rate over the last five years, higher than its 12.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
Diving into ResMed’s quality of earnings can give us a better understanding of its performance. As we mentioned earlier, ResMed’s adjusted operating margin declined this quarter but expanded by 5.4 percentage points over the last five years. Its share count also shrank by 1.1%, and these factors together are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. 
In Q2, ResMed reported adjusted EPS of $2.95, up from $2.55 in the same quarter last year. This print beat analysts’ estimates by 2%. Over the next 12 months, Wall Street expects ResMed’s full-year EPS to grow 8.8% from $11.17 to $12.15.
Key Takeaways from ResMed’s Q2 Results
We struggled to find many positives in these results. Zooming out, we think this was a mixed quarter. Investors were likely hoping for more, and shares traded down 5.9% to $208.65 immediately following the results.
So should you invest in ResMed right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
