ResMed IncNYSE: RMD
Health Care · Health Care Equipment
$189.21
+1.57%
Vol: 1.4M
Research Digest
Friday, June 19, 2026
Morgan Stanley downgrades ResMed to Equalweight and cuts price target to $230, citing near-term margin constraints, as stock hits 52-week low after completing $340M Noctrix acquisition.
On June 4, 2026, Citi lowered its ResMed price target from $340 to $270, and Morgan Stanley downgraded RMD to Equalweight from Overweight, cutting its target from $286 to $230 — citing constraints to near-term margin expansion and modest earnings growth expectations. The stock has lost approximately 21-26% of its value year-to-date, hitting a 52-week low amid renewed post-earnings selling pressure after a slight Q3 revenue miss and leadership transition concerns. On June 1, 2026, ResMed completed its $340 million acquisition of Noctrix Health, a medical device company whose Nidra TOMAC therapy is an FDA De Novo classified non-invasive treatment for moderate-to-severe Restless Legs Syndrome, expanding ResMed's sleep health portfolio. Despite near-term headwinds, 21 analysts maintain a median Buy consensus with a $274 price target. The margin compression and M&A integration risk make this a key name to watch.
Previous Market Intelligence
13 daysJun 18No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 17No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 16No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 15No significant overnight updatesNeutral▶
No material news in the last 48 hours.
Jun 14No significant overnight updatesNeutral▶
No material news in the last 48 hours.
May 21ResMed and Oura announced sleep health partnership while CFO Sandercock retires with Bloomer succeedingMixed▶
ResMed announced on May 19, 2026 a partnership with Oura Ring to expand access to sleep health education and care for U.S. members of Oura Ring Gen3 and Ring 4. Separately, longtime CFO Brett Sandercock retired with Aaron Bloomer named successor, and both new CFO and CEO Mick Farrell will present at the William Blair Growth Stock Conference on June 2. The Oura deal extends ResMed's consumer reach into wearables and circadian data. The CFO transition follows a Q3 earnings beat with revenue of $1.43B (+10.8% YoY) and EPS of $2.86, but shares fell 6.7% on the transition news. Risk: leadership change uncertainty plus a recent wearables trial may not yield near-term financial impact.
May 20ResMed partners with Oura on May 19 for sleep health, following Q3 FY26 earnings beat and CFO transition.Mixed▶
ResMed announced a strategic partnership with Oura on May 19, 2026, to broaden access to sleep health education and care solutions. The collaboration follows Q3 FY26 results showing sales of $1,431.41M and net income of $398.73M, with underlying EBIT up 18% and gross margin expanding 290 bps to 63%. Longtime CFO Brett Sandercock is retiring in May 2026, with former Exact Sciences finance chief Aaron Bloomer succeeding him. Sandercock will remain an advisor through 2027 to ensure continuity. Management will present at the 46th William Blair Growth Stock Conference on June 2. The stock is down 6.7% post-earnings despite the beat, with analysts (Morgan Stanley, Citi, Canaccord, Jarden, Macquarie) maintaining Buy ratings.
May 19ResMed agrees to acquire Noctrix Health for $340M for novel Restless Legs Syndrome therapyPositive▶
ResMed entered a definitive merger agreement in mid-May 2026 to acquire Noctrix Health for $340 million, adding a non-invasive wearable therapy for drug-refractory Restless Legs Syndrome (RLS); the deal is expected to close around June 1, 2026. The fiscal Q3 2026 report (April 30) showed revenue of $1.43B (up 10.8% YoY) and adjusted EPS of $2.86, beating estimates, with mask sales up 12% constant-currency and gross margin expanding 290 bps to 63%. CFO Brett Sandercock's planned May 2026 retirement was reaffirmed, with Aaron Bloomer succeeding him. The board declared a $0.60 quarterly dividend with a May 14 record date. JPMorgan, Morgan Stanley, Citi, and Macquarie maintained Buy ratings in early-mid May, though one analyst issued a Hold citing limited incremental growth from Noctrix. Risk: CFO transition and integration risk on a niche RLS asset amid GLP-1 competitive overhang.
May 18ResMed enters ex-dividend trading May 14 with $0.60 quarterly payout following Q3 FY26 beat and CFO transition announcementMixed▶
ResMed shares went ex-dividend on May 14 with a $0.60 quarterly payout (payable June 18). Q3 FY26 results posted earlier delivered 11% revenue growth to $1.43B and EPS of $2.86 beating consensus, with underlying EBIT up 18%, mask sales growth 12% constant-currency, and gross margin expansion of 290bps to 63%. Longtime CFO Brett Sandercock announced retirement with Aaron Bloomer named successor effective May 2026. Despite strong fundamentals and 5.9% cash yield, RMD is down 6.7% after earnings, trading 31% below two-year high. CEO Mick Farrell exercised stock options during NYSE price pressure. Morgan Stanley, Citi, JPM, and Macquarie maintained buy ratings.
May 15ResMed CEO Farrell exercised options and sold 4,991 shares; ex-dividend date May 14 amid CFO transitionMixed▶
ResMed CEO Michael Farrell exercised options for 4,991 shares at $146.34 and sold them at a weighted average $207.82 on May 7, 2026. The board declared a $0.60 per-share quarterly dividend with record date May 14, 2026, payable June 18. Q3 FY26 results posted May 1 showed revenue of $1.43B (+10.8% YoY) and EPS of $2.86 beating estimates, with non-GAAP gross margin expanding 290bp to 63% and underlying EBIT up 18%. The company announced longtime CFO Brett Sandercock's retirement, with Aaron Bloomer named successor. ResMed paid $87M in dividends and repurchased 673,000 shares for $175M. Despite strong fundamentals shares are down ~8.5% over 30 days and ~24% over 90 days, trading near $202. Macquarie, Citi, Morgan Stanley and JPMorgan maintain Buy; Piper Sandler stays Hold.
May 14ResMed shares decline as ex-dividend date nears May 14 amid CFO transition and $340M Noctrix Health acquisitionMixed▶
ResMed entered a definitive agreement to acquire Noctrix Health for $340M, expected to close around June 1, 2026, adding a wearable Restless Legs Syndrome therapy to its portfolio. The board declared a $0.60 quarterly dividend with May 14 record date. Long-time CFO Brett Sandercock retires in May with Aaron Bloomer succeeding him. Q3 FY2026 results showed sales of $1.43B and net income of $398.7M, with underlying EBIT up 18% and gross margin expanding 290bps to 63%. Despite the beat, shares are down ~8.5% over 30 days and ~24% over 90 days, trading at $201.82.
May 13ResMed shares slid ~6.7% after April 30 Q3 FY26 earnings beat as CFO Brett Sandercock retirement announced for May 2026.Mixed▶
ResMed reported strong Q3 FY26 results with revenue up 11% YoY, 290 bps of gross margin expansion to 63%, and 21% EPS growth, posting $399M net income on $1.43B revenue. Despite the beat, shares declined 6.7% on a 30-day basis on CFO transition concerns, as longtime CFO Brett Sandercock plans May retirement with Aaron Bloomer succeeding. The board declared a $0.60 quarterly dividend payable June 18, record May 14. ResMed announced a new U.S. distribution center in Greenwood, Indiana for 2027 operations. Risk is GLP-1 weight-loss drug overhang on long-term sleep apnea TAM.
May 12ResMed maintained Buy ratings from Citi (May 8) and Morgan Stanley (May 7) following strong Q3 fiscal 2026 results with 11% revenue growth and CFO transition.Mixed▶
ResMed reported strong Q3 fiscal 2026 results on April 30, with 11% reported revenue growth to $1,431.41 million, 290 bps of non-GAAP gross margin expansion to 63%, 21% EPS growth, and net income of $399 million (diluted EPS $2.74). Underlying EBIT grew 18% and constant-currency mask sales grew 12%. The Board declared a $0.60 quarterly dividend with record date May 14, payable June 18. The company announced longtime CFO Brett Sandercock's planned May 2026 retirement, with Aaron Bloomer named successor. Analyst Buy ratings were maintained by Citi on May 8, Morgan Stanley on May 7, and J.P. Morgan on May 5, with Piper Sandler holding. Stock trades at $201.82 on May 11.
Sector Peers
| Company | Price | Day | 1M | Fwd P/E | Beta | Mkt Cap |
|---|---|---|---|---|---|---|
| RMDRESMED | $189.21 | +1.57% | +5.6% | 17.3x | 0.78 | $30.4B |
| ABTABBOTT | $88.64 | +0.16% | +2.9% | 15.8x | 0.61 | $166.2B |
| ISRGINTUITIVE | $406.90 | +1.17% | +4.9% | 36.1x | 1.46 | $150.9B |
| SYKSTRYKER | $309.23 | +2.68% | -1.2% | 19.5x | 0.78 | $125.2B |
| MDTMEDTRONIC | $79.43 | +1.64% | +2.8% | 13.0x | 0.58 | $106.5B |
Key Fundamentals
RSI (14-Day)
52-Week Range
Moving Averages
Price below 200d MA — bearish structure.