ResMed operates in a massive and underpenetrated market, with 2.3 billion people globally suffering from sleep and breathing disorders. Yet the sleep apnea market remains only 20% penetrated in the U.S. and just 5% penetrated in Europe. The company holds a dominant market share in the sleep apnea device market, significantly ahead of competitors and protected by approximately 9,711 global patents.
The growth trajectory is supported by powerful secular trends including aging demographics, rising obesity rates, and increasing healthcare awareness. The global sleep apnea devices market is projected to grow from $9.7 billion in 2025 to $24.4 billion by 2035.
An expanding digital health ecosystem also provides a significant competitive advantage, with 28 million patients in its AirView software ecosystem, 26 million cloud-connected devices, and 20 billion nights of sleep data across 140 countries. This data treasure trove enables AI-driven innovations and creates switching costs that strengthen customer retention.
RESMED INC. (Symbol RMD on New York; www.resmed.com) helps investors tap the growing market for medical devices used to treat sleep apnea. ResMed’s CPAP (nasal continuous positive airway pressure) devices are also used to treat patients with chronic obstructive pulmonary disease as well as other respiratory conditions.
With each new machine ResMed sells, it also acquires a potential long-term customer for replacement parts. They include tubing, masks and so on, which must be replaced several times a year and so provide steady recurring revenue.
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ResMed also has a growing software business to serve agencies providing out-of-hospital care, including home medical equipment, home health and hospice services. This Digital Health Solutions business provides an exciting new growth area for the company.
In the three months ended June 30, 2025, ResMed’s revenue rose 10.2%, to $1.35 billion from $1.22 billion a year earlier. The increase came from higher demand for its sleep and respiratory care devices, as well as its software offerings. Excluding one-time items, earnings per share in the quarter rose 22.6%, to $2.55 from $2.08.
ResMed holds $1.2 billion in cash. It has long-term debt of $658.4 million, which is a low 1.6% of its market cap.
ResMed’s expansion plans should increase long-term market penetration
ResMed now plans to consolidate its brands, products, and services under a single ResMed brand over the next couple of years, with the aim of creating a more streamlined view for both consumers and healthcare providers.
This transformation will include a new visual identity, redesigned logo, and refreshed brand voice, reinforcing ResMed’s position as an “approachable, people-centered, and forward-thinking health technology company.”
The brand evolution will be accompanied by three major market-facing initiatives aimed at reshaping perceptions of sleep therapy and expanding awareness of sleep apnea treatment:
- The company’s first U.S. consumer campaign aimed at destigmatizing CPAP therapy and positioning sleep health as more approachable
- A targeted primary care physician (PCP) education campaign starting in the U.S. to help drive earlier diagnosis and intervention for sleep apnea
- A sleep health awareness campaign in key markets in Asia Pacific and Europe focused on helping to overcome the barrirs to seeking treatment for sleep apnea
Meanwhile, a key first step for ResMed remains the need to identify future customers. And now, its home sleep apnea test, NightOwl, is available across the U.S. That should help the company with that first step.
NightOwl is an FDA-cleared home sleep apnea test designed to offer healthcare providers a simplified, accurate, and efficient way to diagnose obstructive sleep apnea from the comfort of an individual’s home.
NightOwl aims to make it easy to detect obstructive sleep apnea with a small sensor worn on the fingertip and simple, easy-to-use digital platforms for both individuals and providers.
NightOwl is a disposable home sleep apnea test device that records up to 10 nights of sleep data, capturing night-to-night variability and providing clinicians with a comprehensive view of an individual’s sleep patterns.
Sleep data is sent remotely to a cloud-based diagnostic platform for physician analysis and review, enabling quick interpretation, streamlining diagnostic workflows, and helping individuals receive more timely diagnoses, if applicable.
The company raised its quarterly dividend by 13.2% with the September 2025 payment, to $0.60 a share from $0.53. The shares now yield 0.9%.
Recommendation in Power Growth Investor: ResMed Inc. is a buy.
