ResMed maintains a leading position in the sleep and respiratory care market, with products and software solutions recognized as the “gold standard for care”. This market influence is reinforced by consistent innovation and a clear value proposition in connected digital health.
The firm’s products address an enormous and growing market which targets over 2.3 billion people worldwide with sleep health and breathing health issues. That’s a key reason why the company has demonstrated consistent financial performance with strong revenue growth, and double-digit growth in earnings per share.
The stock’s outlook is strong, given its dominant position in the sleep and respiratory care market.
RESMED INC. (Symbol RMD on New York) 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. Still, a key first step for the company remains the need to identify future customers.
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 and its investors.
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 barriers to seeking treatment for sleep apnea
Meanwhile, ResMed’s home sleep apnea test, NightOwl, is now available across the U.S.
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.
Obstructive sleep apnea, a sleep disorder where breathing repeatedly stops during sleep due to blocked upper airways, affects nearly one billion people globally, yet approximately 80% of cases remain undiagnosed and untreated.
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 for a single patient, 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.
Growth Stocks: ResMed posts 11% earnings growth in latest quarter
In the three months ended March 31, 2025, ResMed’s revenue rose 7.9%, to $1.29 billion from $1.20 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 11.3%, to $2.37 from $2.13.
ResMed holds $932.7 million in cash. It has long-term debt of $663.1 million, which is a low 1.8% of its market cap.
The company raised its quarterly dividend by 10.4% with the September 2024 payment, to $0.53 a share from $0.48. The shares now yield 0.9%.
Recommendation in Power Growth Investor: ResMed Inc. is a buy.
