ResMed Inc.
RMDFinancial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
TTM ROIC
26%
FY2025 · FCF / Net Invested Capital (FCF ROIC) · WACC ~9.25% · Moat spread +16.5pp
Financial Snapshot
ticker: RMD step: 04 generated: 2026-05-12 source: quick-research
ResMed Inc. (RMD) — Financial Snapshot
Note: ResMed's fiscal year ends June 30. FY2024 = July 2023 – June 2024.
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | $3.58B | $4.22B | $4.69B | +11% |
| Gross Margin | ~54% | ~55% | ~56.7% | +90bp |
| Operating Margin | ~22% | ~23% | ~25% | +~200bp |
| Net Income | $0.78B | $0.90B | ~$1.04B | +~15% |
| EPS (diluted) | ~$5.30 | ~$6.10 | ~$7.05 | +~15% |
FY2025 revenue: $5.15B (+9.8%); FY2025 EPS estimated ~$8.00+ based on Q-by-Q beat trajectory.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | $1.4B |
| Free Cash Flow | ~$1.25B |
| FCF Margin | ~27% |
| Cash & Equivalents | ~$0.3B |
| Total Debt | ~$1.5B |
Key Ratios (approximate)
- P/E: ~25–30x | EV/EBITDA: ~22x | FCF Yield: ~4%
- Revenue Growth (FY2024): +11% | FCF Margin: ~27%
- Net Debt / EBITDA: ~1x (conservative leverage)
Growth Profile
ResMed has compounded revenue at ~14% annually over the 2022–2024 period, driven by share gains following Philips' 2021 recall-related U.S. exit (a windfall that is now normalizing) and organic demand growth in an underpenetrated sleep apnea market (only ~15–20% of diagnosed patients treated). Gross margins have expanded steadily from ~54% to ~57% as device mix improves and software revenue scales. Free cash flow conversion is strong at ~27% of revenue, enabling consistent share buybacks and debt reduction.
Forward Estimates
- FY2026 (ending June 2026) revenue consensus: ~$5.4–5.6B (+5–8% growth)
- FY2026 adjusted EPS: ~$9.00–9.50 (consensus Buy; analyst fair value target ~$256)
- Management revised FY2026 respiratory segment growth to mid-single digits (from upper mid-single digits) reflecting Philips re-entry headwinds; software remains a faster-growing segment
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $RMD.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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