ResMed Inc. research snapshot
RMD AI stock analysis currently reads ResMed Inc. as a high-quality medical device and connected health business with strong cash generation, a net cash balance sheet, and durable demand from obstructive sleep apnea and home respiratory care. At the July 8, 2026 data cutoff, RMD traded near $219.75 with StockAnalysis reporting a $31.70 billion market cap and 144.24 million shares outstanding. The bull case rests on FY2025 revenue of $5.15 billion, FY2025 net income of $1.40 billion, Q3 FY2026 revenue growth of 11%, GAAP gross margin of 62.2%, and March 2026 net cash near $817 million. The caution is that the stock still trades below its 200-day moving average, GLP-1 drugs can change the sleep apnea demand narrative, and the 21.19x TTM earnings multiple leaves less room for a margin or growth miss.
Current price
$219.75
Market cap
$31.70 billion reported market cap, $31.70 billion calculated from price and shares
AI score
76 / 100
Rating
High-quality sleep and respiratory care compounder with strong margins, net cash, and a valuation that needs continued device, mask, and software execution
Trend status
Recovering but still below the 200-day moving average, with price above the 50-day moving average and RSI in the upper-neutral zone
Data cutoff (updated weekly)
July 8, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | ResMed sells flow generators, masks, accessories, ventilation products, cloud-connected care platforms, and residential care software into chronic sleep and respiratory markets. | High |
| Moat | The moat comes from brand trust, clinical workflows, device ecosystem scale, mask fit know-how, software connectivity, distribution relationships, regulatory know-how, and patient switching friction. | High |
| Management | Chairman and CEO Michael Mick Farrell has led the company since 2013 and remains a long-tenured operator with explicit equity ownership guidelines for senior executives. | Medium-high |
| Financial trend | FY2025 revenue rose 10% to $5.15 billion, net income was $1.40 billion, and Q3 FY2026 revenue rose 11% to $1.4 billion with GAAP gross margin at 62.2%. | High |
| Valuation | At $219.75, verified math shows 21.19x TTM EPS, 4.91x book value, 18.64x free cash flow per share, 5.72x sales per share, and a 1.09% dividend yield. | High |
| Technical trend | Price is above the 50-day moving average near $201.65 to $201.71, but below the 200-day moving average near $238.61 to $239.14, so the trend is a recovery inside a broader repair phase. | Medium |
| Risk level | Risk is moderate. ResMed has high margins and net cash, but GLP-1 adoption, competitive devices, payer pressure, patient adherence, software growth, and valuation sensitivity remain material. | Medium-high |
| AI confidence | Descriptive confidence is high because official and third-party data broadly agree. Forecast confidence is medium because demand and multiple assumptions drive most of the future return range. | High data confidence |
| Investment certainty | Investment certainty is medium at this price. RMD is a strong business, but the margin of safety depends on sustained growth and proof that GLP-1 therapies expand diagnosis more than they reduce device usage. | Medium |
RMD AI stock forecast
The RMD AI stock forecast is scenario-based, not a precise price prediction. Using the July 8, 2026 research cutoff, a $219.75 stock price, $10.37 TTM EPS, and a three-year model, the tested valuation anchors were about $349.70 in a bull case, $254.10 in a base case, and $142.00 in a bear case before dividends.
$330 to $360
More likely if device and mask growth remains near high single digits or better, Q4 FY2026 confirms operating leverage, software keeps growing, gross margin holds above 60%, GLP-1 patients increase sleep screening, and investors keep valuing RMD near a premium medtech multiple.
$240 to $265
More likely if EPS compounds near mid to high single digits, cash conversion remains strong, the 200-day moving average becomes resistance before support, and the market values RMD near 20x normalized earnings.
$135 to $150
More likely if GLP-1 adoption reduces CPAP starts, mask resupply slows, payer pressure rises, software growth disappoints, gross margin slips, or the market rerates RMD toward a lower medtech multiple.
RMD AI technical analysis
RMD AI technical analysis is mixed as of the July 8, 2026 data cutoff. StockAnalysis listed the latest close at $219.75, a 50-day moving average near $201.65, a 200-day moving average near $238.61, RSI near 69.19, beta near 0.78, and 20-day average volume near 1.54 million shares. Barchart showed a similar 50-day moving average near $201.71, 200-day moving average near $239.14, and RSI near 62.39. The stock is rebounding from the $180.27 52-week low but remains well below the $293.81 52-week high.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $219.75 | StockAnalysis listed RMD at $219.75 at the July 7, 2026 close, and this page uses that price for valuation math. |
| Immediate support | $211 to $212 | A short-term stop reference near $211.43 appeared after the recent four-day rebound, making this the first area to monitor if momentum fades. |
| Moving-average support | $201 to $202 | StockAnalysis and Barchart both place the 50-day moving average near $201.65 to $201.71, below current price. |
| Deeper support | $180 to $188 | The 52-week low was near $180.27, and one technical source highlighted support around $187.89, creating a lower support zone. |
| Near resistance | $220 to $222 | Recent trading has approached the $220 area, while MarketBeat showed a 50-day range top near $222.11. |
| Major resistance | $238 to $240 | The 200-day moving average near $238.61 to $239.14 is the key trend-repair level. |
| Momentum | RSI near 62 to 69 | Momentum is positive but near the upper-neutral zone, so a breakout should be confirmed with volume and price follow-through. |
| Volume | 20-day average near 1.54 million shares | Breakouts above $222 or $240 should be judged against average volume and the August 6, 2026 earnings event. |
| Volatility | Beta near 0.78 | RMD has lower market beta than many growth stocks, but earnings, GLP-1 headlines, and medtech sentiment can still move the stock sharply. |
| Invalidation | Close below $201, then below $180 | A close below the 50-day average would weaken the recovery setup. A break below the 52-week low would put the bear case back in focus. |
RMD AI trading strategy
The RMD AI trading strategy below is a rules-based research framework, not personal financial advice. It connects price action with the August 6, 2026 Q4 FY2026 earnings date, device and mask growth, gross margin, software revenue, GLP-1 commentary, cash conversion, and moving-average discipline.
Watch for RMD to hold above the $201 to $202 50-day moving-average band, then close above $222 and later above the $238 to $240 200-day moving-average resistance zone with volume near or above the 20-day average.
Treat a failed breakout followed by a close below $201 as a warning because the recovery would lose its nearest moving-average support.
If RMD pulls back toward $201 to $202 without a cut to revenue growth, gross margin, cash flow, or management commentary, compare the reset price with the base-case valuation range.
Do not average down only because RMD is a high-quality medtech company. Require evidence that GLP-1 risk, mask resupply, and software growth remain manageable.
Track Q4 FY2026 results on August 6, 2026, device revenue, mask and other revenue, Residential Care Software revenue, gross margin, operating cash flow, net cash, share repurchases, dividends, and GLP-1-related diagnosis trends.
Lower the rating if gross margin falls below 60%, revenue growth slows materially, net cash turns into rising leverage, or price remains below the 200-day average after a weak earnings response.
Investment research summary
Customers pay ResMed because sleep apnea, COPD, and out-of-hospital care need reliable devices, comfortable masks, connected monitoring, replacement supplies, and workflow software that fit clinical routines.
ResMed benefits from global brand trust, device and mask installed base, provider relationships, software data loops, regulatory experience, supply scale, and patient switching friction around fit and adherence.
The thesis fails if GLP-1 therapies reduce device starts more than they expand diagnosis, if mask resupply slows, if payers pressure reimbursement, if competitors take share, or if valuation compresses faster than EPS grows.
Michael Mick Farrell has led ResMed since 2013 and has deep company tenure. The key management test is whether ResMed can convert medical awareness into durable device, mask, software, and cash-flow growth while keeping incentives aligned.
ResMed sits in long-duration trends: aging populations, obesity-related sleep apnea, home-based care, digital monitoring, and respiratory disease management. GLP-1 drugs are both a demand risk and a screening catalyst.
At 21.19x TTM EPS and 18.64x free cash flow per share, RMD is not priced like a distressed medtech company. Margin of safety improves if growth stays near recent levels and the stock regains the 200-day moving average without multiple expansion alone.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| RMD quote reference | $219.75 closing price on July 7, 2026 | StockAnalysis RMD overview | July 8, 2026 |
| Market capitalization verification | $31.70 billion reported market cap, with $31.70 billion calculated from $219.75 x 144.24 million shares | StockAnalysis RMD market cap and Pineify financial_rigor.py | July 8, 2026 |
| Shares outstanding | 144.24 million shares outstanding | StockAnalysis RMD statistics | July 8, 2026 |
| FY2025 revenue | $5.146 billion, up 10% versus FY2024 | ResMed FY2025 Form 10-K | July 8, 2026 |
| FY2025 net income | $1.401 billion, or $9.51 diluted EPS | ResMed FY2025 Form 10-K | July 8, 2026 |
| Q3 FY2026 revenue and margin | $1.4 billion revenue, up 11%, with GAAP gross margin of 62.2% | ResMed Q3 FY2026 results release | July 8, 2026 |
| Cash, debt, and net cash | $1.66 billion cash, $843.17 million debt, $817.34 million net cash | StockAnalysis RMD statistics | July 8, 2026 |
| Q3 FY2026 segment trend | Devices revenue up 9%, masks and other up 15%, Residential Care Software up 6% | ResMed Q3 FY2026 Form 10-Q | July 8, 2026 |
| Valuation math | 21.19x TTM EPS, 4.91x book value, 18.64x FCF per share, 5.72x sales per share, 1.09% dividend yield | StockAnalysis inputs and Pineify financial_rigor.py | July 8, 2026 |
| Technical references | 50-day moving average near $201.65, 200-day near $238.61, RSI near 69.19, 20-day average volume near 1.54 million shares | StockAnalysis RMD statistics | July 8, 2026 |
| Management reference | Michael Mick Farrell is Chairman and CEO; CEO since March 2013 and Chairman since January 2023 | ResMed executive team | July 8, 2026 |
| Upcoming earnings event | Q4 FY2026 earnings scheduled for August 6, 2026 | ResMed investor relations release | July 8, 2026 |
This RMD AI stock analysis is an informational research tool only. It is not investment advice, a recommendation to buy or sell securities, or a promise of future returns. Forecast scenarios are based on available data as of July 8, 2026 and can be wrong if fundamentals, valuation, market conditions, or company-specific risks change.
