NYSEHealth CareMedical - Instruments & SuppliesSnapshot 2026-08-31
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Create your account →Broken: Primary pillar broken — Maintain gross margin near 62-63%: FY26 gross margin 61.1% vs 62-63% target; Q4 58.8% vs 60% trip.
ResMed grows revenue about 11% yearly, reaching $1.43B in Q3 2026. Profit margins stay strong near 62.5%. The company invests steadily in innovation and digital health. Free cash flow yield is solid at 5%.
Margins face pressure, as recent guidance cuts and downgrades suggest. Revenue growth could slow below 10%. Management changes and software business sale may disrupt execution.
The price is about 7% below our fair value near $237 and 7% below the Street median. Analysts expect roughly 10% revenue growth, which aligns with our view. The market fairly values current growth and margin outlook.
Breaks if: Gross margin falls below 60% in FY26
Maintain gross margin in the range of 62-63% for fiscal year 2026.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on innovation and digital health. The current thesis state is intact, as recent financial performance remains strong within the industry.
The market appears to have a neutral valuation stance, with RMD priced relatively cheap compared to peers. There is a slight expectations gap, indicating that some positive performance may already be anticipated.
Fundamentals are likely to remain stable, supported by management's focus on innovation and cost efficiencies. Recent financial results show strong revenue growth and improved gross margins, although there is a moderate risk of missing future estimates.
The thesis hinges on external factors such as the overall health of the job market and guidance from management in upcoming calls. Additionally, performance from sector leaders could influence RMD's trajectory.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the thesis. However, there are concerns about maintaining gross margin and future guidance.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: Investment in innovation stalls or digital health growth reverses
Breaks if: YoY revenue growth falls below ~10% next year
Overall, RMD is positioned well for the next few years, but external economic conditions and management decisions will be crucial. Not investment advice.
