ResMed reported quarterly revenue of US$1.46 billion, up 8.6% year on year, with adjusted earnings per share ahead of expectations but operating margin pressure from higher R&D and supply chain costs. The company delivered the weakest revenue surprise and slowest growth among its patient monitoring peers, raising questions about how rising expenses could affect its profitability trajectory. Management's commentary around higher R&D and supply chain expenses driving operating margin compression in Q4 2026 triggered a 5.1% share price drop on 7 August. ResMed's narrative projects $6.5 billion revenue and $1.8 billion earnings by 2029, yielding a $247.93 fair value, an 11% upside to its current price, while some of the lowest ranked analysts assume only about 3.3% annual revenue growth to roughly US$6.2 billion by 2029 and modest margin gains. The key short term catalyst remains progress on restoring margins, while rising costs are the clearest current risk.
ResMed IncOperating margin compression from higher R&D and supply chain costs, with the weakest revenue surprise and slowest growth among patient monitoring peers, triggered a 5.1% share drop.
