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The renowned sleep health device maker posted adjusted earnings per share (EPS) of $2.81 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 4.46%. The company topped earnings estimates in each of the trailing four quarters, the average surprise being 2.74%.
RMD’s Q3 Estimates
The Zacks Consensus Estimate for Resmed’s revenues is pegged at $1.42 billion, indicating an increase of 10% from the year-ago reported figure.
The Zacks Consensus Estimate for EPS suggests a 17.7% rise to $2.79.
Estimate Revision Trend Ahead of RMD’s Q3 Earnings
Estimates for earnings have remained stable in the past 60 days.
Here’s a brief review of the company’s performance leading up to the announcement.
Factors Likely to Influence RMD’s Q3 Results
Sleep and Breathing Health
Within this segment, Resmed is likely to have benefited from strong demand for its mask portfolio across the United States, Canada and Latin America regions. Growth may have also accelerated in Europe, Asia and the rest of the world region. Mask and other sales are expected to have witnessed continued growth in resupply and new patient setups, while the VirtuOx acquisition is likely to have contributed to incremental revenues. Greater mask resupply must have benefited patients, home care providers, payers and healthcare systems while supporting Resmed’s growth.
The company is strategically expanding its mask portfolio with product innovations, which are expected to have supported revenues in the fiscal third quarter.
Resmed’s use of ML, AI and generative AI technology in its digital health products, including the broader rollout of Dawn personal sleep health digital assistant into the myAir platform, may have positively impacted its overall top line. The company is also likely to have gained from the widespread U.S. adoption of NightOwl, its fingertip-sized home sleep apnea test.
Device sales numbers are likely to reflect the ongoing combined availability of Resmed’s AirSense 10 and AirSense 11 sleep devices, supporting underlying global demand. The company is also expected to have introduced AirSense 11 to additional countries following regulatory clearances.
The Zacks Consensus Estimate for Sleep and Breathing Health revenues implies a 10% increase.
The division, which provides business management software-as-a-service to out-of-hospital health providers, remains a key strategic enabler of the core Sleep and Breathing Health business. Resmed is likely to have executed its RCS portfolio management strategy, channeling more investment into the high-growth, higher-margin parts of the portfolio while reducing exposure to lower-growth, lower-margin areas, such as the services businesses.
The fiscal third-quarter performance might have been affected by a challenging growth environment for the senior living and long-term care vertical. This must have been offset by strong performance from the MEDIFOX platform and core Brightree platforms.
The Zacks Consensus Estimate for this segment’s revenues indicates a rise of 6.8%.
What Our Model Unveils for RMD
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is exactly the case here, as you can see below.
Earnings ESP: Resmed has an Earnings ESP of +0.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other medical stocks worth considering, as these, too, have the right combination of elements to post an earnings beat this time around.
Agenus (AGEN - Free Report) has an Earnings ESP of +7.69% and a Zacks Rank #1 at present. The company is expected to release first-quarter 2026 results soon.
AGEN’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 31.42%. The Zacks Consensus Estimate for first-quarter EPS implies an increase of 289.3% from the year-ago quarter’s figure.
Biogen (BIIB - Free Report) has an Earnings ESP of +3.26% and a Zacks Rank #2 at present. The company is slated to release first-quarter 2026 results soon.
BIIB’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 19.8%. The Zacks Consensus Estimate for first-quarter EPS implies a year-over-year decrease of 0.3%.
The Ensign Group (ENSG - Free Report) has an Earnings ESP of +1.12% and a Zacks Rank #2 at present. The company is expected to release first-quarter 2026 results soon.
ENSG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.9%. The Zacks Consensus Estimate for first-quarter EPS suggests a 17.7% year-over-year improvement.
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Resmed's Q3 Earnings on Deck: What's in Store for the Stock?
Key Takeaways
Resmed (RMD - Free Report) is set to release third-quarter fiscal 2026 results on April 30, after the closing bell.
The renowned sleep health device maker posted adjusted earnings per share (EPS) of $2.81 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 4.46%. The company topped earnings estimates in each of the trailing four quarters, the average surprise being 2.74%.
RMD’s Q3 Estimates
The Zacks Consensus Estimate for Resmed’s revenues is pegged at $1.42 billion, indicating an increase of 10% from the year-ago reported figure.
The Zacks Consensus Estimate for EPS suggests a 17.7% rise to $2.79.
Estimate Revision Trend Ahead of RMD’s Q3 Earnings
Estimates for earnings have remained stable in the past 60 days.
Here’s a brief review of the company’s performance leading up to the announcement.
Factors Likely to Influence RMD’s Q3 Results
Sleep and Breathing Health
Within this segment, Resmed is likely to have benefited from strong demand for its mask portfolio across the United States, Canada and Latin America regions. Growth may have also accelerated in Europe, Asia and the rest of the world region. Mask and other sales are expected to have witnessed continued growth in resupply and new patient setups, while the VirtuOx acquisition is likely to have contributed to incremental revenues. Greater mask resupply must have benefited patients, home care providers, payers and healthcare systems while supporting Resmed’s growth.
The company is strategically expanding its mask portfolio with product innovations, which are expected to have supported revenues in the fiscal third quarter.
Resmed’s use of ML, AI and generative AI technology in its digital health products, including the broader rollout of Dawn personal sleep health digital assistant into the myAir platform, may have positively impacted its overall top line. The company is also likely to have gained from the widespread U.S. adoption of NightOwl, its fingertip-sized home sleep apnea test.
Device sales numbers are likely to reflect the ongoing combined availability of Resmed’s AirSense 10 and AirSense 11 sleep devices, supporting underlying global demand. The company is also expected to have introduced AirSense 11 to additional countries following regulatory clearances.
The Zacks Consensus Estimate for Sleep and Breathing Health revenues implies a 10% increase.
ResMed Inc. Price and EPS Surprise
ResMed Inc. price-eps-surprise | ResMed Inc. Quote
Residential Care Software
The division, which provides business management software-as-a-service to out-of-hospital health providers, remains a key strategic enabler of the core Sleep and Breathing Health business. Resmed is likely to have executed its RCS portfolio management strategy, channeling more investment into the high-growth, higher-margin parts of the portfolio while reducing exposure to lower-growth, lower-margin areas, such as the services businesses.
The fiscal third-quarter performance might have been affected by a challenging growth environment for the senior living and long-term care vertical. This must have been offset by strong performance from the MEDIFOX platform and core Brightree platforms.
The Zacks Consensus Estimate for this segment’s revenues indicates a rise of 6.8%.
What Our Model Unveils for RMD
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is exactly the case here, as you can see below.
Earnings ESP: Resmed has an Earnings ESP of +0.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Key MedTech Picks
Here are some other medical stocks worth considering, as these, too, have the right combination of elements to post an earnings beat this time around.
Agenus (AGEN - Free Report) has an Earnings ESP of +7.69% and a Zacks Rank #1 at present. The company is expected to release first-quarter 2026 results soon.
AGEN’s earnings surpassed estimates in two of the trailing four quarters and missed in the other two, the average surprise being 31.42%. The Zacks Consensus Estimate for first-quarter EPS implies an increase of 289.3% from the year-ago quarter’s figure.
Biogen (BIIB - Free Report) has an Earnings ESP of +3.26% and a Zacks Rank #2 at present. The company is slated to release first-quarter 2026 results soon.
BIIB’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 19.8%. The Zacks Consensus Estimate for first-quarter EPS implies a year-over-year decrease of 0.3%.
The Ensign Group (ENSG - Free Report) has an Earnings ESP of +1.12% and a Zacks Rank #2 at present. The company is expected to release first-quarter 2026 results soon.
ENSG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.9%. The Zacks Consensus Estimate for first-quarter EPS suggests a 17.7% year-over-year improvement.