NYSE:RMD

ResMed Stock Falls 2.5% Premarket After Citi Downgrade Extends Weak One-Year Performance

ResMed (NYSE: RMD) shares fell 2.5% in premarket trading on Thursday after Citi downgraded the medical device maker to *Neutral* from *Buy*, adding to pressure on a stock that has already lost about 21% over the past year.

Why Is ResMed Stock Falling Today?

The immediate catalyst for Thursday's decline was Citi's downgrade, with the investment bank lowering its recommendation to Neutral from Buy after the stock's recent rebound.

While Citi did not signal a deterioration in ResMed's underlying business, the downgrade suggests the firm's upside expectations have become more balanced, prompting investors to take profits following the recent recovery from June lows.

ResMed Faces Valuation and Growth Questions

ResMed remains a global leader in sleep apnea and respiratory care devices, supported by recurring demand for CPAP equipment, masks, and its expanding digital health platform.

However, investor sentiment toward the stock has remained cautious over the past year. Beyond valuation concerns, the market continues to monitor the long-term impact of GLP-1 weight-loss therapies on the sleep apnea market, even though management has repeatedly stated that demand for diagnosis and treatment is expected to remain strong.

The latest analyst downgrade comes as ResMed attempts to recover from a prolonged decline that has left the shares down roughly 21% over the past 12 months.

What Investors Are Watching Next

Investors will focus on ResMed's upcoming earnings report for updates on device sales, recurring mask revenue, gross margins, and guidance. Commentary on demand trends, market share, and the evolving relationship between GLP-1 therapies and sleep apnea treatment will also be closely watched.

While Citi's downgrade weighed on the stock in premarket trading, investors are likely to remain focused on whether ResMed can accelerate earnings growth and regain momentum following its challenging performance over the past year.
Resmed (NYSE: RMD, ASX: RMD) will release financial and operational results for the third quarter of fiscal year 2026 on Thursday, April 30, 2026, after the market closes
Resmed Inc. (NYSE: RMD) will open a new U.S. distribution center in Greenwood, Indiana, with operations set to begin in 2027.

The facility will serve as a major logistics hub supporting North America and is expected to employ more than 100 workers over time. It will complement existing centers in Atlanta and Moreno Valley, improving efficiency and delivery speed.

Once fully operational, the center is projected to increase two-day transit coverage across North America from 75% to 90% and reduce delivery times to Canada by one day.

Source: Globe Newswire, February 24, 2026.
ResMed received FDA clearance for Smart Comfort, an AI-enabled system designed to personalize comfort settings for people beginning CPAP therapy for obstructive sleep apnea. Drawing on more than 100 million nights of anonymized sleep data, the tool uses machine learning to recommend individualized comfort settings through the myAir app when paired with an AirSense 11 device. A limited U.S. beta launch will begin in early 2026.

Smart Comfort aims to improve therapy adherence by addressing early challenges such as mask fit and pressure adjustments, with real-world evidence showing higher engagement among users whose settings matched its recommendations. The feature helps streamline setup for clinicians while supporting patients’ confidence and comfort without altering prescribed therapeutic pressures.

ResMed says the technology reflects its broader strategy of combining AI, connected devices and digital health tools to make sleep therapy more personalized and effective as sleep apnea rates continue to rise in the U.S.
ResMed Becomes Official Sleep Partner of 2025 British & Irish Lions Tour

ResMed (NYSE: RMD, ASX: RMD), a global leader in sleep and respiratory health technology, has been named the Official Sleep Partner of the Qatar Airways British & Irish Lions Tour to Australia 2025.

The six-week rugby tour, drawing tens of thousands of fans, will see the Lions face off against the Wallabies and other teams across six cities. ResMed will support the event with its new campaign, “Tackle Your Sleep,” which promotes better sleep habits for athletes and fans alike. The campaign features legendary rugby players sharing humorous yet informative takes on sleep health.

ResMed aims to raise awareness about sleep as a crucial pillar of health—equal to exercise and diet—and will use the partnership to emphasize how sleep quality impacts physical performance, mental health, and recovery. A 2025 Global Sleep Survey by ResMed found that 1 in 4 people worldwide continue to live with poor sleep, despite the known health consequences.

Key figures from the Lions and Rugby Australia praised the partnership for its role in improving player performance and fan experience. ResMed’s involvement will also help traveling fans stay rested during the rigorous tour schedule.

The Lions Tour will include 10 matches, culminating in three high-profile Tests against the Wallabies in Brisbane, Melbourne, and Sydney.

For more details, visit resmed.com.

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ResMed Acquires VirtuOx to Expand Virtual Care and At-Home Diagnostics

ResMed has acquired VirtuOx, a leading independent diagnostic testing facility specializing in sleep, respiratory, and cardiac conditions, to enhance its virtual care offerings and streamline the diagnostic process for patients and providers. The acquisition aims to improve early access to diagnosis, reduce delays in care, and strengthen ResMed’s digital ecosystem for managing sleep-disordered breathing and related conditions.

VirtuOx’s platform provides fast, flexible, and affordable at-home testing, addressing common barriers to diagnosis—especially for conditions like obstructive sleep apnea. By integrating VirtuOx into its operations, ResMed seeks to create a more connected and efficient care pathway, from evaluation through treatment.

ResMed stated that the deal will help expand into adjacent health areas like insomnia and deepen partnerships with physicians, sleep labs, and home medical equipment providers. VirtuOx will continue to operate under its own brand, with its leadership team remaining in place.

Financial terms were not disclosed, as the transaction is not considered material to ResMed’s financial results.
ResMed Q3 FY2025 Summary


Financial Performance:
ResMed reported strong third-quarter results for fiscal 2025, driven by sustained demand for its sleep-related and software products. Revenue rose 8% year-over-year to $1.29 billion (up 9% in constant currency). Gross margin expanded by 140 basis points to 59.3% (non-GAAP: 59.9%), reflecting operational efficiencies and favorable product mix. Operating profit climbed 14% to $426 million, while non-GAAP operating income rose 13% to $445 million. Net income grew 21% to $365 million, translating to GAAP EPS of $2.48 and non-GAAP EPS of $2.37 (up 11%).

Segment Highlights:

U.S., Canada & LATAM revenue rose 9%, led by 6% growth in devices and 13% growth in masks.

Europe, Asia & other markets revenue increased 8% (constant currency), with 9% growth in devices and 7% in masks.

Residential Care Software revenue rose 10%, reflecting ongoing digital adoption in home-based care.

Operational Metrics:

Operating cash flow reached $579 million, including a $100 million IRS tax refund. Excluding this, cash flow was $471 million.

Gross margin gains were attributed to manufacturing and logistics improvements, partially offset by FX headwinds.

SG&A expenses increased 8%, while SG&A as a percent of revenue declined slightly to 19.0%.

Strategic & Product Updates:

Launched NightOwl™, an FDA-cleared home sleep apnea test.

Published landmark research in The Lancet showing CPAP therapy reduces mortality in sleep apnea patients.

Conducted a global sleep survey involving over 30,000 respondents across 13 countries, highlighting a global sleep health crisis.

Recognized as a Top 100 Global Innovator by LexisNexis.

Capital Management:

Paid $78 million in dividends and repurchased 314,000 shares for $75 million during the quarter.

Declared a quarterly dividend of $0.53 per share, payable June 12, 2025.

Balance Sheet Strength:

Ended the quarter with $933 million in cash, up from $238 million at fiscal year-end.

Total assets increased to $7.57 billion, and total equity grew to $5.55 billion.

ResMed continues to focus on global expansion of sleep care, digital health solutions, and maintaining a resilient financial position to support growth.
Resmed Names Salli Schwartz as Chief Investor Relations Officer
ResMed Launches NightOwl™ Home Sleep Apnea Test Across the U.S.

ResMed has announced the nationwide availability of its FDA-cleared home sleep apnea test, NightOwl™, across the United States. Designed for ease of use and clinical accuracy, NightOwl enables individuals to conduct sleep apnea testing at home using a small fingertip sensor and a smartphone.

The device records up to ten nights of sleep data and sends it to a cloud-based platform for physician review, helping streamline the diagnostic process for obstructive sleep apnea (OSA), a condition affecting nearly one billion people worldwide. Key features include auto-scored results, integration with ResMed’s Somnoware platform, and full disposability, eliminating the need for returns or cleaning.

NightOwl uses peripheral arterial tonometry technology and has demonstrated diagnostic accuracy in clinical validation studies. ResMed emphasizes that the test makes OSA screening more accessible and supports the company’s mission of delivering home-based, life-changing healthcare technology.

NightOwl is now available nationwide. Interested individuals should consult their healthcare provider or visit ResMed’s website for more information.
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06-11-25European Investor