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With a market cap of $32.6 billion, San Diego, California-based ResMed Inc. (RMD) is a global leader in designing, manufacturing, and distributing medical devices and cloud-based software solutions for sleep-disordered breathing (SDB) and other respiratory conditions. It serves sleep clinics, home healthcare providers, and hospitals worldwide, helping improve patient outcomes and healthcare efficiency.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and ResMed fits this criterion perfectly. The company operates through two segments - Sleep and Respiratory Care and Software-as-a-Service, offering a wide range of products, including diagnostic devices, connected care solutions, and out-of-hospital software platforms.
Shares of the medical products maker are trading 15.6% below its 52-week high of $263.05. RMD has declined 4.1% over the past three months, a steeper decline than the broader Dow Jones Industrials Average’s ($DOWI) marginal dip over the same time frame.
In the longer term, RMD stock is down 2.9% on a YTD basis, which is a more pronounced decline compared to DOWI’s 1.4% decrease. However, shares of ResMed have increased 15% over the past 52 weeks, outperforming DOWI’s 7.3% return over the same time frame.
Despite recent fluctuations, RMD has been trading mostly above its 50-day and 200-day moving averages since last year.
Despite reporting better-than-expected Q2 2025 adjusted EPS of $2.43 and revenue of $1.3 billion on Jan. 30, ResMed’s shares fell 8.3% the next day due to growing concerns over the potential impact of GLP-1 drugs approved for obstructive sleep apnea (OSA). Analysts, including those from Needham and Oppenheimer, flagged risks that Medicare coverage and increasing adoption of GLP-1 therapies could reduce demand for ResMed’s core CPAP devices over time.
While ResMed delivered a 29.3% EPS increase and gross margin rising to 59.2%, underperforming segments, valuation concerns, and macro risks like geopolitical tensions and freight costs weighed on the stock.
Nevertheless, ResMed has outperformed its rival, Intuitive Surgical, Inc. (ISRG), which has gained 26% over the past 52 weeks and saw a 5.7% decline on a YTD basis.
Despite RMD’s outperformance over the past year, analysts remain cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 16 analysts covering the stock, and as of writing, it is trading below the mean price target of $265.55.
