ResMed (RMD) Stock Forecast & Price Target

ResMed's stock outlook remains positive due to the company's ability to return cash to shareholders through increased dividends and an aggressive share repurchase strategy, while simultaneously investing in business growth despite rising operating expenses as a percentage of sales. In the fourth quarter of FY25, the U.S., Canada, and LATAM markets showed a significant year-over-year revenue increase of 12% in masks and other products, reflecting strong demand in a growing market for sleep apnea treatment. With an estimated high single-digit revenue growth for FY26, coupled with competitive advantages and market expansion, ResMed is well-positioned to capitalize on increasing diagnosis rates and demographic trends favoring respiratory care.

ResMed's stock faces a negative outlook primarily due to concerns regarding the medium-term impact of GLP-1 drug uptake, which is anticipated to disrupt therapy volumes for positive airway pressure (PAP) devices. Although the company is currently outpacing market growth, the potential decline in demand for masks and devices linked to new treatment alternatives raises significant doubts about future revenue stability. Additionally, despite a growing global market driven by increased diagnoses of sleep apnea, the introduction of competing treatments could hinder ResMed's growth trajectory.