ResMed (RMD) Stock Forecast & Price Target

ResMed showcases a robust financial outlook driven by a structurally growing market attributed to increasing sleep apnea diagnoses, an aging population, and rising obesity rates. The company is actively returning cash to shareholders through increased dividends and a more aggressive share repurchase strategy, while simultaneously investing in business growth, as evidenced by a projected rise in operating expenses as a percentage of sales in FY26 despite anticipated high single-digit revenue growth. In the fourth quarter of FY25, revenue from masks and other products in the U.S., Canada, and LATAM saw a year-over-year increase of 12%, underscoring ResMed's strong performance and market position.

The analysis of ResMed's financial outlook indicates concerns regarding potential disruptions to its revenue streams, specifically from the adoption of GLP-1 medications and expanded indications for obstructive sleep apnea (OSA), which could adversely impact future sales of masks and devices used in treatment. While the company has been outperforming the market, the ongoing shift towards pharmacological treatments may lead to a decline in demand for ResMed's traditional products, posing risks to its growth trajectory. Furthermore, despite a structurally growing market due to increased diagnoses of sleep apnea and rising obesity rates, these factors may not sufficiently counterbalance the potential headwinds posed by the changing landscape of treatment options.