ResMed

(AI video summary)

This video was created on 30 January 2026 for IG audiences by ausbiz.

ASX code: RMD 

ResMed lifts profit as margins recover and device demand improves

ResMed delivered a stronger December quarter, posting higher revenue and earnings as demand for its sleep and respiratory care devices continued to recover. The company’s results beat market expectations and were supported by improving margins and stable global demand across its core business.

• Net income: rose 14% to US$393 million
• Revenue: increased 11% to US$1.4 billion, supported by solid device sales
• Restructuring charge: US$6 million.

Margin recovery boosts confidence

The company’s margin improvement is highlighted as a key driver of the stronger result. ResMed’s gross margins, which had come under pressure during supply chain disruptions and rising component costs, have now recovered to around 61% – 62%. This has supported earnings momentum and eased prior concerns around profitability.

The company noted rising adoption of consumer wearables and sleep‑tracking technologies, which it expects will funnel more patients into diagnosis and treatment, supporting device usage.

Investment outlook

ResMed’s valuation remains high on traditional metrics, including a dividend yield below 1% and a price‑earnings (P/E) ratio in the low‑20s. However, defensive earnings profile and strong cash generation continue to justify the premium. The recent pullback across large‑cap growth stocks has also created a more reasonable entry point for long‑term investors.