Key Takeaways for ResMed Stock as of August 2026
- First Guide: ResMed issued its first annual guidance since going public, targeting $5.75B to $5.85B in FY27 revenue (5% to 7% core constant currency growth) and non-GAAP EPS of $12.00 to $12.25.
- Street Splits: Current coverage carries 6 buys, 1 outperform, 10 holds, 1 no opinion, and 1 sell, with the $247 mean target sitting 10% above the $224 close.
- Target Retreat: The mean target has fallen from $296.87 on March 31 to $260.60 on June 30 to $247.20 today, even as the stock climbed off its June low.
- Model Gap: TIKR’s mid-case model puts ResMed stock at $346 by mid-2031, implying 54% total return and 9.3% annualized from the current price.
ResMed Stock’s First-Ever Guidance Reveals a 12% Core Growth Story
ResMed (RMD) closed at $224.46 on August 14, down 21% over the past year, a day after posting fourth quarter non-GAAP earnings per share of $2.95, ahead of the $2.89 IBES estimate, on revenue of $1.5 billion. The bigger news sat inside the same Q4 earnings call: for the first time since going public, ResMed issued full annual guidance, targeting $5.75 billion to $5.85 billion in fiscal 2027 revenue and non-GAAP EPS of $12.00 to $12.25.
That headline EPS range implies growth of just 7% to 10%. CFO Aaron Bloomer used the call to explain why the real number runs higher. “The $75 million top line headwind… it is about a $0.15 earnings per share headwind, and that is embedded in that 12% to 14% core EPS growth. And so kind of excluding that, our core EPS growth is actually a tick higher.” The $75 million is revenue ResMed is walking away from on purpose, tied to suspending Astral ventilator sales during an ongoing field safety action. Strip that out, along with roughly $0.30 of dilution from the pending MatrixCare divestiture and $0.20 from the Noctrix acquisition, and the underlying business is guiding to 12% to 14% core EPS growth against 5% to 7% core revenue growth.
The operating story behind that math held up in the quarter. Sleep device revenue rose 8% in the Americas and 13% in the rest of world, non-GAAP gross margin expanded 90 basis points year over year to 62.3%, and the company generated $1.6 billion in free cash flow for the full year. Management also lifted the quarterly dividend 10% to $0.66 a share and plans $1.5 billion in buybacks for fiscal 2027, pushing total shareholder returns above $1.85 billion, up more than 75% from last year.
None of that erases the near-term drag. The $42 million Astral charge taken in the quarter, the suspended device sales, and the MatrixCare exit are real subtractions from the headline numbers investors will see printed each quarter through fiscal 2027. But the guide draws a clear line between what is temporary and what is structural, and it’s the first time ResMed has put a number on that distinction publicly.
ResMed Stock’s Analyst Targets Keep Falling Behind the Rally
The Street’s current view on ResMed stock is more cautious than the fundamentals just described. Coverage sits at 6 buys, 1 outperform, 10 holds, 1 no opinion, and 1 sell, with 15 analysts publishing price targets. The mean target of $247.20 sits 10% above the $224.46 close, a far cry from the 34% gap the same table showed a year earlier.
That gap has been closing from both directions, and not in the way a rallying stock usually produces. The mean target peaked at $296.87 on March 31, then dropped to $260.60 by June 30 and to $247.20 today, a decline of 17% in five months.
Over that same stretch, the stock fell to a $194.88 close in June before recovering to $224.46, up 15% off the bottom. Analysts trimmed targets through the decline and kept trimming after the stock turned, with the number of buy ratings slipping from 8 to 6 and holds climbing from 7 to 10 across the same window. The Street is repricing ResMed stock more conservatively than the FY27 guide’s 12% to 14% core EPS growth would suggest is warranted.
TIKR Values ResMed Stock at $346, Implying 54% Total Return
TIKR’s mid-case model values ResMed stock at $345.68 by June 2031, implying 54% total return from the current price of $224.46, or 9.3% annualized over 4.9 years.
That 9.3% annualized figure runs well above where the Street’s $247 target implies the stock lands over the next year, and it treats the current setup as a multi-year compounding story rather than a single re-rating event.
The gap between the model and the Street mirrors the gap between headline and core EPS growth from the FY27 guide. Once the Astral suspension, the MatrixCare exit, and the Noctrix dilution roll off the comparison base over the next two years, the 12% to 14% core EPS growth rate embedded in this quarter’s guidance has more room to show up in reported numbers, which is the case TIKR’s model is effectively pricing in ahead of where analyst targets currently sit.
Should You Invest in ResMed Inc.?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up ResMed Inc. stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
