• In late June 2026, ResMed Inc. (NYSE:RMD) was removed from several Russell growth indices, including the Russell 1000 Growth and Russell Midcap Growth benchmarks, following index reconstitutions.
• At the same time, analysts have become more optimistic on ResMed’s earnings outlook, with upgraded rankings and higher profit estimates highlighting a sharper divide between index mechanics and fundamental views.
• We’ll now examine how this combination of index removal and improving analyst sentiment could reshape ResMed’s investment narrative and risk-reward profile.

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ResMed Investment Narrative Recap

To own ResMed, you need to believe its core sleep apnea and digital health franchise can keep converting an underdiagnosed condition into recurring, profitable therapy usage. The biggest near term catalyst is the August 6 earnings release, while the key risk remains whether alternative treatments like GLP 1 therapies or tighter reimbursement blunt demand. Being dropped from several Russell growth indices mainly affects index flows rather than these underlying business drivers, so the impact looks limited.

The most relevant recent announcement is ResMed’s plan to report fourth quarter fiscal 2026 results on August 6, with management hosting a webcast afterward. This update lands soon after the Russell removals and against a backdrop of higher implied volatility in ResMed options, so the call could quickly reset expectations around earnings, margins and competitive pressures and either reinforce or challenge the more optimistic analyst revisions you are seeing today.

Yet investors should be aware that concerns about GLP 1 competition and long term margin pressure could still...

ResMed’s narrative projects $6.8 billion revenue and $1.9 billion earnings by 2029. This requires 7.2% yearly revenue growth and roughly a $0.4 billion earnings increase from $1.5 billion today.

Uncover how ResMed's forecasts yield a $260.60 fair value, a 24% upside to its current price.

Exploring Other Perspectives

Some analysts were already far more optimistic, expecting revenue near US$7,000,000,000 and earnings around US$2,100,000,000 by 2029, while the GLP 1 risk shows how differently you and others might weigh the latest index exit and upcoming earnings, and why both bullish and cautious narratives may need revisiting.

Explore 6 other fair value estimates on ResMed - why the stock might be worth as much as 36% more than the current price!

Decide For Yourself

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your ResMed research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free ResMed research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ResMed's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.