** Citi expects Resmed RMD.AX RMD.N to report revenue of $1.44 billion in Q3 FY26 vs $1.3 billion in Q3 FY25

** Brokerage expects Q3 FY26 gross margin expansion of 250 basis points (bps) for the medical device maker

** Citi trims its Q3 gross margin forecast for RMD by 10bps, citing rising costs associated with the current geopolitical situation

** However, RMD has evolved better strategies for managing supply chain disruption since the Covid pandemic, says Citi

** "We forecast core EPS of USD2.85 (+20% YoY), close to VA consensus," Citi says

** Despite impressive EPS growth, stock has fallen around 7% YTD as US med tech has proven a tricky sector to see work, Citi says

** However, brokerage thinks stock benefits from caution on CSL among investors in Australia

** Citi retains Buy recommendation but with more caution than before for Resmed which will report its Q3 results on May 1 (AEST)

** YTD, ASX-listed shares of Resmed down 8.2%, as of last close