ResMed (RMD) has put up another solid quarter, with Q2 2026 revenue at about US$1.4b and basic EPS of US$2.69, while the trailing 12 month figures sit at US$5.4b of revenue and EPS of US$10.16. Over the past six reported quarters, revenue has moved from US$1,224.5m in Q1 2025 to US$1,422.8m in Q2 2026 and basic EPS has shifted from US$2.12 to US$2.69. This gives a clear view of the top line and per share earnings trend across the recent reporting run. With trailing 12 month earnings up 19% and net profit margins at 27.5%, the latest results point to a business where profitability is front and center for investors watching this earnings season.

See our full analysis for ResMed.

With the headline numbers on the table, the next step is to see how these results line up with the most common market narratives around ResMed, and where the data starts to push back on those stories.

19% earnings growth backed by steady revenue climb

• Over the last six reported quarters, revenue has moved from US$1,224.5m in Q1 2025 to US$1,422.8m in Q2 2026, while trailing 12 month earnings grew 19% to US$1.5b and trailing 12 month EPS reached US$10.16.
• Consensus narrative points to acquisitions, digital health platforms and higher awareness in sleep health as key drivers of revenue and margin strength, and the current numbers give a mixed picture:
  • On one hand, trailing revenue of US$5.4b and a net profit margin of 27.5% align with the idea that the business is converting its installed base and software into solid profitability.
  • On the other hand, forecast revenue growth of about 6.9% per year is more moderate than the five year annualized earnings growth of 22.7%, which suggests past growth rates are not simply being projected forward.

Analysts who think this earnings story still has more room to run point to the mix of solid margins, recurring device and software revenue and an underpenetrated sleep market. You can see how that ties back to the numbers in the dedicated bull case breakdown 🐂 ResMed Bull Case.

Margins at 27.5% test the bearish cost concerns

• Trailing net profit margin sits at 27.5%, up from 25.3% a year earlier, while quarterly net income has ranged from US$311.4m in Q1 2025 to US$392.6m in Q2 2026, which frames how much earnings the company is keeping after expenses.
• Bears highlight risks from GLP 1 therapies, higher component costs and heavier spending on digital platforms, and the current figures give both support and pushback to that view:
  • Bearish assumptions still build in a margin increase from 27.5% to 28.0% over the next three years, so even cautious analysts expect some efficiency despite concerns about cost inflation and integration spending.
  • At the same time, forecasts for earnings growth at about 8.7% per year are below both the five year historical 22.7% earnings growth and the forecast US market earnings growth of about 15.8% per year, which lines up with worries that future expansion could be more muted if costs or alternative therapies bite.

Investors who are more cautious often focus on these slower forecast growth rates and the potential impact of GLP 1 therapies on CPAP demand, and the detailed bear case walks through how those concerns translate into earnings and valuation assumptions 🐻 ResMed Bear Case.

P/E of 20x and DCF fair value add a valuation twist

• With a current share price of US$205.02 and a P/E of 20x versus peer and industry averages of 28.1x and 23.6x, the stock sits below a DCF fair value of about US$264.46 and also below an analyst consensus price target of US$273.40.
• Consensus narrative suggests that long term earnings expansion and higher digital and software mix can support stronger value over time, and today’s metrics create an interesting tension around that view:
  • The gap between the current price of US$205.02 and both the DCF fair value of about US$264.46 and the US$273.40 analyst target is paired with trailing earnings growth of 19% and a 27.5% net margin, which aligns with the idea of a profitable, cash generative business.
  • However, forecast earnings growth of roughly 8.7% per year and revenue growth of about 6.9% per year sit below the forecast US market rates of about 15.8% and 11.1%, so any valuation case needs to factor in that the company is not projected to grow as quickly as the broader market.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for ResMed on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Given the mix of upbeat numbers and cautious forecasts, this is a moment to look closely at the underlying data and form your own view. To see what investors are optimistic about, take a closer look at the 4 key rewards.

See What Else Is Out There

ResMed’s key weakness is that its forecast revenue and earnings growth of about 6.9% and 8.7% per year sit below broader US market expectations.

If that slower outlook makes you cautious, you may choose to balance your portfolio by looking for companies with stronger growth potential and attractive entry prices through the 51 high quality undervalued stocks.

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.