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With a market cap of $37.4 billion, San Diego, California-based ResMed Inc. (RMD) develops and markets medical devices and cloud-based software for diagnosing, treating, and managing respiratory disorders worldwide. The company operates through two segments: Sleep and Breathing Health, and Residential Care Software, offering solutions ranging from sleep diagnostics and therapy devices to comprehensive healthcare software platforms.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and ResMed fits this criterion perfectly. Its innovations include portable diagnostic tools, cloud-based monitoring systems, and enterprise software solutions supporting sleep clinics, home medical equipment providers, and senior care organizations.
Shares of the medical products maker have fallen 12.7% from its 52-week high of $293.81. RMD stock has declined 7.4% over the past three months, lagging behind the broader S&P 500 Index’s ($SPX) 6% increase over the same time frame.
In the longer term, RMD stock is up 12.2% on a YTD basis, underperforming the SPX’s 16.8% gain. Moreover, shares of ResMed have increased 7.2% over the past 52 weeks, compared to the 13.1% return of the SPX over the same time frame.
Despite few fluctuations, the stock has been trading below its 50-day moving average since September.
ResMed posted strong Q1 2026 results on Oct. 30, including 9% revenue growth to $1.34 billion, 280 bps adjusted gross-margin expansion, and 16% adjusted EPS growth to $2.55, signaling accelerating profitability and operational strength. Investor sentiment was further boosted by $457 million in operating cash flow, continued share repurchases and dividends, and management’s confidence in sustained growth supported by rising global sleep-health demand. However, the stock fell 2.1% the next day.
In comparison, ResMed stock has outperformed its rival, Intuitive Surgical, Inc. (ISRG). ISRG stock has gained 5.1% over the past 52 weeks and 10.2% on a YTD basis.
Despite RMD’s underperformance relative to SPX, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 19 analysts covering the stock, and the mean price target of $291.31 is a premium of 13.5% to current levels.
