RMD US S&P 500 Earnings call
ResMed| (RMD) · Q2 2026 results and valuation
Share price: $238.53 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q4 2026 · published 6 Aug 2026 and 30 Apr 2026
Net income down 3.8% on the previous quarter. Management sounded cautious, though noticeably more positive answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−3.8%
Net income vs Q1 2026
Outlook given
Net income 383.4M vs 398.7M
Revenue +2.3%
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: very upbeat, and more positive than the script.
Last call it was different: script and answers matched.
3 · What stood out
Guidance
Fiscal year 2027 revenue growth is expected to come in between 5% and 7%.
Valuation
Is ResMed| undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-06-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 10.2% growth a year (3-year revenue growth), the model's fair value is $276.22 a share — the stock trades 14% below it. Today's price assumes 8.2% growth a year.
Current price
$238.53
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+8.2% for 10 yrs
Fair value / share
$276.22
Buy below
$207.16
Price vs fair value
Undervalued 14%
Price vs buy-below price
Overvalued 15%
Management expects
Revenue +5% · from the Q2 2026 report: “Fiscal year 2027 revenue growth is expected to come in between 5% and 7%.”
A guidance figure for revenue, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Key theme
Existing price and volume contracts will be honored even as costs for milk and fuel rise.
Source quote
“And so what we're looking to do is work with all of our customers in a 140 countries and sort you know... Milk, and and gasoline, and and and petrol and so on. What I can say is for customers who work with us and we have contracts on volume and price, we will honor those terms if they honor their terms around volume and price.”
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Guidance
The hedge is still expected to generate $9 million in net interest income each quarter going forward.
Source quote
“We still expect this hedge to generate $9 million in net interest income on a quarterly going forward.”
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Figure
For fiscal year 2026, 10% headline revenue growth and 180 basis points of operating margin expansion drove more than $1.6.
Source quote
“For fiscal year 2026, our 10% headline revenue growth and 180 basis points of operating margin expansion drove more than $1.6...”
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Fading
Sales in Europe, Asia, and other regions increased by 7% on a constant currency basis during the March quarter.
Source quote
“Looking at our geographic revenue distribution and excluding revenue from our residential care software business, sales in the U.S., Canada... Year-over-year movements in foreign currencies positively impacted revenue by approximately $39 million during the March quarter. Sales in Europe, Asia, and other regions increased by 7% on a constant currency basis.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management was more positive answering analysts than in its script — usually a sign it was comfortable with the details it was asked about.
Sentences that drove the tone
“the lost revenue translating down to the the lost gross margin that we're gonna have associated with it.”
“As a side benefit for ResMed, this has significantly reduced customer service inquiries.”
“As it relates to 2027, the only other thing that I would add on from what Mick said $75 million top line headwind It is about a 15¢ earnings per...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.46B | 1.43B | +2.3% | 1.35B | +8.6% |
| Gross profit | 861.2M | 891.0M | −3.3% | 820.1M | +5.0% |
| Operating income | 448.7M | 499.8M | −10.2% | 454.5M | −1.3% |
| Net income | 383.4M | 398.7M | −3.8% | 379.7M | +1.0% |
| EPS | 2.64 | 2.74 | −3.6% | 2.58 | +2.3% |
| P/E today 21.4 | 18.7 | 21.6 | −2.9 | 27.1 | −8.4 |
Topics
Most discussed now
- New These are areas that ResMed| continues to have sustainable competitive advantages strong innovation pipelines, and attractive long-term…
- New Prioritizing patient care is also central to ResMed|'s ongoing Astral field safety corrective action.
- Jordan, I'll I'll go first that ResMed| wes are still saying and guiding that the market growth rate for devices...
- The first three months have reinforced my excitement to build on ResMed|'s strong foundation and the growth opportunity in front...
- ResMed|'s first priority remains reinvesting back in its business to drive growth, but also to operate more efficiently.
Faded since Q1 2026
- Fading This information is not intended to be considered in isolation or as a substitute for GAAP financial information.
- Fading Revenue growth reflected positive contributions across ResMed|'s device and mask portfolio, and in its software business.
- Fading Across the U.S., speaking with ResMed|'s commercial teams in sales, marketing, and clinical about what they want over one, three,...
- Fading What they want over one, three, five years, and what their patients want: smaller, quieter, more comfortable devices; more…
Latest announcements
Official filings, newest first.
- Other events · SEC 8-K
- Auditor change; Director or officer change; Regulation FD disclosure · SEC 8-K
- Results of operations; Other events · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations; Other events · SEC 8-K
- Results of operations; Other events · SEC 8-K
- Director or officer change; Shareholder vote results · SEC 8-K