VOL. XCIV, NO. 247
★ WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES ★
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Thursday, January 8, 2026
ResMed Inc.
RMD · New York Stock Exchange
Weighted average of segment moat scores, combining moat strength, durability, confidence, market structure, pricing power, and market share.
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Overview
ResMed operates two main businesses: Sleep and Breathing Health (PAP/ventilation devices plus masks and accessories) and Residential Care Software (cloud platforms for out-of-hospital care providers). The core device segment benefits from a large consumables stream (masks/accessories), brand trust in clinical channels, and connected-care data workflows that support adherence and provider efficiency. The software segment has workflow switching costs and recurring term-based agreements, but competes in a market the company describes as highly competitive with low barriers to entry. Key moat risks include Philips' U.S. re-entry, reimbursement pressure, and alternative OSA treatments such as GLP-1 drugs and nerve stimulation.
Primary segment
Sleep and Breathing Health
Market structure
Oligopoly
Market share
58%-66% (estimated)
HHI: —
Coverage
2 segments · 6 tags
Updated 2026-01-04
Segments
Sleep and Breathing Health
Sleep apnea and respiratory care devices and related consumables (PAP, masks, ventilation) plus connected monitoring services
Revenue
87.5%
Structure
Oligopoly
Pricing
moderate
Share
58%-66% (estimated)
Peers
Residential Care Software
Out-of-hospital care provider software (HME/home infusion, home health & hospice, skilled nursing, senior living)
Revenue
12.5%
Structure
Competitive
Pricing
moderate
Share
—
Peers
Moat Claims
Sleep and Breathing Health
Sleep apnea and respiratory care devices and related consumables (PAP, masks, ventilation) plus connected monitoring services
Revenue/operating profit shares derived from FY2025 10-K Note 13 segment table (Filing date 2025-08-08): Sleep and Breathing Health net revenue $4,504.9m; segment net operating profit $1,964.4m. Source: https://www.sec.gov/Archives/edgar/data/943819/000094381925000035/rmd-20250630.htm
Installed Base Consumables
Demand
Installed Base Consumables
Strength
Durability
Confidence
Evidence
Large installed base of PAP/ventilation users drives recurring masks and accessories revenue (consumables/resupply), supporting repeat purchasing beyond the initial device sale.
Erosion risks
- Philips re-entry and pricing pressure
- Reimbursement cuts and payer pressure
- Commoditization of masks/accessories
Leading indicators
- Masks and other revenue growth vs devices
- Gross margin trend in Sleep and Breathing Health
- Competitor share changes as Philips ramps
Counterarguments
- Masks/accessories can face price competition and multi-sourcing.
- Payers and consolidating DME providers can force price concessions.
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength
Durability
Confidence
Evidence
Connected devices and cloud applications generate patient monitoring data and embed ResMed in provider workflows (setup, adherence, population management), raising switching costs.
Erosion risks
- Interoperability/data portability reduces lock-in
- Cybersecurity incidents or privacy regulation changes
- Competitors replicate connected platforms
Leading indicators
- Connected device penetration / active patient monitoring users
- Deferred revenue tied to monitoring services
- Provider adoption of alternative platforms
Counterarguments
- Providers may insist on interoperable systems and device-agnostic monitoring.
- Connected features can become table-stakes rather than differentiators.
Brand Trust
Demand
Brand Trust
Strength
Durability
Confidence
Evidence
Clinical markets emphasize reliability, support and reputation; trust matters in regulated therapy devices and long-term patient adherence.
Erosion risks
- Product quality issues/recalls
- Negative clinical outcomes or safety events
- Philips rehabilitates reputation over time
Leading indicators
- Field safety notifications / recall frequency
- Provider preference surveys
- Net promoter score / complaint rates (if disclosed)
Counterarguments
- Brand alone may not overcome large price gaps in a reimbursed market.
- Competitors can rebuild trust with new platforms and marketing.
Compliance Advantage
Legal
Compliance Advantage
Strength
Durability
Confidence
Evidence
Operating at global scale under FDA/ISO/EU MDR regimes requires mature quality systems; this raises the fixed-cost bar for new entrants.
Erosion risks
- Regulatory changes increase cost of compliance
- Compliance failures (warning letters, recalls) undermine advantage
Leading indicators
- Regulatory inspection outcomes
- Time-to-clearance for new products
- Quality metrics (complaints, returns)
Counterarguments
- Other incumbents also have strong regulatory/quality systems.
- 510(k) pathways can be manageable for well-understood device classes.
IP Choke Point
Legal
IP Choke Point
Strength
Durability
Confidence
Evidence
Large patent/design portfolio can protect specific features and slow fast-follower imitation, though expirations and design-arounds limit durability.
Erosion risks
- Patent expirations and design-arounds
- Adverse IP litigation outcomes
Leading indicators
- Key patent expirations and litigation outcomes
- Competitor feature parity and teardown comparisons
Counterarguments
- Device innovation can be replicated without infringing if patents are narrow.
- IP portfolios are common among large medtech competitors.
Residential Care Software
Out-of-hospital care provider software (HME/home infusion, home health & hospice, skilled nursing, senior living)
Revenue/operating profit shares derived from FY2025 10-K Note 13 segment table (Filing date 2025-08-08): Residential Care Software net revenue $641.4m; segment net operating profit $205.0m. Source: https://www.sec.gov/Archives/edgar/data/943819/000094381925000035/rmd-20250630.htm
Data Workflow Lockin
Demand
Data Workflow Lockin
Strength
Durability
Confidence
Evidence
Workflow-embedded platforms (billing, EMR, analytics, engagement) become core operating systems for providers, raising switching costs and enabling cross-sell of adjacent modules.
Erosion risks
- Low barriers to entry and rapid product cycles
- Customers choose in-house systems or new vendors
- Data interoperability standards reduce switching costs
Leading indicators
- Net retention / renewal and expansion rates
- Churn among top customer cohorts
- Deferred revenue and remaining performance obligations trend
Counterarguments
- Company states the market is highly competitive with low barriers to entry.
- Providers can standardize on alternative suites if integration improves.
Long Term Contracts
Demand
Long Term Contracts
Strength
Durability
Confidence
Evidence
Term-based software agreements (cloud services, licenses, maintenance) with renewals create recurring revenue and customer inertia; renewal discounts can reinforce retention.
Erosion risks
- Renewal price pressure
- Non-renewals during budget tightening
- Service outages reduce renewals
Leading indicators
- Renewal rate and expansion rate
- Net retention (if disclosed)
- Support tickets / uptime incidents
Counterarguments
- Customers have discretion to renew; switching can occur at contract expiry.
- Competitors can undercut pricing to win renewals.
Training Org Change Costs
Demand
Training Org Change Costs
Strength
Durability
Confidence
Evidence
Implementation, training and consulting create org-change costs for providers, increasing inertia once workflows and compliance processes are embedded.
Erosion risks
- Modern cloud implementations reduce switching friction
- Standardized APIs lower migration cost
Leading indicators
- Professional services attach rate
- Implementation cycle time
- Time-to-go-live for new customers
Counterarguments
- If implementation becomes faster/standardized, switching costs fall.
- Customers may prefer modular best-of-breed tools over suites.
Evidence
Masks and other 1,839,717 (in thousands).
Disaggregated revenue shows large ongoing masks/accessories stream within the segment.
Expanded our business by developing... mask systems... headgear and other accessories.
Product portfolio explicitly includes recurring accessories that pair with devices.
Leading provider of cloud-based health applications... enabling clinicians to manage more patients.
Describes workflow-embedded connected care proposition.
Deferred revenue... relates... to... provision of data for patient monitoring.
Explicitly ties monetization to ongoing patient-monitoring data obligations.
Competitive factors are... quality, reliability and price... Customer support, reputation...
Company identifies reputation/support as key purchase factors.
Showing 5 of 16 sources.
Risks & Indicators
Erosion risks
- Philips re-entry and pricing pressure
- Reimbursement cuts and payer pressure
- Commoditization of masks/accessories
- Alternative therapies (GLP-1 drugs, nerve stimulation, surgery)
- Interoperability/data portability reduces lock-in
- Cybersecurity incidents or privacy regulation changes
Leading indicators
- Masks and other revenue growth vs devices
- Gross margin trend in Sleep and Breathing Health
- Competitor share changes as Philips ramps
- Connected device penetration / active patient monitoring users
- Deferred revenue tied to monitoring services
- Provider adoption of alternative platforms
Curation & Accuracy
This directory blends AI‑assisted discovery with human curation. Entries are reviewed, edited, and organized with the goal of expanding coverage and sharpening quality over time. Your feedback helps steer improvements (because no single human can capture everything all at once).
Details change. Pricing, features, and availability may be incomplete or out of date. Treat listings as a starting point and verify on the provider’s site before making decisions. If you spot an error or a gap, send a quick note and I’ll adjust.