VOL. XCIV, NO. 247
WIDE MOAT STOCKS & COMPETITIVE ADVANTAGES
ResMed Inc. RMD
NYSEMedical instruments and suppliesFinancials to Jun 30, 2026 · Updated Oct 6, 2026
Moat ranks
Balance sheet
| $B | Jun '25 | Jun '26 |
|---|---|---|
| Cash | 1.2 | 1.5 |
| Securities | 0.0 | 0.0 |
| Debt | 0.7 | 0.7 |
| Net cash | 0.6 | 0.8 |
| Equity | 6.0 | 6.6 |
- Debt / EBITDA
- 0.32×
- Debt / equity
- 0.10×
- Leases (6/30/26)
- $167M
- Diluted shares
- 146M
- Book value / share
- $45.09
- Price / book
- 4.8×
- Net cash / share
- $5.57
- Market cap
- $31.3B
- Enterprise value
- $30.5B
Per-share record
Key indicators
| Indicator | Latest | Vs year ago | Last 8 quarters |
|---|---|---|---|
| Revenue growth | 8.6% | -1.6 pts | |
| Operating margin | 30.7% | -3.1 pts | |
| FCF margin | 27.2% | -10.3 pts | |
| Capex / revenue | 3.9% | +1.4 pts | |
| Masks and other revenue | $2.1B | +13% | |
| Device revenue | $2.9B | +9% | |
| Residential software revenue | $676M | +5% | |
| AirView patients | ≥35.0M | +17% | |
| myAir registrations | ≥12.0M | – | – |
Margins and growth from reported quarters; company KPIs as reported in results releases.
About RMD
Resmed sells sleep and breathing devices, masks, connected monitoring, and residential-care software. Its device franchise benefits from recurring replacement demand, provider workflow integration through AirView and myAir, and clinical reputation.
- Installed Base Consumables
A large PAP and ventilation installed base supports recurring replacement cushions, headgear and accessories beyond the initial device sale.
- Data Workflow Lockin
Connected devices and cloud applications generate patient monitoring data and embed ResMed in provider workflows (setup, adherence, population management), raising switching costs.
- Brand Trust
Clinical markets emphasize reliability, support and reputation; trust matters in regulated therapy devices and long-term patient adherence.
- Data Workflow Lockin
Workflow-embedded platforms (billing, EMR, analytics, engagement) become core operating systems for providers, raising switching costs and enabling cross-sell of adjacent modules.
- Sep 1, 2026
ResMed completed the MatrixCare sale, removing about $220 million of annual revenue from its future software mix and releasing capital for shareholder returns.
- Aug 31, 2026
ResMed signed a $450 million accelerated share repurchase agreement, using sale proceeds and cash to reduce its share count. Final settlement is scheduled for December 2026.
- Aug 17, 2026
ResMed appointed Carol Burt to succeed retiring lead director Ron Taylor on November 15, preserving independent board oversight during the portfolio changes.
- Jul 31, 2026
The FDA classified the Astral component correction as a Class I recall. Ventilation interruption risk and limited replacement parts weaken the reliability claim.
- Jun 30, 2026
ResMed agreed to sell MatrixCare for $490 million, concentrating residential software on Brightree and MEDIFOX DAN while retaining the sold business in historical continuing operations.
Ownership
Go deeper on RMD
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On this page
Financial record
| Fiscal year | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Trend | Change 2017–26 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Per share ($) | ||||||||||||
| Revenue | 14.51 | 16.25 | 18.04 | 20.30 | 21.83 | 24.33 | 28.64 | 31.75 | 34.93 | 38.71 | +11.5%/yr | |
| Cash flow | 2.91 | 3.51 | 3.18 | 5.51 | 5.03 | 2.39 | 4.70 | 9.50 | 11.89 | 12.36 | +17.5%/yr | |
| Earnings | 2.40 | 2.19 | 2.80 | 4.27 | 3.24 | 5.30 | 6.09 | 6.92 | 9.51 | 10.43 | +17.7%/yr | |
| Free cash flow | 2.40 | 3.01 | 2.64 | 4.78 | 4.23 | 1.33 | 3.79 | 8.72 | 11.21 | 11.15 | +18.6%/yr | |
| Capex | 0.50 | 0.50 | 0.54 | 0.73 | 0.80 | 1.06 | 0.91 | 0.78 | 0.68 | 1.21 | +10.3%/yr | |
| Dividends | 1.31 | 1.39 | 1.47 | 1.55 | 1.55 | 1.67 | 1.75 | 1.91 | 2.11 | 2.39 | +6.9%/yr | |
| Book value | 13.76 | 14.30 | 14.34 | 17.14 | 19.70 | 22.86 | 28.01 | 32.97 | 40.50 | 45.09 | +14.1%/yr | |
| Diluted shares (M) | 142 | 144 | 144 | 146 | 146 | 147 | 147 | 148 | 147 | 146 | +0.3%/yr | |
| Totals ($B) | ||||||||||||
| Revenue | 2.1 | 2.3 | 2.6 | 3.0 | 3.2 | 3.6 | 4.2 | 4.7 | 5.1 | 5.7 | +11.8%/yr | |
| Operating income | 0.4 | 0.5 | 0.6 | 0.8 | 0.9 | 1.0 | 1.1 | 1.3 | 1.7 | 1.9 | +18.0%/yr | |
| Net income | 0.3 | 0.3 | 0.4 | 0.6 | 0.5 | 0.8 | 0.9 | 1.0 | 1.4 | 1.5 | +18.0%/yr | |
| Free cash flow | 0.3 | 0.4 | 0.4 | 0.7 | 0.6 | 0.2 | 0.6 | 1.3 | 1.7 | 1.6 | +18.9%/yr | |
| Buybacks | 0.0 | 0.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.2 | 0.3 | 0.7 | – | |
| Dividends | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 0.3 | 0.3 | 0.3 | 0.3 | +7.2%/yr | |
| Net cash | -0.3 | -0.1 | -1.1 | -0.7 | -0.3 | -0.5 | -1.2 | -0.5 | 0.6 | 0.8 | +$1.1B | |
| Margins & returns (%) | ||||||||||||
| Gross margin | 58.1 | 57.0 | 57.3 | 58.1 | 57.5 | 56.6 | 55.8 | 56.7 | 59.4 | 61.1 | +2.9 pts | |
| Operating margin | 20.6 | 23.2 | 22.2 | 27.4 | 28.3 | 28.0 | 26.8 | 28.2 | 32.7 | 33.4 | +12.8 pts | |
| Net margin | 16.6 | 13.5 | 15.5 | 21.0 | 14.8 | 21.8 | 21.3 | 21.8 | 27.2 | 26.9 | +10.4 pts | |
| FCF margin | 16.6 | 18.5 | 14.6 | 23.5 | 19.4 | 5.5 | 13.2 | 27.5 | 32.1 | 28.8 | +12.2 pts | |
| ROIC | 15.5 | 20.3 | 14.6 | 20.4 | 22.7 | 20.9 | 17.1 | 20.0 | 25.1 | 26.4 | +10.9 pts | |
| Return on equity | 17.5 | 15.3 | 19.5 | 24.9 | 16.4 | 23.2 | 21.7 | 21.0 | 23.5 | 23.1 | +5.7 pts | |
| R&D % of revenue | 7.0 | 6.6 | 6.9 | 6.8 | 7.0 | 7.1 | 6.8 | 6.6 | 6.4 | 6.7 | -0.3 pts | |
| Stock pay % of revenue | 2.2 | 2.1 | 2.0 | 1.9 | 2.0 | 1.8 | 1.7 | 1.7 | 1.8 | 1.8 | -0.4 pts | |
| Capex % of revenue | 3.5 | 3.1 | 3.0 | 3.6 | 3.7 | 4.4 | 3.2 | 2.5 | 2.0 | 3.1 | -0.3 pts | |
Change uses 2017 and 2026 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2017 base. Trend shows the fiscal years.
Moat
Moat scorecard
- Strength
- Confidence
- Structure
- Oligopoly
- Durability
- durable
- Trajectory
- stable
- Pricing power
- moderate
- Sleep and Breathing Health88.0%3 claims
- Residential Care Software12.0%1 claim
Moat claims
- Applies to
- Sleep and Breathing Health
- Confidence
- Durability
- durable
- Trajectory
- stableas of Oct 6, 2026
A large PAP and ventilation installed base supports recurring replacement cushions, headgear and accessories beyond the initial device sale. The advantage is moderate because patients can switch an entire mask system and competitors can supply compatible interfaces.
FY2026 masks and other revenue reached $2.085 billion, with reported 13% growth. Replacement demand remains strong, but complete mask systems can switch brands and Fisher & Paykel continues to grow.
- Masks and other revenue$2.1B+13%
- Device revenue$2.9B+9%
- Philips re-entry and pricing pressure
- Reimbursement cuts and payer pressure
- Commoditization of masks/accessories
- Alternative therapies (GLP-1 drugs, nerve stimulation, surgery)
- FilingResMed FY2026 Form 10-KAug 13, 2026
- FilingResmed FY2026 results / Form 8-K exhibitAug 6, 2026
- FilingResMed FY2025 Form 10-K (Business - General)Aug 8, 2025
- Applies to
- Sleep and Breathing Health
- Confidence
- Durability
- medium
- Trajectory
- wideningas of Oct 6, 2026
Connected devices and cloud applications generate patient monitoring data and embed ResMed in provider workflows (setup, adherence, population management), raising switching costs.
The FY2026 filing reports more than 35 million patients on AirView and over 12 million registered on myAir. The larger connected base deepens provider integration, although these are cumulative counts and do not prove customer retention.
- AirView patients≥35,000,000+17%
- myAir registrations≥12,000,000
- Interoperability/data portability reduces lock-in
- Cybersecurity incidents or privacy regulation changes
- Competitors replicate connected platforms
- FilingResMed FY2026 Form 10-KAug 13, 2026
- FilingResMed FY2025 Form 10-K (Business - General)Aug 8, 2025
- FilingResMed FY2025 Form 10-K (Revenue Recognition - Deferred Revenue)Aug 8, 2025
- Applies to
- Sleep and Breathing Health
- Confidence
- Durability
- medium
- Trajectory
- narrowingas of Oct 6, 2026
Clinical markets emphasize reliability, support and reputation; trust matters in regulated therapy devices and long-term patient adherence.
The FDA classified an Astral ventilator component correction as a Class I recall in July 2026. A $41.885 million provision and limited replacement-part availability weaken the reliability claim until the correction is complete.
- Masks and other revenue$2.1B+13%
- Device revenue$2.9B+9%
- Product quality issues/recalls
- Negative clinical outcomes or safety events
- Philips rehabilitates reputation over time
- SourceFDA Astral ventilator correction classified as Class I recallJul 31, 2026
- FilingResMed FY2025 Form 10-K (Competition)Aug 8, 2025
- Applies to
- Residential Care Software
- Confidence
- Durability
- medium
- Trajectory
- stableas of Oct 6, 2026
Workflow-embedded platforms (billing, EMR, analytics, engagement) become core operating systems for providers, raising switching costs and enabling cross-sell of adjacent modules.
FY2026 software revenue reached $675.813 million with reported 5% growth. Billing and care records remain embedded, but the MatrixCare sale reduces breadth and no renewal or retention rate is disclosed.
- Residential software revenue$676M+5%
- Low barriers to entry and rapid product cycles
- Customers choose in-house systems or new vendors
- Data interoperability standards reduce switching costs
- AI-native entrants commoditize features
- FilingResMed FY2026 Form 10-KAug 13, 2026
- FilingResMed FY2025 Form 10-K (Business - Residential care software)Aug 8, 2025
- FilingResMed FY2025 Form 10-K (Risk Factors - Residential Care Software)Aug 8, 2025
- FilingResMed FY2025 Form 10-K (Competition - Residential Care Software)Aug 8, 2025
Profile change log
- Oct 6, 2026 · business change
ResMed completed the MatrixCare sale, removing about $220 million of annual revenue from its future software mix and releasing capital for shareholder returns.
- Oct 6, 2026 · business change
ResMed signed a $450 million accelerated share repurchase agreement, using sale proceeds and cash to reduce its share count. Final settlement is scheduled for December 2026.
- Oct 6, 2026 · business change
ResMed appointed Carol Burt to succeed retiring lead director Ron Taylor on November 15, preserving independent board oversight during the portfolio changes.
- Oct 6, 2026 · business change
The FDA classified the Astral component correction as a Class I recall. Ventilation interruption risk and limited replacement parts weaken the reliability claim.
- Oct 6, 2026 · business change
ResMed agreed to sell MatrixCare for $490 million, concentrating residential software on Brightree and MEDIFOX DAN while retaining the sold business in historical continuing operations.
- Oct 6, 2026 · business change
ResMed bought Noctrix, expanding its sleep-health portfolio into wearable therapy for restless legs syndrome. The acquisition adds reimbursement and integration risk outside its established apnea franchise.
- Oct 6, 2026 · business change
Aaron Bloomer succeeded Brett Sandercock as CFO, with the former CFO retained as an adviser to support financial leadership continuity.
- Oct 6, 2026 · analyst revision
The dated US provider survey gives 62% share; the prior 58% to 66% range had no stated survey basis. The profile now records that single historical estimate. Unverified software peer tickers were removed. The profile adds moat trajectories, operating measures, debate and management without changing moat strengths.
Industry & peers
Peer map
Peers appear on the map as their numbers are collected.
Sleep apnea and respiratory care at home
Positive-airway-pressure devices, replacement masks and accessories, home ventilation and connected monitoring for chronic sleep and breathing disorders. Implantable stimulation and medicines compete for patients but are separate product markets.
- ResMed
- Fisher & Paykel Healthcare
- Philips Respironics
| Stocks | Moat | Gross m. | Op. m. | |
|---|---|---|---|---|
| RMD | 80 | 61.1% | 33.4% | |
| Industry median | 10 | 82 | 60.9% | 18.4% |
| Sector median | 55 | 76 | 61.5% | 17.0% |
| All stocks median | 398 | 76 | 52.9% | 19.6% |
Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.
Drivers & risks
- Chronic disease, aging and underdiagnosis support demand. Referral capacity, diagnostic access and payer coverage determine conversion to therapy; a large prevalence count alone does not create purchases.
- Replacement masks and accessories create recurring sales while patients stay on therapy. Comfort, adherence and service reliability matter more than device shipment volume alone.
- Connected monitoring lets providers manage more patients and document adherence. Its economic value depends on workflow integration and sustained use, rather than cumulative registrations.
- Philips sales restrictions create an opportunity for rival devices in the US, while Fisher & Paykel mask launches and other alternatives keep competition active.
- Home-based care can lower provider and payer costs. Reimbursement, clinical evidence and local distribution determine adoption more strongly than the general consumer spending cycle.
- Weight-loss medicines, stimulation implants and other therapies can reduce or delay demand for PAP in eligible patients; drug access and long-term persistence are uncertain.
- Payer reimbursement cuts and consolidated home-equipment providers can pressure prices. Public health budgets and patient out-of-pocket costs constrain access despite low disease cyclicality.
- Recalls can impair trust, restrict capacity and raise repair expense. Regulatory qualification is a requirement for selling, not proof of an exclusive franchise.
- Currency has a meaningful translation effect: ResMed FY2026 sales growth was 10% reported and 8% in constant currency. Manufacturing and sales occur in different currencies, so exchange rates also affect costs.
- International production exposes suppliers to tariffs, freight, components and trade restrictions. Inventory and manufacturing efficiency can offset these costs, but supply shortages can interrupt sales.
- Interest rates chiefly affect financing, acquisitions and working capital; the direct effect on clinical demand is weaker than reimbursement and diagnosis. Cybersecurity or privacy failures can disrupt monitoring and provider trust.
Bulls & bears
Can ResMed keep adding and retaining therapy users fast enough to support replacement-mask demand after drug treatment, competitor innovation and safety corrections?
Arguments
What to watch
- 1Device and masks-and-other revenue, with constant-currency changes
- 2AirView patients and myAir registrations, with active use if disclosed
- 3Astral correction progress, safety provisions and gross profit
- 4Residential software revenue after the MatrixCare sale and customer retention
- 5Operating cash flow, total capital spending and repurchase cash
Next check: October 29, 2026: Q1 FY2027 results, MatrixCare sale accounting, remaining software growth and Astral correction progress.
Sources: company filings and dated sources collected for Find My Moat; market cap as of Oct 5, 2026. Not investment advice.
Free to reuse, commercially too, with a credit link. See the data license.
Moat Score 80/100 by <a href="https://www.findmymoat.com/stocks/XNYS:RMD">Find My Moat</a> (as of September 2026)Request update
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