With a market cap of around $36 billion, ResMed Inc. (RMD) is a global leader in the design, manufacture, and distribution of medical devices and cloud-based software solutions for the treatment of sleep-disordered breathing and other chronic respiratory conditions. The company operates through two primary segments - Sleep and Respiratory Care and Software-as-a-Service, serving patients and healthcare providers worldwide.

Shares of the San Diego, California-based company have outperformed the broader market over the past 52 weeks. RMD has increased 12.5% over this time frame, while the broader S&P 500 Index ($SPX) has gained 10.1%. Moreover, ResMed stock has risen 7.4% on a YTD basis, compared to SPX's marginal decline.

Looking closer, ResMed has also outpaced the Health Care Select Sector SPDR Fund's (XLV) 10.9% decrease over the past 52 weeks.

Shares of ResMed jumped 10.1% following its Q3 2025 earnings release on Apr. 23. The company reported adjusted EPS of $2.37, up 11.3% year over year and above the consensus estimate. Revenues climbed 7.5% year over year to $1.3 billion, surpassing estimates, driven by 8% growth in the Sleep and Breathing Health segment and 9% in Residential Care Software. Additionally, profitability metrics impressed, with adjusted gross margin expanding 138 bps to 59.9% and operating margin rising 154 bps to 34.4%.

For the fiscal year ending in June 2025, analysts expect RMD’s adjusted EPS to grow 22.8% year-over-year to $9.48. The company's earnings surprise history is promising. It topped the consensus estimates in the last four quarters.

Among the 17 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” six “Holds,” and one “Strong Sell.”

This configuration is slightly more bullish than three months ago, with eight “Strong Buy” ratings on the stock.

On Apr. 24, Piper Sandler lowered its price target on ResMed to $248 and maintained a “Neutral” rating.

As of writing, RMD is trading below the mean price target of $258.75. The Street-high price target of $290 implies a modest potential upside of 18.1% from the current price levels.