ResMed Inc. · RMD · FY2026 Q3 · Calendar Q2 2026

ResMed Q3 FY2026: 11% Revenue Growth, Margin Expansion, and Noctrix Acquisition

ResMed continues to execute a consistent growth playbook: double-digit revenue growth, expanding margins, strong cash generation, and strategic tuck-in acquisitions that broaden its sleep health portfolio. This quarter's 11% revenue growth and 290 bps gross margin expansion reflect improving component costs and favorable product mix, particularly from fabric-based masks. The $340 million Noctrix Health acquisition adds a new high-margin category (restless leg syndrome) beyond ResMed's core sleep apnea franchise. Management's data linking GLP-1 therapy adherence to higher PAP resupply rates is a notable data point, positioning ResMed as a beneficiary of the broader GLP-1 drug trend rather than a casualty of it. The stock's negative abnormal move of roughly 4.4% on the print, followed by further drift, suggests the market viewed the results as solid but not incrementally exciting…

Reported After market closeNYSEHealthcare $31.08B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $2.86 Consensus $2.80
EPS surprise +2.1% Reported versus consensus
Reported revenue $1.43B Consensus $1.42B
Revenue surprise +0.8% Reported versus consensus

Market reaction

event-close to next-session close
Stock move -4.1% Event window
SPY move +0.3% Same window
Abnormal move -4.4% Stock minus SPY
Volume 3.0× Versus trailing sessions
Subsequent drift -9.1% Up to 20 sessions
RMDSPY benchmark

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Why did RMD fall 4.1% after beating EPS estimates in FY2026 Q3?What changed in RMD's guidance and outlook in FY2026 Q3?Give me the bull and bear case for RMD after FY2026 Q3 earnings.

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Transcript intelligence

What changed

Revenue growth held at 11% YoY, matching the prior quarter, though constant-currency growth ticked down from 9% to 8%. Gross margin expansion moderated to 290 bps from 310 bps last quarter. The Noctrix Health acquisition ($340M) is new this quarter and expands the portfolio into restless leg syndrome with a $24M annual revenue run-rate. New GLP-1 adherence data builds on the prior quarter's findings: GLP-1 patients showed 5.1% higher 2-year and 6.2% higher 3-year PAP resupply rates. Fabric mask evidence strengthened, with AirTouch N30i showing 6% higher 90-day compliance versus silicone. Capex outlook shifted from increasing to stable. Free cash flow of $520M supported $175M in share repurchases this quarter, compared to the $600M accelerated buyback program announced in the prior quarter.

Guidance delta

Guidance sentiment was maintained, unchanged from the prior quarter. Management reiterated confidence in continued high-single-digit revenue growth through 2030 and its long-term margin-accretion strategy. No formal guidance revision was announced.

Key takeaways

  • Revenue of $1.43B grew 11% YoY (8% constant currency), with non-GAAP EPS of $2.86 beating the $2.80 consensus by 2.1%.
  • Gross margin expanded 290 bps YoY, driven by component cost improvements and favorable product mix.
  • Free cash flow reached $520M, supporting a $0.60 dividend and $175M in share repurchases.
  • Announced $340M acquisition of Noctrix Health, adding an FDA de-novo device for restless leg syndrome with a $24M annual revenue run-rate.
  • New data showed GLP-1 therapy patients have higher long-term PAP resupply rates (5.1% at 2 years, 6.2% at 3 years), reinforcing the GLP-1 and PAP synergy thesis.
  • Fabric-based masks (AirTouch N30i) demonstrated 6% higher 90-day compliance versus silicone masks.

Management priorities

  • Complete Noctrix Health acquisition by June 1, 2026 and integrate into the Americas devices segment.
  • Accelerate AirSense 11 and fabric mask rollouts in high-growth international markets including Latin America and China.
  • Invest in digital ecosystem capabilities including sleep health concierge and VirtualOx home sleep testing platforms.
  • Increase SG&A and R&D spend to support Noctrix growth and pipeline innovations.
  • Pursue additional tuck-in acquisitions and partnerships to broaden the sleep-health portfolio.

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Earnings History

Estimate Beat Miss Match
RMD EPS earnings history estimate and actual scatter chart 9 reported fiscal quarters and 3 future estimate-only quarters. Q2 '24 estimate $1.81 Q2 '24 actual $1.88, beat Q3 '24 estimate $1.91 Q3 '24 actual $2.13, beat Q4 '24 estimate $2.07 Q4 '24 actual $2.08, match Q1 '25 estimate $2.04 Q1 '25 actual $2.20, beat Q4 '25 estimate $2.55 Q4 '25 actual $2.55, match Q1 '26 estimate $2.51 Q1 '26 actual $2.55, beat Q2 '26 estimate $2.74 Q2 '26 actual $2.81, beat Q3 '26 estimate $2.80 Q3 '26 actual $2.86, beat Q4 '26 estimate $2.89 Q4 '26 actual $2.95, beat Q1 '27 estimate $2.69 Q2 '27 estimate $3.04 Q3 '27 estimate $3.07
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Analyst Consensus ?

ConsensusHold34 ratings
Bullish1441.2%
Neutral1544.1%
Bearish514.7%

Analyst 52W Price Targets

$251.69Current
$175Low
$247.73Average
$345High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 28, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
RBC Capital Outperform Sector PerformUpgradeSep 15, 2026
Keybanc Overweight OverweightMaintainAug 31, 2026
Wells Fargo Equal Weight Equal WeightMaintainAug 7, 2026
Piper Sandler Neutral NeutralMaintainAug 7, 2026
Mizuho Outperform OutperformMaintainJul 15, 2026
Show 29 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $251.7. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Mizuho SecuritiesAnthony Petrone$240$234.6 -4.6%Oct 13, 2026
RBC CapitalCraig Wong-Pan$262$222.99 +4.1%Sep 15, 2026
KeyBancAnalyst unavailable$267$240.33 +6.1%Aug 31, 2026
Redburn PartnersAnalyst unavailable$230$219.98 -8.6%Aug 19, 2026
Robert W. BairdAnalyst unavailable$213$212.38 -15.4%Aug 7, 2026
See 43 more

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Company context

Snapshot as of publication

ResMed Inc. is a leading global medical technology enterprise engaged in the creation, production, distribution, and marketing of healthcare devices and connected digital solutions. The company operates through two primary segments: Sleep and Respiratory Care, and Software as a Service. Its extensive product range addresses a variety of respiratory disorders, encompassing advanced medical and consumer technologies, ventilation devices, diagnostic equipment, mask systems for both clinical and personal use, headgear, and related accessories, alongside dental devices. ResMed also provides sophisticated cloud-based informatics to enhance patient management and operational efficiency.…

Historical context

All RMD earnings
-5.1%FY2026 Q4 · Calendar Q3 2026+0.3%FY2026 Q2 · Calendar Q1 2026-2.1%FY2026 Q1 · Calendar Q4 2025

Healthcare peers this season

Latest reports in the same sector
CompanyQuarterEPS surpriseMarket moveHeadline
AVTR Avantor, Inc. FY2026 Q3 · Calendar Q4 2026 — -2.2% Avantor reports stronger growth and raises full-year guidance
ICLR ICON Public Limited Company FY2026 Q3 · Calendar Q4 2026 — +12.5% ICON: bookings and margins improve as revenue dips
IQV IQVIA Holdings Inc. FY2026 Q3 · Calendar Q4 2026 +2.5% -0.7% IQVIA: AI momentum and bookings support raised 2026 outlook
CNC Centene Corp. FY2026 Q3 · Calendar Q4 2026 +506.1% +1.0% Centene raises EPS outlook as Medicaid remains stable
HCA HCA Healthcare, Inc. FY2026 Q3 · Calendar Q4 2026 +8.6% -3.3% HCA Q3: Volume growth offsets payer-mix and Medicaid pressure

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-07-30T13:11:32.542972+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-30T13:11:32.540574+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-07-30. For educational purposes only; not investment advice.