ResMed Inc. (NYSE:RMD) is a prominent player in the medical products industry, focusing on innovative solutions for sleep apnea, chronic obstructive pulmonary disease, and other respiratory conditions. The company is known for its strong financial performance and consistent ability to exceed market expectations. ResMed competes with other medical device companies like Philips and Fisher & Paykel Healthcare.
On October 30, 2025, ResMed reported earnings per share (EPS) of $2.55, surpassing the estimated $2.51. This marks a significant improvement from the $2.20 EPS reported in the same quarter last year. The earnings surprise for this quarter was +2.41%, as highlighted by Zacks. Over the past four quarters, ResMed has consistently outperformed consensus EPS estimates, showcasing its strong financial management.
ResMed's revenue for the quarter ending September 2025 reached $1.34 billion, exceeding the estimated $1.33 billion. This represents a 9.1% increase compared to the same period last year. The revenue figure also surpassed the Zacks Consensus Estimate of $1.32 billion, resulting in a positive surprise of 0.94%. This consistent revenue growth highlights ResMed's ability to capture market share and drive sales.
The company's financial health is further supported by its robust operational metrics. ResMed's gross margin improved by 290 basis points to 61.5%, while the non-GAAP gross margin rose to 62.0%. Income from operations saw a 15% increase, with non-GAAP income from operations up by 19%. These improvements reflect ResMed's efficient cost management and operational excellence.
ResMed maintains a strong balance sheet with a debt-to-equity ratio of approximately 0.15, indicating a low level of debt compared to its equity. The current ratio of around 3.44 highlights the company's ability to cover short-term liabilities with its short-term assets. These financial metrics, combined with a price-to-earnings (P/E) ratio of 26.38, demonstrate ResMed's solid financial position and potential for future growth.
