ResMed (RMD) Stock Forecast & Price Target

ResMed is well positioned because it is still converting a huge pool of undiagnosed obstructive sleep apnea patients into therapy, supported by marketing, clinician education, and partnerships that are increasing referrals and new patient setups. It is also showing durable operational strength, with 1Q27 revenue of $1,415m up 5.9% year over year, underlying EPS of $2.91 up 14%, and non-GAAP gross margin expanding to 62.5% as productivity gains offset inflation and FX. The company’s outlook is further reinforced by recurring masks and software revenue, strong Americas growth, FY27 guidance for $5.75bn-$5.85bn of revenue and $12.00-$12.25 of non-GAAP EPS, and more than $1bn of capital returned to shareholders in 1Q27.

ResMed is facing a weaker fundamental backdrop because foreign exchange already pressured gross margins and reduced EPS by $0.08, while prevailing rates are expected to add a 60bps revenue headwind in FY27. The bearish thesis also assumes a severe 20–40% fall in devices and masks growth in FY25–26e, implying that core demand for the company’s highest-revenue product categories could slow sharply before only modest recovery from FY27e onward. In addition, the outlook is vulnerable to intensifying competition, lower global healthcare spending, and potential FDA actions, which could further challenge the growth needed to convert the large untreated sleep apnea population onto therapy.