Shares of ResMed are consolidating near the $258 mark, taking a pause after a robust second fiscal quarter performance. The company’s recent figures, highlighted by an 11% revenue increase, have shifted investor attention toward the sustainability of this growth trajectory. The central question for the remainder of fiscal 2026 is whether the medical device firm can maintain its current levels of profitability.
Operational Efficiency and Margin Sustainability
A key metric for market observers in the coming months will be the gross margin trend. The last quarter saw this figure reach 62.3% on a non-GAAP basis, driven primarily by lower freight expenses and more efficient manufacturing processes. The focus now is on ResMed’s ability to sustain this performance within the management-guided range of 62% to 63%, amid concerns that rising operational costs could apply pressure.
An Unexpected Catalyst from GLP-1 Medications
Contrary to initial market apprehensions, weight-loss drugs known as GLP-1 agonists have not materialized as a threat to the core sleep apnea therapy business. Recent company data indicates a positive correlation: patients prescribed GLP-1 medications are 10% to 11% more likely to initiate positive airway pressure (PAP) therapy. This trend suggests the drugs could become a structural tailwind, potentially boosting long-term demand for CPAP devices.
Should investors sell immediately? Or is it worth buying Resmed?
Shareholder Returns and Forward Strategy
The company has confirmed a quarterly dividend of $0.60 per share, payable on March 19, 2026. Concurrently, management continues its capital return initiative, with share repurchases exceeding $600 million planned for the full 2026 fiscal year. This substantial buyback program is expected to provide ongoing support for earnings per share (EPS).
Looking ahead, ResMed is scheduled to release its third-quarter results around late April. In the interim, strategic emphasis is being placed on the rollout of digital health platforms. Features powered by artificial intelligence, such as the “Comfort Match” algorithm, are central to this effort, aiming to enhance patient adherence and secure recurring revenue from the consumables and accessories segment.
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