ResMed Inc. (RMD) Stock

ResMed Inc. (RMD) is a Healthcare stock trading at $228.50 (as of 2026-08-20), with a market capitalization of $32.96B and a trailing P/E of 21.9. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

ResMed Inc. designs, manufactures, distributes, and markets medical devices and cloud-based software for healthcare. It operates through Sleep and Respiratory Care segments and provides software applications such as remote patient monitoring and therapy management tools, serving healthcare providers and patients, including home equipment providers.

Understand ResMed Inc.: how it makes money

ResMed develops and sells medical devices and cloud-based software for respiratory care, generating revenue from device sales and software-as-a-service (SaaS) informatics solutions for managing patient outcomes.

ResMed profit generation depends on selling a portfolio of respiratory-care and sleep devices and also monetizing cloud-based (SaaS) software informatics solutions, making the mix and momentum of device revenue versus SaaS revenue a central driver.

Business quality (Strong): The business model (devices plus cloud-based SaaS) is clear from the provided description, but the provided data does not include a clean revenue split for the official Sleep and Respiratory Care segments.

Valuation: At 19× earnings, RMD trades 40% below the Medical Equipment average (32×). Note: one-time items can distort reported P/E.

Bull case

Two-part product offering, devices plus cloud software: ResMed develops and markets medical devices and also provides cloud-based software informatics solutions to manage patient outcomes, giving it two revenue streams (devices and SaaS).
Meaningful software presence in the revenue mix: In the provided dataset, Software as a service (SaaS) revenue is shown as about 0.1 USD_B, indicating that software contributes alongside device sales.
Strong profitability metrics provided: For the period ending 2026-03-31, gross margin is 62.2% and operating margin is 34.9%.

Bear case

SaaS revenue appears small relative to overall revenue: With total revenue shown as 1.4 USD_B and SaaS revenue shown as about 0.1 USD_B in the provided dataset, software may not fully offset weakness in device revenue.
Potential integration or contribution concentration around acquisitions: The provided dataset includes multiple Medifox DAN contribution revenue labels (for example, Medifox DAN contribution to SaaS revenue of 0.03 USD_B), which can raise execution risk if contributions change over time.
Limited visibility into official segment revenue split: The provided facts specify Sleep and Respiratory Care segments, but the dataset does not supply a clean revenue breakdown by those official segments, which can make it harder to identify what is driving results.

Valuation — source: SEC EDGAR (first-party)
Price	$228.50
Market Cap	$32.96B
P/E Ratio	21.9
EV / EBITDA	15.6
Price / Book	5.01
Price / Sales	6.01
FCF Yield	10.7%
DCF Value (model)	$201.43
DCF Upside vs Price	-11.8%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$5.65B
Net Margin	26.9%
Revenue Growth (YoY)	9.9%
EPS Growth (YoY)	9.6%
FCF Growth (YoY)	-0.7%

Financial Health — source: SEC EDGAR
Altman Z-Score	11.16 (safe)
Piotroski F-Score	7/9 (strong)

Valuation vs Sector & Industry
Stock P/E	21.9
Sector P/E (Healthcare)	21.6
Industry P/E (Medical Equipment)	32.9
vs Sector	1.4%
vs Industry	-33.4%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($4.55B)
Institutional Holders Tracked	10
Congressional Trades (recent)	10

Company
Sector	Healthcare
Industry	Medical Equipment
CEO	Michael J. Farrell
Employees	9,980
Country	US
IPO Date	1995-06-02

Related Companies (Business model: Medical Devices / Life Science Tools; 8 closest by market cap; US-domiciled)

Data as of 2026-08-20.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.