The company's strategy focuses on transforming healthcare in the home with hardware, software and solutions that people love. ResMed's EPS grew at a 14.2% compounded annual growth rate over five years, higher than its 11.8% annualized revenue growth, demonstrating strong profitability expansion. With a notable 66.4% Return on Invested Capital, ResMed demonstrates management's strong skill in using capital for high-return growth, indicating a lasting competitive edge.
Cyborg Score Rationale
The company delivered 11% headline revenue growth with 310 basis points of non-GAAP gross margin expansion in Q2 FY2026, resulting in mid-teens non-GAAP EPS growth. ResMed's free cash flow margin for the trailing 12 months was 33.2%, reflecting a highly efficient business model. Strong operational execution with consistent margin expansion and robust cash generation support a solid investment thesis.
Top Insights
In Q1 FY2026, ResMed delivered 9% headline revenue growth with 280 basis points of non-GAAP gross margin expansion and 16% non-GAAP EPS growth.
ResMed is strategically expanding its mask portfolio with new product innovations, including the launch of two new full-face fabric masks.
The company is executing a 'Made in America' strategy, expanding US manufacturing capacity with a new distribution center in Indianapolis and aiming to manufacture more CPAPs and masks domestically.
Q2 revenue exceeded expectations with strength concentrated in Masks & Accessories and Devices businesses.
Named Competitors
Philips Respironics — Sleep and respiratory care devices
GE Healthcare — Respiratory and monitoring solutions
Fisher & Paykel — Humidification and respiratory care devices