Director – Solution Architecture

ResMed shares tumble as weak 2027 sales forecast eclipses quarterly profit beat. By Thomson Reuters Aug 7, 2026 | 11:00 AM By Padmanabhan Ananthan and Kunal Das Aug 7 (Reuters) - Shares of ResMed dropped about 6% in morning trade on Friday after the medtech company forecast fiscal 2027 revenue below Wall Street expectations, impacted by suspended ventilator sales and cost pressures. ResMed said it would suspend sales of its Astral ventilators, used by patients who require acute or long-term life-support, following a device correction and FDA recall tied to five serious injuries last week. The fresh guidance assumes no sales of Astral ventilators during fiscal 2027 and factors in an expected $75 million impact due to the suspension, as the company redirects scarce electronic components to support repairs and servicing of existing devices. ResMed said it has not yet decided whether Astral sales will resume in fiscal 2028. The company now expects fiscal 2027 revenue of $5.75 billion to $5.85 billion, below analysts' expectations of $5.92 billion, according to data compiled by LSEG. Emerging competitive and ongoing cost pressures also limit its growth outlook, Baird analyst David Rescott said. ResMed, which makes devices to manage sleep apnea, among other medical equipment, plans to increase prices during fiscal 2027 as rising costs for electronic components and freight pressure its margins. "We can no longer offset inflation with productivity alone," CFO Aaron Bloomer said on a call with analysts. ResMed's sleep apnea devices face competition from Eli Lilly's weight-loss drug Zepbound, which was approved by the FDA in 2024 to treat obstructive sleep apnea. While the condition can affect anyone, it is more common in people who are overweight or obese, according to the health regulator. But Morningstar analysts said the Apple Watch's ability to identify possible sleep apnea cases could drive more diagnoses and treatment, which could help counter the weight-loss-drug threat to ResMed's devices. Sleep apnea devices are still the standard of care on the market and widely used. ResMed reported fourth-quarter adjusted profit of $2.95 per share, topping estimates of $2.89, while revenue rose 9% to $1.46 billion, in line with expectations. (Reporting by Kunal Das and Padmanabhan Ananthan in Bengaluru; Editing by Jonathan Ananda)

Is ResMed looking at price bumps? A home health medical equipment company called out a $30M impact from a large manufacturer. ResMed is suspected of being the manufacturer in question. August 4, 2026 AdaptHealth, a large public home medical equipment company, called out a $30 million impact in the second half of the year from a manufacturer price hike. One analyst thinks that the manufacturer could be ResMed. "Management did not specify the business category of the price increase but did note that it was from one of its largest manufacturers," Mike Matson, a Needham & Co. medtech analyst, wrote in a report Tuesday. "...Although MD+DI has no way of knowing for sure, there are reasons to believe that ResMed could be the manufacturer that [AdaptHealth] is referring to. MD+DI reached out to ResMed for comment on the analyst's speculation and will update this article when the company responds. The manufacturer in question notified AdaptHealth at the end of June that it was terminating its contract and imposing an immediate price increase on July 1. Matson cited three reasons for speculating that ResMed is the manufacturer raising its prices on AdaptHealth. * ResMed's fiscal year ended on June 30 and coincides with the price increase. * Sleep is AdaptHealth's largest category and accounts for 52% of its overall revenue. * ResMed has a near-monopoly in flow generators since Philips exited the market a few years ago. "If the price increase was in fact from [ResMed], it remains to be seen if this was a one-off move with a single customer or wider price increase across most or all of its customers," Matson writes. "We think an abrupt widespread pricing increase could be a sign of margin pressures at [ResMed]. On one hand, any pricing increase from [ResMed] could be positive since it might offset margin pressures in FY27. On the other hand, we think [ResMed] risks losing share (to React Health, its primary flow generator competitor) and angering its customers in advance of [Philips] eventual reentry into the U.S. flow generator market." ResMed is expected to report its fiscal fourth-quarter results Thursday afternoon. AdaptHealth has reshaped its business around its core sleep, respiratory, and supporting home medical equipment business over the last two years, Suzanne Foster, the company's CEO and director, said during AdaptHealth's Q2 earnings call Tuesday. Given the company is in active negotiation with the manufacturer in question for a better price, Foster declined to say which business segment the price hike is hitting. "Obviously, mid-year, we do not, as a company, have the opportunity to pass through price," Foster said. "We are hopeful that we'll be able to resolve this." In the meantime, she said, the actions the company would have to take include things like looking at supplier mix and profitability of those products within the mix to offset the price increase. If the manufacturer doing the price hike is ResMed, the news would come as ResMed is dealing with a serious problem with some of its ventilators. The company recently alerted customers that a faulty component in certain Astral 100 and Astral 150 ventilators could cause the devices to suddenly stop working. This is a potentially life-threatening scenario for patients who depend on them to breathe. Want more MD+DI in your search results?

ResMed develops cloud-connected medical devices and software solutions for sleep apnea, COPD, and other respiratory disorders. The company reported a trailing 12-month free cash flow margin of 31.7%. ResMed demonstrated strong financial performance over recent years. The company achieved constant currency growth averaging 9.1% over the past two years, showing global expansion capability regardless of macroeconomic conditions. Earnings per share increased by 15.2% annually over the last five years, outpacing revenue gains. The company's free cash flow margin grew by 21.4 percentage points during the same period. Meanwhile, investment firm StockStory identified Hasbro and Enphase as companies facing challenges despite producing cash. Hasbro reported annual sales declines of 3.5% over five years, whilst Enphase experienced declining unit sales and decreasing free cash flow margins.