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ResMed (NYSE:RMD) reports third-quarter results this Thursday after market close. Analysts expect revenue to grow 4.2% year on year, down from 9.1% in the same quarter last year. Last quarter, the medical device company met revenue expectations with $1.46 billion, up 8.6%, and beat analysts' earnings per share estimates. It has missed Wall Street's revenue estimates several times over the past two years. Analysts have mostly held their estimates over the last 30 days. ResMed shares are up 12.9% in the past month, against an average 3.6% gain for healthcare equipment and supplies stocks. The average analyst price target is $251.52, compared with a share price of $250.83.

Are ResMed shares a strong buy before its results on Friday? Here's my verdict on whether I'd buy shares before the announcement. Published October 28, 12:05 pm AEDT ResMed Inc (ASX: RMD) shares haven't had the easiest 12 months. The sleep health giant's shares are trading around $35.50 on Wednesday, leaving them approximately 10% lower than this time last year. And with the company set to report its first-quarter FY27 results on Friday, investors will soon have another opportunity to see how the business is performing. So, could now be a good time to buy? Here's what I think. What should investors expect on Friday? Analysts are expecting a relatively modest start to the financial year. Revenue is forecast to increase approximately 4% to US$1.39 billion, with adjusted earnings expected to improve by around 5.5%. That would represent slower sales growth than ResMed delivered last financial year, when revenue increased 10%. But I think there's a good reason to look beyond the overall sales figure. ResMed has sold its MatrixCare software business, while sales of its Astral ventilators have been suspended following a safety issue. These developments could weigh on its reported growth. What I'll be most interested in is whether demand for its sleep apnoea treatments remains strong. Analysts expect ResMed's sleep and breathing health business to deliver revenue growth of around 6% for the quarter. I think that would be an encouraging result, especially as the company continues working to reach more patients. I'll also be watching profitability. Higher freight and component costs have created some challenges, but ResMed has a strong record of managing its expenses while growing. If that continues, I think shareholders will have plenty to be pleased about. Why I remain optimistic. The biggest reason I like ResMed shares is the sheer number of people who could benefit from its products. Sleep apnoea affects hundreds of millions of people worldwide, yet many don't even know they have it. According to ResMed's estimates, fewer than 20% of people with the condition in the United States have been diagnosed or treated. And the situation is even worse in many other countries. I think that gives ResMed a huge opportunity to grow over the coming decades. The company is investing in technologies that make sleep apnoea easier to diagnose, including home testing solutions that could help people access treatment sooner. As awareness improves and more patients seek help, I expect demand for its devices to increase. Management is aiming for high-single-digit annual revenue growth over the coming years, with earnings growing even faster. I think that's an encouraging ambition for a company with so much room to expand. Are ResMed shares good value? At $35.50, ResMed shares are trading on a PE ratio of approximately 21 times forecast FY27 earnings and 19 times FY28 estimates. I think that's a reasonable valuation for a global healthcare leader with strong profitability and considerable growth potential. There are challenges to consider, including competition from new sleep apnoea treatments and the need to keep developing better products. But I believe ResMed is well-placed to continue expanding its business as more people receive diagnoses and treatment. And at this valuation, I think investors are getting an opportunity to buy a strong business at a sensible price. Foolish takeaway. I would be happy buying ResMed shares before Friday's announcement. The results could bring some volatility, especially if earnings fall short of expectations. But I'm much more interested in where ResMed could be in five or ten years. With millions of potential patients still waiting to be diagnosed and treated, I think the company has an enormous opportunity ahead. And at around 19 times FY28 earnings, I'd be comfortable buying shares today and giving ResMed plenty of time to grow.

ResMed has launched its AirTouch F40 CPAP mask in the US. The fabric-cushioned design connects to the company's myAir and AirView platforms and aims to improve comfort, adherence and fitting for obstructive sleep apnea patients. Existing AirFit F40 users can switch to the new ComfiSoft fabric cushion without a full refit. This could lift resupply activity and keep patients within ResMed's connected ecosystem. The launch looks incremental. Supply chain costs and the Astral ventilator remediation remain the main near-term risks, with a headwind expected in FY2027. From July to September 2026, ResMed retired 972,000 shares for $200 million. Analysts' narrative projects $6.6 billion in revenue and $1.9 billion in earnings by 2029.