Analysts Adjust Price Targets After ResMed's Strong Earnings

Author: Kelly Martin Updated: 10-31-2025 09:44 AM

Analysts Reflect on ResMed's Stellar Q1 Performance

ResMed Inc. (NYSE:RMD) has recently announced its results for the first quarter, highlighting a robust performance that surpassed analyst expectations. The company reported earnings of $2.55 per share, exceeding predictions which were set at $2.50. In addition, ResMed achieved quarterly sales of $1.336 billion, slightly surpassing the analyst consensus of $1.331 billion. This positive outcome reflects a strong operational efficiency and market positioning.

CEO Remarks on Growth and Strategy

Speaking after the results, Mick Farrell, ResMed’s Chairman and CEO, expressed enthusiasm regarding the company's trajectory. He stated, “Our fiscal year is off to a robust start, with first-quarter performance demonstrating continued progress in our mission to promote better sleep, breathing, and overall health through at-home care.” He added that the year-on-year revenue growth of 9% and significant 280 basis points of non-GAAP gross margin expansion have led to impressive bottom-line results, with a 16% increase in non-GAAP earnings per share.

Market Reaction Post-Announcement

Following the earnings release, ResMed stock experienced a slight decline, falling by 0.5% to a closing price of $252.26. Market observers note that fluctuations in stock value post-earnings announcements are common, especially when surpassing expectations.

Analysts Update Price Targets

In the wake of ResMed’s impressive quarterly results, several analysts have revised their price targets for the company. Mizuho's analyst Anthony Petrone has maintained an Outperform rating on ResMed, while slightly adjusting the price target from $310 down to $300. Meanwhile, Keybanc analyst Brett Fishbin has also reaffirmed the stock with an Overweight rating, increasing the price target marginally from $298 to $299. These adjustments reflect analysts' confidence in ResMed's direction and strategic initiatives.

Investment Considerations for RMD Stock

If you're considering investing in RMD stock, insights from analysts can provide valuable perspectives. ResMed's strong quarterly performance, coupled with upward price target adjustments, may signal potential growth opportunities for investors looking to enter the healthcare technology space. Analysts continue to emphasize the importance of understanding market conditions and company fundamentals before making investment decisions.

Frequently Asked Questions

What were ResMed's earnings per share this quarter?

ResMed reported earnings of $2.55 per share, exceeding the expected $2.50 per share.

How did the market react to ResMed's earnings announcement?

After the earnings report, ResMed's shares declined by 0.5% to close at $252.26.

What is the new price target for RMD according to analysts?

Mizuho has set a price target of $300, while Keybanc has set it at $299.

What is ResMed’s primary business focus?

ResMed focuses on providing innovative solutions for better sleep, breathing, and overall health through at-home care.

Why is analyst support important for RMD stock?

Analyst support can indicate market confidence and potential future growth, influencing investor decisions.

About The Author

Hello Kelly Martin here, a financial and publicly traded company specialist committed to writing with clarity and sage advice. Having a wealth of experience and a thorough grasp of corporate dynamics and the financial environment, my main goal in writing blog posts and articles is to provide insightful analysis together with useful guidance. My objective is to arm readers with the information they need to comprehend the complexities of publicly traded companies and make wise financial decisions.

Writing for several financial blogs has let me interact with a wide range of readers, from novice investors to seasoned pros looking for fresh perspectives. My goal is to make corporate analysis and finance understandable and interesting so you may confidently negotiate the intricacies of the financial world. I appreciate you traveling with me toward success and financial literacy.

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