ResMed Inc. (RMD)’s Sleep Apnea Leadership Supports Growth Despite Rising Competitive Pressures

ResMed Inc. (NYSE:RMD) remains well positioned to capitalize on the long-term growth of the global obstructive sleep apnea (OSA) treatment market. The company's robust product portfolio, including CPAP and APAP machines under the AirSense brand, offers multiple avenues for generating recurring revenue. In the fourth quarter of fiscal 2026, ResMed reported a 9% year-over-year revenue increase to $1.5 billion, driven by strong demand for sleep devices, masks, and accessories.

The Americas device revenue rose 6%, while total Americas Sleep and Breathing Health revenue expanded by 8%. Masks and other revenue increased by 10%, highlighting the company's ability to monetize its installed patient base beyond the initial device purchase. RBC Capital expects ResMed to achieve high single-digit earnings per share growth over the next three years.

Despite potential risks from increased competition and the return of Philips Respironics to the U.S. market, the research firm upgraded ResMed's stock to an Outperform rating, expecting it to continue generating significant value. However, hedge fund interest remains relatively stable, with some investors increasing their exposure.

Investors should weigh the company's strong market position against potential challenges such as the suspension of Astral ventilator sales and weaker-than-expected fiscal 2027 revenue guidance.