Does ResMed's (RMD) Strong Q1 and Steady Dividend Reveal a Durable Growth-Margin Balance?

• ResMed Inc. recently reported first quarter 2026 earnings, posting sales of US$1.34 billion and net income of US$348.54 million, both higher than the same period last year, and reaffirmed a quarterly dividend of US$0.60 per share for shareholders of record on November 13, 2025, with payment due December 18, 2025.
• The announcement highlights ResMed’s continued sales growth alongside its consistent dividend policy, underscoring management’s focus on balancing business expansion and shareholder returns.
• We'll explore how ResMed's solid revenue and income gains this quarter influence its investment outlook and margin growth narrative.

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ResMed Investment Narrative Recap

For those considering ResMed, the core belief centers on the long-term expansion of sleep and respiratory health markets, supported by the company’s strong infrastructure in digital health and recurring revenue streams. The recent Q1 2026 earnings report confirms ongoing growth in sales and profits, but does not materially alter the short-term focus on margin expansion or the ongoing risk from competitive and regulatory pressures in the US reimbursement environment.

Among recent company updates, the reaffirmed quarterly dividend of US$0.60 per share, announced alongside earnings, reinforces ResMed’s consistency in shareholder returns. This ongoing dividend policy stands out, especially as operational performance and profitability continue to be the main market catalysts for ResMed.

However, investors should also keep in mind the potential impact of changing US healthcare reimbursement policies, particularly if CMS initiates further competitive bidding programs that could...

Read the full narrative on ResMed (it's free!)

ResMed's narrative projects $6.4 billion in revenue and $1.9 billion in earnings by 2028. This requires 7.8% yearly revenue growth and a $0.5 billion earnings increase from the current $1.4 billion.

Uncover how ResMed's forecasts yield a $295.13 fair value, a 17% upside to its current price.

Exploring Other Perspectives

Seven members of the Simply Wall St Community have posted fair value estimates for ResMed, ranging from US$179.72 to US$295.13 per share. While opinions differ widely, ongoing competition and the possibility of stricter healthcare cost controls could significantly influence performance and drive shifts in valuation outlooks.

Explore 7 other fair value estimates on ResMed - why the stock might be worth as much as 17% more than the current price!

Build Your Own ResMed Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your ResMed research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free ResMed research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate ResMed's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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