ResMed
Maker of CPAP machines and cloud software for sleep apnea diagnosis and care.
On the record
Checkpoint: Q4 FY2026 earnings covering full-year results and Noctrix integration
The call
ResMed dominates a regulated hardware market that AI and wearables can only feed, while GLP-1 drugs test how long that funnel stays full.
ResMed makes machines that treat sleep apnea, a condition where people stop breathing at night. The company is hard to replace because it has FDA approval, insurance coverage, 30 years of trust with doctors, and a huge dataset of sleep information from its devices that helps its artificial intelligence get smarter. The one thing to watch is new obesity drugs approved in late 2024 that can treat sleep apnea without a device, which could slowly shrink the number of new patients buying machines over time.
Why
01
AI pressure: Apple Watch and Oura AI sleep-screening algorithms. Wearables use AI to flag apnea risk, pulling users to lighter screening before ResMed's CPAP funnel. Could AI do the core job? Unlikely.
02
Bigger players: Eli Lilly's Zepbound and Novo Nordisk's Wegovy (GLP-1 drugs). Zepbound now treats obesity-linked apnea directly, threatening to shrink the pool of new CPAP patients over time. Could a giant copy it? No, they are blocked.
03
What protects it. FDA clearance requirements, DME reimbursement rules, and a 100 million-night data set that only ResMed owns.
What would change this call
ResMed reports two consecutive quarters of declining device unit sales. Would show GLP-1 drugs or wearables are eroding new-diagnosis demand.
Philips Respironics regains double-digit market share within 12 months on DreamStation 2. Would show the incumbent rival is recapturing lost customers.
Apple, Fitbit, or Oura obtains FDA clearance for home sleep apnea diagnosis. Would show consumer wearables bypassing ResMed's regulatory moat.
Philips Respironics regains double-digit market share within 12 months on DreamStation 2. Would show the incumbent rival is recapturing lost customers.
Apple, Fitbit, or Oura obtains FDA clearance for home sleep apnea diagnosis. Would show consumer wearables bypassing ResMed's regulatory moat.
Key numbers
- Q3 FY26 revenue $1.43B, up 11% YoY
- Holds 35-58% of sleep apnea device market
- Philips Respironics share fell from 35% to 7.5%
Named risks
- GLP-1 drugs like Zepbound could erode new OSA diagnosis funnel over time.
- Consumer wearables with AI screening could commoditize entry-point sleep apnea detection.
- Philips Respironics could recapture share faster than expected during its rebuild phase.
- Ongoing patent litigation, including active IPR proceedings versus Cleveland Medical Devices as of March 2026.
- Noctrix integration expected to reduce non-GAAP EPS by about $0.02 in Q4 FY26.
Rivals, as read in July 2026
| Rival | Direction | Evidence |
|---|---|---|
| Philips Respironics | gaining on | Share collapsed to ~7.5% post-recall but pursuing rebuild via DreamStation 2, as of Feb 2026 |
| Inspire Medical Systems | contesting | Dominates implantable neurostimulation niche for CPAP-intolerant patients, as of Aug 2025 |
| Fisher and Paykel Healthcare | contesting | Holds third-largest device share, strong in humidification and mask ergonomics |
| Oura, Apple, Fitbit wearables | contesting | AI-driven consumer screening could commoditize top-of-funnel OSA detection, discussed June 2026 |
| Zepbound (Eli Lilly, GLP-1 drug) | contesting | FDA approved Dec 2024 for OSA in obese adults, has not yet dented ResMed device growth as of Mar 2026 |
Questions people ask
- Is ResMed profitable in 2026?
- Yes. ResMed reported Q3 FY26 (quarter ended March 31, 2026) revenue of $1.43 billion, up 11% year over year, with non-GAAP EPS of $2.86, up 21% YoY and above analyst estimates of $2.81, per its April 30, 2026 earnings release.
- Could AI replace ResMed's devices?
- Unlikely soon. ResMed's own AI feature, Smart Comfort, received FDA clearance in December 2025 as a hardware-tied medical device trained on 100 million-plus nights of proprietary sleep data; regulation blocks app-only AI competitors from prescribing or delivering reimbursed CPAP therapy without hardware.
- Who is ResMed's biggest competitor?
- Philips Respironics was historically ResMed's main rival but its device share collapsed from about 35% to roughly 7.5% after a multi-year CPAP recall and a $1.1 billion 2025 legal settlement, per a February 24, 2026 Verified Market Research analyst report; ResMed now holds an estimated 35-58% share.
- Is joining ResMed a safe career move right now?
- Signs point to growth: ResMed had about 10,600 employees as of June 30, 2025 per its 10-K, and Revelio Labs data from December 2025 shows headcount up 5.8% year over year with active job postings up 48.2% in 2025 to 1,079.
- Will GLP-1 drugs like Zepbound hurt ResMed's sales?
- Not yet reflected in results. Zepbound (tirzepatide) won FDA approval in December 2024 for moderate to severe obstructive sleep apnea in obese adults, but ResMed's FY2025 revenue still reached about $5.15 billion and Q3 FY26 revenue grew 11% YoY as of March 31, 2026.
- Who owns ResMed and is it publicly traded?
- ResMed Inc. is an independent public company with no parent, trading as RMD on both the NYSE and the ASX as CHESS Depositary Interests, according to its Q3 FY2026 results release dated April 30, 2026. Market cap was estimated at roughly $28.4-29.6 billion by third-party trackers.
Timeline
- 2026-06-01ResMed completes $340M acquisition of Noctrix Health, wearable RLS therapy maker
- 2026-05-21Launches AirConnect Dx in UK to help NHS reduce sleep diagnostic backlogs
- 2026-04-30Reports Q3 FY26 revenue of $1.43B, up 11% YoY, non-GAAP EPS $2.86
- 2026-02Patent suit Linden v. ResMed dismissed in ResMed's favor
- 2026-01-08SDBJ reports FDA clearance news for AI-personalized CPAP mask settings
- 2025-12-08FDA clears Smart Comfort, AI-enabled CPAP personalization device
- 2025-08-0810-K filed showing ~10,600 employees as of June 30, 2025
- 2025-05Acquires VirtuOx, home sleep and respiratory diagnostic testing company
- 2024-12FDA approves Zepbound (tirzepatide) for moderate to severe OSA in obese adults
- 2023-12ResMed resumes share buyback program after pause since December 2019
Revision history
22 July 2026
First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.
In the same band
Sources
- margins expand, digital ecosystem scales (2026-04-30)
- ResMed (Wikipedia) infobox
- Market Share & VMR Analyst Report (2026-02-24)
- Resmed Receives FDA Clearance for Personalized Therapy Comfort Settings (2025-12-08)
- FAQ: Anti-Obesity Medications and Obstructive Sleep Apnea (2025-08-07)
- Resmed Completes Acquisition of Noctrix Health (2026-06-01)
- 10-K filed 08/08/2025 (2025-08-08)
- ResMed Number of Employees 2026 (2026-06-29)
- April 30, 2026 - EX-99.1 - 8-K (2026-04-30)
- Resmed launches AirConnect Dx in the UK (2026-05-21)
- Sleep Apnea Implants Market Size & Share, Growth Analysis 2034 (2025-08-31)
- Koninklijke Philips N.V. and ResMed are Leading Players