ResMed Beats Q4, Issues FY27 Guidance, But Shares Sink 7% on Long-Term Worries
RMD sits 18% above its 52-week low of $180.265.
Summary
ResMed delivered a Q4 beat with revenue of $1.46B (in line) and EPS of $0.295 (2% above estimates), but shares fell 5.9% after hours as the market focused on FY27 guidance and long-term threats. The company issued its first-ever revenue outlook, guiding to 5-7% underlying revenue growth and 12-14% earnings growth, while boosting shareholder returns to over $1.85B. However, the outlook failed to address the looming re-entry of Philips into the US market in 2027, a key investor concern. The Astral ventilator recall will create a $75M revenue headwind and $0.15 EPS drag, though this was already priced into guidance. The sell-off reflects persistent anxiety over GLP-1 drugs and competitive risks, overshadowing solid near-term execution and a 10% dividend hike.
At the time of this announcement, RMD was trading at $212.50 on NYSE in the Life Sciences sector, with a market capitalization of approximately $32.4B. The 52-week trading range was $180.27 to $293.81. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Market Index.