Resmed's Q4 Earnings on Deck: What's in Store for the Stock?

RMD’s Q4 Estimates

The Zacks Consensus Estimate for revenues is pegged at $1.46 billion, indicating an increase of 8.4% from the year-ago reported figure.

The Zacks Consensus Estimate for EPS suggests a 13.7% rise to $2.90.

Estimate Revision Trend Ahead of RMD’s Q4 Earnings

Estimates for earnings have remained stable over the past 60 days.

Here’s a brief review of the company’s performance leading up to the announcement.

Factors Likely to Influence RMD’s Q4 Results

Sleep and Breathing Health

Within this segment, Resmed is likely to have benefited from strong demand for its mask portfolio across the United States, Canada and Latin America. Growth might have also accelerated in Europe, Asia and the rest of the world region. Mask and other sales are expected to have witnessed continued growth in resupply and new patient setups, while the VirtuOx acquisition must have contributed to incremental revenues. The company is strategically expanding its mask portfolio with product innovations like AirTouch N30i, F30i Comfort and F30iClear, among others, which should have supported revenues in the fiscal fourth quarter. 

Device sales numbers are likely to reflect the ongoing combined availability of Resmed’s AirSense 10 and AirSense 11 sleep devices, supporting underlying global demand. The company is also expected to have introduced AirSense 11 to additional countries following regulatory clearances. Resmed’s use of ML, AI and generative AI technology in its digital health products might have positively impacted its overall top line. The company must have also gained from the widespread U.S. adoption of NightOwl, its fingertip-sized home sleep apnea test.

In June, Resmed completed its acquisition of Noctrix Health, Inc., a medical device company developing clinically validated wearable therapeutics for chronic neurological disorders. The acquisition expands Resmed’s clinical sleep health portfolio for the treatment of Restless Legs Syndrome (RLS). We expect this acquisition to have had a positive impact on the quarterly top line. 

The Zacks Consensus Estimate for Sleep and Breathing Health revenues implies an 8.8% increase.

Residential Care Software

The division, which provides business management software-as-a-service to out-of-hospital health providers, remains a key strategic enabler of the core Sleep and Breathing Health business. Resmed is likely to have executed its RCS portfolio management strategy, channeling more investment into the high-growth, higher-margin parts of the portfolio while reducing exposure to lower-growth, lower-margin areas, such as the services businesses.

The fiscal fourth-quarter performance might have been affected by a challenging growth environment for the senior living and long-term care vertical. This must have been offset by strong performance from the MEDIFOX platform. 

The Zacks Consensus Estimate for this segment’s revenues indicates a rise of 6.1%.

What Our Model Unveils for RMD

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here, as you can see below.

Earnings ESP: Resmed has an Earnings ESP of -1.39%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.  You can see the complete list of today’s Zacks #1 Rank stocks here.

Key MedTech Picks

Here are some other medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time around.

Hinge Health Inc. HNGE has an Earnings ESP of +4.24% and a Zacks Rank #1 at present. The company is expected to release second-quarter 2026 results soon.

In the trailing four quarters, HINGE delivered an average earnings surprise of 179.54%. The Zacks Consensus Estimate for second-quarter EPS implies a decrease of 11.9% from the year-ago reported figure.

Neurocrine Biosciences NBIX has an Earnings ESP of +40.60% and a Zacks Rank #1 at present. The company is expected to release second-quarter 2026 results soon.

NBIX’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 9.08%. The Zacks Consensus Estimate for the company’s second-quarter EPS calls for an increase of 112.3% from the year-ago quarter’s figure.

West Pharmaceutical Services WST has an Earnings ESP of +1.09% and a Zacks Rank #2 at present. The company is slated to release second-quarter 2026 results on July 23. 

WST’s earnings beat estimates in each of the trailing four quarters, the average surprise being 19.37%. The Zacks Consensus Estimate for WST’s second-quarter EPS implies a rise of 13% from the year-ago reported figure.

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This article originally published on Zacks Investment Research (zacks.com).

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