ResMed RMD is scheduled to release its first-quarter fiscal 2027 results on Oct. 29, after the closing bell.
The renowned sleep health device maker posted adjusted earnings per share (EPS) of $2.95 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 1.72%. The company topped earnings estimates in each of the trailing four quarters, the average surprise being 2.78%.
Q1 Estimates for ResMed
For the first quarter of fiscal 2027, the Zacks Consensus Estimate for ResMed’s revenues is pegged at $1.39 billion, indicating an increase of 4% from the year-ago reported figure.
The Zacks Consensus Estimate for fiscal first-quarter EPS suggests a 4.7% rise to $2.67. The estimate has dropped 0.7% in the past 30 days.
Here’s a brief review of the company’s performance leading up to this announcement.
Factors Likely to Influence RMD’s Q1 Results
Sleep and Breathing Health
Within this segment, ResMed’s device revenues may have benefited from continued solid demand for sleep devices across the Americas and Rest of World. However, life support devices, including ventilators such as Astral, are likely to have seen lower unit sales. The ongoing expansion of the AirSense 11 platform into global sleep health markets is expected to have supported revenues in the first quarter of fiscal 2027. Growth is likely to have remained strong in the United States and Europe, while penetration in China may have continued to build following its recent launch.
During the fourth quarter of fiscal 2026, ResMed reached an important milestone with the U.S. introduction of the AirCurve 11 ST and AirCurve 11 ST-A platforms. The company also launched the AirCurve 11 platform in Hong Kong, Singapore, Australia and New Zealand.
Masks and other is also expected to have contributed. ResMed is likely to have continued the global rollout of its fabric technology masks, including AirTouch N30i and AirTouch F30i, in the first quarter of fiscal 2027. The AirFit F40, its smallest tube-down full-face mask, may also have generated strong demand. These developments are expected to have supported the segment’s top line in the quarter.
ResMed Inc. Price and EPS Surprise
ResMed Inc. price-eps-surprise | ResMed Inc. Quote
ResMed may have continued integrating Noctrix Health, LLC, which it acquired in June 2026. Noctrix’s flagship product, Nidra, addresses restless legs syndrome (RLS), a prevalent sleep disorder worldwide after sleep apnea and insomnia. The acquisition expands ResMed’s clinical sleep health portfolio into an adjacent area of unmet need.
Greater clinician awareness is also likely to act as a tailwind for ResMed’s results in the fiscal first quarter. The company’s continuing medical education (CME) programs cover sleep physician society-approved guidelines and the benefits of continuous positive airway pressure (CPAP), automatic positive airway pressure (APAP) and bilevel positive airway pressure (PAP) therapy as frontline treatments for sleep apnea. More than 55,000 clinicians have completed its sleep apnea courses, with total course completions exceeding 95,000. ResMed has already observed increases in home sleep apnea test referrals and prescriptions for PAP therapy following training.
The Zacks Consensus Estimate implies Sleep and Breathing Health revenues will increase 6.4% in the fiscal first quarter.
Residential Care Software
Over the last few quarters, ResMed has continued to reshape its Residential Care Software portfolio, directing higher investments in high-growth, higher-margin businesses while reducing exposure to lower-growth, lower-margin areas, including services businesses. The strategy is aimed at returning the business to sustainable high-single-digit revenue growth and achieving double-digit operating profit growth in fiscal 2027.
In line with these efforts, ResMed completed the sale of its MatrixCare business to the private equity firm Frazier Healthcare Partners on Sept. 1, marking the culmination of its portfolio management initiatives. MatrixCare represented approximately $220 million of revenues and approximately $28 million of operating profit in fiscal 2026. The divestiture is expected to have reduced the company’s revenues in the fiscal first quarter.
Following the transaction, the Residential Care Software portfolio comprises Brightree and MEDIFOX DAN offerings, which are likely to have made a solid contribution to revenues in the to-be-reported quarter.
The Zacks Consensus Estimate projects Residential Care Software revenues to decrease 12.7% in the first quarter of fiscal 2027.
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 -0.60%. 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.
Top MedTech Picks
Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time:
Phibro Animal Health PAHC has an Earnings ESP of +2.10% and a Zacks Rank #1. The company is expected to release first-quarter fiscal 2027 results soon.
PAHC’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.4%. The Zacks Consensus Estimate for the company’s first-quarter EPS indicates an increase of 8.2% from the year-ago quarter’s figure.
Becton, Dickinson and Company BDX, or BD, has an Earnings ESP of +0.21% and a Zacks Rank #1. The company will release its fourth-quarter fiscal 2026 results on Nov. 5.
BD’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 2.94%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS calls for a rise of 2.5% from the year-ago quarter’s figure.
IDEXX Laboratories IDXX has an Earnings ESP of +0.59% and a Zacks Rank #2. The company is slated to release third-quarter 2026 results on Nov. 2.
IDXX’s earnings beat estimates in each of the trailing four quarters, the average surprise being 5.7%. The Zacks Consensus Estimate for the company’s third-quarter EPS implies a jump of 9.1% from the year-ago quarter’s figure.
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This article originally published on Zacks Investment Research (zacks.com).