The New York Stock Exchange-listed ResMed Inc (NYSE: RMD) share price surged more than 3% overnight on Wall Street, bringing the dual-listed sleep tech company within striking distance of its all-time highs. With strong quarterly results and rising investor confidence, it could be gearing up for another record-breaking run on the ASX.
Strong results driving momentum
ASX-listed ResMed Inc (ASX: RMD) shares have been climbing steadily since the company released its fourth-quarter and full-year results for FY 2025.
The results were impressive across the board:
- Quarterly revenue climbed 10% to US$1.3 billion
- Income from operations jumped 19%
- Operating cash flow of US$539 million
For the full year, ResMed delivered:
- Revenue growth of 10% to US$5.1 billion
- A 28% lift in income from operations, reaching US$1.69 billion
- A 270 basis point improvement in gross margin to 59.4%
- A 13% dividend increase, with the final dividend raised to US$0.60 per share
In an industry where regulatory hurdles and supply chain constraints have often weighed on growth, this result positions ResMed as one of the standout healthcare performers on the ASX.
What's behind ResMed's renewed strength?
Much of the excitement surrounding ResMed's share price isn't just about historical numbers; it's also about what comes next.
CFO Brett A. Sandercock provided bullish guidance, stating that the company expects gross margins to be in the 61% to 63% range in FY 2026. That would represent a notable step up from FY 2025 and speaks to continued operational improvements and scale advantages.
Meanwhile, the company announced plans to repurchase US$150 million worth of shares per quarter. If executed fully, this program would result in approximately 1.5% of ResMed's outstanding shares being bought back in FY 2026.
Strategic growth in focus
ResMed isn't resting on its core product strength. CEO Michael J. Farrell reiterated the company's push into digital health, highlighting recent acquisitions like Somnoware, Ectosense, and VirtuOx. These tuck-in purchases aim to streamline patient diagnosis and treatment pathways, helping move individuals through the sleep care journey more efficiently.
The focus on innovation and integration of digital workflows gives ResMed a long runway of growth, especially as awareness of sleep disorders and their broader health impacts continues to rise globally.
ResMed share price: Primed for more gains?
With robust free cash flow, expanding margins, and an aggressive capital return program, ResMed is emerging from a challenging period stronger than ever. While nothing is guaranteed in the market, the momentum behind the ResMed share price suggests investors are taking notice and betting on more growth ahead.
If the current trajectory continues, this healthcare giant could be set to break through its previous highs and chart new territory in FY 2026.
The post ResMed share price is on watch for all-time highs appeared first on The Motley Fool Australia.
Motley Fool contributor Leigh Gant has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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