ResMed Inc (NYSE: RMD): Earnings Surge, Strategy Aligns
This US MedTech giant just posted another strong quarter. With growing revenue, record cash flow, and a sharpened strategy, can ResMed sustain its momentum?
ResMed Inc (NYSE: RMD) is a globally operating healthcare technology company, known for its devices that treat sleep apnea and chronic respiratory disorders. With a growing presence in SaaS through its Residential Care Software division, ResMed now serves both the clinical and digital sides of respiratory care.
Its footprint includes manufacturing hubs in the US, Australia, Singapore, and Europe, and distribution across over a dozen major global markets. The company has also realigned its reporting segments to reflect its strategic 2030 growth focus, marking a new phase in its expansion story.
Shares in ResMed have continued to climb. From $31.960 on 21 June 2024 to $39.160 on 20 June 2025, the stock has delivered a strong year of gains, reflecting market confidence in its expanding product and software strategy.
Revenue rising, margins holding
In Q3 FY25, ResMed posted $1.29 billion in total revenue, up from $1.20 billion a year earlier. Its core Sleep and Breathing Health segment delivered $1.13 billion, while Residential Care Software revenue rose to $161.2 million, both marking steady year-on-year gains.
Net income came in at $365 million, rising from $300 million in the prior year, and basic earnings per share reached $2.49. Gross profit margins also remained strong at 59.3%, demonstrating scale despite higher R&D and SG&A spending.
Importantly, operating cash flow hit $1.21 billion for the nine months to March, up from $961 million the year before. That performance gave the company the flexibility to fund innovation, return capital to shareholders, and keep debt under control while expanding inventory and global supply readiness.
Balance sheet strength, buybacks underline confidence
ResMed ended the quarter with $932.7 million in cash, up dramatically from $238.4 million in June 2024. The company has been active with capital returns, executing over $200 million in share buybacks this fiscal year alone.
On the balance sheet, inventory climbed to $862.6 million, as the company prepares for sustained demand across key markets. Total assets now stand at $7.57 billion, with a debt load of $673 million, manageable in light of strong cash flows and EBITDA margins.
Software and strategy add to the upside
With the transition to Residential Care Software, ResMed is placing clear strategic weight on SaaS revenue, which complements its device-led business. This dual-engine approach gives the company access to recurring revenue streams while strengthening its value proposition to care providers.
Its recent segment renames from Sleep and Respiratory Care to Sleep and Breathing Health also signals broader ambitions across chronic care pathways, not just sleep apnea.
The bottom line?
ResMed is showing all the signs of a business entering a sustained growth phase. Revenue is up, profit is scaling, and its operating model is generating strong cash. The business is reinvesting in R&D while rewarding shareholders, and its balance sheet has rarely looked stronger. If management can keep translating strategy into results, ResMed may be only getting started.
(Source: Company Announcements)
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