ResMed (ASX:RMD) Buy Signal: 2 Brokers See Major Upside Potential

Sonal Goyal

05 February 2026 06:05 PM AEDT

ResMed (ASX:RMD) Buy Signal: 2 Brokers See Major Upside Potential

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Highlights

Two brokers issued buy-style ratings on ResMed with target prices up to AUD 47.50.
Q2 FY26 revenue reached USD 1.4 billion, up 11% year over year.
ResMed reported USD 340 million in operating cash flow for the quarter.

ResMed Inc. (ASX:RMD) shares were in focus recently following broker updates issued after the company released its second-quarter fiscal 2026 results. The sleep and respiratory care provider reported higher revenue and earnings for the quarter, while two major brokerages assigned buy-style ratings with price targets above the prevailing share price.

ResMed Shares and Sector Performance

ResMed CDI shares closed at AUD 37.46, up AUD 1.75 or 4.90% during Wednesday’s session. The stock move occurred alongside gains in the S&P/ASX 200 Health Care Index (XHJ), which rose 70.20 points, or 0.21%, to 34,033.50 by the close.

Broker Buy Ratings and Target Prices

Macquarie Research issued an outperform rating on ResMed, setting a target price of AUD 47.50. Canaccord Genuity also issued a buy rating, with a target price of AUD 46.50.

Both target prices sit above the current trading level, placing broker attention on ResMed.

Revenue and Earnings for Q2 FY26

For the quarter ended 31 December 2025, ResMed reported revenue of USD 1.4 billion, representing an 11% year-on-year increase, or 9% on a constant currency basis. Gross margin rose to 61.8%, while non-GAAP gross margin increased to 62.3%.

Income from operations increased 18%, with non-GAAP income from operations rising 19%. Diluted earnings per share were USD 2.68, while non-GAAP diluted EPS came in at USD 2.81. Operating cash flow for the quarter totalled USD 340 million.

Operational and Regional Updates

ResMed reported increased demand for its sleep devices, masks, and accessories across multiple regions. Revenue in the U.S., Canada, and Latin America, excluding Residential Care Software, increased 11%, while Europe, Asia, and other markets recorded 6% growth on a constant currency basis.

During the quarter, the company received FDA clearance for an AI-enabled digital medical device designed to personalise CPAP comfort settings. ResMed also continued capital management activities, paying USD 88 million in dividends and repurchasing 704,000 shares for USD 175 million.

ResMed’s second-quarter fiscal 2026 results were followed by positive broker actions, with Macquarie Research and Canaccord Genuity assigning ratings and price targets above the current share price. The updates placed focus on ResMed’s earnings performance, operational developments, and position within the ASX healthcare sector.

FAQ Section

Q1: What ratings did brokers issue on ResMed shares?
Macquarie Research issued an outperform rating, while Canaccord Genuity issued a buy rating.

Q2: What target prices were set for ASX:RMD?
Macquarie set a target of AUD 47.50, and Canaccord Genuity set a target of AUD 46.50.

Q3: How did ResMed perform financially in Q2 FY26?
ResMed reported USD 1.4 billion in revenue, diluted EPS of USD 2.68, and operating cash flow of USD 340 million.

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