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Highlights

  • Q3 profit and revenue beat driven by demand for CPAP machines and sleep masks.

  • Company downplays tariff impact and eyes growth with new U.S. manufacturing site.

  • ResMed sees wearable tech and GLP-1 drugs as complementary, not competitive.

San Diego-based ResMed Inc. (NYSE:RMD) topped Wall Street’s expectations for third-quarter earnings, driven by continued demand for its sleep apnea treatment devices. The company reported an adjusted profit of $2.37 per share for the quarter ended March 31, edging past analysts’ consensus estimate of $2.36, according to data from LSEG.

ResMed manufactures continuous positive airway pressure (CPAP) machines—devices that help manage sleep apnea by keeping a patient’s airways open during sleep, resulting in significant improvements in rest and overall quality of life. Revenue for the quarter rose 8% year-over-year to $1.29 billion, aligning with analysts’ forecasts and reflecting growing global interest in sleep health solutions.

Following the earnings announcement, ResMed’s stock climbed 2.6% in after-hours trading, reaching $220, as investors welcomed both the performance and the company’s optimistic outlook.

Tariff Concerns Eased

With trade tensions and shifting policies back in the spotlight, investors have been keen to understand how medical device manufacturers like ResMed are preparing to handle potential tariff disruptions. CEO Mick Farrell addressed these concerns during the post-earnings call, stating that the company is “very well positioned” with exemptions already in place. He reassured investors that the introduction of new U.S. tariffs is not expected to materially affect financial outcomes.

Adding to its domestic resilience, ResMed announced that it will soon launch a new manufacturing facility in Calabasas, California. 

Weighing GLP-1 Competition and Wearable Tech

The approval of Eli Lilly’s weight-loss drug Zepbound, part of the GLP-1 class of drugs also used to treat conditions like sleep apnea, had raised some investor concerns about the potential impact on ResMed’s core business. However, the company struck a confident tone on the matter.

Rather than viewing GLP-1 medications and consumer sleep wearables as threats, ResMed sees them as potential allies in raising awareness around sleep health. “We believe that GLP-1 therapies and devices like fitness trackers will actually lead to more diagnoses and usage of our CPAP machines,” said Farrell, emphasising that a better-informed consumer base could drive greater adoption of treatment technologies.