ResMed Inc (RMD)- Q3’25 Update

Concerns remain despite the market’s enthusiasm

Following our February Red Flag Note on ResMed (RMD), the stock drifted lower until its Q3 earnings release, which sparked a rebound of over 10%. Despite the rally, we found little to applaud in the results. Non-GAAP EPS came in at $2.37—just a penny ahead of estimates—while revenue of $1.3 billion beat by a modest $7.4 million. These were among the narrowest beats RMD has delivered in recent quarters

More importantly, we believe there were still temporary factors helping to drive results in the quarter which we will review below:

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