ResMed Inc. (RMD), headquartered in San Diego, California, manufactures, distributes, and markets medical devices and cloud-based software applications. Valued at $34 billion by market cap, the company offers a range of products for respiratory disorders, including diagnostic tools like ApneaLink Air and NightOwl, cloud-based platforms like AirView and myAir for patient monitoring, and U-Sleep for HME providers, connectivity solutions, as well as out-of-hospital software solutions. 

Shares of this sleep tech giant have outperformed the broader market over the past year. RMD has gained 28.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 20.7%. However, in 2025, RMD stock is up 1.3%, compared to SPX’s 2.2% rise on a YTD basis. 

Zooming in further, RMD’s outperformance is also apparent compared to iShares U.S. Medical Devices ETF (IHI). The exchange-traded fund has gained about 12.2% over the past year. However, the ETF’s 10.3% gains on a YTD basis outshine the stock’s single-digit returns over the same time frame.

RMD’s outperformance is driven by robust demand for its sleep and breathing health products and the expansion of digital health solutions. Additionally, its success is driven by technological leadership in geographic expansion. The company's focus on innovation, including new products like the AirTouch N30i mask, and strategic investments in R&D support its market leadership. The industry is poised for growth due to factors like the rising prevalence of chronic diseases and increased adoption of digital health solutions. 

On Jan. 30, RMD reported its Q2 results, and its shares closed down more than 8% in the following trading session. Its adjusted EPS of $2.43 surpassed Wall Street expectations of $2.30. The company’s revenue was $1.28 billion, beating Wall Street forecasts of $1.26 billion.

For the current fiscal year, ending in June, analysts expect RMD’s EPS to grow 22.7% to $9.47 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.

Among the 16 analysts covering RMD stock, the consensus is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, seven “Holds,” and one “Strong Sell.”

This configuration is more bullish than a month ago, with seven analysts suggesting a “Strong Buy.”

On Jan. 31, JPMorgan Chase & Co. (JPM) analyst David Low maintained a “Buy” rating on RMD with a price target of $286, implying a potential upside of 23.4% from current levels.

The mean price target of $266.45 represents a 15% premium to RMD’s current price levels. The Street-high price target of $290 suggests an upside potential of 25.2%.