ResMed’s first quarter results were met with a strong market response, reflecting in-line revenue and profit performance alongside notable margin expansion. Management credited manufacturing and logistics efficiencies, positive product mix shifts, and sustained demand in both devices and masks as primary contributors to improved profitability. CEO Mick Farrell emphasized the benefits of investments in automation and U.S.-based production, stating, “Our results are a testament to the work that we do to enhance sleep health, breathing health, and health care delivery in the home.” The company also highlighted robust growth across geographies and a disciplined approach to operational spending.

Is now the time to buy RMD? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions ResMed’s Q1 Earnings Call

• Lyanne Harrison (Bank of America) asked for a breakdown of margin expansion factors. CFO Brett Sandercock explained that manufacturing efficiencies, distribution improvements, and favorable product mix all contributed meaningfully.
• Margaret Kaczor (William Blair) inquired about sleep lab backlogs and the impact of new diagnostic tools. CEO Mick Farrell detailed metrics tracked on patient throughput and outlined how Night Owl aims to shorten diagnosis-to-therapy timelines.
• Suraj Kalia (Goldman Sachs) questioned the rationale behind increasing share buybacks amid demand and tariff uncertainties. CFO Brett Sandercock cited a strong balance sheet and cash flows, while Farrell emphasized a balanced approach to capital allocation, including tuck-in acquisitions.
• Anthony Petrone (Mizuho Group) sought clarity on the impact of GLP-1 medications on patient funnel expansion. Farrell noted early signs of increased referrals from primary care physicians and ongoing educational efforts to drive demand.
• David Bailey (Morgan Stanley) raised concerns about CPAP adherence among patients using GLP-1 drugs. Farrell responded that adherence rates remain strong and that lifestyle changes linked to these medications may even enhance long-term compliance.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) the operational ramp-up and cost benefits from the new California manufacturing facility, (2) adoption rates for the Night Owl diagnostic tool and expanded software platforms, and (3) the effectiveness of adherence and resupply initiatives in boosting recurring revenue. We will also track regulatory developments and their potential impact on ResMed’s global supply chain and reimbursement landscape.

ResMed currently trades at $250.53, up from $214.36 just before the earnings. In the wake of this quarter, is it a buy or sell? Find out in our full research report (it’s free).

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