ResMed Exceeds Profit Estimates Due to High Demand for Sleep Devices

• Second-quarter revenue reached $1.42 billion, beating analyst estimates of $1.40 billion with 11% year-over-year growth
• The company posted adjusted profit of $2.81 per share, surpassing expectations despite competitive concerns about Eli Lilly's Zepbound drug for sleep apnea
• ResMed views GLP-1 therapies and sleep-tracking wearables as complementary rather than competitive, expecting them to drive increased patient adoption of CPAP devices

ResMed Beats Q2 Profit Estimates on Strong Sleep Device Demand

Key Financial Results:

Medical device manufacturer ResMed exceeded Wall Street's second-quarter profit expectations on January 29, reporting adjusted earnings of $2.81 per share. Revenue increased 11% year-over-year to $1.42 billion, slightly surpassing analyst estimates of $1.40 billion (LSEG data).

Business Overview:

ResMed specializes in continuous positive airway pressure (CPAP) machines, a non-invasive treatment for sleep apnea—a disorder marked by breathing interruptions during sleep. The company continues to experience robust demand for its sleep management devices.

Market Dynamics:

Despite concerns that Eli Lilly's recently approved GLP-1 drug Zepbound (indicated for sleep apnea treatment) would erode device demand, ResMed remains optimistic. The company anticipates that both consumer sleep-tracking wearables and GLP-1 therapies will actually drive more patients toward its devices, viewing these developments as complementary rather than competitive.

Strategic Outlook:

CEO Mick Farrell emphasized continued investment in innovation, digital health capabilities, and global expansion throughout the second half of fiscal year 2026, while maintaining sustainable, profitable growth. The company reported a $16 million restructuring charge in the previous quarter related to workforce planning initiatives.

Market Implications:

ResMed's strong performance suggests the sleep apnea treatment market remains resilient and potentially expanding. The company's positive stance on co-existing with pharmaceutical alternatives indicates confidence in a multi-modal treatment landscape, potentially benefiting the broader sleep health sector. The results may reassure investors concerned about pharmaceutical competition in the medical device space.