ResMed Posts Strong Q2 Growth on New Product Momentum and GLP-1 Therapy Tailwinds
This analysis is based on the company's earnings call for the quarter ended December 31, 2025.
ResMed (NYSE: RMD) delivered a strong financial performance in its second fiscal quarter, with revenue climbing 11% year-over-year. The results underscore the company's resilience in a dynamic market for sleep apnea and respiratory care devices, fueled by successful new product launches and an unexpected synergy with weight-loss medications.
On the product front, CEO Michael Farrell pointed to the successful rollout of the new F30i mask series as a key growth driver. "Our US masks and accessories business saw double-digit growth organically, even before factoring in our VirtuOx acquisition," Farrell stated. "The F30i lineup is changing the competitive landscape and is expected to drive sustained adoption." CFO Brett Sandercock noted the VirtuOx acquisition also contributed positively to the quarter's results.
A significant point of discussion was the impact of GLP-1 agonist therapies, commonly used for weight loss and diabetes. Contrary to concerns that these drugs might reduce the addressable market for sleep apnea, ResMed's data suggests a positive correlation. Farrell revealed that patients on GLP-1 therapies are "10-11% more likely to initiate CPAP therapy" and demonstrate higher long-term adherence. "This trend is effectively widening the top of our patient funnel," he said, adding that ResMed is ramping up education efforts with primary care physicians to manage the increased demand.
Operating expenses (SG&A) saw an increase, which Sandercock attributed partly to integrating VirtuOx. Excluding acquisition costs, growth would have been in the high single digits, more in line with revenue. The company also invested in targeted marketing initiatives, including promotions during major shopping events like China's Singles' Day.
Looking ahead, ResMed is focusing on streamlining the patient journey from diagnosis to ongoing therapy. Efforts include expanding home sleep testing and enhancing sleep clinic efficiency through partnerships with home medical equipment (HME) providers. When questioned about competitor Philips' potential re-entry into the US device market, Farrell expressed confidence: "Our focus remains on execution. In markets where competition has resumed, we've maintained strong growth and share. We believe our integrated ecosystem provides a distinct advantage."
Market Voices: Analyst & Investor Reactions
David Chen, Healthcare Portfolio Manager at Clearwater Capital: "ResMed's quarter demonstrates effective execution on multiple fronts. The GLP-1 data is particularly compelling—it turns a perceived market risk into a tangible tailwind for patient acquisition. Their strategy of owning more of the patient pathway through testing and resupply is a smart differentiator."
Sarah Gibson, Senior MedTech Analyst at Bryson Research: "The underlying organic growth is healthy, but investors will watch SG&A closely. The VirtuOx integration and marketing spend are justified if they drive sustainable market share gains, especially with Philips looming. The key question is whether this expense level is the new normal for the coming year."
Marcus Thorne, Independent Investor & Blog Contributor: "An 11% pop is decent, but let's not ignore the elephant in the room. They're spending heavily to defend turf, and the whole 'GLP-1 is good for us' narrative feels like spin to placate worried shareholders. What happens when the Novo Nordisks of the world make a direct play for respiratory patients? This feels reactive, not proactive."
Dr. Anya Sharma, Pulmonologist at Metro General Hospital: "From a clinical perspective, the link between GLP-1 use and higher CPAP adherence is fascinating. If managing one chronic condition motivates patients to address another, that's a net positive for public health. ResMed's push for physician education is crucial—we need the tools to guide these patients effectively."