ResMed Inc. (RMD) Stock Analysis

ResMed’s principal competitive advantages are rooted in its scale, proprietary digital ecosystem, and brand trust. The company holds a leading global share in sleep apnea devices, with estimates suggesting over 60% of the U.S. market following Philips’ recall. Its cloud-connected platform, AirView, supports over 28 million patients, enabling remote monitoring and data-driven therapy adjustments—capabilities that smaller rivals and even Fisher & Paykel cannot match at scale. This digital infrastructure creates high switching costs for providers and patients, reinforcing customer loyalty.

ResMed’s recurring revenue from consumables (masks and accessories) and software (SaaS) further insulates it from hardware cyclicality; in FY2025, consumables and software comprised nearly half of total revenue. The company’s R&D intensity (6–7% of revenue) sustains a steady pipeline of product innovation, such as the AirSense 11 and AI-enabled therapy management, keeping it ahead of less agile competitors.

Brand reputation and regulatory track record are additional moats. Healthcare providers and payers value ResMed’s reliability and compliance, especially after Philips’ quality issues. While new entrants face high regulatory and capital barriers, established rivals like Philips and Fisher & Paykel lack ResMed’s integrated digital health ecosystem and data scale.

Risks include potential market share erosion as Philips recovers and the uncertain long-term impact of GLP-1 weight-loss drugs on sleep apnea prevalence. However, ResMed’s entrenched ecosystem, data assets, and operational scale provide a durable edge.