ResMed (NYSE: RMD, ASX: RMD) has kicked off 2025 on a high note, reporting 10% year-over-year revenue growth and a 52% jump in operating profit for the second quarter of its fiscal year. The sleep health and digital health giant continues to ride a wave of strong demand for its products, efficient operations, and strategic market positioning.
The Numbers That Matter
- Revenue: $1.3 billion (+10% YoY)
- Gross Margin: 58.6% (up 300 bps)
- Operating Profit: $417 million (+52%)
- Operating Cash Flow: $309 million
- Diluted EPS: $2.34 (+65%)
CEO Mick Farrell credited the company’s success to its market-leading digital health solutions and a laser focus on operational excellence. He also highlighted a unique opportunity in the growing consumer interest in sleep tracking wearables and GLP-1 weight loss medications, which are fueling increased awareness of sleep health.
What’s Driving the Growth?
- Sleep devices & masks: Strong demand across the U.S., Canada, Latin America, Europe, and Asia
- Residential Care Software: An 8% revenue boost, thanks to continued organic growth
- Improved cost efficiencies: Lower component costs and better manufacturing logistics helped drive margin expansion
Investing in the Future
Beyond financials, ResMed is making big strategic moves:
- Expanding its Singapore operations with fresh investments through 2029, reinforcing its global manufacturing footprint
- Enhancing wearable comfort with the launch of the Kontor Head Strap—a premium accessory for the Apple Vision Pro
- Strengthening shareholder value, paying $78 million in dividends and repurchasing 307,000 shares for $75 million
Looking Ahead
With a clear market leadership position and growing consumer awareness of sleep health, ResMed is in prime position for long-term growth. Whether it’s through cutting-edge digital health tech, next-gen sleep apnea solutions, or strategic global expansions, the company continues to set itself apart in the healthcare space.
ResMed is proving that a good night’s sleep isn’t just good for your health—it’s great for business!
