ResMed Shares Rally on Strong 2027 Guidance and RBC Upgrade

Shares of ResMed (NYSE: RMD) rallied 2.9% in afternoon trading, bucking a broader market decline after the company issued strong financial guidance for fiscal 2027 and earned an analyst upgrade.

The gains came despite a risk-off session on Wall Street, underscoring strong investor reception to the company-specific catalysts.

Upbeat Financial Outlook

Speaking at the Morgan Stanley Global Healthcare Conference, ResMed's management delivered its first formal financial guidance for the 2027 fiscal year. The company projects:

• Core constant-currency revenue growth of 5% to 7%.
• Core earnings per share (EPS) growth of 12% to 14%.
• Organic growth of 6.3% to 8.3%, which accounts for a headwind from an Astral field safety notice.

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This multi-year financial roadmap provided investors with a clear view of the company's expected growth trajectory, helping to boost sentiment.

Analyst Upgrade and Competitive Strength

Adding to the positive momentum, RBC Capital upgraded ResMed stock to Outperform from Sector Perform and raised its price target to $262 from $244. The firm cited robust performance in the fourth quarter of fiscal 2026, where Americas Sleep devices grew 8% year-over-year, outpacing industry estimates.

RBC also highlighted the 13% constant-currency growth in its Rest of World Sleep device segment. The bank forecasts high-single-digit EPS growth for ResMed over the next three years, even with the assumption that a competitor re-enters the U.S. market in fiscal 2028. Management also struck a constructive tone on the impact of GLP-1 weight-loss drugs, reframing them as a potential driver for sleep therapy demand and addressing a key investor concern.