ResMed Targets EPS Growth Amid Increased Sleep Therapy Demand from GLP-1 Patients
During a Morgan Stanley discussion, ResMed outlined its financial outlook and strategic initiatives. The company is targeting core earnings per share (EPS) growth of 12% to 14%, supported by increased therapy adoption, resupply activity, product innovation, and margin improvements. A key driver behind this optimism is the observed higher engagement among patients prescribed both GLP-1 drugs and positive airway pressure therapies—these individuals show an 11-percentage-point increase in starting sleep therapy compared to CPAP-only users. ResMed also announced portfolio reshaping efforts including the acquisition of Noctrix, a maker of restless-legs treatment devices. The company is divesting MatrixCare and phasing out its Astral platform after fiscal 2027 while shifting focus toward Air11-based non-invasive ventilation products. Chairman Mick Farrell emphasized ResMed's large addressable market—estimated at 2.7 billion people with sleep or breathing disorders—and highlighted recent acquisitions aimed at improving patient screening, diagnosis, and therapy conversion. The company is also enhancing digital engagement through its myAir app, now used by over 10 million patients, including a generative AI feature called 'Dawn' that has generated significant user interaction. ResMed's resupply strategy includes new automated tools like Snap Light to improve patient adherence.
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