By Siddhi Mahatole
Jan 29 (Reuters) – Medical device maker ResMed on Thursday beat Wall Street estimates for second-quarter profit on the back of strong demand for its devices used to manage sleep apnea.
Shares of the San Diego, California-based company rose 5.8% in after-hours trading following the results.
The company makes a non-invasive treatment known as continuous positive airway pressure, or CPAP, machine that helps manage sleep apnea – a common disorder characterized by brief interruptions of breathing during sleep.
Some analysts had expected the U.S. approval of Eli Lilly’s blockbuster drug, Zepbound, to treat sleep apnea would reduce demand for the company’s devices.
However, ResMed said it expects consumer wearables that track sleep health and GLP-1 therapies such as Zepbound to encourage more patients to use its devices.
GLP-1s are a tailwind, not a headwind, for sleep apnea care and ResMed’s demand funnel, the company said in an analyst call on Thursday.
The company posted adjusted profit of $2.81 per share for the quarter ended December 31, compared with estimates of $2.72 per share.
UBS analyst David Low said ResMed delivered an earnings per share beat of about 2.5% on strong sales and improving gross margin but “short of our forecast.”
ResMed also recorded $6 million of restructuring-related charges following the finalization of company-wide workforce planning activities undertaken in the first quarter of the fiscal year.
“As we move into the second half of fiscal year 2026, we will continue to invest in innovation to scale our digital health capabilities and expand global access to life-saving care, while delivering sustainable, profitable growth,” CEO Mick Farrell said.
ResMed’s second-quarter revenue rose 11% to $1.42 billion from a year ago, slightly beating analysts’ average estimates of $1.40 billion, according to data compiled by LSEG.
(Reporting by Siddhi Mahatole in Bengaluru; Editing by Shreya Biswas)
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