ResMed’s second-quarter 2025 earnings call on Jan. 30 included plenty of current achievements to celebrate, including what ResMed Chairman/CEO Mick Farrell described as “another strong quarter of global top-line and bottom-line growth” and “excellent year-over-year performance in Q2 with solid revenue growth, improved gross margins, combined with disciplined investments in both R&D and SG&A [Selling, General and Administrative expenses], resulting in very strong operating profit and net profit performance.”
But Farrell made it clear that despite today’s good news, ResMed (NYSE: RMD) is very focused on growth down the road as well. He referenced the company’s “long-term vision” discussed at ResMed’s investor day at the New York Stock Exchange in September.
“Our ResMed 2030 strategy is crystal clear,” Farrell said on the Jan. 30 call. “It’s focused on three key pillars. Number one, growing and differentiating our core sleep health and breathing health business. Two, expanding into adjacent areas, including respiratory insufficiencies such as COPD [chronic obstructive pulmonary disease], including insomnia, including COMISA [co-morbid insomnia and sleep apnea], and beyond. And three, leveraging our leadership in digital health to drive better outcomes for patients, for providers, and for payers.”
Improving sleep apnea outcomes
Among the focuses for the San Diego, California-based manufacturer: improving outcomes for sleep apnea patients via a range of approaches.
“With over 1 billion people suffocating with sleep apnea worldwide, we have a lot of runway ahead in our core market,” Farrell said. “It’s great that we have a couple of megatrends on our side to help. The global demand for sleep health and breathing health solutions is growing our mission to help people sleep better, breathe better, and live high-quality lives to their fullest potential [which] continues to drive everything that we do. But when you combine those opportunities from our core sleep apnea market with pillar number two — that is, expanding into new adjacencies — the future couldn’t be brighter.”
Farrell spoke of combining respiratory treatments with other kinds of technology for better results.
“We will continue to invest in our cloud-connected non-invasive ventilators for respiratory insufficiency, including COPD and neuromuscular disease,” he said. “We will continue expanding our digital health and med-tech solutions for insomnia patients. I believe we’re just at the start of that journey of that awful disease that we need to treat: the inability to get to sleep, stay asleep, and wake up with refreshing sleep and beyond.”
Farrell added that ResMed has been increasingly combining its core technology, including vents and sleep apnea systems, with digital technology and communications. “In the last 12 months, we provided over 147 million people with a product such as a CPAP, an APAP, a bilevel, a non-invasive ventilator, a mask, a cushion, a humidifier, other accessories,” he said. “Or a digital health solution such as myAir, AirView, Somnoware, Brightree, MEDIFOX, and beyond. Our ambitious goal is to empower that impact and to empower 500 million people to reach their full potential in 2030 with sleep health, breathing health, and health-care technology provided to them right where they live.”
Strong Q2 performance reported
On the financial end, ResMed CFO Brett Sandercock reported “strong financial performance in Q2. Group revenue for the December quarter was $1.28 billion, an increase of 10% on both a headline and constant currency basis. Revenue growth reflects positive and consistent contributions across our product and resupply portfolio.”
Sandercock added that device sales in the United States, Canada, and Latin America were up 12%, “supported by solid ongoing new patient diagnoses. Masks and other sales also increased by 12%, reflecting growth in both resupply and new patient setups.”
He also said that on Jan. 30, the board of directors announced a quarterly dividend of $0.53 per share.
In the question-and-answer session following the financials portion of the webinar, Farrell was asked whether ResMed had noticed “bulk purchases” or stockpiling ahead of the tariffs that have been a major talking point for the new Trump administration.
“The short answer is no,” Farrell said. “We haven’t had any of that sort of one-time stocking. We do not believe [tariffs] will have any impact [on] us. But we have a Trump-ready group, and we were looking at the tariffs. And as we see them, even if there are blanket tariffs on China, there’ll be no impact on ResMed. We manufacture in Sydney, Singapore, Atlanta and beyond.”
Farrell added that he would “advocate for a [tariff] carveout for med-tech and/or food industries,” even though tariffs could hurt ResMed competitors. “I think I’d take the high road and say what’s right for the community there.”
Ultimately, Farrell said, ResMed will continue to focus on capturing “these patients who are being identified from their wearables or coming into the health-care system because of the awareness of the new pharmaceutical class that can partially treat or can treat in combination therapy with CPAP. And so we’ll be watching that and putting into place a lot of programs to see what we can do to maintain the great momentum that we’ve had.”