Is ResMed Stock Underperforming the S&P 500?

With a market cap of $37.4 billion, San Diego, California-based ResMed Inc. (RMD) develops and markets medical devices and cloud-based software for diagnosing, treating, and managing respiratory disorders worldwide. The company operates through two segments: Sleep and Breathing Health, and Residential Care Software, offering solutions ranging from sleep diagnostics and therapy devices to comprehensive healthcare software platforms. 

Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and ResMed fits this criterion perfectly. Its innovations include portable diagnostic tools, cloud-based monitoring systems, and enterprise software solutions supporting sleep clinics, home medical equipment providers, and senior care organizations.

Shares of the medical products maker have fallen 12.7% from its 52-week high of $293.81. RMD stock has declined 7.4% over the past three months, lagging behind the broader S&P 500 Index’s ($SPX) 6% increase over the same time frame.

In the longer term, RMD stock is up 12.2% on a YTD basis, underperforming the SPX’s 16.8% gain. Moreover, shares of ResMed have increased 7.2% over the past 52 weeks, compared to the 13.1% return of the SPX over the same time frame.

Despite few fluctuations, the stock has been trading below its 50-day moving average since September. 

ResMed posted strong Q1 2026 results on Oct. 30, including 9% revenue growth to $1.34 billion, 280 bps adjusted gross-margin expansion, and 16% adjusted EPS growth to $2.55, signaling accelerating profitability and operational strength. Investor sentiment was further boosted by $457 million in operating cash flow, continued share repurchases and dividends, and management’s confidence in sustained growth supported by rising global sleep-health demand. However, the stock fell 2.1% the next day.

In comparison, ResMed stock has outperformed its rival, Intuitive Surgical, Inc. (ISRG). ISRG stock has gained 5.1% over the past 52 weeks and 10.2% on a YTD basis. 

Despite RMD’s underperformance relative to SPX, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 19 analysts covering the stock, and the mean price target of $291.31 is a premium of 13.5% to current levels. 

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.