ResMed Stock Plunges 8%, Wiping Out $2.7 Billion, After Ending Astral Ventilator Sales
The sleep-device maker held its fiscal 2027 outlook and said it will stop selling its Astral ventilator.
ResMed shares fell 7.64% to $233.51 in Friday trading, as of 12:36 p.m. ET, erasing about $2.7 billion in market value, the session after the company said on its Thursday earnings call that it will stop selling its Astral ventilator.
Astral pulled to protect patients' devices
Management said ResMed will no longer sell Astral and is directing scarce components to servicing ventilators already with patients. The company kept its fiscal 2027 outlook unchanged.
It also said the top of its growth range depends on marketing campaigns that have not yet added to sales, and called the midpoint the most likely outcome.
The decline was on pace to be ResMed's biggest one-day drop in at least 275 trading sessions, since Sept. 26, 2025.
A quarter of solid growth
ResMed makes cloud-connected devices and software for sleep and breathing conditions, led by CPAP machines that keep the airway open during sleep for people with obstructive sleep apnea. Its lineup also includes ventilators, masks, diagnostics and dental devices.
For the quarter, the company said adjusted earnings per share rose 14% to $2.91. Revenue grew 6% to $1.4 billion, according to its 10-Q. Cash generation weakened, and the adjusted operating margin was 35.8%.
ResMed said it returned $1.0 billion to shareholders through buybacks and dividends during the quarter.
Lagging the S&P 500 this year
At Thursday's close, ResMed shares were up about 5% year to date, trailing the S&P 500's gain of about 13%, though they had climbed 14% over the previous month. Its market value stood at $32.8 billion after Friday's drop.
Friday's slide leaves the stock's 14% one-month gain, measured at Thursday's close, well behind it.
Sources
- ResMed Inc. (RMD) Stock Forecasts — Yahoo Finance
- ResMed (RMD) Reports Q1 Earnings: What Key Metrics Have to Say — Yahoo Finance
- RMD Stock Up on Q1 Earnings and Revenue Beat, Gross Margin Climbs — Yahoo Finance
- ResMed (RMD) Beats Q1 Earnings and Revenue Estimates — Yahoo Finance
- ResMed Non-GAAP EPS of $2.91 beats by $0.24, revenue of $1.4B beats by $10M (RMD:NYSE) | Seeking Alpha — seekingalpha.com
- The company's filing (ResMed Inc.) — SEC filing
- ResMed Inc. — Form 10-Q for the quarter ended 2026-09-30 (quarterly results) — SEC EDGAR
