ResMed (RMD) – Out of the Matrix
July 23, 2026
ResMed designs and manufactures medical devices and cloud-based software applications for the sleep apnoea and respiratory care markets. ResMed was founded in 1989 and is headquartered in San Diego in California.
ResMed (RMD) sold its MatrixCare unit, a supplier of software to manage post-operative out of hospital care for senior citizens, for US$400 million ($705 million) in cash, with net proceeds to be used to return capital to shareholders via an accelerated share buyback program. Ord Minnett viewed the decision to offload MatrixCare, which is being bought by private equity group Frazier Healthcare Partners, as strategically sound given the business was complementary rather than core to its sleep apnoea and respiratory-focused residential care software (RCS) division.
ResMed also reiterated guidance for an FY26 gross operating margin of 62–63%, a selling, general, and administrative (SG&A) expenses-to-sales ratio of 19–20%, and an R&D-to-sales ratio of 6–7%. Post the sale, expected to be completed in the September quarter, we have cut our EPS estimates by 0.2%, 1.2% and 1.0% for FY26, FY27 and FY28, respectively, to incorporate the removal of MatrixCare earnings and a reduced number of shares, which drives a downgrade in our target price to $36.60 from $36.80. We reiterated our Buy recommendation on ResMed.
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