ResMed stock rises over 3% as strong earnings and higher dividend drive gains

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Resmed surges 3.26% today on earnings

Highlights

ResMed reported fourth-quarter revenue up 9% year over year to $1.5 billion and raised its quarterly dividend by 10%.
The company plans more than $1.85 billion in shareholder returns through fiscal 2027, but guided for a softer FY27 revenue outlook amid actions to address its suspended Astral ventilator sales.
ResMed stock shows bullish short- and medium-term technical momentum, with expected price action in the $207.23 to $230.45 range and a sideways near-term trend likely.

Shareholder returns prioritized as FY27 forecast tempers optimism

ResMed posted a 9% year-over-year increase in fourth-quarter revenue to $1.5 billion and a 17% annual rise in earnings per share. The company raised its quarterly dividend by 10% to $0.66 and outlined plans to return more than $1.85 billion to shareholders in fiscal 2027 through dividends and share buybacks. Looking ahead, ResMed issued a softer FY27 revenue forecast and continues mitigation efforts for its suspended Astral ventilator sales, supported by acquisitions and a divestiture to focus on its core segments.

Anton Kharitonov, expert at Traders Union, emphasizes that ResMed’s short-term rally is vulnerable. He highlights inconsistent technical signals and overhead resistance despite solid recent earnings. Kharitonov notes soft FY27 guidance and suspended Astral ventilator sales as persistent headwinds. The low ADX and neutral oscillators indicate lacking conviction in either direction. "Investors should beware of renewed downside if the price fails to reclaim the 200-day moving average."

Viktoras Karapetjanc, expert at Traders Union, views ResMed’s earnings and elevated dividend as proof of management’s confidence in the core business. He believes the increased shareholder returns, solid revenue growth, and active portfolio shifts position the company for renewed outperformance. Karapetjanc sees underlying bullish structure intact as the market reacts positively to the dividend raise. "I expect further growth from here as improving fundamentals and disciplined capital allocation support value creation for shareholders."

Jainam Mehta, market strategist, notes the sideways outlook after today’s rally. He sees technical signals diverging, with a potential for tactical breakouts above $226.12 or corrections toward $207.23. Mehta highlights the weak trend strength, urging caution around key levels. "Traders should watch for a squeeze above resistance, but fading momentum suggests contrarian setups could also emerge."

Short-term bullish signals contrast with long-term resistance risk

ResMed is trading above its 20-day and 50-day moving averages at $205.49 and $200.35, respectively, but remains below the 200-day moving average at $230.75. This technical setup reflects a bullish short- and medium-term structure but signals persistent longer-term resistance as shown by the alignment of the 50-day and 200-day moving averages. The nearest support is at $218.79 (today's high), with resistance at $226.12 (week high). The Ichimoku Kijun at $208.17 continues to act as a support level. MACD momentum is moderately positive with a buy forecast, though the ADX at 15.83 signals only a weak trend. The RSI is at 53.74 with mild bullish momentum, and both CCI and Stochastic RSI remain neutral. Bull/Bear Power is positive with a overbought risk forecast, while the Awesome Oscillator is neutral. The HMA diverges with a sell signal despite other bullish momentum measures.

Earlier, analysts noted that ResMed remained under technical pressure with a limited recovery after major divestment activity and share buyback plans. The latest earnings-driven rally adds a new dimension with improved fundamentals, but with the price still below its 200-day moving average, traders should watch for a decisive move above $226.12 resistance or a drop below $218.79 support to determine the next direction.

Source of Data: RMD Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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