ResMed Likely Able to Sustain Earnings Growth, UBS Says

01:08 PM EST, 11/02/2026 (MT Newswires) -- ResMed (RMD) can sustain robust earnings growth from its dominant sleep business after posting a strong Q1 performance, UBS said in a note Friday. The report said gross margin unexpectedly increased by about 50 basis points, but pointed to additional costs from ramping US manufacturing and distribution that will begin in Q2. This could see gross margin level out in Q2, with guidance for a slight sequential decline, but Q1 price increase could provide an offset, the note added. "While Philips' likely return remains an overhang, we believe ResMed is well positioned to manage the challenge and continue growing earnings," the note said. "We see upside risk to FY27 guidance supported by the likely expansion of the buyback," it added. UBS kept its buy rating and raised its price target to $290 from $288. Price: 228.80, Change: -1.14, Percent Change: -0.50