ResMed beats quarterly profit estimates on strong demand for its sleep devices

Jan 29 (Reuters) - Medical device maker ResMed RMD.N on Thursday beat Wall Street estimates for second-quarter profit on the back of strong demand for its devices used to manage sleep apnea.

The company makes a non-invasive treatment known as continuous positive airway pressure, or CPAP, machine that helps manage sleep apnea - a common disorder characterized by brief interruptions of breathing during sleep.

Some analysts had expected the U.S. approval of Eli Lilly's LLY.N blockbuster drug, Zepbound, to treat sleep apnea would reduce demand for the company's devices.

However, ResMed said it expects consumer wearables that track sleep health and GLP-1 therapies such as Zepbound to encourage more patients to use its devices.

"As we move into the second half of fiscal year 2026, we will continue to invest in innovation to scale our digital health capabilities and expand global access to life-saving care, while delivering sustainable, profitable growth," CEO Mick Farrell said.

ResMed's second-quarter revenue rose 11% to $1.42 billion from a year ago, slightly beating analysts' average estimates of $1.40 billion, according to data compiled by LSEG.

The company posted adjusted profit of $2.81 per share for the quarter ended December 31, compared with estimates of $2.72 per share.

Last quarter, ResMed reported a $16 million restructuring charge related to company-wide workforce planning initiatives.