Stocks In Focus: ResMed, March 18 2026

ResMed develops medical devices and software primarily for treating sleep apnea and other respiratory conditions, with CPAP machines as its flagship product. In a discussion on the Motley Fool Money podcast, host Scott Phillips and director of research Ryan Newman break down the company's business model, strengths, risks, and outlook.

Business Model and Defenses
ResMed operates a razor-and-blade approach: it sells CPAP machines at low margins upfront, then generates recurring revenue from higher-margin masks, accessories, and replacements every few years. The products address essential health needs tied to sleep, heart function, breathing, and daytime focus, making demand resilient to recessions or inflation. The company prioritizes customers by passing on costs only when necessary, rather than price gouging, and leverages patient data and software to drive future sales.