Why James Hardie, Avita Medical and ResMed shares are turning heads on Friday

Why is everyone talking about Avita Medical, ResMed, and James Hardie shares today?

James Hardie Industries PLC (ASX: JHX), Avita Medical Inc (ASX: AVH), and ResMed Inc (ASX: RMD) shares are making waves on Friday.

Two of the ASX stocks are racing ahead of the 0.1% losses posted by the S&P/ASX 200 Index (ASX: XJO) in late morning trade today, while one is taking a tumble.

Here's what's grabbing investor attention.

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Image source: Getty Images

ResMed shares slide on lower margins

The ASX 200 stock trailing the benchmark today is ResMed. This follows the release of the sleep disorder treatment company's fourth-quarter (Q4 FY 2026) results.

At the time of writing, ResMed shares are down 5.2%, changing hands for $29.84 each.

Overall, the company posted some solid results, including a 9% increase in Q4 revenue, which hit a record US$1.5 billion. Over the full FY 2026 year, ResMed reported revenue of US$5.7 billion, up 10% year on year.

The ASX 200 healthcare share also boosted its quarterly dividend by 10% to 66 US cents per share.

But ResMed shares may be coming under pressure, with the company's gross margin slipping 2.0% year on year to 58.8%. And Q4 free cash flow of US$404 million was down 21% from Q4 FY 2025.

Commenting on the results, ResMed CEO Mick Farrell said:

We closed fiscal year 2026 with strong fourth quarter results, reflecting continued momentum of our global business, sustained demand for our market-leading products, and disciplined execution of our strategy.

Avita Medical shares soar on revenue upgrade

Unlike ResMed shares, Avita Medical shares are going through the roof today after the release of its second-quarter (Q2 2026) results.

Shares in the ASX regenerative medicine company are up 15.6% at the time of writing, trading for $1.48 apiece.

Investors are reacting enthusiastically, with Avita Medical reporting Q2 revenue of US$21.7 million, up 18% year over year and marking a new record.

And on the cost front, operating expenses of US$24.6 million were down 6% from Q2 2025.

The strong quarter saw management increase Avita's full-year 2026 net revenue guidance to the range of US$86 million to US$89 million, reflecting confidence in continued commercial execution.

The company said it expects to reach cash flow breakeven in Q4 2026.

Commenting on the results sending Avita Medical shares soaring today, CEO Cary Vance said:

We delivered a strong second quarter, with revenue growing 18% year-over-year and 13% sequentially. As Avita continues to expand utilisation in the US and build its presence in key international markets, our results reflect the strength of both our acute wound care portfolio and our commercial execution, led by RECELL and supported by Cohealyx and PermeaDerm.

Which brings us to…

James Hardie shares jump on earnings surge

Joining Avita Medical and ResMed shares in the headlines today, we find James Hardie.

Shares in the ASX 200 building materials company are up 3.9% at the time of writing, swapping hands for $42.41 apiece.

James Hardie also reported its June quarterly results today, which marks Q1 FY 2027 for the company.

Highlights for the three months include a 64% year-on-year increase in net sales to US$1.47 billion. And adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$422 million were up 79%.

James Hardie shares also look to be getting a boost, with the company increasing its full-year FY 2027 pro forma net sales growth target to 5.9% to 9.0%, with pro forma adjusted EBITDA growth in the range of 7.4% to 13.7%.

James Hardie CEO Aaron Erter noted:

Our strong first-quarter results reflect disciplined execution and continued above-market growth, rather than a meaningful improvement in the underlying U.S. housing market. We are not assuming a housing market improvement, but our performance and growth expectations support raising our full-year outlook.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Avita Medical and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Avita Medical. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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