Pro Medicus has reported its strongest half-year performance yet, with revenue and profits surging alongside a wave of new multi-million dollar contracts and strategic AI investments. The healthcare IT leader is expanding its global footprint and cloud capabilities, setting the stage for sustained growth.
- Revenue up 28.4% to $124.8 million in HY26
- Profit after tax soars 230.9% to $171.2 million
- Seven new contracts secured, totaling over A$280 million
- Strong progress in AI integration and cloud-native solutions
- Debt-free with robust cash reserves and 28% higher interim dividend
Record Financial Performance
Pro Medicus (ASX, PME), a specialist in healthcare IT focusing on enterprise imaging and radiology software, has unveiled its half-year results for FY26, marking the most successful period in the company's history. Revenue climbed 28.4% to $124.8 million, while profit after tax surged an extraordinary 230.9% to $171.2 million. Underlying EBIT rose 29.7% to $90.7 million, with margins expanding to 72.6%, underscoring the operational leverage of its scalable software model.
The company remains debt free and boasts cash and investments of $221.8 million, providing a strong balance sheet to support ongoing growth initiatives. Reflecting confidence in its outlook, Pro Medicus declared a 28% increase in its interim dividend to 32 cents per share.
Contract Wins and Market Expansion
Central to the stellar results are seven new contracts secured during the half, collectively valued at over A$280 million at minimum contract values. Notably, a landmark $170 million, seven-year deal with University of Colorado Health; the company’s second largest ever; includes a full stack plus cardiology offering, reinforcing Pro Medicus’s foothold in the US academic medical center and integrated delivery network markets.
Additional contracts include a $44 million five-year agreement with RANT in the private market and a $10 million five-year deal with Heidelberg University in Germany, expanding the company’s European presence. These wins highlight the broad appeal of Pro Medicus’s Visage 7 platform across diverse healthcare segments and geographies.
Technology Leadership and AI Integration
Pro Medicus continues to innovate with its cloud-native Visage 7 platform, which offers ultrafast performance and scalability without capital expenditure on hardware. The company’s transaction-based SaaS model, now widely adopted in the US and Australia, provides predictable annuity-style revenue streams with upside potential as client examination volumes grow.
Significant progress in artificial intelligence (AI) integration was also reported, with several AI tools pending regulatory clearance and collaborations underway with leading institutions such as NYU and UCSF. The company’s investment in 4DMedical has yielded an unrealised gain of approximately $150 million, reflecting confidence in AI’s transformative potential within medical imaging.
Strategic Positioning and Future Outlook
Pro Medicus’s ability to fast-track implementations; often completing large-scale projects in under 20% of the industry norm; provides a competitive edge, reducing barriers to adoption. The company’s focus on expanding its footprint, growing transaction volumes from existing clients, and extending into new product lines and geographies positions it well to capitalise on the growing demand for advanced imaging solutions.
With a robust pipeline of opportunities, particularly in North America where the total addressable market exceeds 670 million exams annually, Pro Medicus is poised for continued momentum. Its leadership in cloud-based solutions and AI integration further cements its role as a key disruptor in healthcare IT.
Bottom Line?
Pro Medicus’s record half-year results and strategic contract wins signal a strong growth trajectory, but investors will watch closely as AI product commercialisation and contract renewals unfold.
Questions in the middle?
- How will regulatory approvals impact the commercial rollout of Pro Medicus’s AI solutions?
- What is the potential upside in transaction volumes from existing long-term contracts?
- How might competitive pressures evolve as cloud-native and AI-enabled imaging platforms proliferate?