Highlights

  • Pro Medicus faces a defining test as its latest strategy develops.
  • Hospital software wins and renewals support growth as investors weigh valuation and execution risks.
  • The latest financial figures show why execution matters for PME investors.
  • Investors must weigh the next milestones against funding and operating risks.

Pro Medicus (ASX:PME) keeps signing long-dated hospital contracts because its Visage imaging software is sold on multi-year, transaction-based agreements that turn each new health system into a Recurring Revenue stream. In FY26 that model produced revenue of A$261.7 million, up 22.9 per cent, and an underlying EBIT Margin of 74.9 per cent.

A software Business for medical images

Pro Medicus Limited is classified by the ASX in the Health Care sector, within Health Care Equipment and Services. It develops and supplies software and IT solutions to public and private health providers, and its main product is the cloud-based Visage 7 platform.

Visage 7 includes a viewer, a workflow tool and an open archive for storing images. The company is listed in the company in the S&P/ASX 100 and S&P/ASX 200.

The FY26 results

Underlying EBIT rose 24.4 per cent to A$196.1 million and underlying net profit after tax rose 24.1 per cent to A$144.7 million.

Reported net profit was A$265.3 million, up 130.3 per cent. The gap came mainly from a A$174.2 million Fair Value gain on other financial assets, a non-operating item the company excludes from underlying profit.

Currency also mattered. Much of its customer base is in the United States, and the company said revenue in constant currency would have been A$273.5 million, so exchange rates trimmed the reported figure.

The contract engine

During FY26 Pro Medicus signed A$407 million of new contracts across ten agreements, and renewed six of six expiring contracts for A$141 million on five-year terms.

Recent examples include a seven-year A$90 million contract with Beth Israel Lahey Health on 18 May 2026, covering 14 hospitals with go-live targeted for the first quarter of 2027.

Other contracts announced in 2026 include a A$37 million five-year renewal with Northwestern on 12 April, a A$23 million five-year contract with the University of Maryland on 7 April, and a A$23 million seven-year contract with St Luke's Health on 11 August.

The company estimated its US Market Share at about 11 per cent and reported a five-year revenue compound growth rate of 29 per cent.

Dividends

The company declared a final Dividend of 37 cents per share, fully franked, with a Record Date of 8 September 2026 and payment on 29 September 2026.

Risks and what to watch

The revenue is concentrated in a small number of large US health systems, so delays in implementations or the loss of a major client would be significant.

The reported profit also shows how volatile fair value items can be, and the company announced a convertible note agreement with Echo IQ on 16 August 2026, adding an Investment exposure to monitor. Competition from other imaging software vendors is also a further risk.

The ASX data checked on 6 October 2026 showed a Market Value of roughly A$16 billion, so the valuation already reflects high expectations for continued growth. A new non-executive director was announced on 22 September 2026, and the 2026 AGM date was announced on 1 October 2026.