Highlights

  • Macquarie Research maintained an Outperform rating with a target price of AUD 291.30.
  • Canaccord Genuity reiterated a Buy rating with a AUD 350 price target.
  • Jefferies issued a Hold rating with a AUD 300 target price.

Pro Medicus Ltd (ASX:PME) shares fell 15.68% to AUD 141.37 on 12 February following the release of its half-year results. The stock is now down 36.50% year-to-date and 50.97% over the past 12 months.

For context, the broader S&P/ASX 200 rising 0.67% to 9,074.80. Following the share price drop, several brokers updated their ratings and price targets on the healthcare imaging software company.

Brokers Respond After Share Price Decline

After the sharp sell-off, Macquarie Research retained its Outperform rating on Pro Medicus, setting a target price of AUD 291.30. The valuation implies upside from the current trading level of AUD 141.37.

Canaccord Genuity also maintained a positive stance, issuing a Buy rating with a AUD 350 target price. Meanwhile, Jefferies adopted a more neutral position with a Hold rating and a AUD 300 price target.

Half-Year Financial Performance

For the six months to 31 December 2025, Pro Medicus reported revenue of AUD 124.8 million, up 28.4% compared with the prior corresponding period.

Underlying profit before tax rose 29.7% to AUD 90.7 million. Underlying net profit reached AUD 67.3 million for the half.

Reported net profit after tax increased to AUD 171.2 million, up 230.9%. The figure includes unrealised gains of AUD 149.1 million before tax related to the company’s AUD 10 million hybrid investment in 4D Medical.

Underlying EBIT margins increased to 73%, compared with 72% in HY25. Cash and other financial assets stood at AUD 221.8 million, up 5.3%, and the company remains debt-free. A fully franked interim dividend of 32 cents per share was declared.

Contract Wins Exceed AUD 280 Million

During the half, Pro Medicus announced seven new contracts with a combined minimum value exceeding AUD 280 million.

These included a 10-year AUD 170 million contract with the University of Colorado, a 5-year AUD 44 million agreement with Advanced Radiology Management, and a 7-year AUD 25 million contract with BayCare for Visage 7 Open Archive.

Two contracts incorporated the company’s cardiology offering. The period also included the renewal of a 5-year AUD 20 million agreement with Franciscan Missionaries of Our Lady Health System.

Several implementations are scheduled across FY26, with additional go-lives expected in the second half of the financial year.

Pro Medicus shares dropped more than 15% following its half-year results, extending losses for the year. However, multiple brokers maintained positive or neutral ratings, with price targets ranging from AUD 291.30 to AUD 350. With revenue growth, high margins and new contract wins exceeding AUD 280 million, the divergence between market pricing and broker valuations remains a key focus for investors.

Frequently Asked Questions (FAQ)

  1. Why did Pro Medicus shares fall today?
    Shares declined 15.68% following the release of half-year results, despite reporting revenue and profit growth.
  2. What ratings did brokers issue after the drop?
    Macquarie maintained an Outperform rating (AUD 291.30 target), Canaccord issued a Buy rating (AUD 350 target), and Jefferies gave a Hold rating (AUD 300 target).
  3. How did Pro Medicus perform financially in HY26?
    The company reported revenue of AUD 124.8 million, underlying net profit of AUD 67.3 million, and declared a fully franked interim dividend of 32 cents per share.