Pro Medicus (ASX:PME) is a medical-imaging software company whose Visage platform lets radiologists view and analyse large diagnostic images at speed, and it has become a standout ASX growth story on the back of major contract wins with leading United States health systems. Its very high margins and recurring, transaction-based Revenue have made it one of the market's most richly valued technology names.

A FY26 result combining strong revenue growth with a large slate of new contracts has sharpened the question of whether the rally can keep running.

Latest Development

For FY26, to 30 June 2026, Pro Medicus reported revenue of A$261.7 million, up 22.9% on a reported basis and 28.4% in constant currency, with underlying net profit after tax of A$144.7 million and underlying EBIT of A$196.1 million, up 24.4%. The EBIT Margin expanded to 74.9%, and the company signed 10 new contracts worth A$407 million during the year.

Shareholders received a 25.5% increase in total dividends to 69.0 cents per share, fully franked, and the company finished with cash and financial Assets of A$252.3 million, up 19.7% — underlining both its profitability and its debt-free balance sheet.

What Could Drive the Shares Next?

Catalysts include continued new-contract wins, the ramp of recently signed deals into full revenue, expansion of the product suite beyond radiology, and international growth. Given the recurring, transaction-linked model, rising imaging volumes at existing clients also lift revenue over time.

Sustained contract momentum and margin resilience are what would justify the rally continuing.

Risks Investors Should Watch

The most obvious risk is valuation: Pro Medicus trades on a very high multiple, so any slowdown in contract wins or revenue growth can trigger sharp share-price moves. Contract timing can be lumpy from year to year, and much of the growth is concentrated in the United States market.

Competition, key-customer concentration and the pace of new-product adoption are additional considerations.

Investor Takeaway

Pro Medicus delivered FY26 revenue up 22.9%, an EBIT margin near 75%, A$407 million of new contracts and a higher dividend, all with a debt-free balance sheet. Whether the rally keeps running depends on continued contract wins converting to revenue and margins holding against a demanding valuation. New contracts, revenue ramp and margins are the things to watch.