Key Highlights

  • Pro Medicus signed a seven-year, A$43 million contract with Virtua Health on 21 October 2026.
  • FY26 Revenue was A$261.7 million, up 22.9 per cent.
  • Cash and financial Assets were A$252.3 million, and the company has no debt.
  • Go-live dates for its United States contracts are a key milestone to watch.

Pro Medicus Ltd. (ASX:PME), a constituent of the S&P/ASX 50, announced a seven-year, A$43 million contract with Virtua Health on 21 October 2026. On its own the deal is modest against the company's scale, but it extends a run of United States wins and supports the argument that Demand for its cloud imaging platform remains steady.

What the company does

Pro Medicus develops and licenses medical imaging software. Its United States subsidiary, Visage Imaging, sells the Visage 7 platform, which includes a viewer, a workflow tool and an open archive, with cardiology imaging added for some clients.

Contracts typically run for five to ten years and are priced on a transactional basis, meaning revenue rises with the number of imaging studies processed.

Latest developments

The Virtua Health agreement covers a New Jersey provider with five hospitals. Implementation begins immediately, with rollout reported for 2027. Management said the client joins a growing list of Visage 7 customers choosing a fully cloud-based platform.

Earlier in 2026, Pro Medicus announced a seven-year, A$90 million contract with Beth Israel Lahey Health on 18 May, with go-live targeted for the first quarter of calendar 2027. On 1 June it reported a A$28 million five-year renewal with Allegheny Health Network and a seven-year, A$16 million contract with TidalHealth, together A$44 million.

Financial and operational evidence

On 18 August 2026 the company reported results for the year to 30 June 2026. Revenue was A$261.7 million, up 22.9 per cent. Underlying Earnings before interest and tax were A$196.1 million, up 24.4 per cent, and underlying net profit after tax was A$144.7 million, up 24.1 per cent.

Reported net profit after tax was A$265.3 million, well above the underlying figure.

Cash and financial assets were A$252.3 million, up 19.7 per cent, and the company has no debt. The full-year Dividend was 69 cents per share, fully franked, including a 37 cent final dividend. Future dividends are not assured.

Management said it signed ten new contracts worth at least A$407 million, including a ten-year agreement with UC Health Colorado, and renewed six key contracts worth A$141 million on five-year terms with higher transaction fees. It said the Trinity implementation was nearly complete.

Chief executive Dr Sam Hupert said the company had targeted growth of 30 per cent in earnings before interest and tax and net profit, and exceeded both on a constant-currency basis.

Material risks

Revenue depends on imaging volumes at a limited number of large United States health systems, so delays in go-live dates or lower usage would slow recognition. Competition from larger imaging vendors and healthcare budget pressure are further uncertainties. Currency movements also affect reported results in Australian dollar terms.

Milestones to watch

Investors may watch the company's annual general meeting, expected in the coming weeks, for commentary on the new financial year. Go-live dates for Beth Israel Lahey Health and TidalHealth are targeted for the first quarter of calendar 2027, and Virtua Health's rollout is reported for later that year.

The half-year result, normally released in February, will show whether transaction volumes, margins and the cash balance are tracking with management's growth ambitions.