Pro Medicus Ltd (ASX:PME) is a healthcare informatics company that provides medical imaging software and services to hospitals, imaging centres and healthcare groups worldwide. Founded in 1983, it acquired Visage Imaging in 2009, and its Visage 7 suite forms the basis of a scalable platform for viewing, workflow and archiving of medical images, deployable in public and private cloud environments. The company has offices in Melbourne, Berlin and San Diego. Dr Sam Hupert is CEO.

On 2 October 2026, Pro Medicus shares were trading at $156.38, down 2.92%. The company's full-year results, released in August, reported Revenue and Earnings growth and a series of new contracts.

The company's Visage platform is used by health systems in the United States, Europe and Australia, and it offers RIS, PACS, AI and e-health solutions.

Recent Developments

On 18 August 2026, Pro Medicus announced its results for the year ended 30 June 2026. Key figures include:

  • Revenue increased 22.9% to $261.7 million.
  • Underlying EBIT rose 24.4% to $196.1 million, with an EBIT Margin of 74.9%, up 90 basis points.
  • Reported NPAT increased 130.3% to $265.3 million, and underlying NPAT rose 24.1% to $144.7 million.
  • On a constant currency basis, revenue was $273.5 million, up 28.4%, and underlying NPAT was $154.5 million, up 32.5%.
  • Cash and other financial Assets were $252.3 million, up 19.7%, with no debt.
  • The fully franked final Dividend was 37 cents per share, bringing total dividends to 69 cents, up 25.5%.

Pro Medicus signed 10 new contracts worth a minimum of $407 million, including a 10-year $170 million contract with UC Health Colorado and a seven-year $90 million contract with Beth Israel Lahey Health. It renewed six out of six contracts worth $141 million on five-year terms, including Northwestern Health and Medstar. The company completed 16 implementations, including four Trinity Health cohorts, and launched digital pathology and AI-optimised reporting products.

Dr Hupert said the company was aiming for 30% increases in EBIT and NPAT and exceeded both on a constant currency basis. He said Pro Medicus has around 11% share of the US market and is seeing an increased number of inbound requests for proposals. Over the past five years, revenue has grown 180%, a compound annual growth rate of 29%.

Other new contracts included a five-year $44 million contract with Radiology Associates of North Texas, a seven-year $25 million addendum with BayCare, a five-year $23 million contract with the University of Maryland, and five further contracts worth $55 million, including University Hospital Heidelberg, Roswell Park Cancer Centre and The Vancouver Clinic. Renewals also included Allegheny, FMOL Health, Ohio State and Zwanger-Pesiri. Most renewals had higher minimums and all had increased fees per transaction. The Vancouver Clinic, TidalHealth, Medstar and Ohio State University took the company's cardiology offering. Dr Hupert said Pro Medicus has proven that one platform and one Business model can address virtually every opportunity in diagnostic imaging.

The company completed two large-scale implementations at the University of Colorado and BayCare, along with 10 implementations of various sizes, and said it will receive the full benefit of these in FY27 and beyond. It also recorded $3 million of additions with existing clients.

Sector Context

Medical imaging software, including picture archiving and communication systems (PACS), is critical infrastructure for hospitals and imaging centres. The shift to cloud-based platforms and growing image volumes are driving Demand for scalable, fast systems. Large US health systems often sign multi-year contracts, providing Recurring Revenue for vendors.

Competition includes large healthcare technology companies and specialist providers. Adoption of AI tools and expansion into cardiology and pathology imaging are creating new opportunities. Currency movements affect Australian companies earning revenue in US dollars.

Many US health systems are consolidating imaging systems across multiple hospitals, creating demand for enterprise-wide platforms. Cloud deployment can reduce infrastructure costs and support remote reading by radiologists. Cardiology and digital pathology are adjacent markets where imaging software vendors are seeking growth.

Pro Medicus attends the annual RSNA conference in the US, which is a key event for the radiology industry, where vendors showcase products and generate leads. The company said many of its leads continue to come from this event.

Risks and Uncertainties

Pro Medicus' valuation reflects high growth expectations, and any slowdown in contract wins could affect sentiment. A large share of revenue comes from the US, exposing the company to currency movements, as shown by the difference between reported and constant currency results. Implementation timing affects revenue recognition. Competition in imaging software is significant. Reported NPAT included items beyond underlying earnings.

Contract wins can be uneven from period to period, and the timing of large deals is difficult to predict. Dependence on a relatively concentrated set of large US clients means the loss of a major contract could affect revenue.

Catalysts Investors Can Watch

Investors may watch for new contract announcements, full-year contribution from the Trinity Health implementation in FY27, uptake of digital pathology and AI products, and pipeline commentary following RSNA. Currency trends will also influence reported results.

Investors may also follow the company's progress in cardiology and digital pathology, and any expansion of its share of the US market beyond around 11%.

In Summary

Pro Medicus' FY26 result showed revenue and earnings growth, $407 million of new contracts and higher dividends. Contract momentum and currency movements are likely to remain key factors.