Pro Medicus plunge: why Pro Medicus shares dropped more than 20%
Pro Medicus delivered another strong half-year results, though earnings growth appeared softer than some expectations amid the standout 4D investment gain. The core operational metrics nonetheless reinforce PME’s market dominance.
Pro Medicus Limited (ASX: PME)
has announced a record half-year result on 12 February. The company has reported revenue from ordinary activities surging by 28.4% to reach $124.8M and underlying profit before tax climbing by 29.7% to reach $90.7M. Reported net profit after tax has hit $171.2M which was up by 230.9% thanks to unrealized gains of $149.1M pre-tax from the company's $10M hybrid debt-equity investment in 4D Medical Limited made in July 2025.
Cash and financial assets stood at a strong $221.8M which was up by 5.3% despite increased dividends, two share buybacks exceeding $10M combined and the 4D outlay. The company has maintained a debt free balance sheet while the underlying EBIT margins increased to 73% from 72% in the previous half. The board has declared a fully franked interim dividend of 32 cents per share which signals strong confidence in ongoing momentum.
PME has secured seven new contracts totaling over $280M in minimum value during the period, alongside a $20M 5-year renewal with Franciscan Missionaries of Our Lady Health System for cloud-based Viewer and Archive solutions (Archive go-live H2 2026). Standout wins included a landmark 10-year $170M full-stack and cardiology contract with University of Colorado (go-live May 2026), a 5-year $10 million Viewer/Archive deal with University Hospital Heidelberg (go-live March 2026), and a 5-year $44 million Viewer agreement with Advanced Radiology Management (go-live H2 2026).
This sales pace doubled the company's prior full-year volume, spanning academic centers, children's hospitals, and private radiology, while lifting 5-year minimum contracted revenue beyond $1 billion for the first time.
Execution stayed sharp with six cloud-based implementations completed in the half, including the industry-leading Trinity Cohort 1 go-live in late with seven more (including three Trinity cohorts) slated before FY26 end to accelerate H2 growth.
Looking ahead, Company has downplayed AI disruption risks, highlighting Visage 7's 30-year patented foundation, one-fifth-faster implementations versus peers and mission-critical 24/7 support as enduring edges. Pro Medicus enters FY26 H2 exceptionally well-positioned for sustained 30% profit expansion.
Source: Company Announcements
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