Pro Medicus Limited (ASX: PME) posted its strongest half-year result to date for the period ending 31 December 2025. The Pro Medicus HY26 results showed revenue climbing 28.4 per cent to $124.8 million while profit after tax surged 230.9 per cent to $171.2 million. The medical imaging software provider declared a 28 per cent increase in its interim dividend to $0.32 per share, fully franked.
Figure 1: Pro Medicus HY26 revenue split by category across recent half-year periods [Source: Pro Medicus]
The Company secured seven new contracts totalling over $280 million at minimum values during the Pro Medicus half-year results FY26 period. This includes a landmark $170 million deal with the University of Colorado Health and contract renewals worth $20 million with existing clients. Pro Medicus maintains a debt-free balance sheet with cash and investments of $221.8 million, up 5.3 per cent from June 2025.
Seven Major Contracts Drive Pro Medicus HY26 Results
Pro Medicus signed seven new contracts during HY26 with a combined minimum value exceeding $280 million. The Company secured its second-largest deal in history with the University of Colorado Health, worth $170 million over seven years. This “full stack plus one” arrangement includes the Visage 7 Cardiology offering alongside core imaging products.
The Pro Medicus half-year results FY26 period also delivered a $44 million five-year contract with a private radiology group and $29 million across three separate agreements. Pro Medicus renewed a $20 million contract with an existing client and secured a $10 million five-year deal with Heidelberg University in Germany. The contract pipeline continues growing strongly with increased inbound requests for proposals across all market segments.
Underlying EBIT Margins Hit 72.6 Per Cent
- Pro Medicus revenue growth: Pro Medicus HY26 results showed revenue reaching $124.8 million, up 28.4 per cent from the prior corresponding period
- Profit surge: Underlying EBIT increased 29.7 per cent to $90.7 million with margin expansion to 72.6 per cent
- Balance sheet strength: The Company remains debt-free with $221.8 million in cash and investments
Figure 2: Pro Medicus HY26 financial highlights including revenue, profit, margins, cash position and interim dividend [Source: Pro Medicus]
Pro Medicus generates recurring revenue through transaction-based contracts pegged to examination volumes. The operational model delivers forward revenue exceeding $1.08 billion over five years, assuming key contract renewals. The Pro Medicus revenue growth model requires no capital expenditure for hardware or cloud infrastructure, with implementation and training charged as professional services.
What Strategic Wins Did Pro Medicus Achieve?
Pro Medicus now serves 11 of the top 20 US hospitals ranked by US News for 2024-2025. The Company’s client list includes Duke Health, Massachusetts General Hospital, Mayo Clinic facilities in Arizona and Rochester, Northwestern Medicine, NYU Langone Health, Rush University, UC San Diego Health, UCLA Health and UCSF. This concentration of elite academic medical centres validates the Visage 7 platform’s clinical capabilities.
Figure 3: Leading US hospitals using Pro Medicus Visage platform, ranked by US News 2024–2025 [Source: Pro Medicus]
The University of Colorado Health deal marks significant progress in both the academic medical centre and integrated delivery network markets. The Pro Medicus half-year results FY26 included the completion of six cloud-based implementations during the period. Pro Medicus reported its busiest RSNA conference to date in December 2025 with substantial prospect engagement.
European and Australian Markets Show Momentum
Pro Medicus secured a $10 million five-year contract with Heidelberg University, one of Germany’s premier medical schools. The institution operates affiliated teaching hospitals, including the German Cancer Research Institute, Europe’s largest cancer research centre. This win expands the Pro Medicus revenue growth strategy in Germany and broader European markets.
The Australian radiology market delivered a $44 million five-year contract with RANT, a private radiology group. This adds to $70 million contracted in the Australian private market during FY25. Pro Medicus holds long-term contracts with Lumus (Primary Healthcare) and I-MED, Australia’s two largest radiology providers. The Company maintains its position as undisputed market leader in Australian radiology information systems.
How Does Pro Medicus Technology Create Competitive Advantage?
- Speed advantage: Visage 7 uses streaming technology rather than legacy “compress and send” methods to handle massive datasets
- Cloud capability: The platform operates natively across AWS, Azure and Google Cloud with identical performance to on-premise deployments
- Fast implementation: Pro Medicus completes large-scale projects in under 20 per cent of industry-standard timeframes
Figure 4: Overview of the Visage 7 medical imaging platform, highlighting speed, functionality and scalability [Source: Pro Medicus]
Medical imaging datasets continue to explode in size, with high-density CT scans exceeding 10,000 images. Pro Medicus HY26 results benefited from the Visage 7 streaming architecture that delivers immediate access without requiring full dataset downloads. The technology provides proven return on investment through infrastructure savings, radiologist efficiency gains and improved clinical accuracy.
What Role Does AI Play in Pro Medicus Growth Strategy?
Pro Medicus maintains an in-house AI development capability with dedicated research leadership. The Company co-developed a breast cancer detection algorithm with NYU, awaiting FDA clearance for commercialisation. Pro Medicus holds investments in Elucid for cardiac CT AI and 4DMedical for lung AI applications.
The Visage 7 platform integrates with a growing number of third-party AI algorithms through its workflow module. Pro Medicus revenue growth prospects include AI-enabled productivity tools that allow radiologists to address backlogs rather than replacing clinical expertise. The Company’s capital-light software model and mission-critical healthcare positioning provide protection from AI disruption risks.
Share Price Performance
Pro Medicus shares closed at $131.88 on recent trading days, operating within a 52-week range of $131.35 to $336.00 per share. The Company’s market capitalisation stands at approximately $17.70 billion. Pro Medicus has maintained consecutive profitability with sector-leading EBIT margins of 72.6 per cent.
Figure 5: Pro Medicus share price performance over the past year [Source: ASX]
Investors Outlook
Pro Medicus enters the second half of FY26 with robust momentum across all geographic markets and customer segments. The Pro Medicus HY26 results combine contracted revenue visibility exceeding $1 billion, a debt-free balance sheet and expanding profit margins above 70 per cent. Seven major contract wins during the Pro Medicus half-year results FY26 period demonstrate sustained competitive advantage.
The North American pipeline remains strong with network effects from high-profile wins accelerating inbound interest. Near-term catalysts include contract announcements from a robust sales pipeline and progressive revenue recognition from major implementations. The Pro Medicus revenue growth model provides organic expansion as client examination volumes increase.
Risks include execution on large-scale implementations, regulatory approvals for AI products and competitive dynamics in enterprise healthcare software. However, the Pro Medicus HY26 results showcase proven implementation methodology and relationships with 11 of the top 20 US hospitals providing substantial competitive moats.
FAQ
Q1. What was Pro Medicus revenue for HY26?
Ans. Pro Medicus reported revenue of $124.8 million for the half year ended 31 December 2025, representing 28.4 per cent growth.
Q2. What interim dividend did Pro Medicus declare?
Ans. Pro Medicus declared a fully franked interim dividend of $0.32 per share, up 28 per cent from the prior year.
Q3. What was the largest Pro Medicus contract in HY26?
Ans. Pro Medicus secured a $170 million seven-year contract with the University of Colorado Health, the Company’s second-largest deal.
Q4. How many top US hospitals use Pro Medicus software?
Ans. Pro Medicus serves 11 of the top 20 US hospitals ranked by US News for 2024-2025.
