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Key points:
Strong FY26 profit, revenue and margin expansion for Pro Medicus (ASX:PME)Ten major new contracts and record renewals underpin Hupert’s positive FY27 outlookAI seen as a huge healthcare imaging opportunity, not a threat to the platform
Pro Medicus (ASX:PME) posts strong FY26 results, with CEO Dr Sam Hupert stating net profit rises 32.5% to $154.5 million on a constant currency basis and revenue increases 28% to $273.5 million. Margins, in Hupert’s view, improve by 90 basis points, supported by higher transaction fees and a record number of client renewals. The company declares a fully franked final dividend of $0.37 per share and Hupert argues that the full benefit of 16 implementations completed in FY26 should flow through from FY27 onwards.
Hupert highlights ten new contract wins across mid-sized and large US health systems, including UC Colorado and Beth Israel. These deals, together with specialist cancer and reading groups, are presented as evidence of a large total addressable market and a very healthy pipeline, supported by strong inbound RFP activity from events such as the RSNA conference in Chicago.
On risk, Hupert claims Pro Medicus’ implementation methodology is around one-fifth the time of competitors and says all projects remain on or ahead of schedule, with average implementation of six months. He downplays competitive threats from GE Health and Philips, describing their platforms as legacy, and frames AI as a major opportunity, not a threat, particularly in imaging where Pro Medicus controls the radiologist desktop. Currency volatility is acknowledged, but Hupert emphasises underlying constant-currency growth above 30% and expects FY27 to be stronger than FY26.
