Is now the time to buy Pro Medicus shares?

The Pro Medicus Ltd (ASX: PME) share price has pulled back sharply in recent weeks.

Shares in the medical imaging software leader are down 13%, despite no change in the company’s underlying fundamentals.

At Friday’s close, Pro Medicus shares finished the session at $217.37.

For a stock that has delivered consistently over the long run, the recent weakness raises the question of whether the market has become too cautious.

A rare pullback in a premium business

Pro Medicus has built a reputation as one of the highest-quality software companies on the ASX. Its Visage Imaging platform is deeply embedded in large hospital networks, particularly across the US, where long contract durations and high switching costs create a powerful moat.

The recent share price weakness appears more about valuation concerns and broader market volatility than company-specific issues. There have been no profit warnings, no loss of major customers, and no slowdown in contract momentum.

Contract wins continue to stack up

Just weeks ago, Pro Medicus announced another significant long-term contract with a large US healthcare group. The agreement covers a multi-year rollout across the customer’s network, with room to expand over time.

That lines up with what management outlined at the latest AGM. Demand from US hospital systems remains strong, sales pipelines are deep, and existing customers continue to expand the platform’s footprint.

Brokers remain firmly bullish

Despite the recent pullback, broker views on Pro Medicus haven’t really changed.

Most major brokers continue to rate the stock as a buy, pointing to its long-term growth profile and ability to scale earnings as contracts roll through. Price targets remain comfortably above current levels, with many sitting in the $250 to $280 range.

Bell Potter has again highlighted Pro Medicus as a preferred healthcare name heading into 2026, citing its strong competitive position and clear revenue visibility. Similar themes are coming through across other broker updates, with analysts still seeing upside as new contracts ramp up and margins continue to expand.

Foolish takeaway

Rather than focusing on whether Pro Medicus is cheap, the real question is whether anything has changed. Right now, it’s business as usual.

Contract momentum remains solid, broker confidence hasn’t wavered, and management continues to point to a deep pipeline of US opportunities. In that context, the recent pullback looks more like a shift in sentiment than any change in the underlying story.

For investors watching the stock, this phase may be less about picking the exact bottom and more about gradually building exposure to a high-quality ASX 200 company.

The post Is now the time to buy Pro Medicus shares? appeared first on The Motley Fool Australia.

More reading

• 3 of the best Australian shares to buy and hold until 2035
• 3 unstoppable ASX shares to buy with $3,000
• Bell Potter names the best ASX healthcare shares to buy in 2026
• The ASX stocks I think could define the next decade of growth
• These ASX 200 shares could rise 30% to 40% in 2026

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.