Pro Medicus FY26: Strong earnings growth and higher dividend

The Pro Medicus Ltd (ASX: PME) share price is in focus today as the company announced full-year revenue of $261.7 million, up 22.9%, with underlying NPAT rising 24.1% to $144.7 million. The company remains debt-free and has lifted its fully-franked total dividend by 25.5% to 69 cents per share.

What did Pro Medicus report?

• Revenue: $261.7 million, up 22.9% year-on-year
• Underlying EBIT: $196.1 million, up 24.4%
• Reported NPAT: $265.3 million, up 130.3%
• Underlying NPAT: $144.7 million, up 24.1%
• Cash and financial assets: $252.3 million, up 19.7%
• Final dividend: 37 cents per share, total full-year dividend 69 cents, up 25.5%

What else do investors need to know?

Pro Medicus signed 10 new contracts during the year, totalling at least $407 million in value, including a major 10-year deal with UC Health Colorado. The company also renewed six key contracts, worth $141 million, all on five-year terms with increased transaction fees.

On a constant currency basis, revenue, EBIT, and NPAT each saw gains above 28%. The company’s pipeline remains strong, supported by new product launches in digital pathology and AI-optimised reporting as well as a nearly complete Trinity implementation.

What did Pro Medicus Limited management say?

Dr Sam Hupert, Chief Executive Officer, said:

We were aiming for 30% increases in EBIT and NPAT, and we exceeded both on a constant currency basis. Importantly, we have proven that with one platform and one business model we can address virtually every opportunity in diagnostic imaging, providing us with the largest total addressable market. Progress made in the cardiology market represents another important string to our bow. We see this trend continuing.

What’s next for Pro Medicus?

Looking ahead, Pro Medicus says it expects to benefit from its newly signed contracts and recent implementations, particularly as the Trinity rollout is now largely complete. Management highlights a strong pipeline with a growing number of inbound requests from major US healthcare institutions.

The company is aiming to further expand its presence in both diagnostic imaging and cardiology, leveraging its one-platform approach and ongoing product innovation.

Pro Medicus share price snapshot

Over the past year, the Pro Medicus share price has underperformed the S&P/ASX 200 index (ASX: PME) with a decline of around 45%.

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The post Pro Medicus FY26: Strong earnings growth and higher dividend appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Pro Medicus. 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.