Ramsay Health Care FY26: Profit surges on transformation momentum

Ramsay Health Care Ltd (ASX: RHC) share price is under the spotlight after the company reported underlying net profit after tax (NPAT) up 22.9% and underlying EBIT up 11.8% for the twelve months to 30 June 2026.

What did Ramsay Health Care report?

• Underlying NPAT: $364.1 million, up 22.9% on FY25 (constant currency)
• Underlying EBIT: $1,162 million, up 11.8% (constant currency)
• Revenue: $18.6 billion, up 4.2% (constant currency)
• Final fully franked dividend: 48.5 cents per share; full year payout ratio 60.3% of underlying earnings (total 91 cps)
• Funding Group leverage: 1.83x, below the 2.5x target
• Underlying EPS: 151.0 cps, up 27%

What else do investors need to know?

Ramsay reported positive transformation momentum in its Australian hospital business, driven by activity growth, higher acuity cases, improved theatre use, and stronger cost management. Both UK and Australian businesses were net cash flow positive, while capital discipline delivered a 30bps improvement in Group EBIT margin to 6.2% and ROIC growth.

The company completed or progressed several strategic moves in FY26, including progressing the planned separation (demerger) of its 52.8% stake in Ramsay Santé. The proposed demerger is tracking towards a shareholder vote in late November 2026 and aims to allow greater focus on the core Australian hospital business.

What did Ramsay Health Care management say?

Ramsay Health Care’s CEO, Natalie Davis, said:

I am pleased that we are maintaining high patient NPS scores and clinical excellence in every region, building transformation momentum in the Australian business, and improving performance and capital returns across the Group. I would like to thank our incredible people and our clinicians who dedicate themselves to our patients and are the foundation of our success.

What’s next for Ramsay Health Care?

Looking ahead, Ramsay expects to report EBIT growth and further margin improvement in FY27, with ongoing focus on cost management, activity growth, and capital discipline. The company will finalise the acquisition of National Capital Private Hospital in September 2026, integrating it into the Ramsay network.

The planned demerger of Ramsay Santé remains a key milestone in the coming year. If approved, it will simplify reporting and sharpen Ramsay’s attention on its Australian and UK hospital operations. Investments in technology, “Big 5” hospital initiatives, and continued optimisation are expected to support the next phase of growth.

Ramsay Health Care share price snapshot

The Ramsay Health Care share price has outperformed the S&P/ASX 200 index (ASX: XJO) over the past 12 months with a gain of over 15%.

View Original Announcement

The post Ramsay Health Care FY26: Profit surges on transformation momentum appeared first on The Motley Fool Australia.

More reading

• Sell alert! Why this expert is calling time on Magellan and Ramsay Health Care shares
• Buy, hold, sell: Ramsay Healthcare, Xero, Electro Optic Systems shares
• Why experts say Qantas and these ASX shares are sells

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.