At the start of 2026, Ramsay Health Care Ltd (ASX: RHC) was hardly the kind of stock investors were chasing.
Fast-forward 8 months, and the picture looks very different.
Ramsay shares are up another 1.52% to $54.11 on Thursday, taking the private hospital operator to its highest level in several years.
The stock has now surged around 57% in 2026 and sits almost 80% above its 52-week low of $30.39.
It was changing hands at just $44.02 on 26 August. Since then, the share price has jumped almost 23% in a little over 2 weeks.
After years of going nowhere, Ramsay has suddenly become one of the more interesting turnaround stories on the ASX.
And I think its latest results explain a lot of the recent excitement.
The numbers are finally improving
Ramsay’s FY26 result was a pretty decent one.
Revenue came in at $18.6 billion, while underlying EBIT rose 11.8% to around $1.16 billion.
Underlying net profit after tax (NPAT) increased 19.3% to $364.1 million, or 22.9% on a constant currency basis.
Australia did much of the work, helped by higher hospital activity, better theatre utilisation, improved private health insurance pricing, and tighter cost control.
The group’s underlying EBIT margin also improved by 30 basis points to 6.2%.
Shareholders got a little extra too, with the full-year dividend rising 13.8% to 91 cents per share.
The business could look very different
Ramsay is moving ahead with plans to separate its 52.79% stake in Ramsay Santé, which owns hospitals across Europe.
Shareholders are expected to vote on the proposed demerger in November.
If the deal goes ahead, investors would be left with a simpler Ramsay business and a much clearer view of how its Australian hospitals are performing.
Ramsay is still putting money into Australia too, with the company agreeing to buy National Capital Private Hospital in Canberra for $251 million.
Management expects the acquisition to add to earnings in its first 12 months.
Would I buy Ramsay shares?
This is probably where I would be a little more careful.
At $54.11, Ramsay shares have already moved above the average TipRanks analyst price target of $50.66. The highest target is $55.69.
Director Michael Siddle also sold 1 million shares at $49 shortly after the result, in an off-market transaction worth $49 million.
Yes, I still like what I am seeing from the business, and I think the turnaround has more substance behind it.
But I wouldn’t be chasing Ramsay shares purely because they have been going up.
The post Up 57% this year. Guess which ASX 200 stock just hit a multi-year high? appeared first on The Motley Fool Australia.
Should you invest $1,000 in Ramsay Health Care right now?
Before you buy Ramsay Health Care shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Ramsay Health Care wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
* Returns as of 1 August 2026
.custom-cta-button p {
margin-bottom: 0 !important;
}
More reading
- CSL led the ASX healthcare shares rebound. Can it continue?
- Top 3 ASX healthcare shares to buy after a brutal year
- Own BHP, Woodside or Coles shares? Here’s what investors should know
- 5 things to watch on the ASX 200 on Thursday
- Buy, hold, sell: Ramsay Health Care, PLS Group, Woolworths shares
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 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.