Pro Medicus (ASX:PME) has delivered another strong full-year result, with reported net profit more than doubling as the medical imaging technology company continued to grow revenue, expand margins and build a substantial contracted revenue pipeline.
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The company reported $265.3 million in net profit after tax for FY26, up 130.3% from $155.2 million a year earlier and ahead of the $250.7 million Visible Alpha consensus.
Revenue increased 22.9% to $261.7 million, while underlying EBIT rose 24.4% to $196.1 million. Underlying NPAT increased 24.1% to $144.7 million.
The result was accompanied by a 37-cent fully franked final dividend, taking the full-year dividend to 69 cents per share.
One of the most important numbers for investors was Pro Medicus’ forward contract book, which increased 41.3% to $1.34 billion, up from $948 million a year earlier and $624 million two years ago. That provides substantial visibility over future revenue and highlights the company’s ability to convert new contracts into a growing base of contracted earnings.
Pro Medicus signed 10 new contracts worth at least $407 million during FY26, while six existing contracts worth $141 million were renewed for five years, with higher transaction fees.
Among the major wins was a 10 year, $170 million contract with UCHealth Colorado, while Beth Israel Lahey Health added a $90 million, seven-year agreement. Both were full-stack contracts covering the company’s viewer, open archive and workflow products.
Margins also remained a major feature of the result. Underlying EBIT margin reached 74.9%, representing a fifth consecutive year of margin expansion. Underlying EBITDA margin was 78%.
The growth is also extending beyond Pro Medicus’ core diagnostic imaging offering, with the company progressing its cardiology expansion alongside digital pathology and AI-optimised reporting products. Its breast cancer detection algorithm remains subject to FDA clearance.
The Trinity Health rollout, described as one of the world’s largest CloudPACS implementations, was 87% complete, with final cohorts expected by October 2026.
The combination of a rapidly expanding forward book, rising margins, higher-value contracts and strong cash generation provides considerable earnings visibility. However, the company’s premium valuation leaves less room for execution to fall short.
Management said the company’s pipeline remains strong, with increasing inbound interest from major US healthcare institutions, while cardiology represents an additional avenue for growth.
With $1.34 billion of contracted future revenue, the FY26 result provides a strong base heading into FY27. The next catalysts will be the conversion of the company’s pipeline, further cardiology adoption and regulatory progress for its breast cancer detection technology.
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