Pro Medicus (PME) H1 2026 earnings summary

Executive summary

• Revenue increased 28.4% year-over-year to $124.8m, with underlying EBIT up 29.7% and improved EBIT margins; after-tax profit surged 230.9% to $171.2m, driven by a $149.1m unrealised gain on a 4D Medical investment and strong operational growth.

• Achieved record half with seven new contracts totaling over AUD 280 million, including a $170m/10-year deal with University of Colorado Health and a major contract with University of Heidelberg.

• Completed six cloud-based implementations and reported the busiest RSNA conference to date, generating significant new leads.

• Maintains a strong balance sheet with $221.8m in cash and investments, up 5.3%, and remains debt free despite higher dividends, share buybacks, and investments.

• Significant progress in expanding product suite to cardiology and pathology, with first major cardiology sale and imminent pathology launch.

Financial highlights

• Underlying EBIT reached $90.7m, up 29.7% year-over-year, with EBIT margins at 72.6%.

• Interim dividend increased 28% to AUD 0.32 per share, fully franked, with $33.4m declared for the interim period.

• Realized an unrealized gain of approximately $149.1m from a hybrid debt/equity investment in 4D Medical.

• Cash and investments at $221.8m, up 5.3% year-over-year.

• Gross profit reached $128.8m, with a gross margin of nearly 100%.

Outlook and guidance

• Expect revenue acceleration in the second half as large contracts ramp up, with five Trinity cohorts to be completed by July, representing about 80-85% of the contract.

• Pipeline remains robust across all market segments and sizes, with strong network effects from flagship implementations.

• Forward contracted revenue for five years surpassed AUD 1 billion, providing strong revenue visibility.

• Sufficient cash reserves are available to fund anticipated growth internally.

• Interim dividend of 32.0c per share declared, payable in March 2026.