Pro Medicus (PME) H1 2026 earnings summary

Executive summary

• Revenue reached $124.8 million for the half-year ended December 2025, up 28.4% year-over-year, with underlying EBIT up approximately 30% and improved EBIT margins.

• Reported net profit after tax surged to $171.2 million, up 230.9% year-over-year, driven by a $149.1 million unrealised gain on a 4D Medical investment and strong operational growth.

• Secured seven new contracts and one major renewal totaling over $280 million, including a $170 million/10-year deal with University of Colorado Health and a high-profile contract with University of Heidelberg.

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

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

Financial highlights

• Underlying EBIT reached $90.7 million, up 29.7% year-over-year, with EBIT margins at 73%.

• Interim dividend increased 28% to 32c per share, fully franked.

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

• Cash and investments rose 5.3% year-over-year despite share buybacks and increased dividends.

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

Outlook and guidance

• Revenues expected to accelerate 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, with strong network effects and significant leads from RSNA 2025.

• Second half and FY 2027 expected to benefit from full revenue contributions from major contracts and new product launches.

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

• Trend towards full stack and cardiology offerings expected to continue.