We're halfway through reporting season, and there have been a number of interesting updates from S&P/ASX 200 Index (ASX: XJO) shares.
For example, the market punished Commonwealth Bank of Australia (ASX: CBA) shares amid the bank's relatively low profit growth rate, considering how high the price-earnings (P/E) ratio has gone.
But, there are other businesses that were trading at high valuations and went even higher after delivering some very impressive results.
So far, the following two ASX 200 shares have impressed me the most.
Pro Medicus Ltd (ASX: PME)
Pro Medicus describes itself as a leader in enterprise imaging and radiology information systems.
The ASX 200 share reported that revenue grew 31.9% to $213 million, and net profit after tax (NPAT) improved by 39.2% to $115.2 million.
What impressed me the most about the result was how the operating profit (EBIT) margin continues to grow. Pro Medicus reported the underlying EBIT margin reached an astonishing 74% in FY25. That's up from 69.5% in FY24 and 71.9% in the first half of FY25.
This means that almost three-quarters of revenue is being turned into operating profit. The pace of the margin's rise suggests to me that Pro Medicus can continue rising in FY26 and probably beyond as it adds further scale by winning new clients, selling more modules to existing clients, and delivering growth in other 'ologies'.
With the rapidly rising profit, Pro Medicus is offering more for financial strength and rewards for shareholders. Its cash and investments balance grew 35.5% to $210.7 million, and the final dividend per share was hiked by 37.5% to 30 cents.
The ASX 200 share continues to impress investors, despite its very high P/E ratio. It rose by more than 6% on the day of the result.
Temple & Webster Group Ltd (ASX: TPW)
The other business I wanted to highlight was homewares, furniture, and home improvement online retailer Temple & Webster.
Over the years, it has taken the approach of investing any profit generated back into further growth. But, its profit generation and operating leverage are now coming through.
It reported revenue increased 21% to $601 million, operating profit (EBITDA) climbed 43.2% to $18.8 million, net profit rose 532.8% to $11.3 million, and free cash flow rose 89.9% to $37.9 million. Home improvement revenue surged 42.5% to $42 million.
Pleasingly, fixed costs as a percentage of revenue are now only 10.6%, down from 11.3% in FY24, demonstrating scale benefits. That's being driven by a moderation of headcount growth and improved productivity through the use of AI and technology tools.
Temple & Webster also revealed that in FY25, 80% of pre-sales and post-sales support interactions were partially or fully handled by AI and technology, resulting in a reduction of more than 60% in customer care costs as a percentage of revenue since FY23.
The ASX 200 share also revealed that revenue from exclusive products accounted for 45% of FY25 revenue, up from 43% in FY24, making it more of a destination for shoppers and making it less exposed to competition on price, in my view.
While it only made a passing mention of this, the company said it could deliver further upside – beyond its strong core growth – with international expansion and new ventures. It'll be interesting to see when this happens and what it entails.
I think its online and asset-light business model is a real strength for the business, allowing it to deliver strong growth and rapidly invest for more. The Temple & Webster share price climbed by almost 9% on the day of the result.
