Sonic Healthcare Ltd (ASX: SHL) shares are charging higher on Thursday after the pathology and radiology giant released its half-year results.
At the time of writing, the Sonic Healthcare share price is up 12.29% to $23.84.
Here's what the company reported.
Image source: Getty Images
Double-digit revenue and earnings growth
For the six months ended 31 December 2025, Sonic Healthcare delivered a solid performance across its global operations.
Key highlights included:
• Revenue up 17% to $5.45 billion
• EBITDA up 10% to $907 million
• Net profit up 11% to $262 million
• Cash generated from operations up 10% to $682 million
• Earnings per share (EPS) up 8% to 53.1 cents
Management said the result was underpinned by strong organic growth, disciplined cost control, and improving operational performance across most regions.
Sonic confirmed it remains on track to achieve its previously issued full-year EBITDA guidance of $1.87 billion to $1.95 billion on a constant currency basis.
By sticking with its earnings outlook, the company signalled that trading conditions remain supportive. It also indicates margin discipline is holding, even as parts of the healthcare sector face ongoing cost pressures.
Dividend lifted again
Sonic declared an interim dividend of 45 cents per share, up 2.3% on last year. The dividend will be 60% franked.
Key dates to note are:
• Ex-dividend date: 4 March 2026
• Record date: 5 March 2026
• Payment date: 19 March 2026
The company said its progressive dividend policy remains intact, targeting a payout ratio of 70% to 80% of net profit.
Performance across key regions
Several of Sonic's key markets posted solid growth.
Germany delivered strong statutory revenue growth of 52%, boosted by acquisitions and solid organic momentum. The UK reported revenue growth of 30%, driven by new NHS contracts and private-sector wins.
In Australia, pathology revenue grew 5% organically, supported by Medicare indexation and strength in the specialist and hospital segments. Radiology also saw organic revenue growth of 7%, aided by higher value modalities such as MRI and PET.
The United States posted more modest growth, with revenue up 3% on a statutory basis. Management acknowledged margin pressure in parts of the US business but said multiple improvement initiatives are underway.
Capital management initiatives
Sonic also outlined capital management priorities, including maintaining its balance sheet and selectively pursuing acquisitions.
The company is progressing a sale and leaseback of its Brisbane hub laboratory, with estimated proceeds of $450 million to $500 million, targeting completion in June 2026.
There is also potential for share buybacks using surplus capital from property transactions.
Foolish Takeaway
Sonic Healthcare's half-year result delivered a solid mix of earnings growth, steady margins, a higher dividend, and reaffirmed full-year guidance.
After a challenging period for global healthcare stocks, today's 12% surge points to renewed confidence in Sonic's outlook.
With diversified global operations, tight cost control, and reaffirmed guidance, Sonic looks well placed for FY26.
