4DMedical Ltd (ASX: 4DX) shares are trading 2% higher in afternoon trade on Wednesday. At the time of writing, the shares are trading at $3.87 each. The shares are now down 14.10% year to date.
The decline might look concerning on the surface, but it has barely dented the company's gains over the past 12 months. At the time of writing, 4DMedical shares are trading an enormous 950% higher than this time last year.
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What has happened to the ASX tech stock's shares?
4DMedical is a healthcare technology company that develops imaging software for healthcare providers to analyse airflow through the lungs. It helps identify and treat lung and respiratory diseases ranging from asthma to lung cancer.
The company saw its share price explode in 2025 after its flagship product, CT:VQ, received regulatory approvals. It was quickly implemented and adopted through partnerships and commercial contracts with healthcare organisations.
4DMedical has already signed contracts with hospitals and medical providers, primarily across the US. Stanford University, the University of Miami, Cleveland Clinic and UC San Diego Health have all rolled out the technology at their centres.
In short, 4DMedical moved from a research and development business trialling new technology, to a globally commercial business within a very short period of time.
There is no price-sensitive news out of the company to explain the softening share price in 2026. But after such an enormous price tally in 2025, it's likely that investors are taking their gains off the table.
What's next for the company in 2026?
Development and rapid adoption of the company's technology also mean 4DMedical has smashed its milestone goals.
In 2026, 4DMedical will focus on accelerating the rollout of its newly FDA-approved CT:VQ imaging product through more strategic partnerships and new contracts.
Approvals have been secured in Canada and New Zealand. The company is now actively progressing commercialisation plans in Europe and Australia.
This month, 4DMedical was also added to the All Ordinaries Index (ASX: XAO) and the S&P/ASX 300 Index (ASX: XKO).
Is it too late to buy the ASX tech stock, or is there more upside to come?
Despite the strong rally over the past year and the 2026 sell-off, most analysts remain very bullish on the stock's outlook.
TradingView data shows that two out of three analysts have a strong buy rating on the shares, while one has a strong sell stance on the stock.
The maximum target price is $4.90, implying another 27% upside for investors at the time of writing.
