After a 30% 2026 slide, Pro Medicus shares are rocketing again

Pro Medicus shares jump after another major contract win.

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Pro Medicus Ltd (ASX: PME) shares are pushing higher on Wednesday.

The move follows a market update released before the open that appears to have given investors another reason to buy.

In morning trade, the Pro Medicus share price is up 8.82% to $132.74. That lifts the company's market capitalisation to roughly $12.7 billion.

Today's gain stands out because the stock is still down about 30% in 2026, following a steep de-rating from the record highs reached last year.

Let's take a closer look at the announcement.

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Image source: Getty Images

Another major US academic health system added

According to the release, Pro Medicus' wholly owned US subsidiary, Visage Imaging, has signed a 5-year contract with the University of Maryland Medical System.

Worth a minimum of $23 million, the deal adds another sizeable US academic health network to the company's growing customer base.

The agreement covers the rollout of the company's cloud-based Visage 7 Enterprise Imaging Platform across UMMS, including Visage 7 Viewer and Workflow.

It will be deployed in the cloud and provide a single enterprise-wide imaging workflow across the health network.

UMMS includes 11 hospitals and is closely linked with the University of Maryland School of Medicine, giving Pro Medicus deeper exposure to another leading US academic institution.

Management said implementation will begin immediately, with the initial go-live targeted for early calendar year 2027.

Like many of the company's recent wins, the contract uses a transaction-based licensing model, meaning revenue can increase as imaging volumes grow.

Why the market likes this one

The contract continues a strong run of North American wins for Pro Medicus.

Its February half-year result showed more than $280 million in minimum contract value signed during the first half alone, while revenue rose 28.4% and underlying profit before tax increased 29.7%.

The Maryland deal also shows demand remains strong for the company's cloud-based full-stack imaging platform, even after several years of rapid expansion.

It also reinforces the company's growing presence across major academic and enterprise imaging networks, where contract sizes have been trending higher.

Foolish Takeaway

After a roughly 30% decline in 2026, I think Pro Medicus is shaping up as one of the more compelling buying opportunities on the ASX.

The company continues to strengthen its position as the market leader in premium medical imaging software, particularly across major US hospital networks.

With contract momentum building and its leadership intact, I believe Pro Medicus has a realistic path to doubling over the next 12 months.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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