It's been a tough 2026 for many ASX healthcare stocks.
However, one exciting small-cap that is drawing attention from brokers is Alcidion Group Ltd (ASX: ALC).
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Company overview
Alcidion is a commercial healthcare IT company with a cloud-native, modular software platform aimed at improving efficiency in hospitals, supporting interoperability, and allowing for improved communication and task management. It also aims to deliver critical clinical decision support at the point of care to improve patient outcomes.
The key platform is known as Miya Precision, and under this platform, an increasing number of modules are available.
The team at Bell Potter has a buy recommendation on the company following its Q3 FY26 Quarterly Activities Report.
What did this healthcare stock report?
Yesterday, Alcidion announced:
- Q3 FY26 positive operating cash flow of $1.7M driven by cash receipts of $14.5M
- Selected as preferred provider for University Hospital Sussex NHS Foundation Trust's (UHSussex) new EPR solution – the contract remains on track for signing in May 2026
- As of 31 March 2026, FY26 contracted (sold & renewal) revenue of $43.8M (excluding UHSussex)
The company also reconfirmed FY26 financial guidance of:
- Revenue expected to exceed $50.0M with EBITDA in excess of $5.0M; and
- Operating cash flow to remain positive, in line with FY25 operating cash flow of $5.8M
Speaking on the results, Alcidion CEO and Managing Director, Kate Quirke, said:
Q3 maintained the positive and sustained momentum for Alcidion, with contract expansions for our emergency department module, significant renewal contracts signed and importantly our first site in QLD for Miya Precision.
Investors were seemingly pleased with these results as the share price jumped 7% yesterday.
Bell Potter's updated view
Following the results, the team at Bell Potter said it views revenue and EBITDA guidance as readily achievable, assuming the UHSussex deal is executed in May and includes a ~$7.5m upfront capital license payment similar to prior UK deal structures.
The broker has maintained its buy recommendation on this ASX technology stock and reaffirmed its 16-cent price target.
From yesterday's closing price of just over 10 cents per share, this indicates an upside potential of approximately 49%.
ALC has a robust balance sheet position (>$20m cash expected at end-FY26) and is set to post a record full-year result which will benefit from the expected finalisation of one of the company's largest ever contracts with UHSussex in Q4 FY26.
It's also worth noting that small-cap stocks such as Alcidion Group can experience significantly more volatility than more established, blue-chip equities.
Therefore, investors should have appropriate risk appetite when considering these options.
