Yesterday, both Cogstate Ltd (ASX: CGS) and Pro Medicus Ltd (ASX: PME) released FY26 results.
Investors reacted very differently to these results, with Cogstate shares falling 2% and Pro Medicus shares rocketing over 11%.
Following these results, the team at Bell Potter provided updated guidance on these healthcare companies.
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What did they report?
Cogstate posted record FY26 revenue of US$60.9 million, up 15%, and a net profit after tax of US$11.9 million, up 17%.
Meanwhile, Pro Medicus announced full-year revenue of $261.7 million, up 22.9%, with underlying NPAT rising 24.1% to $144.7 million. The company remains debt-free and has lifted its fully franked total dividend by 25.5% to 69 cents per share.
Cogstate and Pro Medicus' full results can be found here:
Both healthcare companies have had a very different 12 months.
Cogstate shares are up 62% in the last year, while Pro Medicus are down 38% in the same span.
Following yesterday's results, here is the latest guidance out of the team at Bell potter.
Bell Potter's outlook for Cogstate
The broker Bell Potter viewed Cogstate's FY26 result positively, with revenue up 15% to $60.9m, ahead of expectations, while a strong 2H gross margin of 62% drove full-year EBITDA of $18.3m and NPAT of $11.9m, both above forecast.
The company doubled its dividend to 4 cents per share and remained debt-free with $34.8m of cash. Cogstate now enters FY27 from a record base, supported by very positive sales prospects, expected revenue growth, and an intention to maintain FY26's EBITDA margins.
Bell Potter has increased FY27-29 revenue forecasts by around $1m annually, reflecting stronger Clinical Trials activity and improved visibility, but higher operating costs more than offset this, resulting in around $1m lower NPAT forecasts in each year.
Based on this guidance, the broker retained its $3.70 price target and buy recommendation.
This indicates an upside potential of more than 35%.
Bell Potter's outlook for Pro Medicus
Pro Medicus reported FY26 revenue and EBIT growth of 23% and 26%, respectively, with EBIT results modestly (1.5%) ahead of consensus earnings.
Bell Potter said that as the group's revenue base expands, top-line growth is decelerating. However, margin expansion continues, driving the small earnings beat.
The broker also highlighted that the company retained all six of its expiring contracts during FY26, which it believes were not subject to a competitive bidding process, based on factors such as client satisfaction with service levels and value.
The team at Bell Potter retained its buy recommendation and $226 price target for Pro Medicus shares after the company's results.
From yesterday's closing price, the price target indicates 15% upside.
