The Pro Medicus Ltd (ASX: PME) share price has been one of the stronger performers over the last six months, rising by 44%. It's a valid question to ask whether Pro Medicus can rise much further.
Pro Medicus describes itself as a leading healthcare informatics company. It provides a full range of medical imaging software and services to hospitals, imaging centres and healthcare groups worldwide.
It offers a leading suite of radiology information systems (RIS), picture archiving and communication system (PACS), artificial intelligence and e-health solutions.
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Strong recovery
Pro Medicus suffered a huge decline last year and early this year as the market worried about what AI could mean for the company's future. However, the market seems to be a bit more positive about the situation.
It helps that the business continues to report an impressive set of numbers with its financials.
In the FY26 result, revenue grew 22.9% to $261.7 million, underlying operating profit (EBIT) grew 24.4% to $196.1 million and underlying net profit after tax (NPAT) rose 24.1% to $144.7 million.
The company has a significant presence in the US, so changes in foreign exchange rates can impact what it reports in Australian dollars. FY26 changes in currency hurt the financials.
If currency rates hadn't changed, revenue would have increased 28.4% to $273.5 million, underlying EBIT would have gone up 30.6% to $206 million and underlying NPAT would have risen 32.5% to $154.5 million.
The impressive profit growth allowed the company to hike its payout by 25.5% to 37 cents per Pro Medicus share.
The future looks promising considering the underlying EBIT margin rose again to 74.9% in FY26, up from 74% in FY25. It continues to win sizeable contracts at an impressive pace, which is helping drive revenue.
Its latest contract win was a seven-year A$25 million contract with Valley Health, which includes the relatively new cardiology imaging offering. In that announcement, Pro Medicus said its pipeline is strong and spans all market segments.
How much could the Pro Medicus share price rise in the next year?
According to CMC Invest, there have been 10 analyst ratings on the business within the last three months.
A price target tells us where an analyst thinks a share price could go in the next 12 months. The average price target of those 10 ratings is $220.14, according to CMC Invest, suggesting a possible rise of 21% over the next year.
The most optimistic price target is $240, suggesting a possible rise of 32%.
So, analysts are excited about the future of the business and it could still be one to watch.
