At the start of 2026, Ramsay Health Care Ltd (ASX: RHC) was hardly the kind of stock investors were chasing.
Fast-forward 8 months, and the picture looks very different.
Ramsay shares are up another 1.52% to $54.11 on Thursday, taking the private hospital operator to its highest level in several years.
The stock has now surged around 57% in 2026 and sits almost 80% above its 52-week low of $30.39.
It was changing hands at just $44.02 on 26 August. Since then, the share price has jumped almost 23% in a little over 2 weeks.
After years of going nowhere, Ramsay has suddenly become one of the more interesting turnaround stories on the ASX.
And I think its latest results explain a lot of the recent excitement.
Image source: Getty Images
The numbers are finally improving
Ramsay's FY26 result was a pretty decent one.
Revenue came in at $18.6 billion, while underlying EBIT rose 11.8% to around $1.16 billion.
Underlying net profit after tax (NPAT) increased 19.3% to $364.1 million, or 22.9% on a constant currency basis.
Australia did much of the work, helped by higher hospital activity, better theatre utilisation, improved private health insurance pricing, and tighter cost control.
The group's underlying EBIT margin also improved by 30 basis points to 6.2%.
Shareholders got a little extra too, with the full-year dividend rising 13.8% to 91 cents per share.
The business could look very different
Ramsay is moving ahead with plans to separate its 52.79% stake in Ramsay Santé, which owns hospitals across Europe.
Shareholders are expected to vote on the proposed demerger in November.
If the deal goes ahead, investors would be left with a simpler Ramsay business and a much clearer view of how its Australian hospitals are performing.
Ramsay is still putting money into Australia too, with the company agreeing to buy National Capital Private Hospital in Canberra for $251 million.
Management expects the acquisition to add to earnings in its first 12 months.
Would I buy Ramsay shares?
This is probably where I would be a little more careful.
At $54.11, Ramsay shares have already moved above the average TipRanks analyst price target of $50.66. The highest target is $55.69.
Director Michael Siddle also sold 1 million shares at $49 shortly after the result, in an off-market transaction worth $49 million.
Yes, I still like what I am seeing from the business, and I think the turnaround has more substance behind it.
But I wouldn't be chasing Ramsay shares purely because they have been going up.
