Pro Medicus Ltd (ASX: PME) shares are in focus on Monday morning following another positive announcement.
The medical imaging technology company has been building an impressive presence in the United States, and its latest news adds to that progress.
But is Pro Medicus a share I would buy for the long term?
Here's what I think.
Image source: Getty Images
Another contract win
Pro Medicus announced this morning that it has secured a new seven-year contract with Billings Clinic in the United States, worth approximately $24 million.
It is another encouraging addition to the company's growing portfolio of healthcare customers.
I like the consistency with which Pro Medicus has been winning these agreements.
The company secured 10 new contracts worth at least $407 million during FY26, alongside six contract renewals.
I think that demonstrates how well its Visage imaging platform is being received by major healthcare providers.
And with these contracts often running for several years, each new agreement provides another source of revenue that can contribute to earnings over time.
Today's announcement is another step in that process.
Why I like the long-term outlook
One reason I am very positive on Pro Medicus is the growing importance of medical imaging.
Scan volumes are increasing at a time when many countries are facing shortages of radiologists, putting pressure on hospitals to make better use of their existing specialists.
Pro Medicus helps address this challenge through software that allows radiologists to access and analyse complex images more efficiently.
I think that need for greater productivity could become an increasingly important driver of demand for its technology.
There is also considerable room to expand. Pro Medicus estimates that it has captured around 11% of the US market, leaving the vast majority still available to pursue.
Of course, winning new customers isn't straightforward. Hospitals need reliable systems that integrate with their existing operations, and switching providers can be complicated.
But I think that also works in Pro Medicus' favour once its technology is installed. The company renewed all six customer contracts that came up for renewal in FY26, with higher transaction fees. For me, that is encouraging evidence of the value customers place on its software.
More ways to grow
Another reason I like Pro Medicus is that its opportunity extends beyond traditional radiology.
The company has been expanding into cardiology, while developing new capabilities in digital pathology and AI-supported reporting.
I think these developments could allow it to provide more services to existing customers while competing for a wider range of healthcare contracts.
Foolish takeaway
I think Pro Medicus remains one of the strongest long-term growth opportunities on the ASX.
Today's contract is another positive development, but I am much more interested in how much larger its business could become over the next decade.
With plenty of room to expand in medical imaging and a growing range of products, I would be happy buying Pro Medicus shares with a long-term view.
