Pro Medicus: New Contract Signed but Within Our Expectations

We maintain our AUD 48 fair value estimate for narrow-moat Pro Medicus. Our constant-currency earnings estimates are unchanged. We expect further contract wins to underpin our forecast five-year earnings per share compound annual growth rate of 21%. The firm announced a contract win with LucidHealth, a US private provider of radiology services, for a total committed minimum value of AUD 40 million over seven years. Planning for the rollout is commencing immediately based on Pro Medicus’ established cloud-based implementation and we assume a nine-month earnings contribution in fiscal 2026. Our broadly unchanged fiscal 2026 EBIT forecast of AUD 222 million implies 44% growth on fiscal 2025.