MELBOURNE, March 11, 2026, 10:38 AEDT
Pro Medicus said on Monday its U.S. unit had renewed two five-year imaging software contracts worth at least A$40 million, led by an A$31 million extension with MedStar Health that adds heart-imaging tools. A separate A$9 million renewal covers Long Island-based radiology provider Zwanger-Pesiri. 1
The renewals matter because both were struck at higher per-transaction fees, with room for upside if scan volumes keep growing. They also deepen Pro Medicus’ U.S. footprint and widen the MedStar relationship into cardiology.
The timing gives the deals extra weight. Less than a month ago, the Melbourne-based company posted first-half revenue of A$124.8 million, underlying profit before tax of A$90.7 million and reported net profit of A$171.2 million, helped by an unrealised A$149.1 million gain on its 4D Medical investment. It said it was debt-free with A$221.8 million in cash and other financial assets at end-December. 2
Chief Executive Sam Hupert said the MedStar deal stood out because the health system had been Pro Medicus’ first full cloud deployment, meaning the software ran in remote data centres rather than hospital servers. He said the cardiology addition showed the platform was “fully cloud native”, while Zwanger-Pesiri had now renewed for a third term. 1
Hupert said in a February interview that Pro Medicus had signed seven new deals in the half worth more than A$280 million at minimum levels, and that minimum business already under contract for the next five years had moved above A$1 billion for the first time. He also said cardiology, which handles heart imaging, was starting to draw more hospital requests alongside diagnostic imaging. 3
That makes the MedStar expansion more than a routine rollover. The renewed contract now spans viewer, archive, worklist and cardiology modules, pushing Pro Medicus further beyond radiology — the reading and management of medical scans — into adjacent specialties.
The field is also getting more crowded. GE HealthCare said in November it would buy imaging software company Intelerad for $2.3 billion to deepen its reach in outpatient enterprise imaging, the systems hospitals and clinics use to store, view and share scans across a network. 4
Still, this was renewal business, not a new customer. And because the contracts are transaction-based, growth will still depend in part on how many studies are processed. AI remains another uncertainty for software stocks, though Hupert argued current tools are more likely to help clinicians “play catchup” with heavier workloads than replace radiologists.
Hupert said cloud delivery had helped shorten implementation times, pointing to Trinity Health rollouts completed late last year and again in January. He said the pipeline “continues to be strong” after last year’s RSNA meeting in Chicago, a major radiology conference. Founded in 1983, Pro Medicus has offices in Melbourne, Berlin and San Diego. 3
