Pro Medicus Wins A$90m Beth Israel Lahey Deal
Pro Medicus (ASX:PME) has landed another major US contract, signing a seven-year, A$90m deal with Beth Israel Lahey Health, a Boston-based hospital network. The contract will see Pro Medicus roll out its cloud-based Visage 7 imaging platform across 14 hospitals in Massachusetts and New Hampshire, with the system going live in early 2027.
It’s the kind of win that would normally have shareholders cheering. The catch? Pro Medicus shares are still down 56% over the past 12 months while the ASX 200 is up 4%. So the real question for investors today is simple: does this deal finally turn the story around, or is today’s bounce just a brief pause in a longer slide?
- Updated
- INSIDER CONVICTION TRADES FY26
The market hasn't noticed yet.
Disclosed by law. Missed by most investors. 129 trades tracked by us.
NO Credit card
- Director buys & sells tracked
- Buy / Hold / Sell verdict on every stock
- Technical analysis included
What are the Best ASX Stocks to invest in right now?
A Big Customer, A Bigger Signal
Beth Israel Lahey isn’t a small fish. It runs 14 hospitals, employs 39,000 people, and has 4,700 doctors. But the more interesting part is that this is a “full stack” deal, meaning the customer is buying all three of Pro Medicus’s key products, not just one. Each piece adds to recurring revenue and makes the relationship far stickier.
It’s also the latest in a string of massive full-stack US wins that includes the landmark Trinity Health deal (A$330m) and the foundational UCHealth contract (A$170m). Put these together with recent wins like Maryland and Northwestern, and a pattern starts to emerge: Pro Medicus is steadily becoming the go-to cloud imaging provider for large US hospital networks. Operationally, the business is firing.
Then Why Is the Stock Still Down 56%?
Here’s the puzzle. The business itself looks fantastic. In the first half of FY26, revenue jumped 28% to A$124.8m and operating profit grew 30%. Margins are an enormous 73%, better than almost any other ASX tech company.
The honest answer is that Pro Medicus was priced for perfection. At its peak, the share price assumed everything would go right forever. When a stock is priced that high, even strong results can disappoint. The selloff isn’t a sign the company is breaking, it’s the market refusing to keep paying yesterday’s premium for tomorrow’s growth.
One small thing worth flagging: long-serving executive Clayton Hatch has tendered his resignation after 18 years with the company, effective August. Having served as CFO for over a decade before recently transitioning to Head of Business Operations and IR, his departure is notable. On its own, it’s not an immediate red flag, but if more senior names start heading for the exit, that would be worth a second look.
The Investor’s Takeaway for Pro Medicus
Even after the 56% fall, PME isn’t cheap on traditional measures. But it’s far more reasonably priced than 12 months ago, and the business keeps backing itself up with deals like this one.
The bull case is straightforward. Trinity Health rolls out fully in October 2026, while UCHealth Colorado is already coming online, and the contract wins keep rolling in. That should drive a real revenue jump in FY27.
The bear case is also fair. The stock still trades on a premium multiple, and global tech sentiment remains nervous. One good deal won’t fix that overnight.
For long-term growth investors, today’s contract is another tick in the right column. For anyone thinking about buying in fresh, this could shape up as one of the better entry points in years, but expect a few more bumps before the market is willing to fully back this story again.
