Pro Medicus Limited (ASX:PME) continues to defy a weak tech tape, with PME stock edging higher today as investors weigh record FY25 results, fresh US contracts and sky‑high valuations.
Published: November 26, 2025
Note: This article covers Pro Medicus Limited (ASX:PME), the Australian healthcare technology company. It is not about Pingtan Marine Enterprise, the sanctioned Chinese fishing company that previously used the Nasdaq ticker PME.
PME stock price today, November 26, 2025
As of early afternoon trade on Wednesday, Pro Medicus (ASX:PME) is changing hands at around A$262.73 per share, up roughly 1.0% for the day. The stock has traded in a day range of A$259.68 to A$267.37, compared to yesterday’s close of A$260.09. [1]
Over the past 12 months, PME stock has delivered a mid‑teens percentage gain and has moved within a 52‑week range of A$161.64 (low) to A$336.00 (all‑time high set in July 2025). That puts today’s price well above the yearly low but still about 20–25% below the peak, reflecting both strong long‑term performance and a recent de‑rating as growth stocks have sold off. [2]
On current prices, Pro Medicus carries a market capitalisation of roughly A$27–27.5 billion, cementing its status as one of the largest healthcare/tech names on the ASX and ranking inside the top 25 companies on the index. [3]
Where PME sits in today’s volatile tech market
PME is trading higher today against a challenging backdrop for growth stocks. The S&P/ASX 200 Information Technology Index has fallen about 24% from its September peak, officially placing the sector in bear‑market territory. [4]
Despite that sector pressure, PME stock is still up around the mid‑teens over the past year and remains one of the standout long‑term performers on the Australian market. Since the early 2000s, Pro Medicus’ market cap has climbed from roughly A$140 million to over A$27 billion—an increase of more than 19,000%, implying a compound annual growth rate of about 23%. [5]
That kind of performance is why PME is often grouped with Australia’s elite growth names. But it also helps explain why the stock now trades on valuation multiples that are among the richest on the ASX.
What’s moving PME stock right now?
Today’s action in PME is best understood as the market digesting several pieces of bullish company news against a backdrop of concern about lofty valuations.
1. Fresh US contracts worth A$29 million
Just days ago, Pro Medicus announced three new US customer contracts — including Roswell Park Comprehensive Cancer Center and Vancouver Clinic — with a combined minimum value of about A$29 million over multi‑year terms. [6]
These deals:
- Extend Pro Medicus’ footprint in North American hospital and specialty networks
- Lift FY26 total contract value (TCV) for the first half to about A$273 million
- Reinforce the company’s ability to keep winning high‑quality, recurring SaaS‑style imaging contracts [7]
The news saw PME shares jump around 3–3.5% on November 24–25, and the stock is still trading above pre‑announcement levels today. [8]
2. Record FY25 results and a confident AGM tone
On 14 August 2025, Pro Medicus reported record full‑year FY25 results:
- Revenue: A$213.0 million, up about 31.9% year‑on‑year
- Net profit after tax: A$115.2 million, up about 39.2%
- Underlying EBIT: A$157.7 million, with very high margins in the 70%+ range
- New contracts:Seven new deals totalling at least A$520 million, plus two major renewals worth A$130 million [9]
The company highlighted that around 90% of revenue now comes from the US, where it continues to win large hospital and health‑system contracts. [10]
At the 2025 AGM earlier this week, management reiterated that FY25 was “another record year” and emphasised ongoing contract momentum and a strong pipeline heading into FY26, helping underpin sentiment around PME stock today. [11]
3. RSNA 2025 and AI momentum
Pro Medicus’ Visage unit has been active at RSNA 2025, the major radiology conference in Chicago, showcasing AI‑optimised enterprise imaging and cloud‑native workflows. [12]
For investors, this matters because:
- RSNA is where hospitals and radiology groups shop for next‑generation imaging platforms
- Demonstrated AI capabilities strengthen Pro Medicus’ competitive position vs US and European rivals
- Visibility at RSNA often precedes new contract announcements over the following year
This AI narrative is one reason PME still commands a significant premium to traditional medical software peers.
4. On‑market buy‑back support
The company has also been running an on‑market share buy‑back, providing a floor under the stock during bouts of volatility. A recent update confirmed the buy‑back remains in place, albeit used selectively given the high valuation. [13]
Buy‑backs can support earnings per share growth and signal confidence from management, both of which typically help sentiment in high‑growth names like PME.
5. Sector rotation and valuation worries
While company‑specific news is positive, PME is not immune to wider market trends:
- Australian tech shares have entered a bear market, with the main tech index down about 24% from its recent peak. [14]
- Several analysts and commentators have flagged Pro Medicus as “awesome but possibly overvalued”, pointing to valuation multiples rarely seen outside top‑tier global growth stocks. [15]
Today’s modest gain suggests investors are, for now, willing to continue paying up for quality growth — but there is clearly sensitivity to any negative surprises.
Pro Medicus fundamentals: what’s behind PME stock
Business model in brief
Pro Medicus is an Australia‑based healthcare informatics company specialising in:
- Enterprise medical imaging (its flagship Visage 7 platform)
- Radiology information systems (RIS) and workflow tools
- Cloud‑based, high‑speed image viewing and archiving for large hospital systems
It sells primarily to hospitals, imaging centres and health networks in North America, Europe and Australia, increasingly via long‑term, transaction‑based SaaS contracts. [16]
FY25: another step‑change year
Key FY25 takeaways:
- Revenue up ~32% and net profit up ~39%, showing powerful operating leverage as revenue scales faster than costs [17]
- Seven new contracts worth at least A$520m, including:
- A A$330m 10‑year deal with Trinity Health, one of the largest US not‑for‑profit health systems
- Other major multi‑year agreements with leading US health groups
- Two large contract renewals worth A$130m and additional product upgrades adding about A$39m in value [18]
- Cash and financial assets of about A$210.7m at June 30, 2025, with no debt, giving the balance sheet substantial strength. [19]
Put simply, Pro Medicus is high‑margin, cash‑rich and growing quickly, underpinned by a long and growing tail of contracted revenue.
Valuation: why PME trades at a premium
The main debate around PME stock is not about the quality of the business — it’s about how much investors should pay for it.
Based on recent data:
- Market cap: ~A$27.2 billion
- Trailing P/E: around 230–236x
- Forward P/E: ~170x
- EV/EBITDA: ~155–160x as of November 26, 2025 [20]
These are extraordinarily high multiples, even by global software standards, and much higher than the broader ASX tech and healthcare sectors.
However, that premium has persisted because:
- Revenue and profits have been compounding at 30–40% per year
- The company keeps landing large, long‑dated US contracts
- Margins and cash conversion are unusually strong for a relatively small team
Some brokers and commentators argue PME deserves these valuations as a category‑defining leader in enterprise imaging. Others caution that at 150–200x earnings, even small disappointments in growth or margins could trigger sharp corrections. [21]
What are analysts saying about PME stock?
Recent data from one major financial platform shows:
- Consensus rating: skewed towards Buy, with the majority of analysts recommending accumulation
- Average 12‑month price target: around A$326 per share, implying roughly 25% upside from the current price
- Target range runs from about A$290 (cautious) to A$350 (bullish). [22]
At the same time, several analysts have publicly highlighted that PME is one of the most expensive stocks on the ASX on traditional valuation metrics, and some have neutral or even sell ratings purely on valuation grounds, despite liking the business. [23]
Bull vs bear case for PME stock in late 2025
Bull case: why optimists still like PME
Supporters of PME stock tend to emphasise:
- Contract momentum
- Seven major contracts worth at least A$520m in FY25, plus two large renewals, and now another A$29m in US deals early in FY26. [24]
- Deep US penetration
- Around 90% of revenue already comes from North America, yet PME has only tapped a fraction of the US hospital market, leaving a long runway for additional wins. [25]
- Sticky, high‑margin software
- Once a large hospital network adopts Visage as its core imaging platform, switching costs are high. Customers increasingly adopt the “full stack” (viewing, archiving, workflow, and sometimes cardiology imaging), making relationships even stickier. [26]
- AI and cloud tailwinds
- Radiology is at the frontier of medical AI, and Pro Medicus’ cloud‑native architecture positions it well to integrate new AI tools and charge transaction‑based fees over time. [27]
- Strong balance sheet and capital discipline
- With over A$200m in cash, no debt, and a conservative acquisition history, PME has flexibility to invest in R&D, support the buy‑back and potentially increase dividends over time. [28]
Bear case: what could go wrong
Sceptics focus on several risks:
- Valuation risk
- At over 150x EV/EBITDA and 200x+ earnings, PME’s multiple leaves little room for disappointment. A slowdown in growth, a margin squeeze or a single large contract loss could trigger a steep re‑rating. [29]
- Contract concentration
- A relatively small number of very large US customers account for a big share of revenue. Any issue with a flagship client or contract renewal could materially impact the story. [30]
- Competitive pressure
- Global imaging and healthcare IT giants continue to invest heavily in AI‑enabled imaging platforms. Pro Medicus needs to maintain a clear technological edge to keep winning premium contracts at high margins. [31]
- Macro and interest‑rate sensitivity
- Higher discount rates tend to hurt long‑duration, high‑multiple growth stocks the most. If bond yields or risk aversion rise again, PME could see further multiple compression even if the business keeps performing. [32]
- Execution risk at scale
- As the company grows towards and beyond A$30bn in market cap, expectations for continuous, flawless execution only intensify. Any stumble could be punished disproportionately.
Key levels and things to watch
From a market‑watching perspective, investors are eyeing several levels and catalysts:
- Near‑term support: Recent lows in the A$240–250 area may act as a support zone if tech selling resumes. [33]
- Resistance: The A$270–280 range, where the stock traded before the latest slide, is likely to be the first major resistance band on any sustained rebound. [34]
- Macro backdrop: Ongoing volatility in global tech and interest‑rate expectations will influence appetite for richly valued growth names like PME. [35]
Upcoming events and data points include:
- Further detail from the AGM presentation and management commentary as investors digest slides and Q&A. [36]
- How quickly the newly signed A$29m of US contracts ramp into revenue and whether more wins are announced off the back of RSNA 2025. [37]
- The next set of interim FY26 results, currently expected around February 2026, which will show whether Pro Medicus can maintain 30%+ growth off a much larger base. [38]
A quick word on the other PME stock
Because the “PME” ticker has been used by multiple companies, there is occasional confusion:
- Pro Medicus Limited (ASX:PME) – the Australian healthcare imaging software company discussed in this article.
- Pingtan Marine Enterprise Ltd (formerly Nasdaq:PME) – a China‑based fishing company that was sanctioned by the US Treasury’s OFAC, had its Nasdaq listing suspended and subsequently delisted, and now trades thinly on over‑the‑counter markets around US$0.27 per share. [39]
Investors researching PME should double‑check that they’re looking at the correct company and exchange.
Bottom line: Is PME stock attractive today?
At about A$262–263, PME stock sits:
- Well below its July 2025 all‑time high of A$336
- Well above its April low of around A$162
- On valuation multiples that assume years of continued high growth and contract momentum [40]
For growth‑oriented investors who believe Pro Medicus can maintain its current pace of US contract wins, protect margins and ride the AI imaging wave, PME remains a compelling — if expensive — quality story.
For more valuation‑sensitive or risk‑averse investors, the stock’s extreme multiples and sector volatility may be a reason to stay cautious and wait for a better entry point or clearer signs that growth is accelerating enough to justify today’s price.
Important disclaimer
This article is general information only and does not constitute financial advice or a recommendation to buy or sell any security. It does not take into account your objectives, financial situation or needs. Always do your own research and consider speaking with a licensed financial adviser before making investment decisions. Past performance is not a reliable indicator of future results.
References
1. www.intelligentinvestor.com.au, 2. www.tradingview.com, 3. stockanalysis.com, 4. www.fool.com.au, 5. stockanalysis.com, 6. company-announcements.afr.com, 7. company-announcements.afr.com, 8. www.capitalbrief.com, 9. www.promed.com.au, 10. stockhead.com.au, 11. www.listcorp.com, 12. www.gurufocus.com, 13. www.tipranks.com, 14. www.fool.com.au, 15. www.livewiremarkets.com, 16. markets.ft.com, 17. www.promed.com.au, 18. announcements.asx.com.au, 19. www.capitalbrief.com, 20. finance.yahoo.com, 21. www.livewiremarkets.com, 22. www.investing.com, 23. www.livewiremarkets.com, 24. www.sharecafe.com.au, 25. stockhead.com.au, 26. stockhead.com.au, 27. www.gurufocus.com, 28. announcements.asx.com.au, 29. valueinvesting.io, 30. www.sharecafe.com.au, 31. markets.ft.com, 32. finance.yahoo.com, 33. www.investing.com, 34. www.intelligentinvestor.com.au, 35. www.fool.com.au, 36. www.listcorp.com, 37. www.tipranks.com, 38. www.gurufocus.com, 39. ir.nasdaq.com, 40. www.tradingview.com
