Sonic Healthcare Shares Slide After Missed FY25 Expectations

Highlights:

• Sonic Healthcare Limited (ASX: SHL) shares plunged 13.5% intraday to AU$24.85 at the time of writing after missing FY25 revenue, earnings, and profit forecasts.

• FY26 EBITDA guidance of $1.87 billion–$1.95 billion fell short of market expectations of $1.98 billion, implying NPAT of $583 million.
• Despite guidance suggesting 13% year-on-year NPAT growth, analysts flagged it as a 9% downgrade versus consensus.

Sharp Decline in Share Price

Sonic Healthcare Limited (ASX: SHL) saw its shares tumble in morning trade after the pathology giant reported weaker-than-expected financial results for the 2025 financial year. At midday AEST, shares were down 11.1% to AU$25.54, taking the company’s 12-month losses to 7.9%. At the time of writing, shares were trading at AU$24.85, marking a 13.5% intraday drop.

FY25 Results Disappoint Analysts

Revenue, earnings, and profit all came in below market expectations, leading to a sharp negative reaction from investors. RBC Capital Markets analyst Craig Wong-Pan described the result as “disappointing,” noting that consensus estimates had been set at the upper end of Sonic’s guidance range.

Outlook for FY26

Looking ahead, Sonic Healthcare issued guidance for FY26 EBITDA in the range of $1.87 billion to $1.95 billion, falling short of the market’s average forecast of $1.98 billion. This outlook implies a net profit after tax of around $583 million, which would still represent a 13% year-on-year improvement but is a 9% downgrade compared with analyst estimates.

Market Reaction and Challenges Ahead

The downgrade in earnings expectations and the FY25 shortfall underscore the challenges Sonic Healthcare faces in balancing cost pressures with subdued revenue growth across key divisions. While management highlighted efforts to stabilise operations and position the company for recovery, investors remain cautious given the gap between company guidance and market forecasts. Sonic Healthcare’s latest results highlight both the resilience and risks of the healthcare sector, where operational pressures continue to weigh on market confidence despite modest growth forecasts for the year ahead.

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