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Why Are Sonic Healthcare Shares Rising on Solid FY26 Performance?

Source: Kapitales Research

Highlights:

  • Strong financial performance: Revenue rose 17% to AU$5.45 billion while net profit climbed 11%.
  • Guidance maintained: The company reaffirmed FY26 EBITDA targets, signalling confidence in growth.
  • Dividend boost: Interim dividend lifted to 45 cents, reflecting stable cash generation.

Shares Rally as Earnings Beat Expectations

Sonic Healthcare Limited (ASX: SHL), a global provider of pathology and diagnostic services, delivered a solid first-half FY26 performance that helped lift investor sentiment, with the share price trading near AU$24.12 at the time of writing after a strong daily gain. The healthcare group reported steady revenue growth and improved profitability, reinforcing its position during a busy ASX reporting season. The update has already been widely covered across market platforms, with analysts pointing to the company’s strong operational execution and maintained guidance as key drivers behind the positive market reaction.

Revenue Growth and Cost Discipline Support Margins

At the time of writing, Sonic Healthcare reported revenue of AU$5.45 billion, up 17%, while EBITDA reached AU$907 million and net profit rose to AU$262 million. Earnings per share increased to 53.1 cents, supported by disciplined cost control and ongoing operational efficiencies across global divisions.

The company highlighted strong performance in Germany and Australia, alongside continued expansion in its radiology and clinical services segments. However, restructuring costs and slower organic growth in the United States remained a challenge, with management launching initiatives aimed at boosting profitability and expanding advanced diagnostics offerings.

Outlook: Can FY26 Momentum Hold?

Looking ahead, Sonic Healthcare maintained its full-year FY26 EBITDA guidance, targeting between AU$1.87 billion and AU$1.95 billion on a constant currency basis. The company also increased its interim dividend to 45 cents, reflecting confidence in cash flow strength and long-term strategy. While growth conditions vary across regions, Sonic’s diversified global footprint, focus on organic expansion and ongoing efficiency initiatives suggest the company remains well-positioned to deliver sustainable performance — keeping investors focused on whether earnings momentum can continue into the second half of FY26.

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