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RadNet (RDNT) is looking pretty rad to investors today following its Q4 report, as shares trade sharply higher on a return to earnings upside and strong revenue growth. Q4 revenue grew 14.8% yr/yr to $547.7 mln, well above analyst expectations and marking its strongest growth since 3Q23. The company rebounded from a Q3 EPS miss to deliver solid EPS upside in Q4.

• In addition to earnings, RadNet announced the acquisition of Gleamer, a Paris-based radiology AI company, which will be integrated into its wholly owned subsidiary, DeepHealth. The Gleamer deal expands DeepHealth's AI-powered health informatics offerings, making it the largest provider of radiology clinical AI solutions worldwide, serving hospitals, imaging centers, and healthcare systems.
• Imaging volumes continue to rise amid an accelerating global shortage of radiologists, increasing the need for AI solutions in routine imaging such as X-ray, ultrasound, and mammography. The combined AI portfolio supports screening, detection, interpretation, and follow-up across major cancer types, as well as neurodegenerative and musculoskeletal conditions.
• Turning to Q4 results, demand increased across virtually all core markets in Q4, with disproportionately higher growth in advanced imaging, as MR, CT, and PET/CT increased as a percentage of total procedure volume vs last year.
• Growth is also being supported by recent investments in new center openings and tuck-in acquisitions, along with broader implementation of DeepHealth technologies, including Techlive and See-Mode, to drive productivity and automate workflows.
• Looking ahead to 2026, RadNet believes it is well positioned to accelerate Digital Health growth, with the most comprehensive collection of clinical AI services in diagnostic imaging, positioning the company to benefit from industry-wide AI adoption.

Briefing.com Analyst Insight:

RadNet delivered an impressive Q4 highlighted by accelerating top-line growth, margin expansion, and a meaningful strategic acquisition that strengthens its competitive positioning in AI-driven imaging. The Gleamer news appears to be well received by investors, as it enhances DeepHealth's scale and broadens its clinical AI capabilities at a time when radiologist shortages and rising imaging volumes create structural tailwinds. We like the improving procedure mix toward higher-value advanced imaging and the steady margin progression, which reflects better throughput and operating leverage. The company's continued investments in new centers, tuck-in deals, and workflow automation tools should support durable growth. RadNet appears to be positioning itself at the forefront of AI-enabled diagnostic imaging transformation.