Key Stats for RadNet Stock
- Past-Week Performance: +2.3%
- 52-Week Range: $45 to $85.8
- Current Price: $63.6
What Happened?
WHAT HAPPENED
RadNet (RDNT), the largest U.S. outpatient imaging chain, completed a €230 million acquisition of Gleamer on March 2 that made its DeepHealth subsidiary the world’s largest radiology AI provider, serving more than 2,700 customers across 44 countries, while trading at $63.63 near its 52-week low of $45.00.
That same day, RadNet reported record Q4 revenue of $547.7 million, up 14.8% year-over-year, with adjusted EPS of $0.23 beating the $0.20 consensus, as advanced imaging volumes (MRI, CT, and PET/CT, which drive more than 60% of revenue) grew 9.6% on a same-center basis.
DeepHealth’s Digital Health segment, which sells AI-powered radiology workflow tools to hospitals and imaging centers globally, grew revenue 48.2% in Q4 to $27.9 million and exited 2025 with $75.4 million in annual recurring revenue (ARR), a subscription metric that now anchors management’s guide to $140 million ARR by end of 2026.
On February 26, DeepHealth’s TechLive remote MRI scanning technology (which allows a technologist to operate a scanner from offsite, preventing costly schedule closures) received CE Mark for European commercialization, giving the platform a commercial path in Europe ahead of the Gleamer integration.
Mark Stolper, Executive Vice President and Chief Financial Officer, stated at the Barclays Global Healthcare Conference on March 12 that “I can’t remember a time, at least in my 21-year tenure where I’ve been more excited about where the business is today,” anchoring 2026 guidance of 17% to 19% imaging revenue growth and 29% to 41% free cash flow growth.
A minimum of four FDA clearances expected in 2026, a Digital Health revenue target of $135 million to $145 million, and management’s stated goal of reducing RadNet’s internal share of Digital Health revenue from 45% today to below 20% by 2028 position RDNT as an imaging operator actively converting into a scalable AI software business at $63.63.
Wall Street’s Take on RDNT Stock
The Gleamer acquisition closing on March 2, which made DeepHealth the world’s largest radiology AI provider by ARR, directly accelerates RadNet’s Digital Health revenue from $92.7 million in 2025 toward the $135 million to $145 million guided range for 2026.
RadNet’s revenue is projected to grow 19.8% to $2.44 billion in 2026, driven by 17% to 19% imaging center growth from new centers and same-center volume gains, plus Digital Health ARR scaling from $75.4 million to approximately $140 million as Gleamer’s 700-plus customer contracts integrate into the DeepHealth platform.
Meanwhile, its normalized EPS is projected to snap 48.2% from $0.39 in 2025 to $0.58 in 2026 and then 74.7% further to $1.01 in 2027, as Gleamer integration costs absorb and the Digital Health segment scales toward profitability.
Every analyst covering RDNT rates it a buy or outperform, with 6 buys and 2 outperforms and zero holds or sells, anchored to a mean price target of $92.38 that implies 45.2% upside from $63.63, as consensus prices in imaging volume momentum but not yet the full Digital Health ARR re-rating.
The $86.00 bear target anchors to Gleamer integration drag and labor cost headwinds persisting beyond 2026, while the $100.00 bull target prices in the Digital Health ARR reaching $140 million on schedule and at least one new major health system joint venture announced by year-end.
What Does the Valuation Model Say?
The TIKR mid-case target of $195.44 implies 207.2% total return through December 2030 at a 26.4% IRR, built on a 13.5% revenue CAGR and 30.7% EPS CAGR as Gleamer’s 90%-plus ARR growth history and RadNet’s imaging volume shift toward advanced modalities compound across a $5 billion global radiology software market.
The market prices RDNT near its 52-week low of $45.00 range, yet management guided free cash flow of $105 million to $115 million in 2026, a 29% to 41% jump from 2025 levels, funded by EBITDA growth exceeding revenue growth.
DeepHealth’s ARR of $75.4 million exiting 2025, combined with Gleamer’s $30 million ARR contribution and iCAD annualization adding $7 million, builds a $113 million pro forma base before any organic growth, justifying the TIKR model’s $195.44 target and its 13.5% revenue CAGR assumption.
Management’s stated goal of reducing RadNet’s internal share of Digital Health revenue from 45% to below 20% by 2028 confirms this is a software monetization story, not just an imaging operator trading at a depressed multiple.
The primary risk to the TIKR model is Gleamer integration delays; if productivity gains do not reach RadNet centers by the guided Q3 milestone, the EBITDA margin expansion assumption breaks and the 30.7% EPS CAGR compresses materially.
Watch Q1 2026 results for the first reported Digital Health ARR update post-Gleamer close and the same-center advanced imaging volume number, the two metrics that confirm whether the 13.5% revenue CAGR is tracking on schedule.
Should You Invest in RadNet, Inc.?
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