Netcare has seen a significant rise in earnings over the six months ended 31 March 2026, despite recent pressure in the medical schemes landscape.
The group said its performance was underpinned by resilient demand for private healthcare services and the benefits of its digitisation strategy.
The group’s total patient days increased by 0.7% compared to the prior period, comprising an increase in acute PPD and a 3.4% increase in mental health PPD.
Group revenue grew by 4.8% for H1 2026, with the group focusing on operational efficiencies. The group’s normalised profit for the period rose by 7.4% to R1,786 million.
The group’s overall profit for the period rose by 11.9% to R924 million. Earnings per share rose by close to 20% to 70.6 cents per share over the period.
Headline earnings per share (HEPS) also increased by 21.2% to 71.6 cents per share, while the group declared an interim dividend of 44 cents per share, representing 61.4% of adjusted HEPS.
The group also undertook a share buyback over the period, as per its capital allocation strategy
of returning excess cash to shareholders.
The share buyback programme resulted in the acquisition of 21.6 million ordinary shares at an average price of 1,618 cents per share between 1 October 2025 and 31 March 2026.
The group has since purchased an additional 11.1 million ordinary shares, post 31 March 2026, at an average price of 1,723 cents per share.
| Metric (Rm) | Unaudited 6 months ended 31 March 2026 | Unaudited 6 months ended 31 March 2025 | % Change |
| Statement of Profit and Loss | |||
| Revenue | 13 281 | 12 677 | 4.8 |
| EBITDA | 2 501 | 2 347 | 6.6 |
| Operating profit | 1 786 | 1 663 | 7.4 |
| Profit for the period | 924 | 826 | 11.9 |
| Earnings and Dividend per Share (cents) | |||
| Basic earnings per share | 70.6 | 59.3 | 19.1 |
| Diluted earnings per share | 70.4 | 59.1 | 19.1 |
| Headline earnings per share | 71.6 | 59.1 | 21.2 |
| Adjusted headline earnings per share² | 71.7 | 58.8 | 21.9 |
| Interim dividend per share | 44.0 | 36.0 | 22.2 |
Medical schemes
The group has been encouraged by the gradual improvement in certain South African macroeconomic indicators, as well as the confirmation that medical tax credits will increase in line with inflation.
The group said that an increase in medical scheme tax credits will provide for medical scheme members.
“However, from January 2026, certain medical schemes proactively amended benefit structures
and plan designs in the interest of sustainability,” said the group.
This led to in-year variability in volumes within the group’s acute hospital segment.
Medical aids declared huge increases for 2026, placing a major strain on South African households. The increases were as follows:
- Momentum – 9.9%
- Fedhealth 9.6%.
- Bonitas – 8.88%,
- Medihelp – 8.46%,
- Discovery – 7.2%,
- Bestmed – 6.8%
Nevertheless, the group believes that the underlying demand for private healthcare remains resilient, supported by structural drivers such as an ageing insured population and the rising burden of disease.
Given the fluid medical scheme environment, the group has amended its guidance for the rest of the financial year.
For the year, the group expects revenue growth between 4.0% and 4.8%, while acute PPD for FY2026 is expected to grow by between 0.3% and 0.8%. Total PPD is expected to grow between 1.1% and 1.6%.
