Sonic Healthcare shares fall 21% amid outlook concerns

Sonic Healthcare Ltd (ASX: SHL) shares have experienced a significant decline, falling approximately 21% over a two-week period and trading near a decade low of $18.57. This downturn follows a recent period where the company's stock had rebounded 28% from its mid-May lows.

Despite reporting a 13% increase in revenue and an 11% increase in underlying EBITDA to $1.933 billion for FY26, investor sentiment turned negative following the company's August 20 results announcement. While the financial figures were broadly in line with expectations, concerns emerged regarding the company's future outlook and potential margin pressures in international markets.

Specific headwinds identified include regulatory changes in Switzerland and a slower-than-anticipated profit ramp-up from a large UK NHS contract. The company has provided EBITDA guidance in the range of $1.95 billion to $2.03 billion, excluding costs related to its IT transformation program.