STERIS Announces Financial Results for Fiscal 2026 Third Quarter
Rhea-AI Summary
STERIS (NYSE: STE) reported fiscal 2026 third-quarter continuing‑operations revenue of $1.5 billion, up 9% year‑over‑year, with constant currency organic growth of 8%. As‑reported EPS was $1.96; adjusted EPS was $2.53. Nine‑month free cash flow reached $737.6 million. Fiscal 2026 outlook was maintained, with adjusted EPS guidance of $10.15–$10.30 and revenue growth of 8–9%.
Positive
- Total revenue +9% YoY to $1.5 billion in Q3
- Adjusted EPS +9% YoY to $2.53 in Q3
- Healthcare segment revenue +9% to $1.1 billion
- Nine‑month free cash flow of $737.6 million
- Fiscal 2026 adjusted EPS guidance of $10.15–$10.30
Negative
- Tariffs now estimated to reduce pre‑tax profit by ~$55 million
- Tariff and inflation headwinds partially offset operating gains
- Capital expenditures expected around $375 million, reducing near‑term FCF
Key Figures
Market Reality Check
Peers on Argus
STE traded down 0.97% with elevated volume while key peers were mixed: PHG +1.03%, ZBH +1.51%, SNN +0.75%, PODD -0.77%, DXCM -1.50%. This points to stock-specific positioning rather than a uniform medical devices move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 05 | Q2 FY2026 earnings | Positive | +0.6% | Reported Q2 FY2026 revenue and EPS growth with raised full-year guidance. |
| Aug 06 | Q1 FY2026 earnings | Positive | +6.8% | Strong Q1 FY2026 results across all segments and higher revenue outlook. |
| May 14 | FY2025 results | Positive | +8.5% | Reported FY2025 revenue and EPS growth with solid free cash flow. |
| Feb 05 | Q3 FY2025 earnings | Positive | +2.1% | Q3 FY2025 revenue and earnings growth with updated full-year outlook. |
| Nov 06 | Q2 FY2025 earnings | Positive | -5.3% | Strong Q2 FY2025 results and maintained outlook but shares sold off. |
Earnings releases have generally been received positively, with four of the last five tagged earnings events seeing gains and one notable selloff despite strong results. Average next-day move around earnings was 2.53%, suggesting measured but constructive reactions to financial updates.
Over the past several quarters, STERIS has repeatedly reported solid revenue and earnings growth. Recent earnings events on Nov 06, 2024, Feb 05, 2025, May 14, 2025, Aug 06, 2025, and Nov 05, 2025 highlighted consistent top-line expansion, improving free cash flow, and generally stable or raised guidance. Most of these reports were followed by positive share price reactions, reinforcing a pattern where the market has tended to reward STERIS for delivering steady financial performance and outlook updates.
Historical Comparison
In the past five earnings or results releases, STE moved an average of 2.53% the next day, with most reports greeted positively but one showing a sharp downside reaction.
Earnings updates from FY2025 into FY2026 have shown steady revenue growth, expanding free cash flow, and guidance that has been maintained or raised, indicating a consistent execution narrative around quarterly and annual results.
Market Pulse Summary
This announcement delivered another quarter of steady growth, with revenue rising 9% to $1.5 billion, constant-currency organic growth of 8%, and adjusted EPS of $2.53. Free cash flow reached $737.6 million over nine months, and FY2026 guidance, including adjusted EPS of $10.15–$10.30, was maintained despite higher projected tariff impact. Historically, earnings updates have prompted modest average moves of 2.53%, making future quarters’ growth, margins, and cash generation key metrics to watch.
Key Terms
constant currency financial
AI-generated analysis. Not financial advice.
- Total revenue from continuing operations increased
9% ; constant currency organic revenue grew8% - As reported EPS from continuing operations increased to
$1.96 ; adjusted EPS increased to$2.53 - Fiscal 2026 outlook maintained
DUBLIN, IRELAND, Feb. 04, 2026 (GLOBE NEWSWIRE) -- STERIS plc (NYSE: STE) (“STERIS” or the “Company”) today announced financial results for its fiscal 2026 third quarter ended December 31, 2025. Total revenue from continuing operations for the third quarter of fiscal 2026 increased
“We are pleased with our performance in the third quarter,” said Dan Carestio, President and CEO of STERIS. “Our performance continues to benefit from strong execution by our commercial teams and our diversified portfolio. High single digit revenue growth combined with cost discipline is allowing us to deliver meaningful earnings per share growth despite increased tariff headwinds.”
Total Company Third Quarter Results from Continuing Operations
As reported, net income from continuing operations for the third quarter was
Third Quarter Segment Results from Continuing Operations
Healthcare revenue as reported grew
Fiscal 2026 third quarter revenue for Applied Sterilization Technologies (AST) increased
Life Sciences third quarter revenue as reported increased
Cash Flow
Net cash provided by operations for the first nine months of fiscal 2026 was
Fiscal 2026 Outlook Maintained
For fiscal 2026, the Company expects as reported revenue from continuing operations to increase 8
Capital expenditures are anticipated to be approximately
Conference Call
As previously announced, STERIS management will host a conference call tomorrow, February 5, 2026, at 9:00 a.m. ET. The conference call can be heard at www.steris-ir.com or via phone by dialing 1-833-535-2199 in the United States or 1-412-902-6776 internationally, then asking to join the conference call for STERIS plc.
For those unable to listen to the conference call live, a replay will be available beginning at 12:00 p.m. ET tomorrow either at www.steris-ir.com or via phone. To access the replay of the call, please use the access code 7731965 and dial 1-855-669-9658 in the United States or 1-412-317-0088 internationally.
About STERIS
STERIS is a leading global provider of products and services that support patient care with an emphasis on infection prevention. WE HELP OUR CUSTOMERS CREATE A HEALTHIER AND SAFER WORLD by providing innovative healthcare and life science products and services around the globe. For more information, visit www.steris.com.
Company Contact:
Julie Winter, Vice President, Investor Relations and Corporate Communications
Julie_Winter@steris.com
Non-GAAP Financial Measures
Adjusted net income, adjusted income from operations, free cash flow, adjusted EPS and constant currency organic revenue are non-GAAP measures that may be used from time to time and should not be considered replacements for U.S. GAAP results. Non-GAAP financial measures are presented in this release with the intent of providing greater transparency to supplemental financial information used by management and the Board of Directors in their financial analysis and operational decision making. These amounts are disclosed so that the reader has the same financial data that management uses with the belief that it will assist investors and other readers in making comparisons to our historical operating results and analyzing the underlying performance of our operations for the periods presented. The Company believes that the presentation of these non-GAAP financial measures, when considered along with our U.S. GAAP financial measures, provides a more complete understanding of the factors and trends affecting our business than could be obtained absent this disclosure.
Adjusted net income, adjusted EPS and adjusted income from operations exclude the amortization of intangible assets acquired in business combinations, acquisition and divestiture related transaction costs and gains or losses, integration costs related to acquisitions, tax restructuring costs, and certain other unusual or non-recurring items. STERIS believes this measure is useful because it excludes items that may not be indicative of or are unrelated to our core operating results and provides a baseline for analyzing trends in our underlying businesses.
The Company defines free cash flow as cash flows from operating activities less purchases of property, plant, equipment and intangibles, plus proceeds from the sale of property, plant, equipment, and intangibles. STERIS believes that free cash flow is a useful measure of the Company’s ability to fund future principal debt repayments and growth outside of core operations, pay cash dividends, and repurchase ordinary shares.
To measure the percentage organic revenue growth, the Company removes the impact of significant acquisitions and divestitures that affect the comparability and trends in revenue. To measure the percentage constant currency organic revenue growth, the impact of changes in currency exchange rates and acquisitions and divestitures that affect the comparability and trends in revenue are removed. The impact of changes in currency exchange rates is calculated by translating current year results at prior year average currency exchange rates.
Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for reported sales, gross profit, operating income, net earnings and net earnings per diluted share, the most directly comparable U.S. GAAP financial measures. These non-GAAP financial measures are an additional way of viewing aspects of the Company’s operations that, when viewed with U.S. GAAP results and the reconciliations to corresponding U.S. GAAP financial measures below, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review its financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This release may contain statements concerning certain trends, expectations, forecasts, estimates, or other forward-looking information affecting or relating to STERIS or its industry, products or activities that are intended to qualify for the protections afforded “forward-looking statements” under the Private Securities Litigation Reform Act of 1995 and other laws and regulations. Forward-looking statements speak only as to the date the statement is made and may be identified by the use of forward-looking terms such as “may,” “will,” “expects,” “believes,” “anticipates,” “plans,” “estimates,” “projects,” “targets,” “forecasts,” “outlook,” “impact,” “potential,” “confidence,” “improve,” “optimistic,” “deliver,” “orders,” “backlog,” “comfortable,” “trend,” and “seeks,” or the negative of such terms or other variations on such terms or comparable terminology.
Many factors could cause actual results to differ materially from those in the forward-looking statements including, without limitation, those identified in STERIS’s recent Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. Other potential risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements include, without limitation: (a) operating costs, pressure on pricing (including, without limitation, as a result of inflation), Customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, Customers, clients or suppliers) being greater than expected and leading to erosion of profit margins; (b) STERIS’s ability to successfully integrate acquired businesses into its existing businesses, including unknown or inestimable liabilities, impairments, or increases in expected integration costs or difficulties in connection with the integration of such businesses; (c) changes in tax laws or interpretations or the adoption of certain income tax treaties in jurisdictions where we operate that could increase our consolidated tax liabilities, including changes in tax laws that would result in STERIS being treated as a domestic corporation for United States federal tax purposes, or tariffs and/or other trade barriers; (d) the possibility that compliance with laws, court rulings, certifications, regulations, or other regulatory actions, or the outcome of any pending or threatened litigation, including the ethylene oxide litigation, may delay, limit or prevent new product or service introductions, impact production, supply and/or marketing of existing products or services, result in uncovered costs, or otherwise affect STERIS’s performance, results, prospects or value; (e) the potential of international unrest, including military conflicts, economic downturn and effects of currency fluctuations; (f) the possibility of delays in receipt of orders, order cancellations, or the manufacture or shipment of ordered products; (g) the possibility that anticipated growth, performance or other results may not be achieved, or that timing, execution, impairments, or other issues associated with STERIS’s businesses, industry or initiatives may adversely impact STERIS’s performance, results, prospects or value; (h) the impact on STERIS and its operations of any legislation, regulations or orders, including but not limited to any new trade, regulations or orders, that may be implemented by the U.S. administration or Congress, or of any responses thereto by non-U.S. governments; (i) the possibility that anticipated financial results, anticipated revenue, productivity improvements, cost savings, growth synergies, and other anticipated benefits of acquisitions, restructuring efforts, and divestitures will not be realized or will be less than anticipated; (j) the level of STERIS’s indebtedness limiting financial flexibility or increasing future borrowing costs; (k) the effects of changes in credit availability and pricing, as well as the ability of STERIS and STERIS’s Customers and suppliers to adequately access the credit markets, on favorable terms or at all, when needed; (l) the impacts of increasing competition within our industry, which may exert pressure on our pricing strategy or lead to decreasing demand for our products and services; (m) the effects on our operations resulting from labor-related issues, such as strikes, unsuccessful union negotiations and other workforce disruptions; (n) the possibility of economic downturns and recessions, which could negatively impact our business by reducing consumer and Customer spending. Unless legally required, STERIS does not undertake to update or revise any forward-looking statements even if events make clear that any projected results, express or implied, will not be realized.
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FAQ
What were STERIS (STE) third‑quarter fiscal 2026 revenue and growth rates?
How much did STERIS (STE) report for adjusted EPS in Q3 fiscal 2026?
What guidance did STERIS (STE) give for full fiscal 2026 adjusted EPS and revenue?
How did tariffs and inflation affect STERIS (STE) results and outlook?
What were STERIS (STE) cash flow and capital spending expectations for fiscal 2026?
