STERIS Announces Financial Results for Fiscal 2027 First Quarter
Rhea-AI Summary
STERIS (NYSE: STE) reported fiscal 2027 first quarter revenue of $1.5 billion, up 7% year over year, with constant currency organic revenue growth of 6%. As reported diluted EPS rose to $2.04 from $1.79, while adjusted EPS increased to $2.59 from $2.34.
Healthcare revenue grew 8% to $1.05 billion, AST rose 6% to $297.6 million, and Life Sciences increased 9% to $146.7 million. Operating income improved across all segments. Net cash from operations declined to $367.1 million and free cash flow to $279.6 million, mainly due to lower working capital contribution.
STERIS announced a targeted restructuring tied to consolidating formulated chemistries into a new North Carolina Center of Excellence, expecting $55–$70 million pre-tax charges through fiscal 2030 and eventual closure of facilities in Missouri and Minnesota. The company reaffirmed fiscal 2027 guidance for 7–8% reported revenue growth, 6–7% constant currency organic growth, and adjusted EPS of $11.10–$11.30. Capital expenditures are now projected at $450 million and free cash flow at about $800 million.
Positive
- Revenue up 7% to $1.5 billion in Q1 fiscal 2027
- Adjusted EPS up to $2.59 from $2.34 year over year
- Healthcare segment growth: revenue +8% to $1.05 billion
- Life Sciences revenue +9% to $146.7 million in the quarter
- Full-year 2027 guidance reaffirmed for revenue growth and $11.10–$11.30 adjusted EPS
Negative
- Operating cash flow down to $367.1 million from $420.0 million
- Free cash flow decreased to $279.6 million from $326.5 million
- Restructuring charges expected at $55–$70 million through fiscal 2030
- Capital expenditures raised to $450 million; free cash flow outlook cut to ~$800 million
News Explained
The announced restructuring remains an estimate rather than a completed action: STERIS expects
News Market Reaction – STE
In the Aug 6 session, STE declined 0.40%, reflecting a mild negative market reaction. Argus tracked a peak move of +5.4% during that session. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 11 | Fourth-quarter earnings | Positive | +4.5% | Revenue growth, EPS gains, cash flow strength and raised fiscal outlook drove the report. |
| Feb 04 | Third-quarter earnings | Positive | -7.7% | Revenue and EPS growth with maintained outlook preceded a negative 24-hour reaction. |
| Nov 05 | Second-quarter earnings | Positive | +6.9% | Revenue growth, raised guidance and segment performance accompanied the quarterly results. |
| Aug 06 | First-quarter earnings | Positive | +6.8% | Broad segment growth, higher free cash flow and raised revenue expectations supported the release. |
| May 14 | Fourth-quarter earnings | Positive | +8.5% | Full-year revenue growth and fiscal outlook accompanied strong free cash flow generation. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
STERIS's earnings-tag history was predominantly aligned with positive 24-hour reactions, although one prior earnings event diverged with a negative reaction.
Key Terms
constant currency organic revenue financial
adjusted eps financial
free cash flow financial
non-gaap financial measures financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Fiscal 2027 first quarter revenue increased
7% ; constant currency organic revenue growth was6% - Fiscal 2027 first quarter as reported diluted EPS increased to
$2.04 ; adjusted EPS per diluted share increased to$2.59 - Targeted restructuring plan announced associated with new Formulated Chemistries Center of Excellence in North Carolina
DUBLIN, IRELAND, Aug. 05, 2026 (GLOBE NEWSWIRE) -- STERIS plc (NYSE: STE) (“STERIS” or the “Company”) today announced financial results for its fiscal 2027 first quarter ended June 30, 2026. Total revenue for the first quarter of fiscal 2027 increased
“We are pleased with our performance in the first quarter,” said Dan Carestio, President and CEO of STERIS. “Our first quarter results reflected stable underlying demand, while our commercial teams continue to drive meaningful growth within the Healthcare segment. In particular, share gains in consumables and services are fueling our performance, underpinned by solid order growth for capital equipment. Our revenue and earnings expectations for the year are unchanged, as the strength of our portfolio continues to enable us to help our Customers navigate a complex operating environment.”
Total Company First Quarter Results
As reported, net income for the first quarter was
First Quarter Segment Results
Healthcare revenue as reported grew
Fiscal 2027 first quarter revenue for Applied Sterilization Technologies (AST) increased
Life Sciences first quarter revenue as reported increased
Cash Flow
Net cash provided by operations for the first quarter of fiscal 2027 was
Restructuring
STERIS today is also announcing a targeted restructuring plan in connection with its recent announcement to consolidate manufacturing and distribution for formulated chemistries to a new Center of Excellence in North Carolina. The investment is expected to accelerate innovation, expand capacity and optimize our U.S. chemistries manufacturing and distribution network. Once complete, the plan includes the anticipated closure of chemistry manufacturing and distribution facilities in St. Louis, Missouri, and Plymouth, Minnesota. The Company currently expects to incur total pre-tax restructuring charges of approximately
The estimated costs and timing associated with the restructuring actions are based on the Company's current expectations and are subject to various assumptions. Actual results may differ materially from these estimates. Accordingly, the Company may revise its estimates in future periods as implementation activities progress.
Fiscal 2027 Outlook
The Company is reiterating its prior guidance for revenue and earnings for fiscal 2027. This includes as reported revenue growth of 7
Reflecting the recently announced investment to build a formulated chemistries manufacturing Center of Excellence in North Carolina, capital expenditures are now anticipated to be approximately
Conference Call
As previously announced, STERIS management will host a conference call tomorrow, August 6, 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 STERIS plc conference call.
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 9090649 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 gross profit, 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, restructuring charges (credits), and certain other unusual or non-recurring items. STERIS believes these measures are useful because they exclude items that may not be indicative of or are unrelated to our core operating results and provide 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) 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; (b) 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 Associates, Customers, clients or suppliers) being greater than expected and leading to erosion of profit margins; (c) the potential of international unrest, military conflicts, economic downturns, currency fluctuations and cybersecurity events and any resulting effects on STERIS’s anticipated growth, performance or other results; (d) changes in healthcare policy or government or other third-party payor reimbursement levels; (e) 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 EO 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; (f) 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 U.S. resident for U.S. federal tax purposes, or the impact of tariffs and/or other trade barriers as a result of STERIS’s corporate structure; (g) the impacts of increasing consolidation and competition within our industry, which may exert pressure on our pricing strategy, manufacturing strategy or lead to decreasing demand for our products and services; (h) the effects on our operations resulting from labor-related issues, such as strikes, unsuccessful union negotiations and other workforce disruptions or from our inability to recruit or retain management and other personnel; (i) the level of STERIS’s indebtedness limiting financial flexibility or increasing future borrowing costs; (j) 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; (k) 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 due to unknown or inestimable liabilities, impairments, or increases in expected integration costs or difficulties in connection with the integration of acquired businesses; and (l) the possibility that expectations about the benefits, charges and cash expenditures from the new Center of Excellence in North Carolina and the related facility consolidation plan may not be accurate or realized on anticipated timelines, or at all. 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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