STERIS plc

(New York Stock Exchange)
Back to all articles
Very Bullish +85

STERIS plc: STERIS Announces Financial Results for Fiscal 2026 Fourth Quarter and Full Year

AI-generated analysis

STERIS plc reported full year fiscal 2026 revenue from continuing operations of $5.9 billion, representing a 9% increase from the prior year.

Constant currency organic revenue growth for the full year fiscal 2026 was 7%, driven by growth in healthcare and applied sterilization technologies segments.

Diluted EPS from continuing operations reached $7.93 on an as-reported basis, while adjusted EPS per diluted share increased to $10.17.

The company announced a new $1 billion share repurchase program approved by the board of directors.

Fourth quarter revenue specifically grew 7% year-over-year to reach $1.6 billion from continuing operations.

Healthcare segment operating income improved due to volume and price gains, though it was partially offset by tariffs and inflation.

Applied Sterilization Technologies (AST) saw a 62% decline in capital equipment revenue, which contrasted with strong service revenue growth of 10%.

Life Sciences revenue increased 9% in the fourth quarter, driven primarily by a 19% surge in capital equipment sales.

Free cash flow for fiscal 2026 rose to $982.9 million, up from $787.2 million in the previous fiscal year.

CEO Dan Carestio described fiscal 2026 as a record year, citing diversified customer base and procedural volume growth as key drivers.

The company provides a full year fiscal 2027 outlook with as-reported revenue expected to rise 7-8% compared to fiscal 2026.

Adjusted earnings per diluted share for fiscal 2027 are projected between $11.10 and $11.30, reflecting growth of 9-11%.

Full Analysis
STERIS plc (NYSE: STE) announced its financial results for the fourth quarter and full year ended March 31, 2026, on May 11, 2026. Full-year fiscal 2026 revenue from continuing operations increased 9% to $5.9 billion compared with $5.5 billion in the prior year, driven by constant currency organic revenue growth of 7%. Reported diluted earnings per share (EPS) grew to $7.93 while adjusted EPS reached $10.17. In the fourth quarter alone, revenue rose 7% to $1.6 billion and adjusted net income increased to $278.3 million. The company's Healthcare segment contributed significantly to this growth with total reported revenue rising 7% in the fourth quarter, fueled by a 9% increase in service revenue and 7% growth in consumables. However, tariff costs and inflation pressured operating margins despite volume improvements. Meanwhile, the Applied Sterilization Technologies segment saw capital equipment revenue drop 62% due to lower volumes, though services grew 10%. The Life Sciences segment remained robust with a 9% revenue increase led by a strong 19% surge in capital equipment sales. Looking ahead, management forecasts fiscal 2027 as reported revenue growth of 7-8%, excluding tuck-in acquisitions which may add to the Healthcare segment. They expect constant currency organic revenue growth of 6-7% and adjusted EPS between $11.10 and $11.30, representing a 9-11% increase over fiscal 2026 results. To return capital to shareholders, the Board approved a new $1 billion share repurchase program. The company also highlighted that free cash flow for fiscal 2026 improved significantly to $982.9 million from $787.2 million in the previous year.