STE · STERIS plc

STERIS plc delivered strong fiscal 2026 results with full year revenue from continuing operations up 9% to $5.9 billion, driven by 7% constant currency organic growth. Q4 revenue rose 7% to $1.6 billion, with constant currency organic growth of 5%. GAAP diluted EPS increased to $7.93 from $6.16 prior year, while adjusted EPS reached $10.17, up from $9.22, reflecting operational improvements. Segment performance was robust: Healthcare revenue grew 7% with 6% organic growth, supported by 9% service revenue increase; AST revenue up 6% with 2% organic growth despite capital equipment declines; Life Sciences revenue increased 9% with 6% organic growth. Operating income gains across segments stemmed from volume, price improvements, partially offset by tariffs and inflation. CEO Dan Carestio highlighted the diversified customer base and procedure volume growth as key drivers, positioning STERIS to enable customer procedural growth and compliance. Cash flow strengthened significantly, with operating cash flow at $1.34 billion and free cash flow at $982.9 million, despite lower working capital contribution. For fiscal 2027, management guides 7-8% revenue growth (6-7% organic), adjusted EPS of $11.10-$11.30 (9-11% increase), $375 million capex including a $60 million sterility assurance plant in Ohio, and $850 million free cash flow. The Board authorized a new $1 billion share repurchase program, signaling confidence in valuation and commitment to shareholder returns amid robust fundamentals.