Steris Q1 adjusted profit beats estimates

Steris reported a 9% increase in fiscal Q1 2026 revenue to $1.4 billion, with adjusted EPS beating estimates at $2.34. The company raised its revenue outlook for fiscal 2026, expecting 8-9% growth and $820 million in free cash flow. Healthcare revenue grew 8%, driven by service revenue growth. Analysts maintain a "buy" rating, with a median 12-month price target of $278.00, reflecting a 19.5% upside from the recent closing price of $223.87.

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Overview

Steris fiscal Q1 2026 revenue rises 9% to $1.4 bln
Adjusted EPS for fiscal Q1 beats analyst expectations, per LSEG data
Co raises fiscal 2026 revenue outlook, expecting 8-9% growth

Outlook

Steris expects fiscal 2026 revenue to increase 8-9%
Still sees Adjusted EPS from continuing operations of $9.90 to $10.15
Company anticipates $820 mln free cash flow for fiscal 2026
Steris projects capital expenditures of $375 mln for fiscal 2026
Company sees tariffs reducing pre-tax profit by $45 mln

Result Drivers

FOREIGN CURRENCY - Revenue benefited from favorable foreign currency impacts, expected to continue throughout fiscal yr, per CEO Dan Carestio
HEALTHCARE SEGMENT - Healthcare revenue grew 8%, driven by 13% service revenue growth and improved volume and price
AST SEGMENT - Applied Sterilization Technologies revenue increased 13%, with significant growth in capital equipment revenue

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Beat $2.34 $2.26 (8

Adjusted Analysts

EPS )

Q1 Beat $231.20 $222.20

Adjusted mln mln (5

Net Analysts

Income )

Q1 $1.40

Revenue bln

continui

operatio

Analyst Coverage

The current average analyst rating on the shares is “buy” and the breakdown of recommendations is 7 “strong buy” or “buy”, 2 “hold” and no “sell” or “strong sell”
The average consensus recommendation for the medical equipment, supplies & distribution peer group is “buy”
Wall Street’s median 12-month price target for STERIS plc is $278.00, about 19.5% above its August 5 closing price of $223.87
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)