01—Abstract
Summary
Summary of the 10-K filed May 29, 2026. Cited figures are marked; the original filing is the authoritative source.
STERIS plc (STE) reported fiscal 2026 (year ended March 31, 2026) revenues of $5,935.9 milliona, up $476.4 million, or 8.7%, from $5,459.5 million in fiscal 2025, with growth reflecting higher volume and pricing across all three segments plus favorable foreign currency movements.
Income from operations rose 27.1% to $1,101.8 millionb from $866.6 million, helped by pricing, volume, and lower restructuring and litigation costs, partly offset by inflation and tariffs. Net income attributable to shareholders was $782.3 million, or $7.93 diluted earnings per share from continuing operations ... total diluted EPS of $7.93 versus $6.20 in fiscal 2025. Cash flow from operations was $1,341.4 million and free cash flow was $982.9 million, compared with $787.2 million a year earlier.
The company ended the year with $1,931.7 millionc of total debt, a debt-to-total capital ratio of 21.3% (down from 23.6%), and $439.6 million of cash. It paid $241.8 million in dividends ($2.46 per share, up from $2.23), and repurchased $225.0 million of shares under its Outgoing Repurchase Program during fiscal 2026. On May 5, 2026, the board terminated that program and authorized a new repurchase program of up to $1,000.0 million.
Backlog for capital equipment rose to $490.7 milliond from $452.9 million. Key risks flagged in the filing include tariffs and the USMCA review, the single-sourced supply of ethylene oxide and cobalt-60 used in AST operations, and EO-related litigation, for which the company agreed to pay up to $48.2 million under settlement agreements. The filing also discusses a $50.0 million potential IRS tax liability tied to fiscal 2018 deemed dividend notices, which the company is contesting and for which it has not recorded a reserve.
02—Key points
Key Highlights
- Revenues rose 8.7% to $5,935.9 million, with service revenues up 11.1% to $2,875.8 million and consumable revenues up 7.3% to $1,808.4 million.
- Income from operations increased 27.1% to $1,101.8 million, and gross profit percentage improved to 44.2% from 44.0%.
- Free cash flow reached $982.9 million, up from $787.2 million, on operating cash flow of $1,341.4 million.
- Total debt decreased to $1,931.7 million from $2,043.7 million, and the debt-to-total capital ratio fell to 21.3% from 23.6%.
- Dividends were raised to $2.46 per share from $2.23, and the board authorized a new share repurchase program of up to $1,000.0 million on May 5, 2026.
- Healthcare segment operating income grew to $1,036.4 million, AST to $524.7 million, and Life Sciences to $251.0 million, while the Healthcare operating margin declined to 24.6% from 25.0%.
- The Dental segment was divested in fiscal 2025 for $787.5 million in cash and is presented as discontinued operations.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2026, Steris kept $0.13.
- Revenue$5.94B100.0%
- Cost of revenue−$3.31B55.8%
- Gross profit$2.63B44.2%
- Operating costs−$1.52B25.7%
- Operating income$1.10B18.6%
- Interest, other & tax−$319.5M5.4%
- Net income$782.3M13.2%
Where FY2026 revenue went
$5.94B- Cost of revenue: $3.31B, 56% of revenue
- SG&A: $1.41B, 24% of revenue
- Net income: $782.3M, 13% of revenue
- R&D: $112.9M, 1.9% of revenue
- Interest, other & tax: $319.5M, 5.4% of revenue
Kept 13% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2026filed May 29, 2026Financial Statements
FY2026 against FY2025
| Line item | FY2026FY2025 | Change |
|---|---|---|
| Revenue | $5.94B$5.46B | +8.7% |
| Cost of Revenue | $3.31B$3.06B | +8.3% |
| Gross Profit | $2.63B$2.40B | +9.3% |
| R&D Expenses | $112.90M$107.60M | +4.9% |
| SG&A Expenses | $1.41B$1.33B | +5.5% |
| Operating Expenses | $1.52B$1.54B | −0.7% |
| Operating Income | $1.10B$866.60M | +27.1% |
| Net Income | $782.30M$614.60M | +27.3% |
| EPS (Basic) | $7.97$6.24 | +27.7% |
| EPS (Diluted) | $7.93$6.20 | +27.9% |
| Shares Outstanding (Basic) | 98.20M98.60M | −0.4% |
| Shares Outstanding (Diluted) | 98.70M99.10M | −0.4% |
05—Questions
Frequently Asked Questions
How did STERIS perform financially in fiscal 2026?
Revenues grew 8.7% to $5,935.9 million, and income from operations rose 27.1% to $1,101.8 million. Net income attributable to shareholders was $782.3 million, with diluted earnings per share of $7.93 versus $6.20 in fiscal 2025.
What is the company's financial position and debt profile?
At March 31, 2026, total debt was $1,931.7 million, including $1,350.0 million of Senior Public Notes and $557.8 million of Private Placement Senior Notes, with $37.8 million drawn on a $1,100.0 million revolving credit facility. The debt-to-total capital ratio was 21.3%, and cash and cash equivalents totaled $439.6 million.
How is STERIS returning capital to shareholders?
The company paid $241.8 million in dividends during fiscal 2026 ($2.46 per share) and repurchased $225.0 million of shares under the Outgoing Repurchase Program. On May 5, 2026, the board replaced that program with a new authorization of up to $1,000.0 million.
What legal and tax matters could affect investors?
The company agreed to pay up to approximately $48.2 million to settle substantially all personal injury claims related to ethylene oxide exposure in Illinois, with claims administration ongoing. Separately, the IRS issued notices of deficiency for fiscal and calendar 2018 that would result in a cumulative tax liability of approximately $50.0 million if assessed; STERIS is contesting this and has not recorded a reserve.
What are the main risks flagged for the business?
The filing highlights tariffs and potential changes under the USMCA, supply constraints for single-sourced materials such as ethylene oxide and cobalt-60 used in AST operations, regulatory and product liability exposure, and the effect of geopolitical instability on demand and supply chains.
06—Continue