01—Abstract
Summary
Summary of the 10-Q filed August 7, 2026. Cited figures are marked; the original filing is the authoritative source.
STERIS plc reported first-quarter fiscal 2027 results for the three months ended June 30, 2026, with revenues rising 7.3% to $1,492.7 milliona from $1,391.1 million, and income from operations increasing to $285.8 million from $246.0 million.
Gross profit percentage improved to 45.8% from 45.1%, driven by pricing, productivity and mix, partly offset by inflation. Net income attributable to shareholders was $200.1 millionb, or $2.04 diluted earnings per share, compared with $177.4 million, or $1.79, a year earlier. Healthcare revenues grew 7.6% to $1,048.3 million, AST grew 5.8% to $297.6 million, and Life Sciences grew 8.6% to $146.7 million.
Cash flow weakened: operating cash flow was $367.1 millionc versus $420.0 million, and free cash flow was $279.6 million versus $326.5 million, which the company attributed to a significantly lower working capital contribution. The company repurchased 0.5 million shares for $100.0 million under a new $1,000.0 million repurchase program authorized May 5, 2026, leaving $900.0 million available. Total debt was $1,893.7 million at June 30, 2026, down from $1,931.7 million at March 31, 2026, and the company stated it was in compliance with all financial covenants.
Subsequent to quarter-end, on August 5, 2026, the company announced a restructuring to consolidate formulated chemistries manufacturing into a new Center of Excellence in North Carolina, with expected pre-tax charges of approximately $55 million to $70 milliond, the majority of which are expected to be cash, and completion anticipated in fiscal 2030. The filing also notes that substantially all payment obligations under the Illinois ethylene oxide settlement have been satisfied as of July 31, 2026.
02—Key points
Key Highlights
- Revenues rose 7.3% to $1,492.7 million, led by Healthcare (up 7.6% to $1,048.3 million) and Life Sciences (up 8.6% to $146.7 million).
- Income from operations increased to $285.8 million from $246.0 million, and gross profit percentage improved to 45.8% from 45.1%.
- Diluted EPS was $2.04 versus $1.79 a year earlier; net income attributable to shareholders was $200.1 million versus $177.4 million.
- Operating cash flow fell to $367.1 million from $420.0 million, and free cash flow declined to $279.6 million from $326.5 million due to a significantly lower working capital contribution.
- The company repurchased $100.0 million of shares under a new $1,000.0 million program adopted May 5, 2026, with $900.0 million remaining available.
- Total debt decreased to $1,893.7 million from $1,931.7 million, and the company repaid its $125.0 million... no; short-term indebtedness rose to $243.4 million while long-term indebtedness fell to $1,650.2 million.
- A new restructuring announced August 5, 2026 is expected to cost approximately $55 million to $70 million in pre-tax charges, with completion anticipated in fiscal 2030.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2027, Steris kept $0.13.
- Revenue$1.49B100.0%
- Cost of revenue−$808.5M54.2%
- Gross profit$684.2M45.8%
- Operating costs−$398.4M26.7%
- Operating income$285.8M19.1%
- Interest, other & tax−$85.7M5.7%
- Net income$200.1M13.4%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2027filed August 7, 2026Financial Statements
Q1 FY2027 against Q1 FY2026
| Line item | Q1 FY2027Q1 FY2026 | Change |
|---|---|---|
| Revenue | $1.49B$1.39B | +7.3% |
| Cost of Revenue | $808.60M$763.10M | +6.0% |
| Gross Profit | $684.20M$628.00M | +8.9% |
| R&D Expenses | $28.60M$26.40M | +8.3% |
| SG&A Expenses | $369.70M$353.80M | +4.5% |
| Operating Expenses | $398.30M$382.00M | +4.3% |
| Operating Income | $285.80M$246.00M | +16.2% |
| Net Income | $200.10M$177.40M | +12.8% |
| EPS (Basic) | $2.05$1.80 | +13.9% |
| EPS (Diluted) | $2.04$1.79 | +14.0% |
| Shares Outstanding (Basic) | 97.60M98.40M | −0.8% |
| Shares Outstanding (Diluted) | 97.90M98.80M | −0.9% |
05—Questions
Frequently Asked Questions
How did STERIS perform in the first quarter of fiscal 2027?
Revenues increased 7.3% to $1,492.7 million, and income from operations rose to $285.8 million from $246.0 million. Growth reflected higher volume in Healthcare and Life Sciences and pricing across all three segments, while inflation partly offset gains.
Why did cash flow decline compared with the prior year?
Operating cash flow was $367.1 million versus $420.0 million, and free cash flow was $279.6 million versus $326.5 million. The company attributed the decline to a significantly lower contribution from working capital, partially offset by higher net income.
What is the status of share repurchases and capital returns?
The company repurchased 0.5 million shares for $100.0 million under its New Repurchase Program, leaving $900.0 million available. It paid cash dividends of $0.63 per share totaling $61.4 million during the quarter.
What new restructuring has the company announced?
On August 5, 2026, STERIS announced a plan to consolidate formulated chemistries manufacturing and distribution into a Center of Excellence in North Carolina, closing facilities in St. Louis, Missouri and Plymouth, Minnesota. Expected pre-tax charges are approximately $55 million to $70 million, comprising about $40 million to $50 million of cash costs and $15 million to $20 million of non-cash charges, with completion anticipated in fiscal 2030.
Are there material legal or tax contingencies to note?
The company's Illinois ethylene oxide settlement, which covered up to $48.2 million, has had substantially all payment obligations satisfied as of July 31, 2026. Separately, the IRS issued Notices of Deficiency with a potential cumulative tax liability of approximately $50.0 million excluding interest and penalties, which the company is contesting in U.S. Tax Court; no reserves have been established.
06—Continue