What changed in the fiscal 2026 outlook?

Constant currency organic revenue growth from continuing operations is now expected at 7-8%, up from 6-7%. Adjusted EPS from continuing operations is now expected at $10.15 to $10.30, up from $9.90 to $10.15. Free cash flow is now expected to be approximately $850 million, up from $820 million. Reported revenue growth of 8-9% and capital expenditures of approximately $375 million are unchanged.

Which segments drove growth, and where were there weak spots?

Healthcare revenue rose 9% to $1,033.8 million, and Life Sciences revenue rose 13% to $145.0 million, with capital equipment up 39%. AST revenue rose 10% to $281.5 million, but its capital equipment revenue declined 76%, while its service revenue increased 13%.

What headwinds does the outlook include?

The outlook includes a negative impact from tariffs estimated to reduce pre-tax profit by approximately $45 million, unchanged from the prior outlook. The effective tax rate assumption is approximately 24%, up from the prior expectation of approximately 23.5%.

How strong is the company's cash generation and balance sheet?

Net cash provided by operations for the first half of fiscal 2026 was $707.8 million, and free cash flow was $527.7 million, up from $344.5 million. Cash and cash equivalents were $319.2 million at September 30, 2025, up from $171.7 million at March 31, 2025. Short-term indebtedness was zero, down from $125.0 million, and long-term indebtedness was $1,897.3 million.

STE 8-K: Earnings & Results

Q: How did STERIS perform in the fiscal 2026 second quarter?

Revenue from continuing operations increased 10% to $1,460.3 million, and constant currency organic revenue grew 9%. Income from continuing operations attributable to shareholders was $191.9 million, or $1.94 per diluted share, compared with $1.51 a year earlier. Adjusted EPS was $2.47 versus $2.14.

01—Abstract

Summary

Summary of the 8-K filed November 5, 2025. Cited figures are marked; the original filing is the authoritative source.

STERIS plc reported results for its fiscal 2026 second quarter ended September 30, 2025, in a press release furnished as Exhibit 99.1 to this Form 8-K.

Total revenue from continuing operations rose 10% to $1,460.3 million^a from $1,328.9 million a year earlier, and constant currency organic revenue grew 9%. Income from continuing operations attributable to shareholders was $191.9 million, or $1.94 per diluted share, compared with $1.51 a year earlier. Adjusted EPS was $2.47 versus $2.14, and adjusted net income was $244.5 million versus $212.2 million.

Management said performance exceeded expectations and margins improved despite several headwinds, including tariffs and inflation. All three segments grew revenue. Healthcare revenue rose 9% to $1,033.8 million^b, with service revenue up 13% and capital equipment up 4%.

Applied Sterilization Technologies (AST) revenue rose 10% to $281.5 million^c, though capital equipment revenue fell 76%. Life Sciences revenue rose 13% to $145.0 million, with capital equipment revenue up 39%. Total segment operating income was not stated as a single figure, but Healthcare, AST and Life Sciences operating income were $259.5 million, $127.6 million and $59.9 million, respectively.

Consolidated income from operations was $265.8 million^d versus $219.7 million. Free cash flow for the first half of fiscal 2026 was $527.7 million, compared with $344.5 million a year earlier. STERIS raised several fiscal 2026 targets.

Constant currency organic revenue growth from continuing operations is now expected at 7-8%, up from 6-7%, and adjusted EPS from continuing operations is now expected at $10.15 to $10.30, up from $9.90 to $10.15. Reported revenue growth of 8-9% is unchanged, and free cash flow is now expected to be approximately $850 million, up from $820 million. The outlook includes an estimated $45 million pre-tax tariff headwind, unchanged from the prior outlook.

02—Key points

Key Highlights

Revenue from continuing operations rose 10% to $1,460.3 million, with constant currency organic growth of 9%.
Diluted EPS from continuing operations was $1.94 versus $1.51 a year earlier; adjusted EPS was $2.47 versus $2.14.
Healthcare revenue grew 9% to $1,033.8 million, led by a 13% increase in service revenue; Healthcare operating income rose to $259.5 million from $228.0 million.
Life Sciences revenue grew 13% to $145.0 million, with capital equipment revenue up 39%; AST revenue grew 10% to $281.5 million, though its capital equipment revenue fell 76%.
First-half free cash flow was $527.7 million versus $344.5 million, driven by earnings growth and working capital improvements.
The fiscal 2026 adjusted EPS outlook was raised to $10.15-$10.30 from $9.90-$10.15, and the constant currency organic revenue outlook was raised to 7-8% from 6-7%.
Free cash flow for fiscal 2026 is now expected to be approximately $850 million, up from $820 million; the estimated tariff impact of about $45 million on pre-tax profit is unchanged.

03—Questions

Frequently Asked Questions

How did STERIS perform in the fiscal 2026 second quarter?
Revenue from continuing operations increased 10% to $1,460.3 million, and constant currency organic revenue grew 9%. Income from continuing operations attributable to shareholders was $191.9 million, or $1.94 per diluted share, compared with $1.51 a year earlier. Adjusted EPS was $2.47 versus $2.14.
What changed in the fiscal 2026 outlook?
Constant currency organic revenue growth from continuing operations is now expected at 7-8%, up from 6-7%. Adjusted EPS from continuing operations is now expected at $10.15 to $10.30, up from $9.90 to $10.15. Free cash flow is now expected to be approximately $850 million, up from $820 million. Reported revenue growth of 8-9% and capital expenditures of approximately $375 million are unchanged.
Which segments drove growth, and where were there weak spots?
Healthcare revenue rose 9% to $1,033.8 million, and Life Sciences revenue rose 13% to $145.0 million, with capital equipment up 39%. AST revenue rose 10% to $281.5 million, but its capital equipment revenue declined 76%, while its service revenue increased 13%.
What headwinds does the outlook include?
The outlook includes a negative impact from tariffs estimated to reduce pre-tax profit by approximately $45 million, unchanged from the prior outlook. The effective tax rate assumption is approximately 24%, up from the prior expectation of approximately 23.5%.
How strong is the company's cash generation and balance sheet?
Net cash provided by operations for the first half of fiscal 2026 was $707.8 million, and free cash flow was $527.7 million, up from $344.5 million. Cash and cash equivalents were $319.2 million at September 30, 2025, up from $171.7 million at March 31, 2025. Short-term indebtedness was zero, down from $125.0 million, and long-term indebtedness was $1,897.3 million.

04—Continue

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