01—Abstract
Summary
Summary of the 8-K filed February 4, 2026. Cited figures are marked; the original filing is the authoritative source.
STERIS plc reported fiscal 2026 third-quarter results for the quarter ended December 31, 2025.
Total revenue from continuing operations rose 9% to $1.5 billiona, from $1.4 billion a year earlier, and constant currency organic revenue growth was 8%. Net income from continuing operations attributable to shareholders was $192.9 million, or $1.96 per diluted share, compared with $1.75 per diluted share a year earlier. Adjusted net income was $249.4 million, or $2.53 per diluted share, versus $2.32 in the prior-year quarter.
By segment, Healthcare revenue grew 9% to $1.1 billionb, with operating income of $258.1 million, which the company said reflected improved volume, price, productivity and prior restructuring benefits, partly offset by tariff costs and inflation. Applied Sterilization Technologies (AST) revenue rose 11% to $286.6 million, with segment operating income of $129.2 million, and Life Sciences revenue increased 7% to $145.8 million, with operating income of $61.8 million. For the first nine months of fiscal 2026, free cash flow was $737.6 million, compared with $588.1 million a year earlier.
The company maintained its fiscal 2026 outlook. It expects as-reported revenue from continuing operations to grow 8-9% and adjusted diluted EPS from continuing operations of $10.15 to $10.30c.
Estimated tariff impact on pre-tax profit increased to approximately $55 milliond from approximately $45 million. Capital expenditures are expected to be about $375 million and free cash flow about $850 million.
02—Key points
Key Highlights
- Q3 FY2026 total revenue from continuing operations rose 9% to $1.5 billion; constant currency organic revenue grew 8%.
- As-reported diluted EPS from continuing operations was $1.96 (vs. $1.75); adjusted diluted EPS was $2.53 (vs. $2.32).
- Healthcare revenue grew 9% to $1.1 billion with operating income of $258.1 million; AST revenue rose 11% to $286.6 million, with capital equipment revenue up 103%.
- Life Sciences revenue increased 7% to $145.8 million, with operating income of $61.8 million.
- Nine-month free cash flow was $737.6 million, up from $588.1 million, driven by higher earnings and lower capital spending.
- Fiscal 2026 outlook maintained: revenue growth of 8-9% and adjusted EPS of $10.15 to $10.30; estimated tariff headwind raised to about $55 million from about $45 million.
- Total backlog from continuing operations was $542.3 million, and short-term indebtedness was zero at December 31, 2025, versus $125.0 million at March 31, 2025.
03—Questions
Frequently Asked Questions
How did STERIS perform in the fiscal 2026 third quarter?
Total revenue from continuing operations increased 9% to $1.5 billion, with constant currency organic growth of 8%. As-reported net income from continuing operations attributable to shareholders was $192.9 million, or $1.96 per diluted share, compared with $1.75 a year earlier. Adjusted EPS was $2.53 versus $2.32.
What is the company's outlook for fiscal 2026?
STERIS maintained its outlook: as-reported revenue from continuing operations growth of 8-9%, constant currency organic growth of 7-8%, and adjusted EPS from continuing operations of $10.15 to $10.30. It assumes an effective tax rate of approximately 24%.
How large is the tariff impact on results?
The outlook includes an estimated reduction in pre-tax profit of approximately $55 million from tariffs, up from prior expectations of approximately $45 million.
How did the business segments perform?
Healthcare revenue rose 9% to $1.1 billion, with operating income of $258.1 million. AST revenue increased 11% to $286.6 million, with segment operating income of $129.2 million. Life Sciences revenue grew 7% to $145.8 million, with operating income of $61.8 million.
What are the cash flow and capital expenditure expectations?
Net cash provided by operations for the first nine months of fiscal 2026 was $1.0 billion, and free cash flow was $737.6 million versus $588.1 million a year earlier. For full fiscal 2026, capital expenditures are expected to be about $375 million and free cash flow about $850 million.
04—Continue