Steris Q1 adjusted profit beats estimates

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

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: ID:nGNX5JvFzx