Ireland's Steris Q3 revenue rises 9%, adjusted EPS meets expectations

Overview

• Irish healthcare products provider's fiscal Q3 revenue grew 9% yr/yr

• Adjusted EPS met analysts' expectations

• Adjusted net income for fiscal Q3 slightly beat analysts' estimates

Outlook

• Steris expects fiscal 2026 revenue growth of 8-9%

• Company anticipates fiscal 2026 adjusted EPS between $10.15 and $10.30

• Steris projects fiscal 2026 free cash flow of approximately $850 mln

Result Drivers

• COMMERCIAL EXECUTION - CEO Dan Carestio attributed Q3 performance to effective execution by commercial teams and a diversified portfolio

• HEALTHCARE SEGMENT GROWTH - Healthcare revenue grew 9%, driven by service, consumable, and capital equipment revenue growth

• AST REVENUE INCREASE - Applied Sterilization Technologies revenue rose 11%, with notable growth in capital equipment revenue

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "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 $291.00, about 11.2% above its February 3 closing price of $261.67

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nGNX8Hj8s5

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