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STERIS (STE) investor relations material

STERIS Q2 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2026 earnings summary6 Nov, 2025

Executive summary

  • Second quarter revenue rose 10% year-over-year to $1.5 billion, with constant currency organic revenue up 9% driven by volume and pricing gains across all segments.

  • Adjusted earnings per diluted share increased 15% to $2.47, reflecting strong operational performance and margin expansion.

  • Free cash flow for the first half reached $527.7 million, supported by higher earnings and improved working capital.

  • Net income from continuing operations was $191.9 million for the quarter, up from $150.2 million year-over-year.

  • Income from operations increased to $265.8 million for the quarter, reflecting volume, pricing, and lower restructuring expenses.

Financial highlights

  • Gross margin increased to 44.3% for the quarter, up from 43.6% in the prior year, driven by positive price and productivity.

  • EBIT margin rose to 23.1% of revenue, mainly due to operating expense leverage.

  • Operating income for Q2 FY2026 was $265.8 million, up from $219.7 million in the prior year.

  • Effective tax rate for the quarter was 24.5%, up year-over-year due to discrete item adjustments and geographic mix.

  • Debt-to-total capital ratio decreased to 21.3% at quarter-end from 23.6% at the prior fiscal year-end.

Outlook and guidance

  • Fiscal 2026 as-reported revenue growth expected at 8%-9%, with constant currency organic revenue growth of 7%-8%.

  • Adjusted EPS guidance raised to $10.15-$10.30; EBIT margins expected to improve 10-20 basis points.

  • Free cash flow outlook increased to $850 million for fiscal 2026; CapEx guidance unchanged at $375 million.

  • Tariffs expected to reduce pre-tax profit by $45 million in FY2026.

  • Restructuring actions anticipated to improve operating income by approximately $25 million annually.

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Frequently asked questions

STERIS plc offers sterilization, decontamination, and infection prevention solutions for healthcare, pharmaceutical, and medical device industries. Its products and services include surgical equipment, endoscopy reprocessing, and laboratory sterilization systems. STERIS plc serves hospitals, research laboratories, and pharmaceutical companies globally. The company is headquartered in Dublin, Ireland, and its shares are listed on the NYSE.

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