STERIS 2026 Q1 Earnings Strong Performance as Net Income Surges 22.3%

STERIS (STE) reported its fiscal 2026 Q1 earnings on Aug 06th, 2025, delivering results that exceeded expectations. The company beat revenue estimates with an 8.7% year-over-year increase and raised its full-year revenue guidance. STERIS also posted a new 11-year high for Q1 net income, underscoring its strong operational performance amid challenging market conditions.

Revenue for STERIS’s 2026 Q1 reached $1.39 billion, reflecting an 8.7% year-over-year increase from $1.28 billion. The company’s Healthcare segment led the way with $974.70 million in revenue, driven by strong demand for infection prevention and sterilization solutions. The AST segment contributed $281.20 million, while the Life Sciences segment added $135.20 million. The Corporate segment reported $0 in revenue, but the diversified performance across business lines underscored STERIS’s robust market position.

STERIS's earnings growth continued to accelerate, with EPS rising 22.4% year-over-year to $1.80 in 2026 Q1, compared to $1.47 in the prior year. Net income also surged, reaching $178 million, a 22.3% increase from $145.50 million in 2025 Q1. This marked the highest net income for a fiscal Q1 in the company’s 11-year history. The earnings increase highlights STERIS’s ability to improve margins despite ongoing challenges such as inflation and tariffs.

STERIS's stock has seen declining performance in the post-earnings period. Shares have dropped 0.51% in a single trading day, 3.52% over the last full trading week, and 5.19% month-to-date. A post-earnings investment strategy—buying shares on the earnings release date and holding for 30 days—yielded a CAGR of 6.18%, underperforming the benchmark by nearly 30%. Despite a Sharpe ratio of 0.25 and a maximum drawdown of 0%, the strategy produced modest returns, suggesting it is better suited for conservative investors.

STERIS President and CEO Dan Carestio described the quarter as a “strong start to fiscal 2026,” crediting improved volume, pricing, and productivity for the company’s performance. He highlighted the positive impact of favorable foreign currency effects and expressed confidence in the company’s ability to maintain growth despite headwinds. Carestio also recognized the contributions of outgoing board members and welcomed Louis Shapiro to the board, emphasizing his experience in the healthcare sector.

STERIS has raised its full-year revenue growth forecast to 8–9% for continuing operations, up from the previous 6–7% range. This upward revision reflects 200 basis points of favorable foreign currency impact. Constant currency organic revenue growth remains unchanged at 6–7%. For adjusted EPS from continuing operations, the company is projecting a range of $9.90 to $10.15, with higher tariffs and employee healthcare costs expected to offset some of the benefits from currency gains.

On Aug 7, 2025, STERIS announced that Michael J. Tokich, the company’s long-time Chief Financial Officer, will step down after 17 years in the role. Karen L. Burton, currently Vice President and Chief Accounting Officer, will succeed Tokich as Senior Vice President and CFO, effective August 18. Tokich, who joined STERIS in 2000 and became CFO in 2008, oversaw a period of significant growth, including a 22-fold increase in the company’s market capitalization from $1 billion to $22 billion. Burton, who has been with STERIS since 2004 and served as CAO since 2017, brings extensive experience to the CFO role and will also oversee IT functions. CEO Dan Carestio praised Tokich for his leadership and expressed confidence in a smooth transition with Burton, emphasizing her deep knowledge of the company’s financial operations.