STERIS 2026 Q1 Earnings Beats Expectations as Net Income Surges 22.3%

STERIS (STE) reported its fiscal 2026 Q1 earnings on August 7, 2025. The company exceeded expectations with strong revenue and earnings growth. It also raised its full-year guidance, reflecting confidence in continued performance amid inflation and tariff pressures.

Revenue
STERIS reported total revenue of $1.39 billion in Q1 2026, an 8.7% increase compared to $1.28 billion in the prior year. The Healthcare segment led with $974.70 million in revenue, while the AST segment contributed $281.20 million. The Life Sciences segment added $135.20 million, with no revenue attributed to the Corporate segment. Collectively, these figures reflect a broad-based performance across the company’s core operations.

Earnings/Net Income
Earnings per share (EPS) rose 22.4% to $1.80 in Q1 2026, compared to $1.47 in the prior year. Net income also surged to $178 million, a 22.3% increase from $145.50 million in the same period last year. The company noted this marked a record high for Q1 net income, the highest in 11 years. The EPS growth reflects strong operational performance and improved margins.

Price Action
STE shares advanced 4.00% during the latest trading day, 4.30% over the past week, and 1.58% month-to-date.

Post Earnings Price Action Review
A strategy of buying STE after a revenue miss and holding for 30 days yielded a 46.73% return, significantly underperforming the 85.46% benchmark. Despite a 0.00% maximum drawdown, the approach showed a Sharpe ratio of 0.32 and 25.27% volatility, suggesting a conservative yet moderate return profile.

CEO Commentary
STERIS President and CEO Dan Carestio described the quarter as a “strong start to fiscal 2026,” noting performance exceeded expectations. He highlighted improved margins, favorable foreign currency impacts, and growth in service, capital equipment, and consumable revenue across segments. The CEO also credited prior restructuring efforts for supporting the company’s performance.

Guidance
STERIS raised its fiscal 2026 revenue guidance to 8-9% growth, up from a previous range of 6-7%, primarily due to foreign currency benefits. Adjusted EPS is now expected to fall between $9.90 and $10.15, as foreign currency gains offset higher tariffs and employee healthcare costs.

Additional News
On August 8, 2025, a new earnings call transcript highlighted STERIS Q1 2025 results, which saw an earnings beat. While no new revenue or EPS figures were announced, the transcript emphasized continued operational strength and strategic focus. No major M&A activity or C-level changes were disclosed within the three weeks following the earnings report. Additionally, no dividend or buyback announcements were made during this period.