The earnings call reflects a strong financial performance with significant revenue and earnings growth, record free cash flow, and improved margins in key segments. However, challenges such as a decline in healthcare capital equipment revenue, tariff costs, and legal settlement impacts on cash flow present concerns. Despite these issues, the overall sentiment remains positive due to the outweighing highlights.

Company Guidance -

Q1 2026

During STERIS plc's Fourth Quarter 2025 Conference Call, the company provided a comprehensive update on their financial performance and guidance. For Q4, total revenue grew by 4% and constant currency organic revenue increased by 6%, supported by a 210 basis point price rise. Gross margin improved by 170 basis points to 44.3%, while EBIT margin increased by 110 basis points to 24.8% of revenue. The adjusted effective tax rate was 23.5%, and net income from continuing operations reached $270 million, with adjusted earnings per diluted share at $2.74, a 40% increase over the prior year. Fiscal 2025 saw capital expenditures of $370 million and depreciation and amortization of $476 million. The company reduced its debt to $2 billion, achieving a gross debt to EBITDA ratio of approximately 1.4x. Free cash flow hit a record $787 million, surpassing full-year guidance. Looking ahead to fiscal 2026, STERIS expects revenue growth of 6% to 7%, with adjusted EPS anticipated to be between $9.90 and $10.15, reflecting a 7% to 10% growth despite a $30 million tariff cost.

Revenue and Earnings Growth

Total as reported revenue grew 4%, and constant currency organic revenue grew 6% in the quarter. Adjusted earnings per diluted share from continuing operations was $2.74, a 40% increase over the prior year.

Record Free Cash Flow

Free cash flow for fiscal 2025 was a record $787 million, well above the full-year guidance, driven by significant working capital improvements.

Healthcare Segment Performance

Healthcare constant currency organic revenue grew 6% for the year with margins improving to 25% due to volume, pricing, and productivity.

AST Segment Growth

Constant currency organic revenue for AST grew 9% for the year with 7% growth in services.

Improved Margins in Life Sciences

Margins in Life Sciences increased to 42.3%, a 360 basis point improvement, due to favorable mix, pricing, and divestiture of the CECS business.

Steris (STE) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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STE Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 06, 2025	2026 (Q1)	2.26 / -	2.14	―	―	―
May 14, 2025	2025 (Q4)	2.60 / 2.74	2.41	13.69% (+0.33)	―
Feb 05, 2025	2025 (Q3)	2.32 / 2.32	2.22	4.50% (+0.10)	―
Nov 06, 2024	2025 (Q2)	2.12 / 2.14	2.03	5.42% (+0.11)	―
Aug 06, 2024	2025 (Q1)	1.98 / 2.14	2	7.00% (+0.14)	―
May 08, 2024	2024 (Q4)	2.35 / 2.41	2.3	4.78% (+0.11)	―
Feb 07, 2024	2024 (Q3)	2.17 / 2.22	2.02	9.90% (+0.20)	―
Nov 07, 2023	2024 (Q2)	2.00 / 2.03	1.99	2.01% (+0.04)	―
Aug 01, 2023	2024 (Q1)	1.86 / 2.00	1.9	5.26% (+0.10)	―
May 10, 2023	2023 (Q4)	2.15 / 2.30	2.04	12.75% (+0.26)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

STE Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
May 14, 2025	$226.96	$246.30	+8.52%
Feb 05, 2025	$219.74	$224.33	+2.09%
Nov 06, 2024	$225.81	$213.88	-5.28%
Aug 06, 2024	$236.82	$231.22	-2.36%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.