STERIS Announces Financial Results for Fiscal 2026 First Quarter
Total revenue from continuing operations increased 9%; constant currency organic revenue grew 8%
As reported EPS from continuing operations increased to $1.79; adjusted EPS increased to $2.34
Fiscal 2026 revenue and free cash flow outlook updated
DUBLIN, IRELAND, Aug. 06, 2025 (GLOBE NEWSWIRE) -- STERIS plc (NYSE:STE) ("STERIS" or the "Company") today announced financial results for its fiscal 2026 first quarter ended June 30, 2025. Total revenue from continuing operations for the first quarter of fiscal 2026 increased 9% to $1.4 billion compared with $1.3 billion in the first quarter of fiscal 2025. Constant currency organic revenue growth from continuing operations for the first quarter was 8%.
"We are pleased with a strong start to fiscal 2026," said Dan Carestio, President and CEO of STERIS. "Our performance exceeded expectations and margins improved nicely, despite tariff headwinds. Revenue also benefited from favorable foreign currency during the quarter, which we anticipate will continue throughout the fiscal year."
Total Company First Quarter Results from Continuing OperationsAs reported, net income from continuing operations for the first quarter was $177.4 million or $1.79 per diluted share, compared with $139.8 million or $1.41 per diluted share in the first quarter of fiscal 2025. Adjusted net income for the first quarter of fiscal 2026 was $231.2 million or $2.34 per diluted share, compared with the previous year's first quarter of $201.7 million or $2.03 per diluted share.
First Quarter Segment Results from Continuing OperationsHealthcare revenue as reported grew 8% in the first quarter to $974.7 million compared with $901.2 million in the first quarter of fiscal 2025. This performance reflected 13% improvement in service revenue, 6% growth in capital equipment revenue and 5% growth in consumable revenue. Constant currency organic revenue growth was 8% compared to last year's first quarter. Healthcare operating income was $235.5 million compared with $216.9 million in last year's first quarter. The increase in operating income was primarily due to improved volume, price, productivity and the benefit of prior restructuring efforts, which was partially offset by tariffs and inflation.
Fiscal 2026 first quarter revenue for Applied Sterilization Technologies (AST) increased 13% as reported to $281.2 million compared with $249.8 million in the same period last year. This performance reflected 12% growth in service revenue and a 46% increase in capital equipment revenue. Constant currency organic revenue growth was 10% compared to last year's first quarter. Segment operating income was $136.7 million in the first quarter of fiscal 2026, compared with operating income of $117.7 million in the same period last year. The operating income increase compared with the prior year primarily reflects improved price and volume, which more than offset increased energy costs and labor inflation.
Life Sciences first quarter revenue as reported increased 5% to $135.2 million compared with $128.5 million in the first quarter of fiscal 2025. This performance reflected 8% growth in consumable revenue, 3% growth in service revenue, and 1% growth in capital equipment revenue. Constant currency organic revenue increased 4% compared to last year's first quarter. Reflecting improvement in mix, price, and productivity, operating income increased to $58.7 million in the first quarter of fiscal 2026 compared with $52.6 million in the prior year's first quarter.
Cash Flow Net cash provided by operations for the first quarter of fiscal 2026 was $420.0 million, compared with $303.7 million in the first quarter of fiscal 2025. Free cash flow for the first quarter of fiscal 2026 was $326.5 million compared with $195.7 million in the prior year period. The increase in free cash flow during the period was driven primarily by the growth in earnings and improved working capital.
Board Announcements As of STERIS's annual meeting, held July 31, 2025, the Company has announced three changes to the Board. Dr. Jaqueline Kosecoff and Dr. Richard Steeves have retired from the Board. Louis Shapiro, retired President and CEO of the Hospital for Specialty Surgery (HSS) has been elected to the Board.
"We are grateful to have benefitted from the counsel and expertise brought to the Board by Dr. Kosecoff and Dr. Steeves for many years," ...
