Steris Raises Fiscal 2027 Adjusted Earnings Outlook

The Tip Desk · November 5, 2026 · 3 min read

Second-quarter revenue rose 9% to $1.6 billion and Life Sciences sales increased 18% as the company lifted full-year adjusted EPS to $11.35–$11.55.

STERIS plc (STE), a global provider of infection-prevention products and services, reported second-quarter revenue of $1.6 billion, up 9% from $1.5 billion a year earlier, as constant-currency organic growth reached 8% after 6% in the first quarter.

The company raised its fiscal 2027 adjusted earnings outlook, citing stable underlying performance plus the benefit of tariff refunds received year to date. Consolidated revenue growth guidance was left unchanged at 7–8% as reported and 6–7% constant-currency organic. Adjusted earnings per diluted share are now expected at $11.35 to $11.55, up from $11.10 to $11.30, including about $0.18 from tariff refunds received year to date.

As reported, net income attributable to shareholders was $213.7 million, or $2.19 a share, compared with $191.9 million, or $1.94 a share, a year earlier. Adjusted net income was $286.8 million, or $2.94 a share. The pre-tax impact of tariff refunds on as-reported results was a benefit of about $20 million; gross tariff costs were $15 million.

President and CEO Dan Carestio said Life Sciences delivered particularly strong performance and that the company was raising its full-year expectation for the segment. He said the updated outlook reflected stable underlying performance plus the benefit of tariff refunds received year to date, and that fiscal 2027 is shaping up to be another record year.

Life Sciences revenue increased 18% to $170.6 million from $145.0 million a year earlier, after 9% growth in the first quarter. Capital equipment rose 53%, consumables 9% and service 5%. Constant-currency organic growth was 18%. Operating income increased to $75.8 million from $59.9 million. The company said the operating-income increase reflected improvement in price, productivity, volume and favorable mix.

The Life Sciences constant-currency organic revenue growth outlook for fiscal 2027 was raised to 9–10% from 6–7%. Healthcare organic growth guidance remained 6–7%. Applied Sterilization Technologies organic growth guidance was lowered to 6–7% from 7–8%.

Healthcare revenue grew 9% as reported to $1.1 billion, with constant-currency organic growth of 7%. Service and consumables each rose 10% and capital equipment 4%. Healthcare operating income was $269.2 million. The company said the increase was primarily due to improved volume and price, partially offset by inflation, lower productivity and investments.

Applied Sterilization Technologies revenue was $295.6 million, up 5% as reported and 5% constant-currency organic. Service revenue rose 5% and capital equipment fell 21%. Segment operating income was $132.1 million. The company said the increase primarily reflected improved price, partially offset by inflation and increased depreciation.

During the quarter the company approved a separate targeted restructuring plan in addition to the plan announced on August 5, 2026. The additional plan includes targeted facility realignment, product rationalization and select organizational realignment, primarily in Healthcare. Total charges are expected at about $45 million, including about $10 million in cash expenditures and $35 million in non-cash charges; second-quarter charges were about $25 million. The plan is expected to generate annualized savings of about $9 million, with a portion realized in fiscal 2028 and the full benefit in subsequent years.

STERIS said it will provide a revised fiscal 2027 outlook inclusive of the proposed Xodus Medical acquisition after closing.