STERIS plc · STE · FY2026 Q2 · Calendar Q4 2025
STERIS raises FY2026 outlook as services and backlog support growth
The quarter supports a constructive view of STERIS’s near-term growth trajectory: demand across services, consumables, and capital equipment exceeded expectations, margins improved, and management raised its full-year outlook. The thesis still depends on sustaining service growth, converting backlog, and offsetting tariff and inflation pressure.
Earnings scorecard
Reported versus consensusMarket reaction
event-close to next-session closeAsk FN2 about STE FY2026 Q2
Transcript, numbers and history already loadedFree account. Your question opens in FN2 with this report's transcript and numbers attached.
Transcript intelligence
What changed
Compared with the prior quarter, management moved from maintaining FY2026 guidance to raising revenue, earnings, and free-cash-flow targets. The latest analysis also quantifies tariff pressure and highlights strong Healthcare and Life Sciences capital-equipment backlogs.
Guidance delta
Management raised full-year revenue, earnings, and free-cash-flow targets while keeping capital expenditure around $375 million.
Key takeaways
- Q2 revenue and organic growth exceeded expectations, with strong service growth across AST and Healthcare.
- Pricing and productivity gains helped margins improve despite inflation and tariff pressure.
- Backlog strength and capacity expansion support management’s raised full-year outlook, while execution and cost pressures remain watchpoints.
Management priorities
- Expand AST service capabilities and add capacity over the next two to three years.
- Use pharma reshoring to support capital-equipment sales.
- Maintain capital expenditure near $375 million while pursuing growth initiatives.
Follow STE with an agent that reads every filing, transcript, and price print. Free to start.
Try FN2 freeEarnings History
Analyst 52W Price Targets
Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 2, 2026. Not an FN2 forecast.
Firm-level rating actions
FMP grade actions identify the grading firm, not a named analyst.
| Firm | Rating | Prior rating | Action | Date |
|---|---|---|---|---|
| UBS | Buy | Buy | Maintain | Aug 7, 2026 |
| Piper Sandler | Overweight | Overweight | Maintain | Aug 7, 2026 |
| Keybanc | Overweight | Overweight | Maintain | May 13, 2026 |
| Morgan Stanley | Overweight | Overweight | Maintain | Aug 8, 2025 |
| JMP Securities | Market Outperform | Market Outperform | Maintain | May 16, 2025 |
| Stephens & Co. | Overweight | Overweight | Maintain | May 15, 2025 |
| Needham | Hold | Hold | Maintain | Apr 7, 2025 |
| Baird | Outperform | Outperform | Maintain | Aug 11, 2021 |
| Sidoti & Co. | Buy | Buy | Maintain | Nov 25, 2020 |
| Raymond James | Outperform | Strong Buy | Downgrade | Nov 25, 2020 |
| Griffin Securities | Hold | Buy | Downgrade | Nov 25, 2020 |
| Bank of America | Buy | Buy | Maintain | Nov 25, 2020 |
| B of A Securities | Buy | Buy | Maintain | Mar 15, 2013 |
Named analyst price targets
Upside is calculated against the persisted current price $209.34. FMP does not supply a rating on these named-analyst rows.
| Firm | Analyst | 52W target | Price when posted | Upside | Date |
|---|---|---|---|---|---|
| UBS | Patrick Wood | $275 | $218.4 | +31.4% | Jul 28, 2026 |
| Piper Sandler | Jason Bednar | $270 | $216.18 | +29.0% | May 21, 2026 |
| KeyBanc | Brett Fishbin | $269 | $210.85 | +28.5% | May 13, 2026 |
| Piper Sandler | Jason Bednar | $260 | $221.15 | +24.2% | Oct 24, 2024 |
| KeyBanc | Brett Fishbin | $265 | $241.1 | +26.6% | Sep 3, 2024 |
| Piper Sandler | Jason Bednar | $225 | $225.94 | +7.5% | May 10, 2024 |
| Wolfe Research | Mike Polark | $245 | $216.65 | +17.0% | Apr 4, 2024 |
Track every rating change on STE the moment it posts. Free to start.
Start freeCompany context
Snapshot as of publicationSTERIS plc provides infection prevention products and services in the United States, Ireland, and internationally. The company operates through three segments: Healthcare, Applied Sterilization Technologies, and Life Sciences. It offers a range of products including cleaning chemistries, sterility assurance products, automated endoscope reprocessing systems, surgical tables, lights, and connectivity solutions. It also provides services such as equipment maintenance, instrument repair, and contract sterilization for medical device and pharmaceutical manufacturers.
Historical context
All STE earningsHealthcare peers this season
Latest reports in the same sector| Company | Quarter | EPS surprise | Market move | Headline |
|---|---|---|---|---|
| COO The Cooper Companies, Inc. | FY2026 Q3 · Calendar Q3 2026 | +2.7% | -14.7% | CooperCompanies beats expectations as inventory reduction weighs on vision revenue |
| MDT Medtronic plc | FY2027 Q1 · Calendar Q3 2026 | +4.3% | +1.5% | Medtronic raises FY27 outlook as growth broadens across platforms |
Latest beats and misses
Who reports nextBeat on EPS
- CAGFY2027 Q1 · September 30, 2026+44.4% EPS-4.9% move
- FDSFY2026 Q4 · September 30, 2026+3.9% EPS+3.8% move
- JBLFY2026 Q4 · September 30, 2026+8.1% EPS-10.0% move
- MUFY2026 Q4 · September 30, 2026+5.4% EPS+0.0% move
- CCLFY2026 Q3 · September 29, 2026+5.9% EPS+13.4% move
- COSTFY2026 Q4 · September 24, 2026+3.2% EPS+2.9% move
Get the STE recap when the next report posts
One email per quarter with the scorecard, the market reaction and what changed on the call. No account needed.
Sources
- Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
- FN2 earnings calendar · 2026-07-26T00:36:15.940040+00:00
- Polygon adjusted daily market bars · 2026-10-02T03:26:04.354734+00:00
- Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-02T03:26:04.351751+00:00
Methodology
Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.
Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.
Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.
By FN2 Research · Updated · As of 2026-10-02. For educational purposes only; not investment advice.