Earnings Call
Aug 5, 2026
Q2 FY2026
EPS Estimate
2.49
EPS Actual
2.47
Post-Earnings Close
$231.78
Earnings Reaction
-0.4%
STERIS posted a solid fiscal second quarter, with constant currency organic revenue growth of 9% and adjusted EPS of $2.47, a 15% year-over-year increase that came in just shy of the $2.49 consensus estimate. Gross margin expanded 60 basis points to 44.3%, and EBIT margin improved 90 basis points to 23.1%, with operating expense leverage the primary driver. Free cash flow of $527.7 million in the first half alone is a standout figure, already well ahead of typical seasonal patterns and reflecting both earnings pull-forward and faster working capital collections. Management raised full-year guidance across revenue, earnings, and free cash flow, signaling confidence in the underlying business trajectory despite a roughly $12 million pretax tariff headwind in the quarter.
Report generated on Aug 4, 2026
AI-generated earnings analysis. Not investment advice.
Chief Executive Officer
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
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