Earnings Call
May 11, 2026
Q1 FY2026
EPS Estimate
2.86
EPS Actual
2.34
Post-Earnings Close
$210.85
Earnings Reaction
+4.5%
STERIS opened fiscal 2026 with a quarter that meaningfully undershot the consensus EPS estimate of $2.86, reporting adjusted EPS from continuing operations of $2.34, a 15% year-over-year improvement but well below expectations. Revenue grew 9% as reported, with constant currency organic growth of 8%, driven by a mix of volume and 230 basis points of price realization. The miss on earnings appears partly structural: the company absorbed approximately $9 million in tariff costs during the quarter, primarily hitting the Healthcare segment, and the adjusted effective tax rate of 23.5% reflected geographic mix headwinds and discrete item changes. Despite the EPS shortfall, the underlying operational picture was notably constructive across all three segments.
Report generated on May 10, 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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