EarningsQ4 2026 Earnings Report
MX:STEN Q4 2026 EPS Results
Actual EPS$47.92
Consensus EPS$48.24
Beat/MissMissed by -$0.32
One Year Ago EPS$46.40
MX:STEN Q4 2026 Revenue Results
Actual Revenue$26.90B
Expected Revenue$27.00B
Beat/MissMissed by -$105.22M
YoY Revenue Growth+7.29%
Earnings Announcement Details
QuarterQ4 2026
Date05/11/2026
TimeAfter Close
Conference CallMonday, May 11, 2026
MX:STEN Upcoming Earnings
Steris's next earnings date is estimated for November 11, 2026, based on past reporting schedules.
Q4 2026 Earnings Call Audio
MX:STEN Q4 2026 Earnings Call
0:00 / 0:00
Q4 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q4 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call presents a predominantly positive financial and operational picture: STERIS delivered a record fiscal 2026 with double-digit adjusted EPS growth, exceptional free cash flow (~$983M), stronger leverage (gross debt/EBITDA ~1.2x), and multiple segment milestones (Healthcare, AST, Life Sciences). Management provided constructive FY2027 guidance (7–8% revenue growth, EPS up ~9–11%, modest margin expansion) while continuing shareholder returns (dividend increase, $1B buyback authorization) and strategic investments (manufacturing consolidation, tuck-in M&A, AI for service). Offsetting these positives are tangible near-term headwinds: tariff costs (~$60–65M annual spend with no refunds assumed), higher effective tax rates due to withholding and geographic mix, Q4 margin compression, AST service softness and inventory-led demand variability, and a forecasted reduction in free cash flow for FY2027. Overall, the highlights — record growth, strong cash generation, prudent capital allocation, and constructive guidance — outweigh the lowlights, which are manageable but notable operational and tax/tariff risks.Company Guidance
Record Fiscal 2026 Revenue and Earnings
Total company revenue of approximately $6.0 billion for fiscal 2026, a 9% increase year-over-year (7% constant currency organic 7%? actually 7% constant currency organic for the year was reported earlier; transcript states 9% revenue growth, 7% constant currency organic). Adjusted diluted EPS of $10.17 for FY2026, representing 10% adjusted EPS growth year-over-year.
Strong Fourth Quarter Top-Line
Q4 revenue grew 7% as reported and 5% constant currency organic, driven by volume and 230 basis points of price; Q4 adjusted net income from continuing operations was $278.3 million and adjusted diluted EPS was $2.83 (up 3% versus prior-year quarter).
Exceptional Free Cash Flow and Healthy Balance Sheet
Fiscal 2026 free cash flow was $982.9 million (described as 'exceptional'); year-end total debt of $1.9 billion and gross debt to EBITDA of ~1.2x, well below the target leverage range of 2.0–2.5x.
Margin Resilience Despite Tariffs and Inflation
Total company EBIT margin expanded 10 basis points to 23.3% for fiscal 2026 despite incremental tariff costs (~$46 million) that trimmed margins by ~80 basis points; Q4 EBIT margin was 24.2% (a fiscal 2026 high for the quarter) with gross margin of 44% (down 30 bps versus prior-year quarter).
Segment Milestones and Balanced Growth
Healthcare: FY2026 revenue grew 9% (8% constant currency organic), driven by services (+12%) and consumables (+7%); generated ~$4 billion revenue and ~$1 billion operating income. AST: FY2026 grew 10% (7% constant currency organic) and surpassed $1 billion revenue and $500M+ operating profit. Life Sciences: FY2026 grew 9% (7% constant currency organic) with capital equipment +15% and consumables +8%, and operating profit exceeded $250M.
Capital Allocation and Shareholder Returns
Increased quarterly dividend by $0.06 to $0.63 (20th consecutive year of dividend growth); completed $225 million of share buybacks in FY2026 and Board approved a new $1 billion buyback authorization with expected consistent repurchases of $200–$300 million per year.
Disciplined FY2027 Guidance and Continued Growth Outlook
FY2027 guidance: as-reported revenue growth 7–8%; constant currency organic revenue growth 6–7% (assumes ~200 bps of price). EBIT margin expected to expand ~50 basis points; adjusted EPS guidance $11.10–$11.30 (9–11% growth). Free cash flow expected to be ~$850 million with CapEx ~$375 million.
Strategic Investments and M&A
Completed two tuck-in Healthcare acquisitions expected to add ~ $45 million revenue in FY2027; investing ~$60 million over two years to build a new sterility assurance manufacturing plant in Mentor, OH (operational by end of calendar 2027); initiating multiyear AI-enabled service workflow upgrades to improve quality and productivity.
MX:STEN Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed