STE US S&P 500Russell 1000 Earnings call · transcribed from the recording
Steris (STE) · Q3 2026 results and valuation
Share price: $256.27 · 2026-11-11
Steris provides products and services for healthcare, life sciences, and medical device manufacturing, with a focus on infection prevention and sterile processing. The company supplies consumables, capital equipment, and maintenance services to healthcare providers and pharmaceutical manufacturers globally. It operates in the Americas, Europe, and Asia. Source: 10-K annual report (2026-05-29)
Results Q3 2026 vs Q2 2026 · previous quarter · fiscal Q2 2027 · published 4 Nov 2026 and 6 Aug 2026
Net income up 6.8% on the previous quarter, guidance raised. Management sounded upbeat, though noticeably less so answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+6.8%
Net income vs Q2 2026
Guidance raised
Net income 213.7M vs 200.1M
Revenue +6.4%
2 · How management spoke
Upbeat
More upbeat than 82% of company calls
Answers to analysts: restrained, but clearly less so than the script.
Last call it was different: script and answers matched.
3 · What stood out
Guidance ↑
Steris' fiscal 2027 earnings per diluted share outlook has been increased to $11.35 to $11.55, compared with its prior range of $11.10 to $11.30.
Valuation
Is Steris undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-03-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 9.4% growth a year (3-year revenue growth), the model's fair value is $210.99 a share — the stock trades 21% above it. Today's price assumes 11.9% growth a year.
Current price
$256.27
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+11.9% for 10 yrs
Fair value / share
$210.99
Buy below
$158.25
Price vs fair value
Overvalued 21%
Price vs buy-below price
Overvalued 62%
Read between the lines
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Guidance
In terms of general volume in the U.S., you know, Steris said this before, it expects it to be procedural growth at the lower end of the range...
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Figure
For the second quarter, total as-reported revenue grew 9% to $1.6 billion.
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Dropped
Steris is gaining share in that space, I can assure you, both in the equipment side with the automatic endoscope…
Source quote
“We are gaining share in that space, I can assure you, both in the equipment side with the automatic endoscope... We have about a third of our healthcare franchise is correlated to endoscopy, it's helping us.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 90% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.
Sentences that drove the tone
“Consumables grew 10%, benefiting from increased customer consumption and driven by share gains, procedural growth in endoscopy, and to a lesser extent, a recent acquisition of GI products.”
“Based on the strong first half, we are increasing Life Sciences' constant currency organic growth outlook to 9% to 10% compared with 6% to 7% previously.”
“Margins were a record 44.4 percent, an increase of approximately 310 basis points, reflecting improvement in volume, price, productivity, and favorable mix.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.59B | 1.49B | +6.4% | 1.46B | +8.8% |
| Gross profit | 710.8M | 684.2M | +3.9% | 645.9M | +10.0% |
| Operating income | 294.3M | 285.8M | +3.0% | 265.8M | +10.7% |
| Net income | 213.7M | 200.1M | +6.8% | 191.9M | +11.4% |
| P/E today 31.8 | — | — | — | 35.6 | — |
Topics
Most discussed now
- Any redistribution, retransmission, or rebroadcast of this call without the express written consent of STERIS is strictly prohibited.
- Steris does not expect any material additional tariff refunds during the remainder of fiscal 2027.
- Adjusted gross margin for the quarter was 45.3%, up 100 basis points versus the prior year.
- Underlying margin improvement benefited from favorable price and volume partially offset by inflation and investments in the business…
- Consumables grew 10%, benefiting from increased customer consumption and driven by share gains, procedural growth in endoscopy, and to a...
Faded since Q2 2026
- Dropped In a quarter where Steris doesn't ship a unit, you see a huge change versus prior period if it ships...
- Fading Gross tariff costs, excluding refunds, were $14 million in the first quarter.
- Fading It's going to look and feel like a pharmaceutical clean room.
- Fading Steris is working hard on what's fairly nascent right now, when it has something more material to talk about, it will...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Material agreement; Agreement terminated; New financial obligation · SEC 8-K
- Results of operations; Restructuring costs · SEC 8-K
- Material agreement · SEC 8-K
On October 11, 2026, STERIS Corporation entered into a Purchase and Sale Agreement to acquire all equity interests of Xodus Medical, Inc.
- Shareholder vote results · SEC 8-K · routine
- Results of operations; Restructuring costs · SEC 8-K
STERIS reported first-quarter fiscal 2027 revenue of $1.5 billion, an increase of 7% compared to $1.4 billion in the first quarter of fiscal 2026.
- Results of operations · SEC 8-K
Full-year fiscal 2026 revenue from continuing operations reached $5.9 billion, an increase of 9% compared to $5.5 billion in fiscal 2025.
- Director or officer change; Regulation FD disclosure · SEC 8-K
STERIS plc announced the appointment of Pierre Boulud, the current CEO of bioMérieux, to its Board of Directors effective May 5, 2026.
- Director or officer change · SEC 8-K
STERIS plc amended the Transition Agreement for former Chief Financial Officer Michael J. Tokich on March 31, 2026.