STE earnings analysis
What we found in STE's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
STERIS reported $1.4927 billion of revenue and diluted EPS of $2.59, with EPS above the $2.51 consensus estimate but revenue below the $1.5000 billion estimate. The filing excerpt does not provide sufficient income-statement detail to assess gross margin, operating margin, segment trends, balance-sheet changes or free cash flow. Management reported no material change in market-risk exposure since March 31, 2026, while expanding share repurchases through a new $1.000 billion authorization.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- EPS Beat Despite Revenue Miss
- Reported revenue was $1.4927 billion and diluted EPS was $2.59 for the quarter. EPS exceeded the provided consensus estimate of $2.51, while revenue was below the $1.5000 billion estimate.
- Expanded Share Repurchase Capacity
- The company replaced its $500.0 million outgoing repurchase authorization with a new $1.000 billion program on May 5, 2026. It repurchased 0.5 million shares for $100.0 million during the quarter, leaving $900.0 million available at June 30, 2026.
- Market Exposures Remain Managed
- Management stated that market-risk exposures had not changed materially since March 31, 2026. At June 30, 2026, the company held currency forwards covering 48.0 million euros, 7.0 million Australian dollars, 7.0 million New Zealand dollars and 175.0 million Mexican pesos, plus commodity swaps covering 0.5 million pounds of nickel.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Unhedged Accounting Volatility
- The company does not elect hedge accounting for its foreign-currency earnings forwards and warns of volatility from timing mismatches and reporting classification. At June 30, 2026, its hedging portfolio included contracts to sell 48.0 million euros and buy 175.0 million Mexican pesos.
- Raw-Material Cost Exposure
- Management states that raw-material availability and pricing can affect results and that material costs can rise suddenly, increasing production costs. The company held commodity swaps to buy 0.5 million pounds of nickel at June 30, 2026.
- Large Capital Allocation Commitment
- The company committed $100.0 million to repurchases during the first three months of fiscal 2027, while the new program authorizes up to $1.000 billion and had $900.0 million remaining at June 30, 2026. This represents a significant use of capital that could otherwise support liquidity, investment or debt reduction.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.59
What they said about what is next.
The 10-Q does not provide new quantitative revenue or EPS guidance; the prior 10-K outlook was fiscal 2027 revenue growth of 7%-8% and EPS of $11.10-$11.30.
The filing reads about the same as the one before it.
What came before.
- 10-K · May 29, 2026
- STERIS plc reported strong financial performance for the year ended March 31, 2026, with revenues increasing 8.7% to $5.93 billion. The company showed improvements in gross margins and operating income while…
- 10-Q · February 6, 2026
- STERIS plc reported strong Q3 FY2026 results with total revenue of $1.5 billion, reflecting a 9.2% increase compared to the prior year, driven by growth across all segments. Diluted EPS met estimates at $2.53, while…
- 10-Q · November 6, 2025
- STERIS plc reported strong financial results for Q2 FY2026, with revenue increasing by 9.9% to $1.46 billion compared to the prior year. EPS also rose significantly from $1.51 to $2.47, reflecting strong operational…
- 10-Q · August 7, 2025
- STERIS plc reported strong Q1 fiscal 2026 earnings with an 8.7% year-over-year revenue increase to $1.39 billion, exceeding analyst expectations. The company's gross margin improved to 45.1%, reflecting effective…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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