STERIS

STERIS is a global provider of products and services that prevent infection, based in Dublin, Ireland. It has three segments. Healthcare sells sterilizers, washers, surgical tables, lights, consumables and service to hospitals and surgery centers, and repairs and reprocesses surgical instruments and endoscopes.

Applied Sterilization Technologies (AST) sterilizes medical devices for their makers in a global network of contract facilities, with gamma, electron beam, X-ray and ethylene oxide methods. Life Sciences sells consumables, equipment and service to pharmaceutical makers. Revenue was $5.9 billion in fiscal 2026, which ended on March 31, 2026, and most of it comes from consumables and services that customers buy again and again.

The market prices STERIS for slower growth in its higher-margin AST business, for tariff costs and for the cost of its new Xodus purchase. AST revenue grew only 5% at constant currency in Q2 fiscal 2027, its capital equipment revenue fell 21%, and STERIS cut its fiscal 2027 AST growth outlook to 6% to 7% from 7% to 8%. Ethylene oxide sterilization faces stricter US environmental rules. Tariffs raise costs in Healthcare.

On October 11, 2026, STERIS agreed to buy Xodus Medical for $2.1 billion in cash, mostly with new debt, for a business with expected 2026 revenue of about $245 million. The rest of the company is strong: in Q2 fiscal 2027, revenue rose 9%, constant currency organic growth was 8%, Life Sciences revenue rose 18% and adjusted EPS rose to $2.94 from $2.47. STERIS raised its fiscal 2027 adjusted EPS guidance to $11.35 to $11.55, which includes about $0.18 per share of tariff refunds. For the gap to close, three things must be true.

STERIS must reach its fiscal 2027 guidance of 6% to 7% constant currency organic growth and adjusted EPS of $11.35 to $11.55. AST growth must speed up as medical device makers increase volumes. The Xodus purchase must close by the end of 2026 and add to growth and margins, as STERIS expects. The close of the Xodus purchase and the Q3 fiscal 2027 report, expected in early February 2027, are the next tests.

The fiscal 2028 outlook in May 2027 is the main test. If these checks pass, the gap can close over the next three to five quarters. The main reason it may not close is a long slowdown in AST demand from medical device makers.

1. Nov 4, 2026Failed

   Q2 fiscal 2027 earnings: AST growthOrganic growth on track for the 6% to 7% guidance and faster AST service growth pass; a cut to the guidance or slower AST growth fails.Outcome: Constant currency organic growth of 8% kept the 6% to 7% guidance on track, but AST service revenue grew only 5% and STERIS cut its fiscal 2027 AST growth outlook to 6% to 7% from 7% to 8%.
2. Dec 31, 2026 · est.Pending

   Xodus purchase closesA close by December 31, 2026, with debt financing on good terms, passes; a delay or a regulatory challenge fails.
3. Feb 4, 2027 · est.Pending

   Q3 fiscal 2027 earnings: AST growth and the Xodus outlookAST constant currency organic growth of 6% or more and a fiscal 2027 outlook with Xodus that keeps the adjusted EPS guidance pass; slower AST growth or a lower outlook fails.

Every passed and failed checkpoint across all picks

• November 4, 2026STERIS reported Q2 fiscal 2027 results. Revenue rose 9% to $1.59 billion, and constant currency organic growth was 8%. Adjusted EPS was $2.94, up from $2.47, with a pre-tax benefit of about $20 million from tariff refunds. Healthcare revenue rose 9%, AST revenue rose 5% and Life Sciences revenue rose 18%. STERIS raised its fiscal 2027 adjusted EPS guidance to $11.35 to $11.55 from $11.10 to $11.30, kept its guidance of 6% to 7% constant currency organic growth, and cut its AST growth outlook to 6% to 7% from 7% to 8%. It also approved a second restructuring plan, with charges of about $45 million.
• November 4, 2026STERIS signed a new $1.6 billion revolving credit facility that ends on November 4, 2031, in place of its $1.1 billion facility. It also signed a delayed draw term loan of up to $500 million, which it can use only for the Xodus purchase.
• October 11, 2026STERIS agreed to buy Xodus Medical, a maker of single-use surgical products such as the Pink Pad patient positioning system, for $2.1 billion in cash, plus up to $150 million based on 2028 targets. STERIS expects Xodus to have 2026 revenue of about $245 million. It will pay mostly with debt and has a $2.0 billion bridge loan commitment. It expects the deal to close by December 31, 2026.

Last earnings

November 4, 2026 (8-K on sec.gov)

Next earnings

Expected about February 4, 2027. The company has not confirmed the date.

• 10-QQuarterly report for the period ended Sep 30, 2026Filed November 5, 2026 · ste-20260930
• 8-KNew material agreement and End of a material agreementFiled November 4, 2026 · Read it on sec.gov
• 8-KEarnings release and Exit or restructuring costsFiled November 4, 2026 · Press release and exhibits
• 8-KNew material agreementFiled October 13, 2026 · Read it on sec.gov
• 10-QQuarterly report for the period ended Jun 30, 2026Filed August 7, 2026 · ste-20260630
• 8-KShareholder vote resultsFiled August 6, 2026 · Read it on sec.gov
• 8-KEarnings release and Exit or restructuring costsFiled August 5, 2026 · Press release and exhibits
• 10-KAnnual report for the period ended Mar 31, 2026Filed May 29, 2026 · ste-20260331
• 8-KEarnings releaseFiled May 11, 2026 · Press release and exhibits
• 8-KChange of directors or officers and Investor disclosureFiled May 7, 2026 · Read it on sec.gov

Every filing on SEC EDGAR (CIK 1757898)

• AST depends on the volumes of medical device makers. AST service revenue grew only 5% in Q2 fiscal 2027, and STERIS cut its AST growth outlook in November 2026. Lower volumes or stricter rules on ethylene oxide emissions can slow growth and raise costs in this high-margin segment.
• The Xodus purchase adds about $2 billion of debt. If Xodus grows more slowly than STERIS expects, the return on the purchase price can be low.
• Tariffs raise the cost of parts and products that STERIS moves across borders, and STERIS may not pass all of these costs to customers.
• Hospital budgets drive sales of capital equipment. Lower hospital spending can delay orders for sterilizers, tables and lights.

At September 30, 2026, STERIS had cash and cash equivalents of $531.1 million and total debt of $1.89 billion: short-term debt of $243.1 million and long-term debt of $1,650.3 million. The debt is mostly senior public notes, such as the 2.700% notes due 2031 and the 3.750% notes due 2051, and private placement senior notes. Read more

Yield at the current rate

1.1% (current annual rate, at today’s price)

Dividend yield

0.8% (last 12 months, at today’s price of $256.27)

Paid per share

$1.95 in the last 12 months (3 payments)

Current annual rate

$2.76 ($0.69 × 4 a year)

Payout ratio

23% of the last fiscal year’s earnings (the year that ended March 31, 2026)

Latest ex-dividend date

September 4, 2026, $0.69 per share

Fewer payments or a raise. The last 12 months paid at least 25% less than the current annual rate. A payment may fall just outside the 12 months, or the company may have raised its dividend.

Dividends per share by year

From 2020 to 2025, the dividend grew by about 2.8% a year. From 2015 to 2025, the dividend grew by about 6.3% a year.

Source: company filings and market data, read on November 13, 2026. The ex-dividend date is the first day a buyer no longer gets the next payment.