It has been about a month since the last earnings report for Steris (STE Quick QuoteSTE - Free Report) . Shares have added about 0.4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Steris due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

STE Q2 Earnings and Revenues Beat Estimates, '26 EPS View Up

STERIS plc (STE Quick QuoteSTE - Free Report) reported second-quarter fiscal 2026 adjusted earnings per share (EPS) of $2.47, up 15.4% from the year-ago quarter’s figure. The figure surpassed the Zacks Consensus Estimate by 3.8%.

The adjustment excludes the impacts of certain non-recurring charges, such as the amortization of acquired intangible assets and acquisition and integration-related charges.

The company’s GAAP EPS was $1.94, up 28.5% from the year-ago level of $1.51.

STE’s Q2 Revenues in Detail

Revenues of $1.46 billion from continuing operations increased 9.8% year over year. The figure surpassed the Zacks Consensus Estimate by 2.3%.

Organic revenues at constant exchange rate or CER rose 9% year over year.

STE’s Quarterly Performance in Detail

The company operates under three segments — Healthcare, Applied Sterilization Technologies (“AST”) and Life Sciences.

Revenues at Healthcare rose 9% year over year to $1.03 billion (up 9% on a CER organic basis). This reflected a 13% improvement in service revenues, 10% growth in consumable revenues and 4% growth in capital equipment revenues. Our model expected Healthcare segment revenues to improve 5.9% in the fiscal second quarter.

Revenues from AST improved 10% to $281.5 million (up 7% on a CER organic basis). This reflected 13% growth in service revenues and a 76% decline in capital equipment revenues. Our model anticipated a 10.8% improvement in the segment’s quarterly revenues.

Revenues from the Life Sciences segment increased 13% to $145 million (up 12% year over year on a CER organic basis). This reflected 39% growth in capital equipment revenues, 9% growth in service revenues and 7% growth in consumable revenues. Our model projected a year-over-year increase of 7.2% for the segment’s revenues.

Margins

The gross profit in the reported quarter was $645.9 million, up 11.6% from the prior-year level. The gross margin expanded 68 basis points (bps) year over year to 44.2% despite an 8.6% increase in the cost of revenues.

STERIS witnessed a 6.2% year-over-year rise in selling, general and administrative expenses. The figure amounted to $349.7 million. Research and development expenses rose 4.4% to $28.2 million. Adjusted operating expenses totaled $377.9 million, up 6.1% year over year. The adjusted operating margin expanded 161 bps to 18.3%.

Financial Details

STERIS exited the second quarter of fiscal 2026 with cash and cash equivalents of $319.2 million compared with $279.7 million at the end of the first quarter. 

Cumulative net cash provided from operating activities at the end of the fiscal second quarter was $707.8 million compared with $554.5 million in the year-ago period. Further, the company has a five-year annualized dividend growth rate of 9.63%.

Guidance

STERIS updated its 2026 organic revenue growth and EPS projection.

It still expects revenues from continuing operations to increase approximately 8-9%. The Zacks Consensus Estimate is pegged at $5.91 billion, implying 8.3% growth from fiscal 2025.

Constant currency organic revenues are now expected to improve approximately 7-8% (earlier 6-7%). 

Adjusted EPS is now expected to be in the range of $10.15-$10.30 (earlier $9.90-$10.15). The Zacks Consensus Estimate for the metric is pegged at $10.07.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in estimates revision.

VGM Scores

At this time, Steris has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Steris has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Steris belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Integra LifeSciences (IART Quick QuoteIART - Free Report) , has gained 20.9% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

Integra reported revenues of $402.06 million in the last reported quarter, representing a year-over-year change of +5.6%. EPS of $0.54 for the same period compares with $0.41 a year ago.

For the current quarter, Integra is expected to post earnings of $0.80 per share, indicating a change of -17.5% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Integra. Also, the stock has a VGM Score of C.