Financial Performance - Total revenue from continuing operations for Q2 fiscal 2026 increased 10% to $1.5 billion compared to $1.3 billion in Q2 fiscal 2025[2] - Net income from continuing operations for Q2 was $191.9 million or $1.94 per diluted share, up from $150.2 million or $1.51 per diluted share in the same period last year[3] - Adjusted net income for Q2 fiscal 2026 was $244.5 million or $2.47 per diluted share, compared to $212.2 million or $2.14 per diluted share in Q2 fiscal 2025[3] - Free cash flow for the first half of fiscal 2026 was $527.7 million, up from $344.5 million in the prior year period[8] - Free cash flow for the six months ended September 30, 2025, was $527.7 million, compared to $344.5 million in 2024, indicating a 53.2% increase[27] - The company reported a diluted EPS of $4.81 for the first six months of FY 2026, compared to $4.17 in FY 2025, representing a 15.4% increase[33] Revenue Growth - Healthcare revenue grew 9% to $1,033.8 million, with service revenue up 13%, consumable revenue up 10%, and capital equipment revenue up 4%[4] - Applied Sterilization Technologies (AST) revenue increased 10% to $281.5 million, with service revenue growing 13% and capital equipment revenue declining 76%[5] - Life Sciences revenue increased 13% to $145.0 million, driven by 39% growth in capital equipment revenue[6] - Fiscal 2026 revenue from continuing operations is expected to increase by 8-9%, with constant currency organic revenue growth anticipated at 7-8%[9] - Total revenue for the six months ended September 30 reached $2,851.4 million, with a 9.3% organic growth year-over-year[31] - Total revenues for the second quarter of FY 2026 reached $1,460.3 million, a 9.8% increase from $1,328.9 million in FY 2025[35] - The total backlog for continuing operations increased to $541.3 million in FY 2026 from $480.9 million in FY 2025[35] Cash Flow and Expenditures - Capital expenditures are anticipated to be approximately $375 million, unchanged from prior expectations[10] - Cash flows from operating activities for FY 2026 are projected to be $1,225.0 million[34] Segment Performance - The Healthcare segment generated revenues of $1,033.8 million for the three months ended September 30, 2025, up from $944.2 million in 2024, reflecting a 9.5% increase[25] - Healthcare segment revenue for the three months ended September 30 was $1,033.8 million, representing a 9.5% organic growth compared to the previous year[31] - Life Sciences segment revenue increased to $145.0 million for the three months ended September 30, showing a 13.3% organic growth[31] - The Life Sciences segment showed a revenue increase of 9.3% for the six months ended September 30, reflecting strong market demand[31] Adjusted Earnings and Projections - Adjusted earnings per diluted share for fiscal 2026 are now expected to be in the range of $10.15 to $10.30, up from prior expectations of $9.90 to $10.15[9] - Adjusted diluted EPS for the three months ended September 30 was $2.47, up from $2.14 in the same period last year[32] - The adjusted income tax rate for continuing operations was 24.5% in FY 2026, up from 22.7% in FY 2025[35] Asset and Equity Growth - Total current assets as of September 30, 2025, were $2,106.3 million, an increase from $2,000.8 million as of March 31, 2025[23] - Total assets increased to $10,410.7 million as of September 30, 2025, compared to $10,146.8 million as of March 31, 2025[23] - Total equity as of September 30, 2025, was $7,022.5 million, an increase from $6,615.8 million as of March 31, 2025[23] Operating Income - Operating income for the three months ended September 30, 2025, was $265.8 million, a 20.9% increase from $219.7 million in the same period of 2024[25] - Gross profit for the six months ended September 30, 2025, rose to $1,273.9 million, compared to $1,151.2 million in 2024, reflecting a 10.6% increase[22] - The company experienced a net income attributable to shareholders of $191.9 million for the three months ended September 30, compared to $150.0 million in the previous year[32] Foreign Currency Impact - The company noted a foreign currency impact of $12.7 million on total revenue for the three months ended September 30[31]

Core Insights - STERIS plc reported a 10% increase in total revenue from continuing operations for Q2 fiscal 2026, reaching $1.5 billion compared to $1.3 billion in Q2 fiscal 2025, with a constant currency organic revenue growth of 9% [1][8] - The company experienced improved net income, with reported net income from continuing operations at $191.9 million or $1.94 per diluted share, up from $150.2 million or $1.51 per diluted share in the same quarter last year [2][8] - STERIS has raised its fiscal 2026 outlook, expecting revenue growth of 8-9% and adjusted earnings per diluted share to be in the range of $10.15 to $10.30 [7][9] Financial Performance - Total revenue from continuing operations increased by 10% to $1.5 billion, with healthcare revenue growing by 9% to $1,033.8 million, driven by a 13% rise in service revenue [1][3] - Adjusted net income for Q2 fiscal 2026 was $244.5 million or $2.47 per diluted share, compared to $212.2 million or $2.14 per diluted share in Q2 fiscal 2025 [2][8] - Free cash flow for the first half of fiscal 2026 was $527.7 million, an increase from $344.5 million in the prior year period, attributed to earnings growth and working capital improvements [6][8] Segment Performance - Healthcare segment revenue grew by 9% to $1,033.8 million, with operating income increasing to $259.5 million, reflecting improved volume and productivity [3][8] - Applied Sterilization Technologies (AST) revenue increased by 10% to $281.5 million, with a notable 76% decline in capital equipment revenue [4][8] - Life Sciences segment revenue rose by 13% to $145.0 million, with a 39% increase in capital equipment revenue contributing to the growth [5][8] Outlook - The company anticipates a constant currency organic revenue growth of 7-8% for fiscal 2026, an increase from previous expectations of 6-7% [7][9] - The adjusted earnings per diluted share outlook has been raised to $10.15 to $10.30, reflecting a positive adjustment from prior expectations [7][9] - Capital expenditures are expected to remain at approximately $375 million, with free cash flow now projected at around $850 million, up from previous expectations of $820 million [9]

Core Points - STERIS plc announced a quarterly dividend of $0.63 per share, payable on December 18, 2025, to shareholders of record by November 18, 2025 [1] - The company is a leading global provider of products and services focused on infection prevention and enhancing patient care [2] Company Information - STERIS aims to create a healthier and safer world through innovative healthcare and life science products and services [2] - The company emphasizes its commitment to infection prevention as a core aspect of its operations [2] Contact Information - For investor relations, the contact person is Julie Winter, Vice President, who can be reached at Julie_Winter@steris.com or by phone at 440.392.7245 [3]

Group 1: Upslope Capital Management Performance - Upslope Capital Management reported a strong performance in Q3 2025, achieving a net return of +8.8%, outperforming the S&P Midcap 400 ETF (+5.5%) and HFRX Equity Hedge Index (+3.8%) [1] Group 2: STERIS plc Overview - STERIS plc, headquartered in Dublin, Ireland, specializes in infection prevention products and services, with a market capitalization of $23.73 billion as of October 22, 2025 [2] - The stock of STERIS plc experienced a one-month return of -1.44% but gained 5.91% over the last 52 weeks, closing at $242.37 per share [2] Group 3: STERIS plc Investment Insights - STERIS plc is recognized as a leader in infection prevention and sterilization, with approximately 75% of sales derived from service and consumables, historically achieving high single-digit organic growth [3] - The company's valuation is considered reasonable at 22x 2026 EPS, and it maintains a strong balance sheet with 1x net leverage, presenting opportunities for capital deployment [3] - Long-term growth drivers for STERIS plc include an aging global population and ongoing innovations in healthcare procedures and technology [3] Group 4: Hedge Fund Interest in STERIS plc - STERIS plc was held by 50 hedge fund portfolios at the end of Q2 2025, an increase from 46 in the previous quarter, indicating growing interest among institutional investors [4]

Core Insights - STERIS plc (STE) is set to announce its second-quarter fiscal 2026 results on November 6, with expectations of revenue and EPS growth [1][10] - The company reported adjusted EPS of $2.34 in the last quarter, exceeding the Zacks Consensus Estimate by 0.86% [1] - STE has consistently beaten earnings estimates in three of the last four quarters, with an average surprise of 2.02% [1] Revenue and EPS Estimates - The Zacks Consensus Estimate for revenues is $1.43 billion, reflecting a 7.4% increase year-over-year [2] - The EPS estimate stands at $2.38, indicating an 11.2% year-over-year growth [2] Segment Performance Expectations - Healthcare segment is expected to show robust growth, with a projected revenue increase of 5.9% year-over-year [5] - The Applied Sterilization Technologies (AST) segment is anticipated to see a 10.8% year-over-year revenue growth, driven by stable global MedTech customers and increased bioprocessing demand [6][7] - Life Sciences segment is projected to grow by 7.2% year-over-year, benefiting from strong consumables and services revenue [8] Earnings Surprise Potential - STERIS has an Earnings ESP of 0.00%, indicating a lower likelihood of beating earnings estimates this quarter [11] - The company currently holds a Zacks Rank of 4 (Sell), suggesting caution in investment decisions [11]

Core Insights - STERIS plc is a global leader in infection prevention and sterilization solutions with a market cap of $23.9 billion, providing a diverse range of products and services to healthcare sectors [1] Financial Performance - Analysts expect STERIS to report Q2 earnings of $2.38 per share, reflecting an 11.2% increase from $2.14 per share in the same quarter last year, with the company having consistently met or exceeded Wall Street's estimates in the past four quarters [2] - For fiscal 2026, earnings are projected to be $10.07 per share, a 9.2% increase from $9.22 in fiscal 2025 [3] Stock Performance - STERIS stock has increased by 7.9% over the past 52 weeks, underperforming the S&P 500 Index's 15.1% gain but outperforming the Health Care Select Sector SPDR Fund's 4.1% decline [4] Market Concerns - On September 25, STERIS shares fell by 3% following a national security investigation into medical equipment imports, which could result in new tariffs affecting various medical products, leading to concerns about supply chains and production costs across the healthcare manufacturing sector [5] Analyst Ratings - The consensus opinion on STERIS stock is a "Moderate Buy," with six out of nine analysts recommending a "Strong Buy" and three suggesting a "Hold," indicating a potential upside of 15% based on an average price target of $278.29 [6]

Core Points - STERIS plc will host a conference call to discuss its fiscal 2026 second quarter results on November 6, 2025, at 9:00 a.m. ET [1] - A press release detailing financial results will be issued after the U.S. market closes on November 5, 2025 [2] - A replay of the conference call will be available starting at 12:00 p.m. ET on November 6, 2025 [2] Company Overview - STERIS is a leading global provider of products and services that support patient care, focusing on infection prevention [3] - The company aims to help customers create a healthier and safer world through innovative healthcare and life science products and services [3]

Core Insights - STERIS plc's Healthcare segment is experiencing growth due to successful market adoption of its infection prevention products and capital equipment, with service revenues driving growth in the Applied Sterilization Technologies (AST) segment [2][4] - The company has shown sound financial health, but macroeconomic volatility and currency fluctuations pose concerns for its stock performance [2][10] Financial Performance - In the past year, STERIS shares increased by 4.8%, underperforming the industry growth of 17.8% and the S&P 500's rise of 18.4% [3] - The company has a market capitalization of $21.75 billion and an earnings yield of 4.20%, significantly higher than the industry's -5.82% [3] - For the first quarter of fiscal 2026, Healthcare reported an 8% year-over-year revenue growth, with consumable revenues up by 5% and capital equipment revenues up by 6% [4][8] Segment Analysis - The AST segment achieved a 13% year-over-year revenue growth, driven by a 12% increase in service revenues, with constant currency organic revenues in the low double digits [5][8] - The growth in the AST segment is attributed to bioprocessing demand and stable medical device volumes [5] Solvency and Debt - STERIS ended the first quarter of fiscal 2026 with $279.7 million in cash and cash equivalents, long-term debt of $1.90 billion, and a debt-to-capital ratio of 21.4%, down 2.2% year over year [9][8] Market Concerns - The macroeconomic environment is affecting STERIS' financial operations, with rising healthcare costs and procurement challenges impacting production costs [10][11] - Foreign currency exchange rate fluctuations pose a risk, as nearly 30% of the company's revenues are generated outside the U.S., influenced by geopolitical instability and supply chain disruptions [12] Future Outlook - The Zacks Consensus Estimate for STERIS' fiscal 2026 earnings per share indicates a 9.1% improvement at $10.06, with revenues expected to reach $5.91 billion, suggesting an 8.2% growth from fiscal 2024 [13]

Company Overview - STERIS plc is valued at a market cap of $24.4 billion and is a leading global provider of infection prevention, decontamination, and surgical products and services, primarily serving the healthcare, pharmaceutical, and research industries [1] - The company is headquartered in Dublin, Ireland, and has been operational since 1985, supporting hospitals, laboratories, and pharmaceutical companies with sterilization and surgical solutions [1] Market Position - STERIS is classified as a "large-cap" stock, with a strong base of recurring revenues from consumables, service contracts, and equipment maintenance, providing stability and resilience [2] - The company has a global presence in over 100 countries and maintains a durable competitive edge in highly regulated and growing healthcare markets [2] Stock Performance - STERIS shares recently reached a 52-week high of $253 on September 12, with a 2.8% increase over the past three months, outperforming the iShares U.S. Medical Devices (IHI), which saw a 1.2% dip [3] - Year-to-date, STE shares have gained 20.6%, significantly outpacing IHI's 3.4% increase, and have returned 18% over the past 52 weeks compared to IHI's marginal increase [4] Financial Performance - On August 6, STERIS reported strong Q1 FY2026 results, with revenue rising 9% to $1.39 billion and adjusted EPS improving 15% to $2.34, driven by strength across segments, particularly Applied Sterilization Technologies and Healthcare [5] - The company benefited from margin expansion, firm pricing, and operational efficiencies, leading management to raise its full-year revenue growth outlook to 8–9% from a previous 6–7% and increase its free cash flow forecast to $820 million [5] Competitive Landscape - In contrast, key rival AdaptHealth Corp. (AHCO) has underperformed, with its stock decreasing by 19.3% over the past 52 weeks and a decline of 3.2% year-to-date [6]

Group 1 - STERIS plc (NYSE: STE) reported Q1 FY'26 financial results in the first week of August, highlighting several high-quality takeaways [1] - The business has shown continued growth since the last publication in September 2023, indicating a stable operational performance [1] Group 2 - The company focuses on fundamental value drivers of business economics to identify high-probability long-term investment opportunities [1] - STERIS engages with a diverse range of partners across financial markets, including speculators, hedgers, and long-term traders [1]