STE · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

STERIS plc · 2026-08-07 · Importance 52 · Surprise 56

Income tax expense increased 34.5% to $72.5 million for the three months ended June 30, 2026, from $53.9 million. The effective income tax rate increased to 26.5% from 23.3%, a 3.2-percentage-point increase. The higher fiscal 2027 tax rate was primarily attributable to unfavorable changes in discrete tax items. The tax-rate increase reduced the conversion of higher operating income into net income during the quarter.

Key facts

• Income tax expense for the three months ended June 30, 2026: $72.5 million, compared to $53.9 million for the three months ended June 30, 2025 (34.5% increase); effective income tax rate 26.5% (2026) vs 23.3% (2025). source
• The fiscal 2027 increase in effective tax rate (26.5% vs 23.3%) was primarily due to unfavorable changes in discrete items. source