STE · 10-Q · 2026Q2 · Full report

Operating Income and Margins

STERIS plc · 2026-08-07 · Importance 45 · Surprise 40 · Matches filing data

Income from operations increased 16.2% to $285.8 million for the first three months of fiscal 2027 from $246.0 million. The improvement was driven primarily by increased pricing, volume, and productivity, partly offset by inflation, operational investments, and staffing. Healthcare operating income increased 10.5% to $260.2 million and its margin expanded to 24.8% from 24.2%, while AST income increased 4.6% to $142.9 million and its margin declined to 48.0% from 48.6%. Life Sciences income increased 5.1% to $61.8 million, but its margin declined to 42.1% from 43.5% because lower productivity and higher materials costs exceeded pricing and volume benefits.

Key facts

• Income from operations before adjustments — total for three months ended June 30, 2026: $354.8 million, compared to $316.9 million for the three months ended June 30, 2025 (12.0% change). source
• Income from operations for the three months ended June 30, 2026: $285.8 million, compared to $246.0 million for the three months ended June 30, 2025. source
• Healthcare segment operating income for the three months ended June 30, 2026: $260.2 million, compared to $235.5 million for the three months ended June 30, 2025 (increase of $24.7 million); Healthcare operating margins 24.8% (2026) and 24.2% (2025). source
• AST segment operating income for the three months ended June 30, 2026: $142.9 million, compared to $136.7 million for the three months ended June 30, 2025 (increase of $6.3 million); AST operating margins 48.0% (2026) and 48.6% (2025). source
• Life Sciences segment operating income for the three months ended June 30, 2026: $61.8 million, compared to $58.7 million for the three months ended June 30, 2025 (increase of $3.0 million); Life Sciences operating margins 42.1% (2026) and 43.5% (2025). source

Impact estimates