STE · 10-Q · 2026Q2 · Full report

Inflation Cost Pressure

STERIS plc · 2026-08-07 · Importance 20 · Surprise 24

Inflation reduced STERIS’s consolidated gross profit percentage by 60 basis points in the three months ended June 30, 2026, partially offsetting pricing, productivity, and mix benefits. Healthcare operating income was also affected by unfavorable labor inflation, while AST faced unfavorable labor inflation and Life Sciences incurred higher materials costs. Management’s reported results indicate that inflationary cost pressure remained an offset to pricing and volume benefits during the first quarter of fiscal 2027.