STERIS plc

STE
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$1.5B
Q3 FY2026 · +9.2% YoY
TTM ROIC
11.4%
FY2025 · NOPAT / Net Invested Capital (Adjusted EBIT less normalized taxes; Equity + Debt - Cash) · WACC ~6.4% · Moat spread +5pp

Financial Snapshot


ticker: STE step: 04 generated: 2026-05-13 source: quick-research

STERIS plc (STE) — Financial Snapshot

Income Statement Summary (Fiscal Year ends March 31)

Metric FY2022 FY2023 FY2024 YoY
Revenue ~$4.23B $4.54B $5.14B +13.3%
Gross Margin ~45% ~44% ~44%
Operating Margin ~17% ~16% ~17%
Net Income ~$480M ~$490M ~$550M +12%
EPS (adjusted) ~$7.50 ~$7.90 ~$9.20 +16%

FY2024 revenue jump (+13.3%) reflects bolt-on acquisitions and organic growth. FY2025 (ending March 2025) revenue: $5.5B (+6% organic); dental divestiture ($787.5M proceeds) removed lower-margin segment. FY2025 adjusted EPS estimated ~$9.25+. Note: services revenue +13% in FY2025; consumables +6%; capital equipment -4%.

Cash Flow & Balance Sheet (FY2025)

Metric Value
Operating Cash Flow (FY2025) $1.15B
Free Cash Flow (FY2025) $787M (+27% YoY)
Free Cash Flow (FY2024) $620M
Dental Segment Divestiture $787.5M (completed early FY2025)
Share Buybacks (FY2025) $350.6M completed
Tariff Headwind (FY2026 est.) ~$45M pre-tax impact

Key Ratios (approximate)

  • P/E: ~28x (adjusted) | EV/EBITDA: ~18–20x | FCF Yield: ~3–4%
  • Revenue Growth (FY2025): +6% organic | FCF Growth: +27% YoY
  • Services as % of Revenue: ~55% (highest-quality, most recurring)
  • Consumables Growth (FY2025): +6-7%

Growth Profile

STERIS is a compounding medical device/services platform with predictable mid-to-high single digit organic revenue growth. The business is recession-resistant — hospital sterilization is non-elective and procedure volumes grow with aging demographics. Revenue mix has shifted toward services (sticky, recurring) and away from lumpy capital equipment, improving revenue quality. The Dental divestiture in FY2025 improves EBITDA margin by removing a lower-margin segment. AST (contract sterilization for medical devices) benefits from outsourcing trends as medical device OEMs prefer to use specialized third-party facilities rather than build/maintain their own sterilization infrastructure.

Forward Estimates

  • FY2026 guidance (ending March 2026): Revenue +6-7% (raised to +8-9% including FX benefits); adjusted EPS $9.90-10.15
  • Analyst consensus FY2026 adj. EPS: ~$10.21 (+10.7% YoY)
  • Analyst mean price target: $288.43 (~15% upside from ~$251)
  • Consensus: 6 Strong Buy, 3 Hold (9 analysts covering)

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $STE.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/ste/financials/md · → thesis · → memo