As reported EPS from continuing operations increased to $1.94; adjusted EPS increased to $2.47
Fiscal 2026 constant currency organic revenue, EPS and free cash flow outlook increased
DUBLIN, IRELAND , Nov. 05, 2025 (GLOBE NEWSWIRE) -- STERIS plc (NYSE:STE) ("STERIS" or the "Company") today announced financial results for its fiscal 2026 second quarter ended September 30, 2025. Total revenue from continuing operations for the second quarter of fiscal 2026 increased 10% to $1.5 billion compared with $1.3 billion in the second quarter of fiscal 2025. Constant currency organic revenue growth from continuing operations for the second quarter was 9%.
"We are pleased with our performance in the second quarter," said Dan Carestio, President and CEO of STERIS. "Our performance exceeded expectations and margins improved nicely, despite several headwinds. As a result, we are increasing our outlook for fiscal 2026."
Total Company Second Quarter Results from Continuing OperationsAs reported, net income from continuing operations for the second quarter was $191.9 million or $1.94 per diluted share, compared with $150.2 million or $1.51 per diluted share in the second quarter of fiscal 2025. Adjusted net income for the second quarter of fiscal 2026 was $244.5 million or $2.47 per diluted share, compared with the previous year's second quarter of $212.2 million or $2.14 per diluted share.
Second Quarter Segment Results from Continuing OperationsHealthcare revenue as reported grew 9% in the second quarter to $1,033.8 million compared with $944.2 million in the second quarter of fiscal 2025. This performance reflected 13% improvement in service revenue, 10% growth in consumable revenue and 4% growth in capital equipment revenue. Constant currency organic revenue growth was 9% compared to last year's second quarter. Healthcare operating income was $259.5 million compared with $228.0 million in last year's second quarter. The increase in operating income was primarily due to improved volume, price, productivity and the benefit of prior restructuring efforts, which were partially offset by tariff costs and inflation.
Fiscal 2026 second quarter revenue for Applied Sterilization Technologies (AST) increased 10% as reported to $281.5 million compared with $256.7 million in the same period last year. This performance reflected 13% growth in service revenue and a 76% decline in capital equipment revenue. Constant currency organic revenue growth was 7% compared to last year's second quarter. Segment operating income was $127.6 million in the second quarter of fiscal 2026, compared with operating income of $109.9 million in the same period last year. The operating income increase compared with the prior year primarily reflects improved price, volume and favorable mix.
Life Sciences second quarter revenue as reported increased 13% to $145.0 million compared with $127.9 million in the second quarter of fiscal 2025. This performance reflected 39% growth in capital equipment revenue, 9% growth in service revenue and 7% growth in consumable revenue. Constant currency organic revenue increased 12% compared to last year's second quarter. Operating income increased to $59.9 million in the second quarter of fiscal 2026 compared with $53.7 million in the prior year's second quarter. The operating income increase compared with the prior year primarily reflects improved volume and price, which more than offset tariff costs and inflation.
Cash Flow Net cash provided by operations for the first half of fiscal 2026 was $707.8 million, compared with $554.4 million in the first half of fiscal 2025. Free cash flow for the first half of fiscal 2026 was $527.7 million compared with $344.5 million in the prior year period. The increase in free cash flow during the period was driven primarily by the growth in earnings and working capital improvements.
Fiscal 2026 Outlook IncreasedFor fiscal 2026, the Company expects as reported revenue from continuing operations to increase 8-9%, unchanged from prior outlook. Expectations for foreign currency impact are reduced to 100 basis points from prior expectations of 200 basis points. Constant currency ...
