STERIS Reports 7.3% Revenue Growth to $1.49 Billion in Q1 Fiscal 2027

STERIS plc reported a 7.3% increase in total revenues for the first quarter of fiscal 2027, reaching $1.49 billion compared to $1.39 billion in the same period last year. The growth was driven by higher volumes in the Healthcare and Life Sciences segments, alongside increased pricing across all three business segments. The company's gross profit margin improved to 45.8%, up from 45.1% in the prior year, reflecting favorable pricing and productivity impacts, although partially offset by inflationary pressures.

Operating income for the quarter was $285.8 million, a 16.2% increase from $246.0 million in the previous year. This rise in operating income was attributed to enhanced pricing, volume, and productivity, despite challenges from inflation and increased operational spending. The company’s net income attributable to shareholders also rose to $200.1 million, compared to $177.4 million in the prior year, resulting in a diluted earnings per share of $2.04, up from $1.79.

In terms of strategic developments, STERIS completed three tuck-in acquisitions during the quarter, totaling approximately $17.3 million, aimed at expanding its product and service offerings in the Healthcare segment. The company also announced a new share repurchase program, authorizing the buyback of up to $1 billion in shares, which replaced a previous program. During the quarter, STERIS repurchased 0.5 million shares for $100 million under this new program.

Operationally, STERIS reported a total cash flow from operations of $367.1 million, down from $420.0 million in the same quarter last year, primarily due to a lower contribution from working capital. The company’s debt-to-total capital ratio improved slightly to 20.9% from 21.3% at the end of the previous fiscal year. The company also maintained a strong backlog of $444 million in its Healthcare segment, indicating continued demand for its products and services.

Looking ahead, STERIS anticipates ongoing growth driven by increased demand in the healthcare sector, particularly as the global population ages and the need for advanced medical procedures rises. The company is focused on enhancing its operational efficiency and expanding its market presence through strategic acquisitions and investments in innovation.