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STE · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is STERIS plc (STE) stock moving?
STERIS reported fiscal Q2 2027 results on Nov 4 that beat consensus on both lines: adjusted EPS of $2.94 vs $2.68 expected and sales of $1.589B vs $1.562B. Revenue grew 9% to $1.6B, with 8% constant-currency organic growth and Life Sciences described as particularly strong. Management raised FY2027 adjusted EPS guidance to $11.35-$11.55 (estimate $11.18), but cut GAAP EPS guidance to $8.92-$9.12 (estimate $9.06) and reported a sales guidance range that Benzinga framed as lower. Tariff refunds added roughly $20M pre-tax to the quarter, so part of the beat is non-recurring. Analysts responded with higher targets, including KeyBanc at $284 and UBS at $290 from $270, both with positive ratings. The stock rose from $231.35 on Nov 3 to $247.91 on Nov 4 (+7.2%) on heavy volume of 1.38M shares, then reached an intraday high of $259.25 on Nov 5 on 1.65M shares. It closed at $257.12 on Nov 10, near that high, so the post-earnings move already reflects much of the good news. Other items are routine: a new $1.6B revolving credit facility (Nov 4), a mixed shelf registration (Nov 6), a $0.69 quarterly dividend payable in December, and the Xodus Medical acquisition agreed on Oct 11. The shelf filing leaves room for future share or debt issuance, and the guidance mix leaves some doubt about top-line momentum.
News behind the analysis
- Keybanc Maintains Overweight on Steris, Raises Price Target to $284KeyBanc kept its Overweight rating on STERIS and raised its price target to $284 after the fiscal Q2 results.
- Analysts Adjust Price Targets for STERISUBS, Stephens and KeyBanc updated their price targets and ratings on STERIS following the quarterly report. UBS moved its target to $290 from $270 and kept a Buy rating.
- STERIS Files Mixed Shelf Registration StatementSTERIS filed a mixed shelf registration statement, giving the company flexibility for future securities offerings.
- Steris Q2 2027 Earnings Call TranscriptSTERIS published the transcript of its fiscal Q2 2027 earnings call, held on Thursday, Nov 5.
- STERIS Announces Financial Results for Fiscal 2027 Second QuarterTotal revenue rose 9% to $1.6 billion, with 8% constant-currency organic growth. Adjusted EPS was $2.94, up from $2.47, and the outlook was updated to reflect tariff refunds.
- Steris Lowers FY2027 GAAP EPS Guidance from $9.00-$9.20 to $8.92-$9.12 vs $9.06 EstSTERIS cut its FY2027 GAAP EPS guidance to $8.92-$9.12, below the $9.06 estimate.
- Steris Raises FY2027 Adj EPS Guidance from $11.00-$11.30 to $11.35-$11.55 vs $11.18 Est; Lowers FY2027 Sales Guidance of $6.352B-$6.411B vs $6.373B EstSTERIS raised its FY2027 adjusted EPS guidance to $11.35-$11.55, above the $11.18 estimate. It also revised FY2027 sales guidance to $6.352B-$6.411B, which Benzinga reported as a cut.
- Steris Q2 Adj. EPS $2.94 Beats $2.68 Estimate, Sales $1.589B Beat $1.562B EstimateAdjusted EPS of $2.94 beat the $2.68 estimate, and sales of $1.589B beat the $1.562B estimate.
About STERIS plc
STERIS plc is an Ireland-domiciled company that sells infection-prevention products and services to hospitals, medical device makers and drugmakers, including sterilizers, surgical tables, consumables and outsourced sterilization. A large share of its sales comes back again and again from consumables, service contracts and contract sterilization, and fiscal 2026 revenue was roughly $5.9 billion.
How it makes money
Healthcare is the largest segment, at roughly two-thirds of revenue. It sells sterilization and washing equipment, surgical tables and lights, and consumables to hospitals, and it also does instrument repair and other services. Applied Sterilization Technologies, about one-fifth of revenue, sterilizes medical devices for manufacturers under contract using gamma, electron-beam and ethylene oxide methods. Life Sciences sells consumables, equipment and services to pharmaceutical makers. Consumables and services make up most of total revenue.
What usually moves STE
- Hospital surgery volumes and capital spending
- Medical device makers' production volumes driving contract sterilization demand
- Ethylene oxide regulation and litigation
- Acquisitions such as Xodus Medical
- Biopharma manufacturing spending