STERIS plc (STE) AI Stock Analysis

STERIS plc provides infection prevention and procedural products and services across healthcare and life sciences sectors. Its Healthcare segment supplies cleaning chemistries, sterility assurance items, automated endoscope reprocessing systems, and sterile processing equipment such as washers, sterilizers, surgical tables, and connectivity solutions, alongside maintenance and consulting services. The Applied Sterilization Technologies segment delivers contract sterilization and testing services to medical device and pharmaceutical makers via approximately 50 global facilities. The Life Sciences segment designs and sells consumable products, including barrier items and disinfectors, as well as equipment maintenance for pharmaceutical manufacturing and research environments.

STERIS increased revenue from $4.22B in FY2022 to $5.94B in FY2026, representing a 5-year revenue CAGR of 13.8%. Net income rose from $243.9M in FY2022 to $785.1M in FY2026, while net margin expanded from 5.8% to 13.2%. Operating margin improved to 18.6% in FY2026 from 11.3% in FY2022, with gross margin steady at 44.2%. Over the trailing twelve months, revenue totaled $6.04B with an operating margin of 19.1% and diluted EPS of $8.18. In the latest quarter ended June 30, 2026, quarterly revenue grew 7.3% year-over-year and quarterly earnings grew 14.0%.

As of June 30, 2026, STERIS held $482.3M in cash and short-term investments and $2.04B in total debt, resulting in net debt of $1.56B. Shareholders' equity stood at $7.21B, giving a debt-to-equity ratio of 0.28, while the current ratio was 1.91. Operating cash flow reached $1.34B in FY2026. Capital deployment during FY2026 included $369.0M in capital expenditures, $235.5M in share buybacks, and $241.8M in dividends paid, with its share count declining 2.9% over five years.

At a closing price of $222.66, STERIS trades at an enterprise value of $21.92B and a trailing P/E of 27.2x, below the 28.9x median of its S&P 500 Healthcare peers. Its forward P/E of 19.2x and EV/EBITDA of 13.4x compare to sector peer medians of 16.5x and 15.7x, respectively. The stock's price-to-sales multiple is 3.6x versus the peer median of 3.4x. Over the past year, STE shares returned -6.3%, trailing the S&P 500's 16.8% return, and returned 3.9% over five years against 83.0% for the index.

STERIS pays a quarterly dividend with an annualized forward rate of $2.58 per share, yielding 1.16% at its last close. The payout ratio stands at 24.8%. Dividends have been paid for 22 consecutive years, reflecting a 5-year annualized dividend growth rate of 9.3%. The most recent ex-dividend date was September 4, 2026.

Wall Street coverage consists of 4 Strong Buy, 3 Buy, and 2 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target is $259.17, which is 16.4% above the last close of $222.66. For the current fiscal year ending March 31, 2027, consensus estimates project EPS of $11.17 on revenue of $6.37B. Over the last four quarters, STERIS beat EPS estimates twice. The next earnings date is November 4, 2026.

This page is an AI-written research summary of STERIS plc (STE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: STE income statement, STE balance sheet, STE key metrics, STE analyst forecast, STE chart. See the STE stock overview for the latest quote and news.