STERIS' Q1 Earnings on Deck: What's in Store for the Stock?

STE is expected to deliver fiscal first-quarter revenue and EPS growth, driven by strength in Healthcare, continued momentum in AST, and healthy demand in Life Sciences.

Zacks Equity Research

3 min read

STERIS plc STE is scheduled to release first-quarter fiscal 2027 results on Aug. 6, after market close.

In the last reported quarter, the company posted adjusted earnings per share (EPS) of $2.83, which missed the Zacks Consensus Estimate by 1.05%. STE’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 0.90%.

Q1 Estimates for STE

The Zacks Consensus Estimate for revenues is pegged at $1.51 billion, implying an increase of 8.2% from the year-ago reported figure.

The consensus mark for EPS is pegged at $2.54, indicating a year-over-year increase of 8.6%.

Estimate Revision Trend Ahead of STE's Q1 Earnings

Estimates for earnings have remained constant at $2.54 per share in the past 30 days.

Let's take a look at how things might have shaped up for the MedTech major prior to the announcement.

Healthcare

In the previous quarter, growth across all categories was robust. We expect this trend to have continued in the fiscal first quarter as well.

The company maintains confidence in recurring revenue streams and backlog strength. This should get reflected in the fiscal first-quarter results. Also, capital equipment growth is expected to have remained robust.

STERIS completed two tuck-in acquisitions to strengthen its Healthcare portfolio and expand its global reach. The company vertically integrated its MEDglas wall supplier, extending this business into international markets. It acquired a family of gastrointestinal (GI) products, broadening its product portfolio and enhancing its distribution channels. Management expects these two acquisitions to contribute a combined $45 million in revenues during fiscal 2027.

The Zacks Consensus Estimate for the segment’s revenues implies an improvement of 9% from the year-ago reported figure.

Applied Sterilization Technologies (“AST”)

In the fiscal first quarter, Steris is expected to have experienced organic revenue growth within this segment. With over $1 billion in revenues in fiscal 2026, AST crossed a new milestone, exceeding $500 million in operating profit. We expect this momentum to have persisted in the to-be-reported quarter as well.

The Zacks Consensus Estimate for the segment’s revenues calls for an increase of 5.6% year over year.

STERIS plc Price and EPS Surprise

STERIS plc price-eps-surprise | STERIS plc Quote

Life Sciences

The segment's fiscal fourth-quarter 2025 revenues rose year over year due to strong growth in consumables revenues. The segment also experienced a capital equipment increase as customers returned to capital investment. These trends might have continued in the to-be-reported quarter.

The Zacks Consensus Estimate for the segment’s revenues suggests an increase of 7.6% year over year.

What Our Model Suggests for STE

Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating on earnings, which is not the case here.

Earnings ESP: STERIS has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Worth a Look

Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time around:

Hinge Health Inc. HNGE has an Earnings ESP of +4.24% and a Zacks Rank #1 at present. The company is expected to release second-quarter 2026 results soon.

In the trailing four quarters, HINGE delivered an average earnings surprise of 179.54%. The Zacks Consensus Estimate for second-quarter EPS implies a decrease of 11.9% from the year-ago reported figure.

Neurocrine Biosciences NBIX has an Earnings ESP of +40.60% and a Zacks Rank #1 at present. The company is expected to release second-quarter 2026 results soon.

NBIX’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 9.08%. The Zacks Consensus Estimate for the company’s second-quarter EPS calls for an increase of 112.3% from the year-ago quarter’s figure.

West Pharmaceutical Services WST has an Earnings ESP of +1.09% and a Zacks Rank #2 at present. The company is slated to release second-quarter 2026 results on July 23.

WST’s earnings beat estimates in each of the trailing four quarters, the average surprise being 19.37%. The Zacks Consensus Estimate for WST’s second-quarter EPS implies a rise of 13% from the year-ago reported figure.

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