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Research Alert: Steris Closes Fiscal 2026 With Solid Growth And Initiates Fy 27 Guidance

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Steris delivered solid Q4 results with revenue of $1.588B (+7.3% Y/Y), slightly below consensus of $1.595B, while adjusted EPS of $2.83 (+3.3% Y/Y) slightly beat estimates by $0.02. The company's diversified infection prevention platform showed resilience with recurring revenue (consumables and service) growing 8.3% Y/Y to $1.201B, representing 76% of quarterly revenue. This recurring revenue quality remains a key differentiator in health care equipment, providing predictable cash flows and customer stickiness, in our view. Management provided FY 27 guidance of 7%-8% Y/Y revenue growth and adjusted EPS of $11.10-$11.30, representing solid 9%-11% Y/Y growth amid a challenging operating environment. Strong free cash flow generation supports the new $1B share repurchase authorization, reflecting management's confidence. With total backlog of $490.7M (+8.3%) and 79% recurring revenue base, we think Steris can capitalize on continued procedure volume recovery and infection prevention market expansion.

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