STERIS reported strong fiscal 2027 second quarter results, with total revenue increasing 9% to $1.59 billion, exceeding consensus estimates. Growth was broad-based across segments, with constant currency organic revenue increasing 8% for the quarter. Adjusted net income rose to $2.94 per diluted share, benefiting from solid underlying demand and a $20 million pre-tax benefit from tariff refunds received during the period.
Key Highlights
- Healthcare segment revenue grew 9% to $1.12 billion, supported by 10% growth in both service and consumables revenue as surgical procedural volumes remained robust.
- Life Sciences revenue surged 18% to $170.6 million, driven primarily by a 53% increase in capital equipment revenue.
- Management raised fiscal 2027 adjusted EPS guidance to a range of $11.35 to $11.55, up from the previous range of $11.10 to $11.30, reflecting the year-to-date benefit of $0.18 from tariff refunds.
- The company approved an additional restructuring plan totaling $45 million in charges to rationalize products and realign facilities, targeting $9 million in annualized savings.