STERIS to Report Q2 Earnings: Here's What to Expect

STERIS plc STE is scheduled to release second-quarter fiscal 2026 results on Nov. 6, after market close.

In the last reported quarter, the company posted adjusted earnings per share (EPS) of $2.34, which surpassed the Zacks Consensus Estimate by 0.86%. STE beat on earnings in three of the trailing four quarters and met once, delivering an average surprise of 2.02%.

Q2 Estimates for STE

The Zacks Consensus Estimate for revenues is pegged at $1.43 billion, suggesting an increase of 7.4% from the year-ago reported figure.

The Zacks Consensus Estimate for EPS is pegged at $2.38, indicating a year-over-year increase of 11.2%.

Estimate Revision Trend Ahead of STE's Q2 Earnings

Estimates for earnings have remained constant at $2.38 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 second quarter as well.

The company maintains confidence in recurring revenue streams and backlog strength. This should get reflected in the fiscal second-quarter results. In the to-be-reported quarter, within Healthcare capital equipment, order growth is expected to have remained robust despite ongoing shipment issues due to customer project delays.

Our model projects the segment’s revenues to improve 5.9% from the year-ago reported figure.

Applied Sterilization Technologies (“AST”)

In the fiscal second quarter, Steris is expected to have experienced organic revenue growth within this segment. Also, global MedTech customers are once again expected to have remained stable, and the company is likely to have experienced an increase in bioprocessing demand. We expect these to have contributed to STE’s top-line performance in the to-be-reported quarter.

Per our model, AST segment’s revenues for the quarter are likely to increase 10.8% year over year.

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Life Sciences

The segment's fiscal first-quarter 2025 revenues rose year over year due to strong growth in consumables and services revenues. This trend might have continued in the to-be-reported quarter. Also, the segment’s margin is expected to have benefited from a favorable mix, pricing and productivity.

Our model projects the segment’s revenues to increase 7.2% 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 #4 (Sell).

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:

Exact Sciences EXAS has an Earnings ESP of +32.65% and a Zacks Rank #1 at present. The company is slated to release third-quarter 2025 results on Nov. 3.

EXAS’ earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 329.87%. Per the Zacks Consensus Estimate, the company’s third-quarter EPS is expected to increase 147.6% from the year-ago quarter's figure.

ANI Pharmaceuticals ANIP has an Earnings ESP of +1.15% and a Zacks Rank #2 at present. The company is expected to release third-quarter 2025 results soon. 

ANIP’s earnings beat estimates in each of the trailing four quarters, the average surprise being 22.66%. Per the Zacks Consensus Estimate, ANIP’s third-quarter EPS is expected to surge 29.9% from the year-ago reported figure.

IDEXX Laboratories IDXX has an Earnings ESP of +0.23% and a Zacks Rank #2 at present. The company is slated to release third-quarter 2025 results on Nov. 3.

IDXX’s earnings topped estimates in each of the trailing four quarters, the average surprise being 6.08%. Per the Zacks Consensus Estimate, the company’s third-quarter EPS is anticipated to increase 12.1% from the year-ago quarter’s figure.

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This article originally published on Zacks Investment Research (zacks.com).

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