Why Is STERIS (STE) Stock Rocketing Higher Today

What Happened?

Shares of medical equipment and services company Steris (NYSE:STE). jumped 8.6% in the morning session after the company reported strong third-quarter 2025 results that beat expectations and raised its full-year financial outlook. For the quarter, revenues grew nearly 10% from the previous year to $1.46 billion, while adjusted earnings per share increased by 15.4% to $2.47. Both of these key figures surpassed analyst estimates. Looking ahead, STERIS provided a more optimistic forecast, lifting its expected adjusted earnings for the full year to a range of $10.15 to $10.30 per share.

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What Is The Market Telling Us

STERIS’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was about 1 month ago when the stock dropped 3% on the news that the U.S. Commerce Department initiated a national security investigation into medical equipment and devices, raising concerns about potential tariffs. The probe, conducted under Section 232 of the Trade Expansion Act, examines whether imports of items like syringes, infusion pumps, and surgical instruments pose a national security risk. Such investigations can pave the way for new import duties, creating a significant overhang for the sector. The goal of potential tariffs would be to boost domestic manufacturing by increasing the cost of foreign goods. This development has introduced new uncertainty for the industry, leading to broad-based declines in the stocks of major manufacturers, including Baxter International and GE HealthCare, as investors weigh the potential impact on supply chains and costs.

STERIS is up 29.6% since the beginning of the year, and at $262.29 per share, has set a new 52-week high. Investors who bought $1,000 worth of STERIS’s shares 5 years ago would now be looking at an investment worth $1,444.

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