STERIS' Q3 Earnings on Deck: What's in Store for the Stock?

STERIS plc STE is scheduled to release third-quarter fiscal 2026 results on Feb. 4, after market close.

In the last reported quarter, the company posted adjusted earnings per share (EPS) of $2.47, which surpassed the Zacks Consensus Estimate by 3.8%. STE beat on earnings in three of the trailing four quarters and met once, delivering an average surprise of 2.61%.

Q3 Estimates for STE

The Zacks Consensus Estimate for revenues is pegged at $1.48 billion, suggesting an increase of 8% from the year-ago reported figure.

The Zacks Consensus Estimate for EPS is pegged at $2.53, indicating a year-over-year increase of 9.1%.

Estimate Revision Trend Ahead of STE's Q3 Earnings

Estimates for earnings have remained constant at $2.53 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 third quarter as well.

The company maintains confidence in recurring revenue streams and backlog strength. This should get reflected in the fiscal third-quarter results. In the to-be-reported quarter, within Healthcare capital equipment, order growth is expected to have remained robust. 

Per the Zacks Consensus Estimate, the segment’s revenues are expected to improve 8.1% from the year-ago reported figure.

Applied Sterilization Technologies (“AST”)

In the fiscal third 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 the Zacks Consensus Estimate, the AST segment’s revenues are likely to increase 8.1% year over year.

STERIS plc Price and EPS Surprise

STERIS plc price-eps-surprise | STERIS plc Quote

Life Sciences

The segment's fiscal second-quarter 2025 revenues rose year over year due to strong growth in consumables and services revenues. The company also experienced a return of capital equipment shipments with growth of 39%. This trend might have continued in the to-be-reported quarter. 

Per the Zacks Consensus Estimate, the segment’s revenues are expected to increase 8% 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 (hold).

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:

Veracyte VCYT has an Earnings ESP of +7.98% and a Zacks Rank #1 at present. The company is expected to release fourth-quarter 2025 results soon. You can see the complete list of today’s Zacks #1 Rank stocks here.

VCYT’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 45.12%. Per the Zacks Consensus Estimate, the company’s fourth-quarter EPS may decrease 13.9% from the year-ago quarter’s figure.

Cardinal Health CAH has an Earnings ESP of +2.30% and a Zacks Rank #2 at present. The company is slated to release second-quarter fiscal 2026 results on Feb. 5. 

CAH’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 9.36%. The Zacks Consensus Estimate for fiscal second-quarter EPS implies a year-over-year increase of 20.7%.

Merit Medical Systems MMSI has an Earnings ESP of +2.09% and a Zacks Rank #2 at present. The company is expected to release fourth-quarter 2025 results soon.

MMSI’s earnings topped estimates in each of the trailing four quarters, the average surprise being 14.1%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS is anticipated to increase 3.2% 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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