Steris (STE) Beats Q3 Estimates with Strong Healthcare Segment Growth

Steris delivered solid third-quarter results as of December 2025, posting $1.5 billion in revenue—a 9.2% year-over-year increase that surpassed analyst consensus by 1.08%. Earnings per share reached $2.53, matching consensus expectations despite a narrow -0.1% variance, signaling consistent operational execution across the industrial healthcare and life sciences portfolio.

Strong Top-Line Performance Across Key Revenue Streams

The Healthcare segment emerged as STE’s primary growth engine, generating $1.06 billion in quarterly revenue and beating the four-analyst average estimate of $1.05 billion. This 9% year-over-year expansion reflected broad-based strength across the division’s product categories. Within Healthcare, consumables delivered $387.1 million—exceeding the $381.88 million forecast by capturing 8.1% growth. Capital equipment revenue came in at $272.1 million, slightly below the $278.71 million estimate, yet still posting a respectable 6.8% year-over-year advance. Service offerings proved particularly robust at $404.7 million, substantially beating the $391.52 million consensus and achieving an impressive 11.5% annual growth rate.

Healthcare Segment Leads Growth While Life Sciences Faces Headwinds

Life Sciences revenues reached $145.8 million, missing the $148.25 million analyst projection but still growing 6.9% year-over-year. Within the Life Sciences division, consumables showed notable momentum at $75.9 million, beating estimates of $71.77 million and posting 10.5% growth. Capital equipment declined slightly to $33.3 million against the $36.67 million forecast, though still up 7.2% annually. Service revenues retreated to $36.5 million from the estimated $39.26 million, posting a marginal -0.4% change.

The Applied Sterilization Technologies (AST) subsidiary continued its strong trajectory, delivering $286.6 million in revenue and beating the $278.6 million consensus by 2.9%, with an robust 11% year-over-year expansion underscoring the robustness of STE’s specialized sterilization business.

Operating Income Analysis and Market Positioning

From an operational standpoint, the Healthcare segment reported $258.1 million in operating income, virtually matching the $257.71 million analyst estimate. The AST division posted $129.2 million in operating income, edging above the $125.53 million consensus. Corporate and other expenses came in at a loss of $106 million, slightly wider than the estimated $103.36 million, indicating ongoing investment in enterprise functions.

What the Data Means for STE Investors

STE shares gained 0.6% over the preceding month, trailing the S&P 500 composite’s 0.9% performance—a pattern suggesting the stock has lagged the broader market recently. The company maintains a Zacks Rank #3 (Hold), indicating near-term performance expected to move in line with overall market conditions. The Q3 results demonstrate that Steris continues executing its operational strategy with consistent revenue acceleration and disciplined cost management, though investors remain cautious about the pace of outperformance relative to broader equity indices.