STERIS shares slide 18.1% YTD, lagging Dow despite upbeat fiscal 2027 outlook

STERIS (STE) reported fiscal Q4 2026 revenue of $1.6 billion, up 7% year over year, with adjusted EPS of $2.83. For fiscal 2026, revenue rose 9% to $5.9 billion and adjusted EPS increased 10% to $10.17, while operating cash flow totaled $1.34 billion and free cash flow climbed 25% to $982.9 million. The company guided for 7%–8% revenue growth and adjusted EPS of $11.10–$11.30 in fiscal 2027 and announced a new $1 billion share repurchase program. The stock is down 18.1% year to date, markedly underperforming the Dow, even as the company’s fundamentals remain solid and its valuation may have room to recover.