STE

STERIS is a high-quality, recession-resistant medtech franchise built around the mission-critical work of sterilizing healthcare and life-sciences products. FY2026 revenue grew 8.7% to $5.94B while net income jumped 27.3% to $782M and diluted EPS rose 27.9% to $7.93, evidence of strong operating leverage as operating income climbed 27.1% to $1.10B (18.6% operating margin). The five-year history is one of steady compounding — revenue from $4.22B in FY2022 to $5.94B in FY2026 — with profitability now firmly re-accelerating after a soft FY2023.

The balance sheet is a clear strength. Liabilities/equity sits at just 0.49x, long-term debt fell 5.5% to $1.81B, and cash more than doubled to $440M. Operating cash flow of $1.34B (up 16.8%) comfortably funds $369M of capex, a $242M dividend (up 10%), and buybacks. Management's May 2026 authorization of a new $1.0B repurchase program — replacing the depleted $500M program — signals confidence and a larger return-of-capital runway. The AST segment's 60+ owned/leased sterilization facilities positioned near customer sites create a sticky, hard-to-replicate moat.