STERIS Stock Outlook: Is Wall Street Bullish or Bearish?

Mentor, Ohio-based STERIS plc (STE) provides infection prevention products and services in the United States and internationally. The company has a market cap of $23.1 billion and operates through three segments: Healthcare, Applied Sterilization Technologies, and Life Sciences, and offers cleaning chemistries and sterility assurance products, automated endoscope reprocessing systems and tracking products, endoscopy accessories, instruments, and more. 

Shares of STERIS have lagged behind the broader market over the past year, declining 4.9% compared to the S&P 500 Index’s ($SPX) 18.7% surge. Moreover, in 2026, the stock has fallen by nearly 6.7%, also underperforming SPX’s 12.1% gain.   

Zooming in further, the State Street Healthcare Select Sector SPDR ETF (XLV) has risen 28.7% over the past year, outperforming the stock. In 2026, XLV has surged 13.2% and outpaced the stock.   

On Aug. 5, STE stock declined marginally following the release of its mixed Q2 2026 earnings. The company’s revenue for the quarter rose 7.3% from the prior year’s quarter to $1.5 billion and came in line with the Street’s forecasts. Moreover, its adjusted EPS came in at $2.59, surpassing Wall Street’s estimates. However, its free cash flow margin amounted to 18.7%, down from 23.5% in the year-ago quarter, indicating profitability troubles and operational inefficiency. 

For the current year, which ends in March 2027, analysts expect STE’s EPS to rise 9.1% to $11.09 on a diluted basis. The company met or surpassed the consensus estimate in three of the last four quarters, while missing on one occasion.

Among the nine analysts covering STE stock, the consensus is a “Moderate Buy.” That’s based on six “Strong Buy” ratings and three “Holds.”

The configuration has grown more bullish as the stock now has six “Strong Sell” ratings, up from five recorded a month ago. 

On Aug. 18, KeyBanc analyst Brett Fishbin maintained a “Buy” rating on Steris and set a price target of $269. 

STE’s mean price target of $263.75 offers an upside of 11.6% compared to the current market price. Its Street-high target of $280 implies an 18.4% upside from current levels.