In addition, on today's call, non-GAAP financial measures, including adjusted earnings per diluted share, adjusted operating income, constant currency organic revenue growth, and free cash flow will be used. Constant currency organic revenue grew 5% in the quarter, driven by volume as well as 230 basis points of price. Gross margin for the quarter was 44%, down 30 basis points versus the prior year. EBIT margin for the quarter was 24.2% of revenue, a high for fiscal 2026.

This was 60 basis points below the fourth quarter last year, mainly driven by inflation and tariffs. The adjusted effective tax rate in the quarter was 25.4%, an increase from 23.5% in the fourth quarter last year. The year-over-year increase was driven primarily by changes in geographic mix and unfavorable discrete items. Earnings per diluted share from continuing operations were $2.83, a 3% increase over the prior year as the lower margin and higher tax rate limited earnings growth in the quarter.

Before I turn to cash flow for the year, I want to dig into the upward pressure on our tax rate for a moment. For the full year fiscal 2026, our adjusted effective tax rate was 24.4%, an increase of 130 basis points from fiscal 2025. Since we generate the majority of our profit in the U.S., it is common that we need to move cash across borders to deploy capital. Capital expenditures for fiscal 2026 totaled $369 million, and depreciation and amortization totaled $486.5 million.

More on STERIS plc

Reported 2026-05-12 · figures from the STERIS plc Q4 2026 earnings call.

See how VectorShift works for your firm

Request Demo