STERIS plc stock research
FY2026 Q1
STERIS (STE) Gross Margin — Quarter Ended Jun 30, 2025
Revenue decreased from the prior quarter but increased from the same quarter last year. Gross profit followed a similar pattern, while cost of revenue declined from the prior quarter and rose year over year. Gross margin improved compared to the prior quarter but weakened relative to the same quarter last year.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2026 Q1
Revenue decreased from the prior quarter but increased from the same quarter last year. Gross profit followed a similar pattern, while cost of revenue declined from the prior quarter and rose year over year. Gross margin improved compared to the prior quarter but weakened relative to the same quarter last year.
- The gross margin improvement from the prior quarter was driven by a larger decline in cost of revenue relative to revenue. The year-over-year weakening in gross margin reflects a proportionally greater increase in cost of revenue compared to revenue.
- Compared to the prior quarter, revenue was lower while gross margin was higher, indicating a favorable shift in the relationship between revenue and cost of revenue. Compared to the same quarter last year, revenue was higher but gross margin was lower, showing a less favorable cost structure.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
45.1%
Gross profit
$628.0M
Revenue
$1.4B
Cost of revenue
$763.1M
Quarter-over-quarter change
+1.8 pts
Year-over-year change
+0.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 30, 2024 | $1.3B | $578.8M | $750.1M | 43.6% |
| Dec 31, 2024 | $1.4B | $610.3M | $760.2M | 44.5% |
| Mar 31, 2025 | $1.5B | $641.2M | $839.4M | 43.3% |
| Jun 30, 2025 | $1.4B | $628.0M | $763.1M | 45.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+1.8 pts
Year-over-year change
Jun 30, 2024
+0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement from the prior quarter was driven by a larger decline in cost of revenue relative to revenue. The year-over-year weakening in gross margin reflects a proportionally greater increase in cost of revenue compared to revenue.
Compared to the prior quarter, revenue was lower while gross margin was higher, indicating a favorable shift in the relationship between revenue and cost of revenue. Compared to the same quarter last year, revenue was higher but gross margin was lower, showing a less favorable cost structure.
Monitor the trend in cost of revenue relative to revenue, as its movement has been the primary factor influencing gross margin changes.