STERIS plc stock research
FY2026 Q3
STERIS (STE) Gross Margin — Quarter Ended Dec 31, 2025
Revenue was essentially stable compared to the prior quarter, while gross profit increased slightly, and cost of revenue grew at a faster pace, causing gross margin to weaken slightly. Compared to the same quarter one year ago, revenue, gross profit, and cost of revenue were all higher, but gross margin was lower.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q3
Revenue was essentially stable compared to the prior quarter, while gross profit increased slightly, and cost of revenue grew at a faster pace, causing gross margin to weaken slightly. Compared to the same quarter one year ago, revenue, gross profit, and cost of revenue were all higher, but gross margin was lower.
- Gross profit increased both sequentially and year-over-year, but cost of revenue grew proportionally more in both comparisons, which kept gross margin from improving.
- Versus the preceding quarter, revenue was unchanged, gross profit was somewhat higher, and cost of revenue was also higher, resulting in a slightly weakened gross margin. Compared with the same quarter a year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.8%
Gross profit
$655.5M
Revenue
$1.5B
Cost of revenue
$840.7M
Quarter-over-quarter change
-0.4 pts
Year-over-year change
-0.7 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 |
|---|---|---|---|---|
| Mar 31, 2025 | $1.5B | $641.2M | $839.4M | 43.3% |
| Jun 30, 2025 | $1.4B | $628.0M | $763.1M | 45.1% |
| Sep 30, 2025 | $1.5B | $645.9M | $814.4M | 44.2% |
| Dec 31, 2025 | $1.5B | $655.5M | $840.7M | 43.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.4 pts
Year-over-year change
Dec 31, 2024
-0.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit increased both sequentially and year-over-year, but cost of revenue grew proportionally more in both comparisons, which kept gross margin from improving.
Versus the preceding quarter, revenue was unchanged, gross profit was somewhat higher, and cost of revenue was also higher, resulting in a slightly weakened gross margin. Compared with the same quarter a year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin was lower.
The relationship between revenue growth and cost growth should be monitored for sustained margin pressure.