Core Insights - The performance of Steris' international operations is critical for understanding its financial strength and growth potential [1][2][3] Group 1: Financial Performance - For the quarter ending September 2025, Steris reported total revenue of $1.46 billion, reflecting a year-over-year increase of 9.9% [4] - Revenue from Ireland was $27.3 million, accounting for 1.9% of total revenue, which was a surprise increase of 9.9% compared to expectations [5] - Other Foreign Revenues generated $357.8 million, constituting 24.5% of total revenue, but fell short of the projected $406.57 million by 12% [6] Group 2: Revenue Projections - Analysts anticipate that Steris will achieve revenues of $1.49 billion in the current fiscal quarter, representing an 8.7% increase year-over-year [7] - For the entire year, total revenue is forecasted to reach $5.92 billion, an improvement of 8.4% from the previous year, with expected contributions of 2.1% from Ireland and 26.5% from Other Foreign Revenues [8] Group 3: Market Context - The company's reliance on international markets presents both opportunities and risks, making it essential to monitor international revenue trends for forecasting [9] - Financial analysts are increasingly focused on international developments to refine earnings estimates, influenced by local market conditions [10]

Revenue Growth - Revenues increased 9.9% to $1,460.3 million for the three months ended September 30, 2025, compared to $1,328.9 million for the same period in the prior year[158]. - Revenues increased 9.3% to $2,851.4 million for the six months ended September 30, 2025, compared to $2,608.4 million for the same period in the prior year[158]. - Total revenues increased by 9.9% to $1,460.3 million for the three months ended September 30, 2025, and by 9.3% to $2,851.4 million for the six months ended September 30, 2025, compared to the same periods in 2024[199]. - Service revenues rose by 12.9% to $714.9 million for the three months ended September 30, 2025, reflecting growth across all segments[171]. - United States revenues increased by 9.8% to $1,075.2 million for the three months ended September 30, 2025, compared to $979.5 million for the same period in 2024[172]. - Ireland revenues increased by 19.8% to $27.3 million for the three months ended September 30, 2025, compared to $22.8 million in the prior year[172]. - Healthcare segment revenues increased by 9.5% to $1,033.8 million for the three months ended September 30, 2025, and by 8.8% to $2,008.5 million for the six months ended September 30, 2025, compared to the same periods in 2024[200]. - AST segment revenues increased by 9.7% to $281.5 million for the three months ended September 30, 2025, and by 11.1% to $562.7 million for the six months ended September 30, 2025, compared to the same periods in 2024[202]. - Life Sciences segment revenues increased by 13.3% to $145.0 million for the three months ended September 30, 2025, and by 9.3% to $280.2 million for the six months ended September 30, 2025, compared to the same periods in 2024[203]. Profitability - Gross profit percentage for the second quarter of fiscal 2026 was 44.2%, up from 43.6% in the second quarter of fiscal 2025[159]. - Gross profit for the three months ended September 30, 2025, was $645.9 million, an increase of 11.6% from $578.8 million in the prior year[180]. - The Healthcare segment's operating margins were 25.1% for the second quarter of fiscal 2026, compared to 24.1% for the same period in fiscal 2025[204]. - The AST segment's operating margins were 45.3% for the second quarter of fiscal 2026, compared to 42.8% for the same period in fiscal 2025[206]. - Healthcare segment operating income increased 13.8% to $259.5 million for the three months ended September 30, 2025, compared to $228.0 million in the same prior year period[204]. - AST segment operating income rose 16.1% to $127.6 million for the three months ended September 30, 2025, compared to $109.9 million during the same prior year period[206]. - Life Sciences segment operating income increased 11.5% to $59.9 million for the three months ended September 30, 2025, compared to $53.7 million for the same prior year period[207]. Cash Flow and Capital Management - Cash flows from operations were $707.8 million for the first six months of fiscal 2026, compared to $554.5 million for the same period in fiscal 2025[161]. - Free cash flow was $527.7 million for the first six months of fiscal 2026, compared to $344.5 million for the same period in fiscal 2025[161]. - Net cash provided by operating activities was $707.8 million for the first six months of fiscal 2026, up from $554.5 million in the first six months of fiscal 2025[208]. - Free cash flow increased to $527.7 million in the first six months of fiscal 2026 from $344.5 million in the same period of fiscal 2025[212]. - Capital expenditures totaled $180.1 million for the first six months of fiscal 2026, down from $210.0 million during the same prior year period[210]. - The debt-to-total capital ratio was 21.3% at September 30, 2025, down from 23.6% at March 31, 2025[162]. - Debt-to-total capital ratio improved to 21.3% at September 30, 2025, down from 25.3% at September 30, 2024[213]. - The company declared and paid cash dividends totaling $1.20 per ordinary share during the first six months of fiscal 2026[162]. - Total cash dividends paid to ordinary shareholders increased to $118.1 million, or $1.20 per share, in the first six months of fiscal 2026, compared to $107.7 million, or $1.09 per share, in the same period of fiscal 2025[219]. Expenses and Taxation - Total operating expenses for the three months ended September 30, 2025, were $380.1 million, up 5.8% from $359.1 million in the same period in 2024[182]. - Research and development expenses increased by 4.4% to $28.2 million for the three months ended September 30, 2025, focusing on new product development and technological innovations[184]. - Interest expense decreased by $4.8 million and $19.4 million for the three months and six months ended September 30, 2025, respectively, compared to the same periods in 2024, primarily due to a lower principal amount of debt outstanding[189]. - Non-operating expenses, net decreased by $12.1 million to $12.7 million for the three months ended September 30, 2025, and by $8.2 million to $26.8 million for the six months ended September 30, 2025, compared to the same periods in 2024[188]. - Income tax expense increased by $17.1 million (39.3%) to $60.6 million for the three months ended September 30, 2025, and by $35.7 million (45.3%) to $114.5 million for the six months ended September 30, 2025, compared to the same periods in 2024[190]. - The effective income tax rate increased to 23.9% for the three months ended September 30, 2025, and to 23.6% for the six months ended September 30, 2025, compared to 22.3% and 21.3% for the same periods in 2024, respectively[191]. Acquisitions and Restructuring - The company completed a tuck-in acquisition for approximately $15.0 million during the first six months of fiscal 2026[152]. - Acquisition and integration expenses totaled $1.3 million for the three months ended September 30, 2025[153]. - The restructuring plan is expected to improve income from operations by approximately $25.0 million per year starting in fiscal 2026[185]. Backlog and Future Outlook - The Healthcare segment's backlog increased to $427.5 million at September 30, 2025, from $405.3 million at September 30, 2024[201]. - The Life Sciences backlog increased to $113.7 million at September 30, 2025, from $75.6 million at September 30, 2024, primarily due to an increase in orders[204]. - Forward-looking statements indicate potential risks including operating costs, integration of acquired businesses, and changes in tax laws that could affect future performance[229]. - The company does not undertake to update forward-looking statements unless legally required, indicating a cautious approach to future projections[230]. Legal and Financial Instruments - The company is involved in various legal proceedings and claims, which may impact financial results but are not expected to have a material adverse effect overall[226][227]. - The company held net foreign currency forward contracts to buy €8.5 million and to sell A$9.0 million and NZ$8.0 million as of September 30, 2025[234]. - Commodity swap contracts were in place to buy 0.3 million pounds of nickel, indicating hedging against raw material price fluctuations[235]. Current Assets and Liabilities - Total current assets increased to $21,597.1 million from $20,762.0 million as of March 31, 2025[224]. - Total current liabilities increased to $25,126.7 million from $23,891.0 million, reflecting higher payables[224]. - Goodwill rose significantly to $610.5 million from $297.2 million, indicating potential acquisitions or increased valuations[224].

Core Insights - STERIS reported strong Q3 2025 results, with revenues increasing nearly 10% year-over-year to $1.46 billion and adjusted earnings per share rising by 15.4% to $2.47, both exceeding analyst expectations [1] - The company raised its full-year financial outlook, projecting adjusted earnings per share in the range of $10.15 to $10.30 [1] Market Reaction - STERIS shares jumped 8.6% in the morning session, indicating that the market views the news as significant, despite the stock's historical low volatility with only four moves greater than 5% in the past year [3] - The stock has increased by 29.6% since the beginning of the year, reaching a new 52-week high at $262.29 per share [5] Industry Context - A recent national security investigation by the U.S. Commerce Department into medical equipment and devices has raised concerns about potential tariffs, which could impact the industry significantly [4] - The investigation aims to determine if imports of medical items pose a national security risk, potentially leading to new import duties that could affect supply chains and costs for major manufacturers [4]

Financial Data and Key Metrics Changes - Total as-reported revenue grew 10% in the second quarter, with constant currency organic revenue growth of 9% driven by volume and a 210 basis points price increase [4] - Gross margin increased by 60 basis points to 44.3%, while EBIT margin rose 90 basis points to 23.1% of revenue, primarily due to operating expense leverage [4] - Adjusted earnings per diluted share from continuing operations were $2.47, reflecting a 15% increase year-over-year [5] - Free cash flow for the first half of fiscal 2026 was $527.7 million, indicating strong performance driven by increased earnings and improvements in working capital [6] Business Line Data and Key Metrics Changes - In the healthcare segment, constant currency organic revenue grew 9%, with services growing 13% and consumables increasing by 10% [7] - For AST, constant currency organic revenue grew 7%, with services up 13% but capital equipment revenue anticipated to decline [8] - Life sciences saw a 12% increase in constant currency organic revenue, driven by a 39% growth in capital equipment shipments [8] Market Data and Key Metrics Changes - The healthcare capital equipment backlog exceeded $400 million, with orders up 3% year-to-date [7] - Capital equipment backlog in life sciences increased over 50% to $114 million [8] Company Strategy and Development Direction - The company is increasing its revenue growth outlook to approximately 8%-9% for fiscal 2026, with constant currency organic revenue growth now expected to be 7%-8% [9] - The earnings outlook has been revised to a range of $10.15-$10.30, with EBIT margins expected to improve by 10-20 basis points [10] - Free cash flow outlook has been increased by $30 million to $850 million for fiscal 2026, indicating confidence in meeting revised expectations [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth trends, particularly in services, driven by stable volumes from medtech customers and recovery in bioprocessing [14] - The company acknowledged headwinds from tariffs and inflation, estimating a 90 basis point impact from tariffs and 130 basis points from material and labor inflation on margins [17] - Management noted that while there is some noise in customer volume due to manufacturing location shifts, the overall global footprint remains strong [14] Other Important Information - The company highlighted that the strong first half cash flow was due to improved working capital and faster collections [32] - Management indicated that the expansion of capacity in AST is a long-term process, taking two to three years from decision to operational status [38] Q&A Session Summary Question: What drove the second consecutive quarter of double-digit growth in AST services? - Management noted stable volume from medtech customers and recovery in bioprocessing as key drivers, with confidence in the 9%-10% outlook going forward [14] Question: Can you elaborate on the operating margins despite headwinds? - Management confirmed that tariffs and inflation were significant headwinds, with tariffs impacting margins by 90 basis points and material and labor inflation by 130 basis points [17] Question: What is the outlook for healthcare subsegments? - Management expects service growth to remain strong, with consumables performing well and capital equipment growth being a bit of a wild card due to timing [30] Question: How is the company addressing capacity constraints in AST? - Management stated that capacity expansion is a long process, with ongoing and planned expansions to meet demand [38] Question: What is the state of the single-use scopes trend? - Management indicated that while there is a place for single-use scopes, particularly small diameter ones, the bulk of the business remains with large diameter scopes [48]

Financial Data and Key Metrics Changes - Total as-reported revenue grew by 10% in the second quarter, with constant currency organic revenue increasing by 9% driven by volume and a 210 basis points price increase [4] - Gross margin increased by 60 basis points to 44.3%, while EBIT margin rose by 90 basis points to 23.1% of revenue compared to the previous year [4] - Adjusted earnings per diluted share from continuing operations were $2.47, reflecting a 15% increase year-over-year [5] - Free cash flow for the first half of fiscal 2026 was $527.7 million, indicating strong performance driven by increased earnings and improved working capital [6] Business Line Data and Key Metrics Changes - In the healthcare segment, constant currency organic revenue grew by 9%, with services growing by 13% and consumables by 10% [7] - The AST segment saw constant currency organic revenue growth of 7%, with services up by 13% but capital equipment revenue anticipated to decline [8] - Life sciences experienced a 12% increase in constant currency organic revenue, driven by a 39% growth in capital equipment shipments [8] Market Data and Key Metrics Changes - The healthcare capital equipment backlog exceeded $400 million, with orders up 3% year-to-date [7] - Capital equipment backlog in life sciences increased by over 50% to $114 million [8] Company Strategy and Development Direction - The company is increasing its revenue growth outlook to approximately 8%-9% for fiscal 2026, with constant currency organic revenue growth now expected to be 7%-8% [9] - The earnings outlook has been revised to a new range of $10.15-$10.30, with EBIT margins expected to improve by 10-20 basis points [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of service growth in the AST segment, citing stable volume from medtech customers and recovery in bioprocessing [14] - The company acknowledged headwinds from tariffs and inflation but noted that operating margins improved despite these challenges [15][16] - Management indicated that the healthcare service business is expected to see a slight slowdown in growth rates due to normalization of labor costs [21] Other Important Information - The company reported a pre-tax tariff impact of approximately $12 million, primarily affecting the healthcare segment [9] - Capital expenditures for the first half of fiscal 2026 totaled $180.1 million, with depreciation and amortization at $241.1 million [5] Q&A Session Summary Question: What drove the second consecutive quarter of double-digit growth in AST services? - Management noted stable volume from medtech customers and recovery in bioprocessing as key drivers, with confidence in the 9%-10% growth outlook going forward [14] Question: Can you elaborate on the operating margins despite headwinds? - Management indicated that tariffs represented a 90 basis point impact, while material and labor inflation accounted for about 130 basis points across the company [17] Question: What is the outlook for healthcare subsegments? - Management expects service growth to remain strong, with consumables performing well and capital equipment growth being a bit of a wild card due to timing [28] Question: How is the company addressing capacity constraints in AST? - Management stated that expanding capacity is a long process, taking two to three years, but they have been steadily bringing new capacity into the market [36] Question: What is the state of the single-use scopes trend? - Management acknowledged that while there is a place for single-use scopes, particularly in small-diameter applications, the bulk of their business remains in large-diameter scopes [46]

Financial Data and Key Metrics Changes - Total as-reported revenue grew by 10% in the second quarter, with constant currency organic revenue increasing by 9% driven by volume and a 210 basis points price increase [4] - Gross margin increased by 60 basis points to 44.3%, while EBIT margin rose by 90 basis points to 23.1% of revenue compared to the previous year [4] - Adjusted earnings per diluted share from continuing operations were $2.47, reflecting a 15% increase year-over-year [5] - Free cash flow for the first half of fiscal 2026 was $527.7 million, indicating strong performance driven by increased earnings and improved working capital [5] Business Line Data and Key Metrics Changes - In the healthcare segment, constant currency organic revenue grew by 9%, with services growing by 13% and consumables by 10% [6][7] - For the AST segment, constant currency organic revenue increased by 7%, with services up by 13% but capital equipment revenue anticipated to decline [8] - Life sciences saw a 12% increase in constant currency organic revenue, driven by a 39% growth in capital equipment shipments [8] Market Data and Key Metrics Changes - The healthcare capital equipment backlog exceeded $400 million, with orders up by 3% year-to-date [6] - Capital equipment backlog in life sciences increased by over 50% to $114 million [8] Company Strategy and Development Direction - The company is increasing its revenue growth outlook for fiscal 2026 to approximately 8%-9% as-reported, with constant currency organic revenue growth now expected to be 7%-8% [9] - The earnings outlook has been revised to a range of $10.15-$10.30, with EBIT margins expected to improve by 10-20 basis points [10] - The company is confident in its ability to meet revised expectations, supported by strong performance in the first half of the year [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating margins improved despite headwinds from tariffs and inflation, with tariffs impacting margins by 90 basis points and material and labor inflation by 130 basis points [14][16] - The company expressed confidence in sustaining growth trends in services, particularly in the AST segment, due to stable volumes from medtech customers and recovery in bioprocessing [12][13] Other Important Information - Capital expenditures for the first half of fiscal 2026 totaled $180.1 million, with depreciation and amortization at $241.1 million [5] - The company ended the quarter with $1.9 billion in total debt, with a gross to EBITDA ratio of approximately 1.2 times [5] Q&A Session Summary Question: What drove the second consecutive quarter of double-digit growth in AST services? - Management attributed the growth to stable volume from medtech customers and recovery in bioprocessing, with confidence in sustaining a 9%-10% growth outlook [12][13] Question: Can you elaborate on the operating margins despite headwinds? - Management confirmed that tariffs and inflation were significant headwinds, with tariffs impacting margins by 90 basis points and inflation by 130 basis points [14][16] Question: What is the outlook for healthcare subsegments? - Management indicated that service growth is expected to remain strong, with consumables performing well and capital equipment growth dependent on shipment timing [27] Question: How is the company addressing capacity constraints in AST? - Management stated that expanding capacity is a long process, with several expansions completed and planned, ensuring a good position in most geographies [36] Question: What is the state of single-use scopes in healthcare? - Management noted that while there is a place for single-use scopes, particularly small diameter scopes, the bulk of the business remains with large diameter scopes due to their robustness and cost-effectiveness [46]

Core Insights - STERIS plc reported a strong second-quarter fiscal 2026 performance with adjusted earnings per share (EPS) of $2.47, reflecting a 15.4% increase year-over-year and exceeding the Zacks Consensus Estimate by 3.8% [1][9] - The company's total revenues reached $1.46 billion, marking a 9.8% year-over-year growth and surpassing estimates by 2.3% [2][9] - All business segments demonstrated growth, contributing to the overall positive financial results [13] Revenue Breakdown - Healthcare segment revenues increased by 9% year-over-year to $1.03 billion, driven by a 13% rise in service revenues, 10% in consumable revenues, and 4% in capital equipment revenues [3] - Applied Sterilization Technologies (AST) revenues improved by 10% to $281.5 million, with service revenues growing by 13% despite a significant decline in capital equipment revenues [4] - Life Sciences segment revenues rose by 13% to $145 million, supported by a 39% increase in capital equipment revenues [5] Margin Analysis - Gross profit for the quarter was $645.9 million, up 11.6% from the previous year, with a gross margin expansion of 68 basis points to 44.2% [6] - Selling, general and administrative expenses rose by 6.2% to $349.7 million, while research and development expenses increased by 4.4% to $28.2 million [7] - Adjusted operating margin improved by 161 basis points to 18.3% [7] Financial Position - STERIS ended the quarter with cash and cash equivalents of $319.2 million, an increase from $279.7 million at the end of the previous quarter [10] - Cumulative net cash from operating activities reached $707.8 million, up from $554.5 million in the same period last year [10] Guidance and Outlook - The company raised its fiscal 2026 EPS guidance to a range of $10.15-$10.30, up from the previous estimate of $9.90-$10.15 [12] - STERIS expects organic revenue growth of approximately 8-9% for fiscal 2026, with constant currency organic revenues projected to improve by 7-8% [11]

Core Insights - Steris reported revenue of $1.46 billion for the quarter ended September 2025, reflecting a year-over-year increase of 9.9% and surpassing the Zacks Consensus Estimate of $1.43 billion by 2.31% [1] - The company's EPS for the quarter was $2.47, an increase from $2.14 in the same quarter last year, also exceeding the consensus estimate of $2.38 by 3.78% [1] Revenue Performance - Healthcare revenues reached $1.03 billion, exceeding the average estimate of $1.01 billion by analysts, marking a 9.5% increase year-over-year [3] - Healthcare Products - Consumables generated $374.2 million, surpassing the estimated $357.5 million, with a year-over-year growth of 9.5% [3] - Healthcare Products - Capital Equipment reported $259.4 million, slightly below the average estimate of $268.96 million, but still showing a 3.9% increase year-over-year [3] - Healthcare Products - Service revenues were $400.1 million, exceeding the estimate of $374.76 million, reflecting a significant year-over-year increase of 13.4% [3] - Life Sciences revenues totaled $145 million, surpassing the estimated $137.24 million, with a year-over-year growth of 13.3% [3] - Applied Sterilization Technologies (AST) revenues were $281.5 million, slightly above the average estimate of $281.02 million, representing a 9.7% year-over-year increase [3] - Life Sciences - Service revenues reached $35.8 million, below the estimate of $36.79 million, but still showing a 9.1% increase year-over-year [3] - Life Sciences - Capital Equipment generated $31.9 million, exceeding the estimate of $27.85 million, with a notable year-over-year growth of 38.6% [3] - Life Sciences - Consumables reported $77.2 million, surpassing the estimated $71.75 million, reflecting a 7% increase year-over-year [3] Operating Income - Operating income for Healthcare was $259.5 million, exceeding the average estimate of $239.46 million [3] - Corporate and Other reported an operating loss of $109.9 million, slightly worse than the average estimate of $-106.78 million [3] - Operating income for Applied Sterilization Technologies (AST) was $127.6 million, below the average estimate of $132.54 million [3]

Core Insights - Steris (STE) reported quarterly earnings of $2.47 per share, exceeding the Zacks Consensus Estimate of $2.38 per share, and up from $2.14 per share a year ago, representing an earnings surprise of +3.78% [1] - The company achieved revenues of $1.46 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.31% and increasing from $1.33 billion year-over-year [2] - Steris shares have increased approximately 17.7% year-to-date, outperforming the S&P 500's gain of 15.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.54, with expected revenues of $1.49 billion, and for the current fiscal year, the EPS estimate is $10.07 on revenues of $5.91 billion [7] - The trend of estimate revisions for Steris was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Medical - Instruments industry, to which Steris belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - Sight Sciences, Inc. (SGHT), another company in the same industry, is expected to report a quarterly loss of $0.26 per share, reflecting a year-over-year decline of -18.2%, with revenues anticipated to be $17.16 million, down 14.9% from the previous year [9][10]

Financial Performance - Total revenue from continuing operations for Q2 fiscal 2026 increased 10% to $1.5 billion compared to $1.3 billion in Q2 fiscal 2025[2] - Net income from continuing operations for Q2 was $191.9 million or $1.94 per diluted share, up from $150.2 million or $1.51 per diluted share in the same period last year[3] - Adjusted net income for Q2 fiscal 2026 was $244.5 million or $2.47 per diluted share, compared to $212.2 million or $2.14 per diluted share in Q2 fiscal 2025[3] - Free cash flow for the first half of fiscal 2026 was $527.7 million, up from $344.5 million in the prior year period[8] - Free cash flow for the six months ended September 30, 2025, was $527.7 million, compared to $344.5 million in 2024, indicating a 53.2% increase[27] - The company reported a diluted EPS of $4.81 for the first six months of FY 2026, compared to $4.17 in FY 2025, representing a 15.4% increase[33] Revenue Growth - Healthcare revenue grew 9% to $1,033.8 million, with service revenue up 13%, consumable revenue up 10%, and capital equipment revenue up 4%[4] - Applied Sterilization Technologies (AST) revenue increased 10% to $281.5 million, with service revenue growing 13% and capital equipment revenue declining 76%[5] - Life Sciences revenue increased 13% to $145.0 million, driven by 39% growth in capital equipment revenue[6] - Fiscal 2026 revenue from continuing operations is expected to increase by 8-9%, with constant currency organic revenue growth anticipated at 7-8%[9] - Total revenue for the six months ended September 30 reached $2,851.4 million, with a 9.3% organic growth year-over-year[31] - Total revenues for the second quarter of FY 2026 reached $1,460.3 million, a 9.8% increase from $1,328.9 million in FY 2025[35] - The total backlog for continuing operations increased to $541.3 million in FY 2026 from $480.9 million in FY 2025[35] Cash Flow and Expenditures - Capital expenditures are anticipated to be approximately $375 million, unchanged from prior expectations[10] - Cash flows from operating activities for FY 2026 are projected to be $1,225.0 million[34] Segment Performance - The Healthcare segment generated revenues of $1,033.8 million for the three months ended September 30, 2025, up from $944.2 million in 2024, reflecting a 9.5% increase[25] - Healthcare segment revenue for the three months ended September 30 was $1,033.8 million, representing a 9.5% organic growth compared to the previous year[31] - Life Sciences segment revenue increased to $145.0 million for the three months ended September 30, showing a 13.3% organic growth[31] - The Life Sciences segment showed a revenue increase of 9.3% for the six months ended September 30, reflecting strong market demand[31] Adjusted Earnings and Projections - Adjusted earnings per diluted share for fiscal 2026 are now expected to be in the range of $10.15 to $10.30, up from prior expectations of $9.90 to $10.15[9] - Adjusted diluted EPS for the three months ended September 30 was $2.47, up from $2.14 in the same period last year[32] - The adjusted income tax rate for continuing operations was 24.5% in FY 2026, up from 22.7% in FY 2025[35] Asset and Equity Growth - Total current assets as of September 30, 2025, were $2,106.3 million, an increase from $2,000.8 million as of March 31, 2025[23] - Total assets increased to $10,410.7 million as of September 30, 2025, compared to $10,146.8 million as of March 31, 2025[23] - Total equity as of September 30, 2025, was $7,022.5 million, an increase from $6,615.8 million as of March 31, 2025[23] Operating Income - Operating income for the three months ended September 30, 2025, was $265.8 million, a 20.9% increase from $219.7 million in the same period of 2024[25] - Gross profit for the six months ended September 30, 2025, rose to $1,273.9 million, compared to $1,151.2 million in 2024, reflecting a 10.6% increase[22] - The company experienced a net income attributable to shareholders of $191.9 million for the three months ended September 30, compared to $150.0 million in the previous year[32] Foreign Currency Impact - The company noted a foreign currency impact of $12.7 million on total revenue for the three months ended September 30[31]