Introduction In Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”), we explain the general financial condition and the results of operations for STERIS and its subsidiaries including: •what factors affect our business; •what our earnings and costs were in each period presented; •why those earnings and costs were different from prior periods; •where our earnings came from; •how this affects our overall financial condition; •what our expenditures for capital projects were; and •where cash is expected to come from to fund future debt principal repayments, growth outside of core operations, repurchases of shares, cash dividends and future working capital needs. As you read the MD&A, it may be helpful to refer to information in our consolidated financial statements contained herein, which present the results of our operations for the first three months of fiscal 2027 and fiscal 2026. It may also be helpful to refer to our Annual Report on Form 10-K for the year ended March 31, 2026, which was filed with the Securities and Exchange Commission ("SEC") on May 29, 2026, including information in Item 1, "Business," Part I, Item 1A, "Risk Factors," and Note 12 to our consolidated financial statements titled, "Commitments and Contingencies," and Part II, Item 1A, "Risk Factors" of this Quarterly Report, for a discussion of some of the matters that can adversely affect our business and results of operations. In the MD&A, we analyze and explain the period-over-period changes in the specific line items in the Consolidated Statements of Income. This information, discussion, and analysis may be important to you in making decisions about your investments in STERIS. Financial Measures In the following sections of the MD&A, we may, at times, refer to financial measures that are not required to be presented in the consolidated financial statements under accounting principles generally accepted in the United States ("U.S. GAAP"). We sometimes use the following financial measures in the context of this report: backlog and debt-to-total capital. We define these financial measures as follows: •Backlog – We define backlog as the amount of unfilled capital equipment purchase orders (excluding freight) at a point in time. We use this figure as a measure to assist in the projection of short-term financial results and inventory requirements. •Debt-to-total capital ratio – We define debt-to-total capital ratio as total debt divided by the sum of total debt and shareholders’ equity. We use this figure as a financial liquidity measure to gauge our ability to borrow and fund growth. We, at times, may also refer to financial measures which are considered to be “non-GAAP financial measures” under SEC rules. We have presented these financial measures because we believe that meaningful analysis of our financial performance is enhanced by an understanding of certain additional factors underlying that performance. These financial measures should not be considered an alternative to measures required by accounting principles generally accepted in the United States. Our calculations of these measures may differ from calculations of similar measures used by other companies, and you should be careful when comparing these financial measures to those of other companies. Additional information regarding these financial measures, including reconciliations of each non-GAAP financial measure, is available in the subsection of MD&A titled, "Non-GAAP Financial Measures." Revenues – Defined As required by Regulation S-X, we separately present revenues generated as either Product revenues or Service revenues on our Consolidated Statements of Income for each period presented. When we discuss revenues, we may, at times, refer to revenues summarized differently than the Regulation S-X requirements. The terminology, definitions, and applications of terms that we use to describe revenues may be different from terms used by other companies. We use the following terms to describe revenues: •Revenues – Our revenues are presented net of sales returns and allowances. •Product Revenues – We define Product revenues as revenues generated from sales of consumable and capital equipment products. •Service Revenues – We define Service revenues as revenues generated from parts and labor associated with the maintenance, repair, and installation of our capital equipment. Service revenues also include outsourced reprocessing 27 services and instrument and scope repairs, as well as revenues generated from contract sterilization and laboratory services offered through our Applied Sterilization Technologies ("AST") segment. •Capital Equipment Revenues – We define capital equipment revenues as revenues generated from sales of capital equipment, which includes steam and gas sterilizers, low temperature liquid chemical sterilant processing systems, automated endoscope reprocessors, pure steam/water systems, surgical lights and tables, and integrated operating rooms. •Consumable Revenues – We define consumable revenues as revenues generated from sales of the consumable family of products, which includes dedicated consumables used in our capital equipment, gastrointestinal endoscopy accessories, instruments and tools, sterility assurance products, barrier protection solutions, and cleaning consumables. •Recurring Revenues – We define recurring revenues as revenues generated from sales of consumable products and Service revenues. GENERAL COMPANY OVERVIEW AND EXECUTIVE SUMMARY STERIS is a leading global provider of products and services that support patient care with an emphasis on infection prevention. WE HELP OUR CUSTOMERS CREATE A HEALTHIER AND SAFER WORLD by providing innovative healthcare and life science products and services around the globe. We offer our Customers a unique mix of innovative products and services. These include: consumable products, such as detergents, endoscopy accessories, barrier products, instruments and tools; services, including equipment installation and maintenance, microbial reduction of medical devices, instrument and scope repair, laboratory testing, and outsourced reprocessing; capital equipment, such as sterilizers, surgical tables, and automated endoscope reprocessors; and connectivity solutions such as OR integration. We operate and report our financial information in three reportable business segments: Healthcare, AST, and Life Sciences. Non-allocated operating costs that support the entire Company and items not indicative of operating trends are excluded from segment operating income. We describe our business segments in Note 10 to our consolidated financial statements titled, "Business Segment Information." The bulk of our revenues are derived from healthcare, medical device and pharmaceutical Customers. Much of the growth in these industries is driven by the aging of the population throughout the world, as an increasing number of individuals are entering their prime healthcare consumption years, and is dependent upon advancement in healthcare delivery, acceptance of new technologies, government policies, and general economic conditions. In addition, there is increased demand for medical procedures, including preventive screenings such as endoscopies and colonoscopies; and a desire by our Customers to operate more efficiently, all of which are driving increased demand for many of our products and services. Acquisitions. During the first three months of fiscal 2027, we completed three tuck-in acquisitions, recorded at fair value, which continued to expand our product and service offerings in the Healthcare segment. Total aggregate consideration was approximately $17.3 million, including deferred consideration and the fair value of potential contingent consideration. During the first three months of fiscal 2026, we completed a tuck-in acquisition which continued to expand our product and service offerings in the Healthcare segment. Total aggregate consideration was approximately $15.0 million. Acquisition and integration expenses totaled $1.5 million for the three months ended June 30, 2026. Acquisition and integration expenses totaled $0.5 million for the three months ended June 30, 2025. Acquisition and integration expenses reported in the Selling, general and administrative expenses and Cost of revenues lines of our Consolidated Statements of Income include, but are not limited to, investment banker, advisory, legal and other professional fees, and certain employee-related expenses. For more information regarding our recent acquisitions, see Note 3 to our consolidated financial statements titled, "Business Acquisitions." Highlights. Revenues increased 7.3% to $1,492.7 million for the three months ended June 30, 2026, as compared to $1,391.1 million for the same period in the prior year. The increase during the three month period reflects the benefits of higher volume in the Healthcare and Life Sciences segments, and pricing across all three segments. Gross profit percentage for the first three months of fiscal 2027 was 45.8% compared to the gross profit percentage for the first three months of fiscal 2026 of 45.1%. The increase in gross profit percentage for the three month period reflects favorable impacts from pricing, productivity and mix that were partially offset by unfavorable impacts from inflation. Income from operations for the first three months of fiscal 2027 was $285.8 million, compared to income from operations of $246.0 million for the first three months of fiscal 2026. The increase in income from operations for the three month period is primarily due to increased pricing, volume, and productivity, which were partially offset by inflation and additional spending on operational investments and staffing. 28 Cash flows from operations were $367.1 million and free cash flow was $279.6 million for the first three months of fiscal 2027, compared to cash flows from operations of $420.0 million and free cash flow of $326.5 million for the first three months of fiscal 2026 (see the subsection below titled "Non-GAAP Financial Measures" for additional information and related reconciliation of cash flows from operations to free cash flow). The fiscal 2027 decrease in cash flows from operations and free cash flow resulted from a significantly lower contribution from working capital partially offset by higher net income compared with fiscal 2026. Our debt-to-total capital ratio was 20.9% at June 30, 2026 and 21.3% at March 31, 2026. During the first three months of fiscal 2027, we declared and paid cash dividends totaling $0.63 per ordinary share. Additional information regarding our financial performance during the first quarter of fiscal 2027 is included in the subsection below titled “Results of Operations.” NON-GAAP FINANCIAL MEASURES We, at times, refer to financial measures which are considered to be “non-GAAP financial measures” under the Securities and Exchange Commission rules. We, at times, also refer to our results of operations excluding certain transactions or amounts that are non-recurring or are not indicative of future results, in order to provide meaningful comparisons between the periods presented. These non-GAAP financial measures are not intended to be, and should not be, considered separately from or as an alternative to the most directly comparable U.S. GAAP financial measures. These non-GAAP financial measures are presented with the intent of providing greater transparency to supplemental financial information used by management and the Board of Directors in their financial analysis and operational decision-making. These amounts are disclosed so that the reader has the same financial data that management uses with the belief that it will assist investors and other readers in making comparisons to our historical operating results and analyzing the underlying performance of our operations for the periods presented. We believe that the presentation of these non-GAAP financial measures, when considered along with our U.S. GAAP financial measures and the reconciliation to the corresponding U.S. GAAP financial measures, provides the reader with a more complete understanding of the factors and trends affecting our business than could be obtained absent this disclosure. It is important for the reader to note that the non-GAAP financial measures used may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. We define free cash flow as net cash provided by operating activities as presented in the Consolidated Statements of Cash Flows less purchases of property, plant, equipment, and intangibles (capital expenditures) plus proceeds from the sale of property, plant, equipment, and intangibles, which are also presented within investing activities in the Consolidated Statements of Cash Flows. We use this as a measure to gauge our ability to pay cash dividends, fund growth outside of core operations, fund future debt principal repayments, and repurchase shares. The following table summarizes the calculation of our free cash flow for the three months ended June 30, 2026 and 2025: Three Months Ended June 30, (in millions) 2026 2025 Net cash provided by operating activities $ 367.1 $ 420.0 Purchases of property, plant, equipment, and intangibles, net (87.5) (93.6) Proceeds from the sale of property, plant, equipment, and intangibles — 0.1 Free cash flow $ 279.6 $ 326.5 RESULTS OF OPERATIONS In the following subsections, we discuss our earnings and the factors affecting earnings for the first three months of fiscal 2027 compared to the same fiscal 2026 period. We begin with a general overview of our operating results and then separately discuss earnings for our operating segments. 29 Revenues. The following tables compare our revenues for the three months ended June 30, 2026 to the revenues for the three months ended June 30, 2025: Three Months Ended June 30, (dollars in millions) 2026 2025 Change Percent Change Total revenues $ 1,492.7 $ 1,391.1 $ 101.7 7.3 % Revenues by type: Service revenues 755.5 700.6 55.0 7.8 % Consumable revenues 474.0 435.0 39.0 9.0 % Capital equipment revenues 263.2 255.5 7.7 3.0 % Revenues by geography: Ireland revenues 29.0 22.5 6.5 28.7 % United States revenues 1,090.6 1,025.6 64.9 6.3 % Other foreign revenues 373.2 342.9 30.3 8.8 % Revenues increased 7.3% to $1,492.7 million for the three months ended June 30, 2026, as compared to $1,391.1 million for the same period in the prior year. The increase reflects the benefits of higher volume in the Healthcare and Life Sciences segments, and pricing across all three segments. Service revenues increased 7.8% for the three months ended June 30, 2026, as compared to the same period in the prior year, reflecting growth in all three segments. Consumable revenues increased by 9.0% for the three months ended June 30, 2026, as compared to the same period in the prior year, reflecting growth in the Healthcare and Life Sciences segments. Capital equipment revenues increased 3.0% for the three months ended June 30, 2026, as compared to the same period in the prior year, driven by growth in the Life Sciences and Healthcare segments. Ireland revenues increased 28.7% to $29.0 million for the three months ended June 30, 2026, as compared to $22.5 million for the same period in the prior year, reflecting growth in service, capital equipment, and consumable revenues. United States revenues increased 6.3% to $1,090.6 million for the three months ended June 30, 2026, as compared to $1,025.6 million for the same period in the prior year, reflecting growth in service, consumable and capital equipment revenues. Revenues from other foreign locations increased 8.8% to $373.2 million for the three months ended June 30, 2026, as compared to $342.9 million for the same period in the prior year. The increase reflects growth across all geographic regions. Gross Profit. The following tables compare our gross profit for the three months ended June 30, 2026 to the three months ended June 30, 2025: Three Months Ended June 30, Change Percent Change (dollars in millions) 2026 2025 Gross profit: Product $ 368.8 $ 330.8 $ 38.0 11.5 % Service 315.3 297.2 18.2 6.1 % Total gross profit $ 684.2 $ 628.0 $ 56.2 8.9 % Gross profit percentage: Product 50.0 % 47.9 % Service 41.7 % 42.4 % Total gross profit percentage 45.8 % 45.1 % 30 Our gross profit is affected by the volume, pricing, and mix of sales of our products and services, as well as the costs associated with the products and services that are sold. Gross profit percentage for the first three months of fiscal 2027 was 45.8% compared to gross profit percentage for the first three months of fiscal of 2026 of 45.1%. Favorable impacts from pricing (100 basis points), productivity (40 basis points), mix (40 basis points), and lower net tariffs (20 basis points) were partially offset by unfavorable impacts from inflation (60 basis points), adjustments and other charges (50 basis points), acquisitions (10 basis points), materials cost (10 basis points). Operating Expenses. The following table compares our operating expenses for the three months ended June 30, 2026 to the three months ended June 30, 2025: Three Months Ended June 30, Change Percent Change (dollars in millions) 2026 2025 Operating expenses: Selling, general, and administrative $ 369.7 $ 353.8 $ 15.9 4.5 % Research and development 28.6 26.4 2.2 8.5 % Restructuring expenses — 1.8 (1.8) (100.0) % Total operating expenses $ 398.3 $ 382.0 $ 16.3 4.3 % Selling, General, and Administrative Expenses. Significant components of total selling, general, and administrative expenses (“SG&A”) are compensation and benefit costs, fees for professional services, travel and entertainment expenses, facility costs, and other general and administrative expenses. SG&A increased 4.5% in the three month period ended June 30, 2026, compared to the same prior year period. The increase in SG&A during the three months ended June 30, 2026, compared to the same prior year period, is primarily attributable to increased compensation and benefit costs and marketing and sales costs, which were partially offset by favorable foreign currency impacts and lower bad debt expense. Research and Development. Research and development expenses increased 8.5% in the three month period ended June 30, 2026, compared to the same prior year period. Research and development expenses are influenced by the number and timing of in-process projects and labor hours and other costs associated with these projects. Our research and development initiatives continue to emphasize improving innovation governance processes and leveraging technology to accelerate development initiatives to launch critical capital and consumable products. During fiscal 2027, our investments in research and development have continued to be focused on, but were not limited to, enhancing capabilities of sterile processing technologies, procedural products and accessories, and devices and support accessories used in gastrointestinal endoscopy procedures. Restructuring Expenses. In May 2024, we adopted and announced a targeted restructuring plan (the "Restructuring Plan"). The Restructuring Plan includes a strategic shift in our approach to the Healthcare surgical business in Europe, as well as other actions including the impairment of an internally developed X-ray accelerator, product rationalizations and facility consolidations. Approximately 300 positions have been eliminated. These restructuring actions were designed to enhance profitability and improve efficiency, which we realized beginning in fiscal 2025 and 2026. As of March 31, 2026, the execution of our Restructuring Plan was substantially complete. During the three months ended June 30, 2026, we did not incur any expenses related to the Restructuring Plan. The following table summarizes our total pre-tax restructuring expenses recorded during the three months ended June 30, 2025 related to the Restructuring Plan: (in millions) Three Months Ended June 30, Restructuring Plan 2025 Severance and other compensation related costs $ 1.7 Accelerated depreciation and amortization 0.1 Total Restructuring Expense $ 1.8 (1) Recorded in Cost of revenues on the Consolidated Statements of Income. The Restructuring Plan expenses incurred during the three months ended June 30, 2025 primarily related to actions taken within our Healthcare and AST segments. Total pre-tax restructuring expense of $110.1 million has been recorded relating to the Restructuring Plan since inception, of which $33.9 million has been recorded in Cost of revenues. Liabilities related to restructuring activities are recorded as current liabilities in the accompanying Consolidated Balance Sheets within "Accrued payroll and other related liabilities" and "Accrued expenses and other." The following table summarizes our restructuring liability balances: 31 (in millions) Restructuring Plan Balance at March 31, 2026 $ 7.1 Payments (2.5) Balance at June 30, 2026 $ 4.6 On August 5, 2026, the Company announced a targeted restructuring plan to consolidate manufacturing and distribution for formulated chemistries to a new Center of Excellence in North Carolina. The investment is expected to accelerate innovation, expand capacity and optimize our U.S. chemistries manufacturing and distribution network. The plan includes the anticipated closure of chemistry manufacturing and distribution facilities in St. Louis, Missouri and Plymouth, Minnesota. The Company currently expects to incur total pre-tax restructuring charges of approximately $55 million to $70 million, consisting of approximately $40 million to $50 million of cash expenditures and approximately $15 million to $20 million of non-cash charges. Cash expenditures are expected to primarily consist of Associate retention, severance and benefits, and also include transition, facility exit and other related costs. Non-cash charges are expected to primarily relate to accelerated depreciation. These charges are expected to be incurred over time, with completion anticipated to occur during fiscal 2030. No financial impact has been recognized to date with respect to these amounts. This investment strengthens our Healthcare and Life Sciences formulated chemistries businesses, which together generate more than $700 million in annual revenue. The estimated costs and timing associated with the restructuring actions are based on the Company's current expectations and are subject to various assumptions. Actual results may differ materially from these estimates. Accordingly, the Company may revise its estimates in future periods as implementation activities progress. Non-Operating Expenses, Net. Non-operating expenses, net consists of interest expense on debt, offset by interest earned on cash, cash equivalents, short-term investment balances, losses (gains) related to disposal activities, and other expense (income) related to our equity investments, including our equity earnings and amortization of basis differences arising from our investments. The following tables compare our net non-operating expenses, net for the three months ended June 30, 2026 and 2025: Three Months Ended June 30, (in millions) 2026 2025 Change Non-operating expenses, net: Interest expense $ 15.8 $ 15.9 $ (0.1) Interest and miscellaneous income (3.1) (1.8) (1.4) Other income, net (0.3) — (0.3) Non-operating expenses, net $ 12.3 $ 14.1 $ (1.8) Interest expense decreased $0.1 million during the first quarter of fiscal 2027, as compared to the same prior year period, primarily due to the lower principal amount of debt outstanding. For more information, refer to Note 6 to our consolidated financial statements titled, "Debt." Interest and miscellaneous income increased $1.4 million during the first three months of fiscal 2027, when compared to the same prior year period. Other income, net increased $0.3 million during the first three months of fiscal 2027, when compared to the same prior year period. Income Taxes. The following tables compare our tax expense and effective income tax rates for the three months ended June 30, 2026 and 2025: Three Months Ended June 30, Change Percent Change (dollars in millions) 2026 2025 Income tax expense $ 72.5 $ 53.9 $ 18.6 34.5% Effective income tax rate 26.5 % 23.3 % The effective income tax rates for the three month periods ended June 30, 2026 and 2025 were 26.5% and 23.3%, respectively. The fiscal 2027 effective tax rates increased when compared to fiscal 2026, primarily due to unfavorable changes in discrete items. 32 Business Segment Results of Operations. We operate and report our financial information in three reportable business segments: Healthcare, AST, and Life Sciences. Our Healthcare segment provides a comprehensive offering for healthcare providers worldwide, focused on sterile processing departments and procedural centers, such as operating rooms and endoscopy suites. Our products and services range from infection prevention consumables and capital equipment, as well as services to maintain that equipment; to the repair of re-usable procedural instruments; to outsourced instrument reprocessing services. In addition, our procedural products also include endoscopy accessories, instruments, and capital equipment infrastructure used primarily in operating rooms, ambulatory surgery centers, endoscopy suites, and other procedural areas. Our AST segment supports medical device and pharmaceutical manufacturers through a global network of contract sterilization and laboratory testing facilities, and integrated sterilization equipment and control systems. Our technology-neutral offering supports Customers every step of the way, from testing through sterilization. Our Life Sciences segment provides a comprehensive offering of products and services designed to support biopharmaceutical and medical device research and manufacturing facilities, in particular those focused on aseptic manufacturing. Our portfolio includes a full suite of capital equipment, consumable products, equipment maintenance and specialty services. We disclose a measure of segment income that is consistent with the way management operates and views the business. The accounting policies for reportable segments are the same as those for the consolidated Company. Additional information regarding our segments is included in our consolidated financial statements included in our Annual Report on Form 10-K for the year ended March 31, 2026, which was filed with the SEC on May 29, 2026. The following tables compare business segment revenues as well as impacts from acquisitions, divestitures, and foreign currency movements for the three months ended June 30, 2026 and 2025. Three Months Ended June 30, (unaudited) As reported, U.S. GAAP Impact of Acquisitions Impact of Divestitures Impact of Foreign Currency Movements U.S. GAAP Growth Organic Growth Constant Currency Organic Growth (dollars in millions) 2026 2025 2026 2025 2026 2026 2026 2026 Segment revenues: Healthcare $ 1,048.3 $ 974.7 $ 6.9 $ — $ 4.2 7.6 % 6.9 % 6.4 % AST 297.6 281.2 — — 3.2 5.8 % 5.8 % 4.7 % Life Sciences 146.7 135.2 — — 0.9 8.6 % 8.6 % 7.9 % Total $ 1,492.7 $ 1,391.1 $ 6.9 $ — $ 8.4 7.3 % 6.8 % 6.2 % Organic revenue growth and constant currency organic revenue growth are non-GAAP financial measures of revenue performance. Organic revenue growth is calculated by removing the impact of acquisitions and divestitures for one year following the respective transaction from the GAAP revenue growth. Constant currency organic revenue growth is subject to a further adjustment to eliminate the impact of foreign currency movements. Healthcare revenues increased 7.6% to $1,048.3 million for the three months ended June 30, 2026, as compared to $974.7 million for the same prior year period. This increase reflects growth in service, consumable, and capital equipment revenues of 9.6%, 9.2% and 1.4%, respectively. The constant currency organic growth of 6.4% is primarily due to increased volume, impacting revenues by a mid-single digit percentage, as well as increased pricing, impacting revenues by a low-single digit percentage. The Healthcare segment's backlog at June 30, 2026 was $444.0 million. The Healthcare segment's backlog at June 30, 2025 was $403.5 million. The increase is primarily due to the timing of orders and shipments, as well as the impact of an acquisition. AST revenues increased 5.8% to $297.6 million for the three months ended June 30, 2026, as compared to $281.2 million for the same prior year period. The constant currency organic growth of 4.7% is primarily due to increased pricing, impacting revenues by a mid-single digit percentage, partially offset by a decline in volume. Life Sciences revenues increased 8.6% to $146.7 million for the three months ended June 30, 2026, as compared to $135.2 million for the same prior year period. This increase reflects growth in capital equipment, consumable and service revenues of 17.4%, 8.2% and 2.4%, respectively. The constant currency organic growth of 7.9% is primarily due to increased volume, impacting revenues by a mid-single digit percentage, as well as increased pricing, impacting revenues by a low-single digit percentage. 33 The Life Sciences backlog at June 30, 2026 was $109.9 million. The Life Sciences backlog at June 30, 2025 was $111.0 million. The decrease is primarily due to the timing of orders and shipments. The following table compares business segment and Corporate operating income for the three months ended June 30, 2026 and 2025. Three Months Ended June 30, Percent (in millions) 2026 2025 Change Change Income (loss) from operations before adjustments: Healthcare $ 260.2 $ 235.5 $ 24.7 10.5 % AST 142.9 136.7 $ 6.3 4.6 % Life Sciences 61.8 58.7 $ 3.0 5.1 % Corporate (1) (110.1) (114.0) 3.9 (3.5) % Total income from operations before adjustments $ 354.8 $ 316.9 $ 37.9 12.0 % Less: Adjustments Amortization of acquired intangible assets (2) $ 65.3 $ 67.1 Acquisition and integration related charges (3) 1.5 0.5 Tax restructuring costs (4) 0.3 0.2 Amortization of inventory and property "step up" to fair value (2) 1.8 1.4 Restructuring charges (5) — 1.8 Total income from operations $ 285.8 $ 246.0 (1) Corporate costs include corporate and administrative functions, public company costs, legacy post-retirement benefits, certain services and facilities related to distribution and research and development that are shared by multiple segments, and the benefit of refunds received on tariffs previously paid under the International Economic Emergency Powers Act ("IEEPA"). (2) For more information regarding our recent acquisitions, refer to Note 3 titled, "Business Acquisitions." (3) Acquisition and integration related charges include transaction costs and integration expenses associated with acquisitions. (4) Costs incurred in tax restructuring. (5) For more information regarding our restructuring efforts, refer to Note 2 titled, "Restructuring." The Healthcare segment’s operating income increased $24.7 million to $260.2 million for the three months ended June 30, 2026, as compared to $235.5 million in the same prior year period. The segment's operating margins were 24.8% and 24.2% for the first three months of fiscal 2027 and 2026, respectively. The increase in operating income and operating margin for the three month period ended June 30, 2026 is primarily due to the benefits of higher volume, productivity, pricing and mix, which were partially offset by unfavorable labor inflation, tariffs, and additional spending on operational improvements and staffing. The AST segment's operating income increased $6.3 million to $142.9 million for the three months ended June 30, 2026, as compared to $136.7 million during the same prior year period. The increase in operating income for the three month period ended June 30, 2026 is primarily due to the benefits of higher pricing and favorable foreign currency impacts, which were partially offset by higher depreciation expense, lower productivity and unfavorable labor inflation. The segment's operating margins were 48.0% and 48.6% for the first three months of fiscal 2027 and 2026, respectively. Operating margin declined as higher depreciation expense, lower productivity and unfavorable labor inflation more than offset the benefit provided by higher pricing. The Life Sciences segment’s operating income increased $3.0 million to $61.8 million for the three months ended June 30, 2026, as compared to $58.7 million for the same prior year period. The increase in segment operating income for the three month period ended June 30, 2026 is primarily due to favorable volume and pricing which were partially offset by lower productivity and higher materials cost. The segment's operating margins were 42.1% and 43.5% for the first three months of fiscal 2027 and 2026, respectively. Operating margin declined as lower productivity and higher materials cost more than offset the benefits of higher pricing and volume. 34 LIQUIDITY AND CAPITAL RESOURCES The following table summarizes significant components of our cash flows for the three months ended June 30, 2026 and 2025: Three Months Ended June 30, (dollars in millions) 2026 2025 Net cash provided by operating activities $ 367.1 $ 420.0 Net cash used in investing activities $ (108.5) $ (108.5) Net cash used in financing activities $ (213.5) $ (213.1) Debt-to-total capital ratio 20.9 % 21.5 % Free cash flow $ 279.6 $ 326.5 Net Cash Provided by Operating Activities – The net cash provided by our operating activities was $367.1 million for the first three months of fiscal 2027 and $420.0 million for the first three months of fiscal 2026. The fiscal 2027 decrease in cash flows from operations resulted from a significantly lower contribution from working capital partially offset by an increase in earnings when compared to the prior year. Net Cash Used In Investing Activities – The net cash used in investing activities totaled $108.5 million for the first three months of fiscal 2027 and net cash used in investing activities totaled $108.5 million for the first three months of fiscal 2026. The following discussion summarizes the significant changes in our investing cash flows for the first three months of fiscal 2027 and fiscal 2026: •Purchases of property, plant, equipment, and intangibles, net – Capital expenditures totaled $87.5 million for the first three months of fiscal 2027 and $93.6 million during the same prior year period. The fiscal 2027 decrease is due to the timing of capital spending. •Purchases of investments – During the first three months of fiscal 2027, we used $5.0 million to purchase investments. •Acquisition of businesses, net of cash acquired – During the first three months of fiscal 2027 and 2026, we used $16.0 million and $15.0 million, respectively, to acquire businesses. For more information, refer to Note 3 to our consolidated financial statements titled, "Business Acquisitions." Net Cash Used In Financing Activities – The net cash used in financing activities amounted to $213.5 million for the first three months of fiscal 2027 compared to net cash used in financing activities of $213.1 million for the first three months of fiscal 2026. The following discussion summarizes the significant changes in our financing cash flows for the first three months of fiscal 2027 and fiscal 2026: •Payments on Private Placement Senior Notes – During the first three months of fiscal 2026, we repaid $125.0 million, of Private Placement Senior Notes upon maturity. For more information on our Private Placement Senior Notes, refer to Note 6 to our consolidated financial statements titled, "Debt" and to our Annual Report on Form 10-K for the year ended March 31, 2026, which was filed with the SEC on May 29, 2026. •Payments under credit facilities, net – Net payments under credit facilities totaled $37.8 million and $30.5 million for the first three months of fiscal 2027 and 2026, respectively. •Repurchases of ordinary shares – During each of the first three month periods of fiscal 2027 and 2026, we obtained 0.1 million of our ordinary shares in connection with share-based compensation award programs in the aggregate amounts of $15.5 million and $10.6 million, respectively. During the first three month period of fiscal 2027, we purchased 0.5 million of our ordinary shares for the aggregate purchase amount of $100.0 million (exclusive of fees, commissions, and other charges) pursuant to authorizations under our new share repurchase program, which was adopted by the Board of Directors on May 5, 2026. During the first three months of fiscal 2026, we had no share repurchase activity under our previous share repurchase program. For more information on our share repurchases, refer to Note 12 to our consolidated financial statements titled, "Repurchases of Ordinary Shares" and to our Annual Report on Form 10-K for the year ended March 31, 2026, which was filed with the SEC on May 29, 2026. •Cash dividends paid to ordinary shareholders – During the first three months of fiscal 2027, we paid total cash dividends of $61.4 million, or $0.63 per outstanding share. During the first three months of fiscal 2026, we paid total cash dividends of $56.2 million, or $0.57 per outstanding share. 35 •Stock option and other equity transactions, net – We generally receive cash for issuing shares under our stock option programs. During the first three months of fiscal 2027 and fiscal 2026, we received cash proceeds totaling $1.3 million and $9.3 million, respectively, under these programs. Cash Flow Measures. The net cash provided by our operating activities was $367.1 million for the first three months of fiscal 2027 and $420.0 million for the first three months of fiscal 2026. Free cash flow was $279.6 million in the first three months of fiscal 2027 compared to $326.5 million in the first three months of fiscal 2026 (see the subsection above titled "Non-GAAP Financial Measures" for additional information and related reconciliation of cash flows from operations to free cash flow). The fiscal 2027 decrease in cash flows from operations and free cash flow resulted from a significantly lower contribution from working capital partially offset by higher net income compared with fiscal 2026. Our debt-to-total capital ratio was 20.9% at June 30, 2026 and 21.5% at June 30, 2025. MATERIAL FUTURE CASH OBLIGATIONS AND COMMERCIAL COMMITMENTS Information related to our material future cash obligations and commercial commitments is included in our Annual Report on Form 10-K for the year ended March 31, 2026, which was filed with the SEC on May 29, 2026. Our commercial commitments were approximately $165.7 million at June 30, 2026, reflecting a net increase of $4.4 million in surety bonds and other commercial commitments from March 31, 2026. We had no outstanding borrowings under our Revolving Credit Facility as of June 30, 2026. We had $9.6 million of letters of credit outstanding under the Revolving Credit Facility at June 30, 2026. Cash Requirements. We intend to use our existing cash and cash equivalent balances and cash generated from operations for short-term and long-term capital expenditures and our other liquidity needs. Our capital requirements depend on many uncertain factors, including our rate of sales growth, our Customers’ acceptance of our products and services, the costs of obtaining adequate manufacturing capacities, the timing and extent of our research and development projects, changes in our expenses and other factors. To the extent that existing and anticipated sources of cash are not sufficient to fund our future activities, we may need to raise additional funds through additional borrowings or the sale of equity securities. There can be no assurance that our existing financing arrangements will provide us with sufficient funds or that we will be able to obtain any additional funds on terms favorable to us or at all. SUPPLEMENTAL GUARANTOR FINANCIAL INFORMATION Parent and its wholly-owned subsidiaries, Limited and Corporation (collectively with Limited "Guarantors" and each a "Guarantor"), each have provided guarantees of the obligations of FinCo ("FinCo") a wholly-owned subsidiary issuer, under senior public notes issued by FinCo on April 1, 2021 (the "Senior Public Notes") and of certain other obligations relating to the Senior Public Notes. The Senior Public Notes are guaranteed, jointly and severally, on a senior unsecured basis. The Senior Public Notes and the related guarantees are senior unsecured obligations of FinCo and the Guarantors, respectively, and are equal in priority with all other unsecured and unsubordinated indebtedness of FinCo and the Guarantors, respectively, from time to time outstanding, including, as applicable, under the Private Placement Senior Notes and borrowings under the Revolving Credit Facility. All of the liabilities of non-guarantor direct and indirect subsidiaries of Parent, other than FinCo, Limited and Corporation, including any claims of trade creditors, are effectively senior to the Senior Public Notes. FinCo’s main objective and source of revenues and cash flows is the provision of short- and long-term financing for the activities of Parent and its subsidiaries. The ability of our subsidiaries to pay dividends, interest and other fees to FinCo and ability of FinCo and Guarantors to service the Senior Public Notes may be restricted by, among other things, applicable corporate and other laws and regulations as well as agreements to which our subsidiaries are or may become a party. The following is a summary of these guarantees: Guarantees of Senior Notes •Parent Company Guarantor – STERIS plc •Subsidiary Issuer – STERIS Irish FinCo Unlimited Company •Subsidiary Guarantor – STERIS Limited •Subsidiary Guarantor – STERIS Corporation The guarantee of a Guarantor will be automatically and unconditionally released and discharged: •in the case of a subsidiary Guarantor, upon the sale, transfer or other disposition (including by way of consolidation or merger) of such subsidiary Guarantor, other than to the Parent or a subsidiary of the Parent and as permitted by the Indenture; •in the case of a subsidiary Guarantor, upon the sale, transfer or other disposition of all or substantially all the assets of such subsidiary Guarantor, other than to the Parent or a subsidiary of the Parent and as permitted by the Indenture; •in the case of a subsidiary Guarantor, at such time as such subsidiary Guarantor is no longer a borrower under or no longer guarantees any material credit facility (subject to reinstatement in specified circumstances); 36 •upon the legal defeasance or covenant defeasance of the Senior Public Notes or the discharge of FinCo’s obligations under the Indenture in accordance with the terms of the Indenture; •as described in accordance with the terms of the Indenture; or •in the case of Parent, if FinCo ceases for any reason to be a subsidiary of Parent; provided that all guarantees and other obligations of Parent in respect of all other indebtedness under any material credit facility of FinCo terminate upon FinCo ceasing to be a subsidiary of Parent; and •upon such Guarantor delivering to the trustee an officer’s certificate and an opinion of counsel, each stating that all conditions precedent provided for in the Indenture relating to such transaction or release have been complied with. The obligations of each Guarantor under its guarantee are expressly limited to the maximum amount that such Guarantor could guarantee without such guarantee constituting a fraudulent conveyance. Each Guarantor that makes a payment under its guarantee will be entitled upon payment in full of all guaranteed obligations under the indenture to a contribution from each Guarantor in an amount equal to such other Guarantor’s pro rata portion of such payment based on the respective net assets of all the Guarantors at the time of such payment determined in accordance with U.S. GAAP. The following tables present summarized results of operations for the three months ended June 30, 2026 and summarized balance sheet information at June 30, 2026 and March 31, 2026 for the obligor group of the Senior Public Notes. The obligor group consists of Parent, FinCo, and the other Guarantors. The summarized financial information is presented after elimination of (i) intercompany transactions and balances among the guarantors and issuer and (ii) equity in earnings from and investments in any subsidiary that is a non-guarantor or issuer. Transactions with non-issuer and non-guarantor subsidiaries have been presented separately. Summarized Results of Operations (in millions) Three Months Ended June 30, 2026 Revenues $ 817.0 Gross profit 445.0 Operating costs arising from transactions with non-issuers and non-guarantors, net (147.6) Income from operations 229.2 Non-operating income arising from transactions with subsidiaries that are non-issuers and non-guarantors, net (356.1) Net income $ 396.7 37 Summarized Balance Sheet Information (in millions) June 30, March 31, 2026 2026 Receivables due from non-issuers and non-guarantor subsidiaries $ 21,978.4 $ 21,513.5 Other current assets 1,000.7 1,039.2 Total current assets $ 22,979.1 $ 22,552.7 Non-current receivables due from non-issuers and non-guarantor subsidiaries $ 1,280.3 $ 1,280.3 Goodwill 298.9 298.0 Other non-current assets 647.7 639.9 Total non-current assets $ 2,226.9 $ 2,218.1 Payables due to non-issuers and non-guarantor subsidiaries $ 26,541.1 $ 25,938.3 Other current liabilities 572.6 510.0 Total current liabilities $ 27,113.6 $ 26,448.3 Non-current payables due to non-issuers and non-guarantor subsidiaries $ 285.9 $ 285.9 Other non-current liabilities 1,658.9 1,820.7 Total non-current liabilities $ 1,944.9 $ 2,106.6 Intercompany balances and transactions between the obligor group have been eliminated, and amounts due from, amounts due to, and transactions with non-issuer and non-guarantor subsidiaries have been presented separately. Intercompany transactions arise from internal financing and trade activities. Critical Accounting Estimates and Assumptions Information related to our critical accounting estimates and assumptions is included in our Annual Report on Form 10-K for the year ended March 31, 2026, which was filed with the SEC on May 29, 2026. Our critical accounting policies, estimates, and assumptions have not changed materially from March 31, 2026. Contingencies We are, and will likely continue to be, involved in a number of legal proceedings, government investigations, and claims, which we believe generally arise in the course of our business, given our size, history, complexity, and the nature of our business, products, Customers, regulatory environment, and industries in which we participate. These legal proceedings, investigations and claims generally involve a variety of legal theories and allegations, including, without limitation, personal injury (e.g., slip and falls, burns, vehicle accidents), product liability or regulation (e.g., based on product operation or claimed malfunction, failure to warn, failure to meet specification, or failure to comply with regulatory requirements), product exposure (e.g., claimed exposure to chemicals, gases, asbestos, contaminants, radiation), property damage (e.g., claimed damage due to leaking equipment, fire, vehicles, chemicals), commercial claims (e.g., breach of contract, economic loss, warranty, misrepresentation), financial (e.g., taxes, reporting), employment (e.g., wrongful termination, discrimination, benefits matters), and other claims for damage and relief. 38 We record a liability for such contingencies to the extent we conclude that their occurrence is both probable and estimable and believe we have adequately reserved for our current litigation and claims that are probable and estimable. In the event that the estimate of a probable loss is a range and no amount within the range is more likely, we accrue the minimum amount of the range. We consider many factors in making these assessments, including the professional judgment of experienced members of management and our legal counsel. We have made estimates as to the likelihood of unfavorable outcomes and the amounts of such potential losses. Further, we believe that the ultimate outcome of pending lawsuits and claims will not have a material adverse effect on our consolidated financial position or results of operations taken as a whole. Due to their inherent uncertainty, however, there can be no assurance of the ultimate outcome or effect of current or future litigation, investigations, claims or other proceedings. For certain types of claims, we presently maintain insurance coverage for personal injury and property damage and other liability coverages in amounts and with deductibles that we believe are prudent, and we may also have contractual indemnification rights against certain liabilities, but there can be no assurance that either will be applicable or adequate to cover adverse outcomes of claims or legal proceedings against us. We record expected recoveries under applicable contracts when we are assured of recovery. Refer to Note 9 of our consolidated financial statements titled, "Commitments and Contingencies" for additional information. We are subject to taxation from United States federal, state and local, and foreign jurisdictions. Tax positions are settled primarily through the completion of audits within each individual jurisdiction or the closing of statutes of limitation. Changes in applicable tax law or other events may also require us to revise past estimates. We describe income taxes further in Note 8 of our consolidated financial statements titled, "Income Taxes" for more information. Forward-Looking Statements This quarterly report may contain statements concerning certain trends, expectations, forecasts, estimates, or other forward-looking information affecting or relating to STERIS or its industry, products or activities that are intended to qualify for the protections afforded “forward-looking statements” under the Private Securities Litigation Reform Act of 1995 and other laws and regulations. Forward-looking statements speak only as to the date the statement is made and may be identified by the use of forward-looking terms such as “may,” “will,” “expects,” “believes,” “anticipates,” “plans,” “estimates,” “projects,” “targets,” “forecasts,” “outlook,” “impact,” “potential,” “confidence,” “improve,” “optimistic,” “deliver,” “orders,” “backlog,” “comfortable,” “trend,” and “seeks,” or the negative of such terms or other variations on such terms or comparable terminology. Many factors could cause actual results to differ materially from those in the forward-looking statements including, without limitation, those identified in Part I, Item 1A, "Risk Factors" in our Annual Report on Form 10-K, which was filed with the SEC on May 29, 2026. Other potential risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements include, without limitation: (a) the impact on STERIS and its operations of any legislation, regulations or orders, including but not limited to any new trade, regulations or orders, that may be implemented by the U.S. administration or Congress, or of any responses thereto by non-U.S. governments; (b) operating costs, pressure on pricing (including, without limitation, as a result of inflation), Customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, Customers, clients or suppliers) being greater than expected and leading to erosion of profit margins; (c) the potential of international unrest, military conflicts, economic downturns, currency fluctuations and cybersecurity events and any resulting effects on STERIS’s anticipated growth, performance or other results; (d) changes in healthcare policy or government or other third-party payor reimbursement levels; (e) the possibility that compliance with laws, court rulings, certifications, regulations, or other regulatory actions, or the outcome of any pending or threatened litigation, including the EO litigation, may delay, limit or prevent new product or service introductions, impact production, supply and/or marketing of existing products or services, result in uncovered costs, or otherwise affect STERIS’s performance, results, prospects or value; (f) changes in tax laws or interpretations or the adoption of certain income tax treaties in jurisdictions where we operate that could increase our consolidated tax liabilities, including changes in tax laws that would result in STERIS being treated as a U.S. resident for U.S. federal tax purposes, or the impact of tariffs and/or other trade barriers as a result of STERIS’s corporate structure; (g) the impacts of increasing consolidation and competition within our industry, which may exert pressure on our pricing strategy, manufacturing strategy or lead to decreasing demand for our products and services; (h) the effects on our operations resulting from labor-related issues, such as strikes, unsuccessful union negotiations and other workforce disruptions or from our inability to recruit or retain management and other personnel; (i) the level of STERIS’s indebtedness limiting financial flexibility or increasing future borrowing costs; (j) the effects of changes in credit availability and pricing, as well as the ability of STERIS and STERIS’s Customers and suppliers to adequately access the credit markets, on favorable terms or at all, when needed; and (k) the possibility that anticipated financial results, anticipated revenues, productivity improvements, cost savings, growth synergies, and other anticipated benefits of acquisitions, restructuring efforts, and divestitures will not be realized or will be less than anticipated due to unknown or inestimable liabilities, impairments, or increases in expected integration costs or difficulties in connection with the integration of acquired businesses; and (l) the possibility that expectations about the benefits, charges and cash expenditures from the new Center of Excellence in North Carolina and the related facility consolidation plan may not be accurate or realized on anticipated timelines, or at all. Unless legally required, STERIS does not undertake to update or revise any forward-looking statements even if events make clear that any projected results, express or implied, will not be realized. 39 Availability of Securities and Exchange Commission Filings We make available free of charge on or through our website our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to these reports as soon as reasonably practicable after we file such material with, or furnish such material to, the SEC. You may access these documents on the Investor Relations page of our website at http://www.steris-ir.com. The information on our website and the SEC's website is not incorporated by reference into this report.