STERIS reported a solid start to fiscal 2026 (QQ1) with total as-reported revenue up 9% and constant currency organic revenue up 8%, supported by volume growth and price. Gross margin rose 20 basis points to 45.3% in the quarter, and EBIT margin expanded 50 basis points to 22.8% as pricing gains and productivity offset inflation and tariff costs. Net income from continuing operations was $231.2 million, and adjusted EPS was $2.34, up 15% year over year. The company generated strong operating cash flow ($420 million) and free cash flow ($326 million), enabling dividend growth (20th consecutive year, +10% to $0.63/quarter) and ongoing deleveraging efforts (gross debt to EBITDA ~1.2x). Management highlighted a favorable mix in earnings with tariffs largely offset by favorable currency, though tariff headwinds were raised and tariff guidance was increased for the year. Management also announced a CFO transition to Karen (Executive VP and CFO-designate) with Mike Tokich transitioning out and will remain available as adviser, underscoring strong succession planning. The backdrop remains favorable for STERIS given persistent backlog across all segments, a constructive bioprocessing/Life Sciences backdrop, and a robust consumables and services growth trajectory. The updated outlook contemplates 8-9% as-reported revenue growth ( ~200 bps currency tailwind) and 6-7% constant currency organic revenue growth, with free cash flow guidance raised to $820 million for fiscal 2026. Investors should monitor tariff evolution, FX movements, ongoing cost containment, and the rate of backlog conversion into revenue throughout the year.