STERIS plc reported third-quarter earnings of $2.53 per share, matching the Zacks Consensus Estimate and up from $2.32 per share in the year-ago period. Revenue for the quarter rose 8% year-over-year to $1.51 billion, surpassing analyst expectations of $1.49 billion. The company’s Surgical & Critical Care Technologies unit delivered double-digit growth, while its Healthcare Products and Services segment saw mid-single-digit gains, reflecting steady demand across sterilization and infection prevention products.

Despite top-line strength, STERIS’s gross margin contracted to 48.2% of revenue, down from 49.5% a year earlier. Management attributed the decline to elevated supply-chain costs and higher freight expenses, which offset operational leverage from volume gains. Operating margin narrowed by 120 basis points to 21.4%, prompting analysts to revise full-year margin forecasts downward by 50 basis points on average.

Shares of STERIS dipped approximately 3% in after-hours trading following the results, as investors weighed margin pressures against ongoing growth initiatives. During the earnings call, management reaffirmed its full-year organic revenue growth target of 6% to 8%, and outlined plans to mitigate cost headwinds through pricing actions and productivity improvements. The company also highlighted a recently announced $500 million share-repurchase authorization, aimed at returning capital and supporting per-share earnings growth.