Nov 5 - Medical equipment maker Steris STE.N raised its annual profit forecast, banking on strength in its biggest segment that sells sterilization products, sending shares up 2% in after-hours trading.

The Mentor, Ohio-based company now expects 2026 adjusted profit of $10.15 to $10.30 per share, up from $9.90 to $10.15 per share. Analysts expect a profit of $10.09 per share for the year.

Steris also raised its outlook for annual organic revenue growth from continuing operations to 7%–8% on a constant-currency basis.

Investor sentiment toward medical device makers such as Steris and Stryker SYK.N has strengthened in recent quarters, driven by expectations of higher demand for surgical procedures as older patients resume treatments postponed during the pandemic.

The company, which makes surgical instruments, reported quarterly revenue of $1.50 billion, topping analysts' estimates of $1.43 billion, according to data compiled by LSEG.

Revenue from Steris's healthcare segment, which provides sterilization products and services to hospitals and other healthcare providers and accounts for about 70% of total revenue, rose 9% in the second quarter to $1,033.8 million, above analysts' estimates of $1,016 million

On an adjusted basis, the company reported a profit of $2.47 per share for the quarter, beating analysts' estimates of $2.35 per share, according to data compiled by LSEG.

(Reporting by Sruthi Narasimha Chari in Bengaluru; Editing by Tasim Zahid)

((SruthiNarasimha.Chari@thomsonreuters.com))