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West Pharmaceutical Services, Inc. (NYSE:WST – Get Free Report) has earned an average rating of “Moderate Buy” from the fifteen brokerages that are currently covering the firm, MarketBeat.com reports. Three analysts have rated the stock with a hold recommendation, eleven have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price target among brokerages that have issued a report on the stock in the last year is $368.0769.

A number of research analysts have recently commented on WST shares. Stephens reiterated an “overweight” rating and issued a $360.00 price target on shares of West Pharmaceutical Services in a research note on Tuesday, June 2nd. Zacks Research lowered West Pharmaceutical Services from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, August 12th. Morgan Stanley upped their target price on West Pharmaceutical Services from $325.00 to $365.00 and gave the stock an “equal weight” rating in a report on Thursday, July 9th. Barclays upgraded West Pharmaceutical Services from an “equal weight” rating to an “overweight” rating and increased their target price for the company from $310.00 to $400.00 in a research report on Tuesday, June 9th. Finally, KeyCorp lifted their price target on West Pharmaceutical Services from $350.00 to $390.00 and gave the company an “overweight” rating in a research note on Thursday, July 2nd.

Get Our Latest Report on WST

West Pharmaceutical Services Price Performance WST stock opened at $338.21 on Monday. The stock has a market cap of $23.80 billion, a price-to-earnings ratio of 43.30, a P/E/G ratio of 2.36 and a beta of 1.15. The company has a debt-to-equity ratio of 0.07, a current ratio of 2.82 and a quick ratio of 2.12. The company has a 50 day simple moving average of $350.55 and a 200 day simple moving average of $304.00. West Pharmaceutical Services has a 1 year low of $223.83 and a 1 year high of $386.00. West Pharmaceutical Services (NYSE:WST – Get Free Report) last issued its earnings results on Thursday, July 23rd. The medical instruments supplier reported $2.37 earnings per share for the quarter, beating analysts’ consensus estimates of $2.08 by $0.29. The firm had revenue of $872.30 million for the quarter, compared to analyst estimates of $839.98 million. West Pharmaceutical Services had a net margin of 16.98% and a return on equity of 20.11%. The company’s quarterly revenue was up 13.8% on a year-over-year basis. During the same quarter last year, the business posted $1.84 earnings per share. West Pharmaceutical Services has set its Q3 2026 guidance at 2.140-2.240 EPS and its FY 2026 guidance at 8.850-9.050 EPS. Research analysts anticipate that West Pharmaceutical Services will post 8.93 EPS for the current fiscal year.

West Pharmaceutical Services Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, August 5th. Investors of record on Wednesday, July 29th were issued a $0.22 dividend. This represents a $0.88 dividend on an annualized basis and a yield of 0.3%. The ex-dividend date was Wednesday, July 29th. West Pharmaceutical Services’s dividend payout ratio (DPR) is 11.27%.

Institutional Investors Weigh In On West Pharmaceutical Services A number of institutional investors have recently added to or reduced their stakes in the business. California State Teachers Retirement System increased its holdings in West Pharmaceutical Services by 36,590.8% in the second quarter. California State Teachers Retirement System now owns 40,592,489 shares of the medical instruments supplier’s stock valued at $14,572,704,000 after purchasing an additional 40,481,855 shares during the period. BlackRock Inc. bought a new position in West Pharmaceutical Services during the 2nd quarter worth $2,387,990,000. Bank of New York Mellon Corp acquired a new position in West Pharmaceutical Services during the 2nd quarter worth about $733,733,000. Generation Investment Management LLP acquired a new position in West Pharmaceutical Services during the 2nd quarter worth about $728,168,000. Finally, Norges Bank bought a new stake in shares of West Pharmaceutical Services in the 4th quarter valued at about $272,041,000. 93.90% of the stock is owned by institutional investors.

West Pharmaceutical Services Company Profile (Get Free Report)

West Pharmaceutical Services, Inc is a global developer and manufacturer of components, systems and services that enable the containment and delivery of injectable drugs. The company focuses on high-quality packaging and delivery solutions for the pharmaceutical and biotech industries, producing primary drug packaging components and specialized drug delivery devices used for vaccines, biologics and other injectable therapies. West is known for its elastomeric closures, seals and polymer components that maintain sterility and compatibility with sensitive drug formulations.

In addition to component manufacturing, West provides engineered delivery systems and support services across the product lifecycle.

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Key Takeaways WST's HVP Components sales rose 19.4%, while HVP Delivery Devices sales increased 29.6%.West raised 2026 organic sales growth guidance to 10%-11% and adjusted EPS to $8.85-$9.05.WST trades at 37.1X forward earnings, more than double its sub-industry's 17.8X multiple.
West Pharmaceutical Services, Inc. (WST - Free Report) shares have gained 17.2% in the past three months, ahead of the Zacks Medical sector's 18.9% rise and the S&P 500's 2% advance. The move reflects improving operating momentum, but valuation leaves less room for execution misses.

The central question is whether High-Value Product demand, margin expansion and a higher 2026 outlook can support further gains after the recent run.

Image Source: Zacks Investment Research

WST's HVP Mix Supports the RallyHigh-Value Product Components remain West's main growth engine. Second-quarter sales reached $424.1 million, up 19.4% year over year and 18.4% organically, representing 49% of total company sales.

Demand benefited from biologics, GLP-1 elastomers and customer upgrades to higher-quality containment solutions, including Annex 1-related conversions. NovaPure and FluroTec products were key contributors, while High-Value Product Delivery Devices sales increased 29.6% to $131.2 million.

Becton, Dickinson and Company (BDX - Free Report) is investing $110 million to expand U.S. production of prefillable syringes for biologic and GLP-1 drug delivery. AptarGroup, Inc. (ATR - Free Report) , another drug-delivery supplier, reported a 4% increase in Pharma sales in the second quarter, underscoring continued activity across injectable and advanced drug-delivery markets.

West's Q2 Beat Adds Fundamental SupportSecond-quarter revenues increased 13.8% to $872.3 million, while organic sales grew 12.7%. Adjusted earnings of $2.37 per share rose 28.8% and beat the Zacks Consensus Estimate by 13.9%.

Proprietary Products revenues climbed 16.6% to $722.6 million. Gross margin expanded 200 basis points to 37.7%, and adjusted operating margin improved 230 basis points to 22.6%, showing the earnings benefit from richer product mix and operating leverage.

WST's Raised Outlook Extends the Growth CaseWest raised its 2026 revenue outlook to $3.345 billion-$3.380 billion from $3.295 billion-$3.350 billion. Organic sales are now expected to increase 10%-11%, up from the prior 7%-9% range.

Adjusted earnings guidance rose to $8.85-$9.05 per share from $8.40-$8.75. Management now expects both GLP-1 and non-GLP-1 High-Value Product Components to grow in the high teens organically for the year, supporting continued mix improvement.

West's Premium Valuation Tests Further UpsideWST trades at 37.1X forward 12-month earnings, more than double the Zacks sub-industry's 17.8X multiple. The stock also trades above the Medical sector's 21.2X and the S&P 500's 20.7X.

The multiple is below WST's five-year median of 39.1X, but it still implies that investors are paying a sizable premium for growth and execution. Further appreciation may therefore require continued earnings delivery and sustained High-Value Product momentum.

Image Source: Zacks Investment Research

WST Risks Could Check the MomentumStandard Products sales increased just 2.4% in the second quarter, while West Vantage revenues rose 2% and only 0.8% organically. West Vantage was also affected by cyber-related production downtime, which pushed some revenues into the second half.

Higher oil and commodity costs remain another pressure point. The July 1 sale of SmartDose 3.5mL also creates a portfolio transition, while the Dublin drug-handling ramp and other operational initiatives add execution risk.

Wrapping UpWST's recent gain is supported by faster High-Value Product growth, wider margins and a stronger 2026 earnings outlook. Against that, the premium valuation and softer performance in Standard Products and West Vantage raise the threshold for additional upside.

Currently, West carries a Zacks Rank #3 (Hold). Likewise, Becton, Dickinson and Company, and AptarGroup also carry a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Raising Full-Year Net Sales and EPS guidance

, /PRNewswire/ -- West Pharmaceutical Services, Inc. (NYSE: WST), a leading provider of innovative, high-quality injectable solutions and services, today announced its financial results for the second quarter of 2026.

Second-Quarter Summary (comparisons to prior-year period)

Net sales of $872.3 million increased 13.8%; organic growth was 12.7%. Diluted earnings per share ("EPS") of $2.15 increased 18.1%. Adjusted-diluted EPS of $2.37 increased 28.8%. Operating cash flow was $213.9 million. Capital expenditures were $85.9 million. Free cash flow (defined as operating cash flow less capital expenditures) was $128.0 million. During the first six months of 2026, the Company repurchased 1.8 million shares for $454.3 million at an average price of $258.03 per share under its share repurchase program that was announced in mid-February 2026. The Company also announced on July 21, 2026 that its Board of Directors declared a third-quarter 2026 dividend of $0.22 per share. Outlook for Full-Year and Third-Quarter 2026

Full-year 2026 net sales are expected to be in the range of $3.345 billion to $3.380 billion, up 8.8% to 10.0% reported and up 10.0% to 11.0% organic. Full-year 2026 adjusted-diluted EPS guidance increased to a range of $8.85 to $9.05. Third-quarter 2026 net sales are expected to be in the range of $820 million to $835 million, up 1.9% to 3.8% reported and up 7.0% to 8.9% organic. Third-quarter 2026 adjusted-diluted EPS guidance is expected to be in the range of $2.14 to $2.24. Eric M. Green, President, Chief Executive Officer and Chair of the Board, commented: "I am pleased to report strong second-quarter results, with net sales and adjusted EPS exceeding our expectations. Net sales increased 12.7% organically, driven by our High Value Product Components business which benefited from continued strength in Biologics, a favorable mix shift from HVP upgrades including Annex 1, and ongoing growth in GLP-1 elastomers.  The robust sales growth drove strong operating income margin expansion as compared to prior year. As a result of our team's strong execution in the second quarter and improved outlook, we are increasing our full-year 2026 guidance."

Proprietary Products Segment
Net sales of $722.6 million grew by 16.6% and increased 15.5% on an organic basis.

High-Value Product ("HVP") Components net sales of $424.1 million increased 19.4% and rose 18.4% on an organic basis. HVP Components accounted for 49% of total company net sales in the quarter. HVP Delivery Devices net sales of $131.2 million increased by 29.6%, and were up 29.2% on an organic basis. HVP Delivery Devices accounted for 15% of total company net sales in the quarter. Standard Products net sales of $167.3 million increased by 2.4% and rose 0.7% on an organic basis. Standard Products accounted for 19% of total company net sales this quarter. West Vantage Segment
Net sales of $149.7 million increased by 2.0% and rose 0.8% on an organic basis. West Vantage accounted for 17% of total company net sales in the quarter.

Full-Year 2026 Financial Guidance

The Company is increasing its full-year 2026 net sales guidance range to $3.345 billion to $3.380 billion, up from $3.295 billion to $3.350 billion. Reported net sales growth is anticipated to be in the range of 8.8% to 10.0%, and organic net sales growth is expected to be in the range of 10.0% to 11.0%. Net sales guidance includes an estimated full-year 2026 benefit of approximately 1 percentage point based on current foreign currency exchange rates. SmartDose® 3.5mL generated $55 million in net sales in the second half of 2025. These net sales are excluded going forward to calculate our organic net sales growth guidance. The Company is increasing its full-year 2026 adjusted-diluted EPS guidance range to $8.85 to $9.05, up from the previous range of $8.40 to $8.75. Capital spending guidance is unchanged from a range of $250 million to $275 million. Third-Quarter 2026 Financial Guidance

The Company is introducing its third-quarter 2026 net sales guidance range of $820 million to $835 million. Reported net sales growth is anticipated to be in the range of 1.9% to 3.8%, and organic net sales growth is expected to be in the range of 7.0% to 8.9%. Net sales guidance includes an estimated headwind of approximately 1 percentage point based on current foreign currency exchange rates. SmartDose® 3.5mL generated $30 million in net sales in the third quarter of 2025. These net sales are excluded going forward to calculate our organic net sales growth guidance. The Company is introducing its third-quarter 2026 adjusted-diluted EPS guidance range of $2.14 to $2.24. Second-Quarter 2026 Conference Call 
Management will host a conference call at 8 a.m. EDT today. The live webcast can be accessed in the "Investors" section of the Company's website by clicking here.

To participate in the Q&A portion of the conference call, please register in advance by clicking here.

Registered telephone participants will receive the dial-in number along with a unique PIN number that will enable them to ask questions on the call.

An accompanying slide presentation will be posted in the "Investors" section of the Company's website.

A replay of the webcast will be available on the Company's website for approximately 90 days after the event.

About West
West Pharmaceutical Services, Inc. is a leading provider of innovative, high-quality injectable solutions and services. As a trusted partner to established and emerging drug developers, West helps ensure the safe, effective containment and delivery of life-saving and life-enhancing medicines for patients. With over 10,000 team members across 50 sites including 26 manufacturing facilities worldwide, West helps support our customers by delivering over 41 billion components and devices each year. Headquartered in Exton, Pennsylvania, West in its fiscal year 2025 generated $3.07 billion in net sales. West is traded on the New York Stock Exchange (NYSE: WST) and is included in the Standard & Poor's 500 index. For more information, visit www.westpharma.com.

All trademarks and registered trademarks used in this release are the property of West Pharmaceutical Services, Inc. or its subsidiaries, in the United States and other jurisdictions, unless otherwise noted.

Daikyo®, Daikyo Crystal Zenith® and Daikyo CZ® are registered trademarks of Daikyo Seiko, Ltd. Daikyo Crystal Zenith technologies are licensed from Daikyo Seiko, Ltd. 

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding the Company's expectations regarding future events, financial guidance and financial or operational performance. Forward-looking statements may be identified by words such as "believe," "expect," "intend," "estimate," "plan," "anticipate," "project," "forecast," "guidance," "target," "may," "will," "continue" and similar expressions.

These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. For additional information regarding these risks as well as other risks, uncertainties and factors that could affect our forward-looking statements, please refer to Part I Item 1A, entitled "Risk Factors," of the Company's most recent Annual Report on Form 10-K and any amendments thereto, as well as the Company's most recently filed Quarterly Reports on Form 10-Q and other filings the Company makes with the Securities and Exchange Commission.

Forward-looking statements speak only as of the date of this press release. Except as required by law or regulation, West Pharmaceutical Services, Inc. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-U.S. GAAP Financial Measures
The Company reports its financial results in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). However, management also uses certain non-U.S. GAAP financial measures in evaluating our results of operations. Management believes that this information provides users with a valuable insight into our overall performance and financial position. As a result, this release contains certain non-GAAP financial measures, including organic net sales, adjusted-diluted EPS and adjusted operating profit. Organic net sales exclude the impact from acquisitions and/or divestitures and translate the current-period reported sales of subsidiaries whose functional currency is other than the U.S. Dollar at the applicable foreign currency exchange rates in effect during the comparable prior-year period. We may also refer to financial results, such as adjusted-diluted EPS and adjusted operating profit, that exclude the effects of unallocated items. The unallocated items are not representative of ongoing operations, and generally include restructuring and related charges, certain asset impairments, and other specifically identified income or expense items. These non-U.S. GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's results prepared in accordance with U.S. GAAP. A reconciliation of these non-U.S. GAAP measures to the comparable U.S. GAAP financial measures is included in the accompanying tables.

WEST PHARMACEUTICAL SERVICES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(in millions, except per share data)

Three Months Ended
June 30,

Six Months Ended
June 30,

2026

2025

2026

2025

Net sales

$       872.3

100 %

$       766.5

100 %

$         1,717.2

100 %

$         1,464.5

100 %

Cost of goods and services sold

543.1

62

492.6

64

1,091.6

64

958.7

65

Gross profit

329.2

38

273.9

36

625.6

36

505.8

35

Research and development

19.7

2

19.1

2

35.5

2

35.4

2

Selling, general and administrative expenses

117.6

14

95.9

13

217.1

12

183.9

13

Other expense (income), net

12.8

1

5.2

1

16.8

1

25.8

2

Operating profit

179.1

21

153.7

20

356.2

21

260.7

18

Interest (income) expense, net

(1.2)

—

(3.5)

—

(4.4)

—

(7.2)

—

Other nonoperating expense (income)

0.2

—

0.2

—

0.4

—

0.4

—

Income before income taxes and equity
in net income of affiliated companies

180.1

21

157.0

20

360.2

21

267.5

18

Income tax expense

32.2

4

30.2

4

76.9

4

54.3

4

Equity in net income of affiliated companies

(6.1)

(1)

(5.0)

(1)

(9.5)

—

(8.4)

(1)

Net income

$       154.0

18 %

$       131.8

17 %

$  292.8

17 %

$ 221.6

15 %

Net income per share:

Basic

$ 2.17

$ 1.82

$   4.10

$  3.06

Diluted

$ 2.15

$ 1.82

$   4.07

$  3.05

Average common shares outstanding

70.8

72.2

71.4

72.3

Average shares assuming dilution

71.3

72.5

71.9

72.8

WEST PHARMACEUTICAL SERVICES

REPORTING SEGMENT INFORMATION

(UNAUDITED)

(in millions)

Three Months Ended

June 30,

Six Months Ended

June 30,

Net Sales:

2026

2025

2026

2025

Proprietary Products

$      722.6

$      619.8

$    1,416.9

$    1,182.8

West Vantage

149.7

146.7

300.3

281.7

Consolidated Total

$      872.3

$      766.5

$    1,717.2

$    1,464.5

Gross Profit:

Proprietary Products

$      308.0

$      248.3

$      581.1

$      458.5

West Vantage

21.2

25.6

44.5

47.3

Gross Profit

$      329.2

$      273.9

$      625.6

$      505.8

Gross Profit Margin

37.7 %

35.7 %

36.4 %

34.5 %

Operating Profit (Loss):

Proprietary Products

$      211.9

$      161.7

$      401.1

$      292.3

West Vantage

12.9

17.8

28.5

31.3

Stock-based compensation expense

(10.9)

(7.4)

(17.5)

(8.7)

General corporate costs

(34.8)

(18.4)

(55.9)

(54.2)

Reported Operating Profit

$      179.1

$      153.7

$      356.2

$      260.7

Reported Operating Profit Margin

20.5 %

20.1 %

20.7 %

17.8 %

Unallocated items

18.3

1.6

22.2

19.6

Adjusted Operating Profit

$      197.4

$      155.3

$      378.4

$      280.3

Adjusted Operating Profit Margin

22.6 %

20.3 %

22.0 %

19.1 %

WEST PHARMACEUTICAL SERVICES

RECONCILIATION OF NON-U.S. GAAP MEASURES (UNAUDITED)

Please refer to "Non-U.S. GAAP Financial Measures" for more information

(in millions, except per share data)

Reconciliation of Reported and Adjusted Operating Profit, Net Income and Diluted EPS

Three Months ended June 30, 2026

Operating

profit

Income

tax

expense

Net

income

Diluted

EPS

Reported (U.S. GAAP)

$179.1

$32.2

$154.0

$2.15

Unallocated Items:

Restructuring and other charges(1)

1.5

0.3

1.2

0.02

M&A activities, including SmartDose® 3.5mL sale(2)

6.4

1.5

4.9

0.07

Cost-method investment activity(3)

3.5

—

3.5

0.05

Amortization of acquisition-related intangible assets(4)

—

—

0.4

—

Other(5)

6.9

1.4

5.4

0.08

Adjusted (Non-U.S. GAAP)

$197.4

$35.4

$169.4

$2.37

Six Months ended June 30, 2026

Operating

profit

Income

tax

expense

Net

income

Diluted

EPS

Reported (U.S. GAAP)

$356.2

$76.9

$292.8

$4.07

Unallocated Items:

Restructuring and other charges(1)

2.9

(11.3)

14.2

0.20

M&A activities, including SmartDose® 3.5mL sale(2)

8.3

1.9

6.4

0.09

Cost-method investment activity(3)

3.5

—

3.5

0.05

Amortization of acquisition-related intangible assets(4)

—

—

0.9

0.01

Other(5)

7.5

1.6

5.9

0.08

Adjusted (Non-U.S. GAAP)

$378.4

$69.1

$323.7

$4.50

Three Months ended June 30, 2025

Operating

profit

Income

tax

expense

Net

income

Diluted

EPS

Reported (U.S. GAAP)

$153.7

$30.2

$131.8

$1.82

Unallocated items:

Restructuring and other charges(1)

1.6

0.4

1.2

0.02

Amortization of acquisition-related intangible assets(4)

—

—

0.5

—

Adjusted (Non-U.S. GAAP)

$155.3

$30.6

$133.5

$1.84

Six Months ended June 30, 2025

Operating

profit

Income

tax

expense

Net

income

Diluted

EPS

Reported (U.S. GAAP)

$260.7

$54.3

$221.6

$3.05

Unallocated items:

Restructuring and other charges(1)

19.4

2.4

17.0

0.23

Amortization of acquisition-related intangible assets(4)

0.2

—

1.1

0.01

Adjusted (Non-U.S. GAAP)

$280.3

$56.7

$239.7

$3.29

(1)

During the three and six months ended June 30, 2026, the Company recorded pre-tax charges of $1.5 million and $2.9 million, respectively, related to our two existing restructuring programs: (i) $1.0 million and $1.9 million, respectively, within other expense (income), related to acceleration of depreciation and lease costs in connection with the Company's January 2025 restructuring plan and (ii) $0.5 million and $1.0 million, respectively, within selling, general and administrative expenses, for professional services relating to our 2024 plan to optimize the legal structure of the Company and its subsidiaries. In addition, we recorded a one-time tax cost of $12.0 million associated with an internal legal entity restructuring which occurred in the first quarter of 2026. During the three and six months ended June 30, 2025, the Company recorded pre-tax charges of $1.6 million and $19.4 million, respectively, related to our two existing restructuring programs: (i) $0.2 million and $16.6 million, respectively, within other expense (income), related to severance, acceleration of depreciation and lease costs in connection with the Company's January 2025 restructuring plan and (ii) $1.4 million and $2.8 million, respectively, within selling, general and administrative expenses, for professional services relating to our 2024 plan to optimize the legal structure of the Company and its subsidiaries. In addition, we recorded income tax charges of $2.0 million in the first quarter of 2025, related primarily to withholding tax and capital gains incurred in executing our plan to optimize our legal structure.

(2)

During the three and six months ended June 30, 2026, the Company recorded pre-tax charges of $6.4 million and $8.3 million, respectively, related to M&A activities, including the Company's agreement to sell its SmartDose® 3.5mL On-Body Delivery System and associated facilities to AbbVie. The Company recorded $1.3 million and $2.2 million, respectively, of the charges within other expense (income), related to employee benefit costs in connection with the sale agreement. The Company recorded the remaining $5.1 million and $6.1 million, respectively, within selling, general and administrative expenses, relating to professional services in connection with the sale agreement and other M&A activities.

(3)

During the three and six months ended June 30, 2026, the Company recorded cost-method investment impairment charges of $3.5 million within other expense (income).

(4)

During the three and six months ended June 30, 2026, the Company recorded $0.4 million and $0.9 million, respectively, of amortization expense in association with an acquisition of increased ownership interest in Daikyo. During the three and six months ended June 30, 2025, the Company recorded $0.0 million and $0.2 million, respectively, of amortization expense within selling, general and administrative expenses associated with an intangible asset acquired during the second quarter of 2020. During the three and six months ended June 30, 2025, the Company recorded $0.5 million and $0.9 million, respectively, of amortization expense in association with an acquisition of increased ownership interest in Daikyo.

(5)

Other includes nonrecurring professional fees associated with various items including certain legal matters and our cybersecurity incident from May 2026. These charges are recorded within selling, general and administrative expenses.

WEST PHARMACEUTICAL SERVICES

RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED)

Please refer to "Non-U.S. GAAP Financial Measures" for more information

(in millions, except per share data)

Reconciliation of Reported Net Sales to Organic Net Sales by Segment (6)

Three Months Ended

June 30,

Reported Net Sales
(U.S. GAAP)

Percent
Change

Impact of
Currency

Organic Net Sales
Growth Rate (Decline)
(Non-U.S. GAAP) (6)

2026

2025

Proprietary Products

$722.6

$619.8

16.6 %

1.1 %

15.5 %

West Vantage

149.7

146.7

2.0 %

1.2 %

0.8 %

Total

$872.3

$766.5

13.8 %

1.1 %

12.7 %

Six Months Ended

June 30,

Reported Net Sales
(U.S. GAAP)

Percent
Change

Impact of
Currency

Organic Net Sales
Growth Rate (Decline)
(Non-U.S. GAAP) (6)

2026

2025

Proprietary Products

$1,416.9

$1,182.8

19.8 %

3.3 %

16.5 %

West Vantage

300.3

281.7

6.6 %

3.2 %

3.4 %

Total

$1,717.2

$1,464.5

17.3 %

3.4 %

13.9 %

Reconciliation of Proprietary Products Segment Organic Net Sales by Product Category (6)

Three Months Ended

June 30,

Reported Net Sales
(U.S. GAAP)

Percent
Change

Impact of
Currency

Organic Net Sales
Growth Rate (Decline)
(Non-U.S. GAAP) (6)

2026

2025

HVP Components

$424.1

$355.2

19.4 %

1.0 %

18.4 %

HVP Delivery Devices

131.2

101.2

29.6 %

0.4 %

29.2 %

Standard Products

167.3

163.4

2.4 %

1.7 %

0.7 %

Total Proprietary Products

$722.6

$619.8

16.6 %

1.1 %

15.5 %

Six Months Ended

June 30,

Reported Net Sales
(U.S. GAAP)

Percent
Change

Impact of
Currency

Organic Net Sales
Growth Rate (Decline)
(Non-U.S. GAAP) (6)

2026

2025

HVP Components

$833.4

$671.1

24.2 %

3.8 %

20.4 %

HVP Delivery Devices

254.8

197.0

29.3 %

1.0 %

28.3 %

Standard Products

328.7

314.7

4.4 %

3.8 %

0.6 %

Total Proprietary Products

$1,416.9

$1,182.8

19.8 %

3.3 %

16.5 %

Reconciliation of Proprietary Products Segment Organic Net Sales by Market Group (6)

Three Months Ended

June 30,

Reported Net Sales
(U.S. GAAP)

Percent
Change

Impact of
Currency

Organic Net Sales
Growth Rate (Decline)
(Non-U.S. GAAP) (6)

2026

2025

Biologics

$374.8

$287.7

30.3 %

1.1 %

29.2 %

Pharma

205.0

198.5

3.3 %

1.7 %

1.6 %

Generics

142.8

133.6

6.9 %

0.2 %

6.7 %

Total Proprietary Products

$722.6

$619.8

16.6 %

1.1 %

15.5 %

Six Months Ended

June 30,

Reported Net Sales
(U.S. GAAP)

Percent
Change

Impact of
Currency

Organic Net Sales
Growth Rate (Decline)
(Non-U.S. GAAP) (6)

2026

2025

Biologics

$729.3

$557.0

30.9 %

3.3 %

27.6 %

Pharma

415.6

379.1

9.6 %

4.1 %

5.5 %

Generics

272.0

246.7

10.3 %

2.2 %

8.1 %

Total Proprietary Products

$1,416.9

$1,182.8

19.8 %

3.3 %

16.5 %

Reconciliation of Reported Net Sales to Organic Net Sales by Geography (6)

Three Months Ended

June 30,

Reported Net Sales
(U.S. GAAP)

Percent
Change

Impact of
Currency

Organic Net Sales
Growth Rate (Decline)
(Non-U.S. GAAP) (6)

2026

2025

Americas

$388.7

$349.7

11.2 %

0.6 %

10.6 %

Europe, Middle East, Africa

399.8

349.7

14.3 %

2.2 %

12.1 %

Asia Pacific

83.8

67.1

24.9 %

(2.1) %

27.0 %

Total

$872.3

$766.5

13.8 %

1.1 %

12.7 %

Six Months Ended

June 30,

Reported Net Sales
(U.S. GAAP)

Percent
Change

Impact of
Currency

Organic Net Sales
Growth Rate (Decline)
(Non-U.S. GAAP) (6)

2026

2025

Americas

$766.0

$688.6

11.2 %

0.5 %

10.7 %

Europe, Middle East, Africa

799.2

656.6

21.7 %

6.9 %

14.8 %

Asia Pacific

152.0

119.3

27.4 %

(0.6) %

28.0 %

Total

$1,717.2

$1,464.5

17.3 %

3.4 %

13.9 %

(6)

Organic net sales exclude the impact from acquisitions and/or divestitures and translate the current-period reported sales of subsidiaries whose functional currency is other than the U.S. Dollar at the applicable foreign currency exchange rates in effect during the comparable prior-year period.

WEST PHARMACEUTICAL SERVICES

RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES (UNAUDITED)

Please refer to "Non-U.S. GAAP Financial Measures" for more information

(in millions, except per share data)

Reconciliation of Reported-Diluted EPS Guidance to Adjusted-Diluted EPS Guidance

2025 Actual

2026 Guidance

% Change

Reported-diluted EPS (U.S. GAAP)

$6.79

$9.01 to $9.26

32.7% to 36.4%

Restructuring and other charges

0.31

0.23

M&A activities, including SmartDose® 3.5mL sale

0.09

(0.54) to (0.59)

Cost-method investment activity

0.06

0.05

Amortization of acquisition-related intangible assets

0.03

0.02

Other

0.01

0.08

Adjusted-diluted EPS (Non-U.S. GAAP)

$7.29

$8.85 to $9.05

21.4% to 24.1%

WEST PHARMACEUTICAL SERVICES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in millions, except per share data)

June 30,
2026

December 31,
2025

ASSETS

Current assets:

Cash and cash equivalents

$         435.8

$         791.3

Accounts receivable, net

712.0

574.4

Inventories

447.4

443.9

Other current assets

212.3

168.6

Total current assets

1,807.5

1,978.2

Property, plant and equipment

3,248.6

3,223.4

Less: accumulated depreciation and amortization

1,562.3

1,497.0

Property, plant and equipment, net

1,686.3

1,726.4

Operating lease right-of-use assets

104.7

117.0

Investments in affiliated companies

207.7

212.3

Goodwill

108.7

109.9

Intangible assets, net

6.4

7.7

Deferred income taxes

72.3

38.4

Other noncurrent assets

82.8

80.1

Total Assets

$       4,076.4

$       4,270.0

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$         252.7

$         253.7

Accrued salaries, wages and benefits

97.1

135.9

Income taxes payable

64.7

28.1

Operating lease liabilities

20.9

22.7

Accrued commissions, rebates and royalties

34.0

39.2

Other current liabilities

171.1

175.3

Total current liabilities

640.5

654.9

Long-term debt

202.9

202.8

Deferred income taxes

22.4

23.0

Pension and other postretirement benefits

28.3

29.0

Operating lease liabilities

88.3

95.6

Deferred compensation benefits

13.9

13.5

Other long-term liabilities

89.9

75.2

Total Liabilities

1,086.2

1,094.0

Equity:

Preferred stock, 3.0 million shares authorized; 0 shares issued and outstanding

—

—

Common stock, par value $0.25 per share; 200.0 million shares authorized; shares
issued: June 30, 2026 - 75.3 million, December 31, 2025 - 75.3 million; shares
outstanding: June 30, 2026 - 70.4 million, December 31, 2025 - 72.0 million

18.8

18.8

Capital in excess of par value

—

—

Retained earnings

4,624.1

4,374.9

Accumulated other comprehensive loss

(140.4)

(105.5)

Treasury stock, at cost (June 30, 2026 - 4.9 million shares, December 31, 2025 -
3.3 million shares)

(1,512.3)

(1,112.2)

Total Equity

2,990.2

3,176.0

Total Liabilities and Equity

$       4,076.4

$       4,270.0

WEST PHARMACEUTICAL SERVICES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in millions)

Six Months Ended
June 30,

2026

2025

Cash flows from operating activities:

Net income

$        292.8

$        221.6

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation

90.3

79.9

Amortization

1.1

1.5

Stock-based compensation

17.5

8.7

Non-cash restructuring charges

1.9

1.6

Asset impairments

4.2

4.1

Other non-cash items, net

(5.0)

(6.9)

Changes in assets and liabilities

(188.9)

(4.0)

Net cash provided by operating activities

213.9

306.5

Cash flows from investing activities:

Capital expenditures

(85.9)

(146.5)

Net cash used in investing activities

(85.9)

(146.5)

Cash flows from financing activities:

Borrowings under revolving credit agreements

50.0

—

Repayments under revolving credit agreements

(50.0)

—

Principal repayments on finance leases

(0.7)

(0.5)

Excise tax payments

(0.8)

(4.2)

Dividend payments

(31.5)

(30.3)

Proceeds from stock-based compensation awards

12.4

6.0

Employee stock purchase plan contributions

3.9

3.6

Shares purchased under share repurchase programs

(454.3)

(134.0)

Shares repurchased for employee tax withholdings

(2.5)

(2.5)

Net cash used in financing activities

(473.5)

(161.9)

Effect of exchange rates on cash

(10.0)

27.0

Net decrease in cash and cash equivalents

(355.5)

25.1

Cash, including cash equivalents at beginning of period

791.3

484.6

Cash, including cash equivalents at end of period

$        435.8

$        509.7

Supplemental cash flow information:

    Accrued capital expenditures

$          25.7

$          35.4

SOURCE West Pharmaceutical Services, Inc.

Key Takeaways WST is expected to post 9.2% revenue growth and 13% higher EPS in the second quarter.West Pharmaceutical Services may benefit from strong biologics and GLP-1 component demand.WST's margins may gain from favorable product mix, pricing and manufacturing efficiencies. West Pharmaceutical Services (WST - Free Report) is scheduled to release second-quarter 2026 results on July 23, before the opening bell. In the last reported quarter, the company delivered an earnings surprise of 26.79%. WST’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 19.37%.

Q2 EstimatesPer management, the company expects first-quarter revenues to be in the range of $770-$790 million, implying 5-7% organic sales growth. Also, adjusted diluted earnings per share (EPS) are expected to be in the range of $1.65-$1.70.

Currently, the Zacks Consensus Estimate for revenues is pegged at $836.8 million, indicating growth of 9.2% year over year. The consensus mark for earnings is pinned at $2.08 per share, indicating an improvement of 13%.

Our model estimates total revenues to be $832.7 million, implying a 9.8% organic improvement year over year. The adjusted EPS is estimated to be $2.06. While the Proprietary Products segment sales are anticipated to be $680.3 million (organic growth of 11%), West Vantage (formerly Contract Manufacturing) segmental sales are likely to be $152.4 million (organic growth of 5.1%). Operating profit for the Proprietary Products segment is expected to increase 15.8%, while that for the West Vantage segment is projected to decline 4%.

Factors to NoteWest Pharmaceutical Services is expected to have delivered another solid quarterly performance, supported by sustained demand for high-value products (HVP), continued strength in biologics and GLP-1-related components, and favorable product mix. The company's recent commentary suggests that demand across both GLP-1 and non-GLP-1 markets might have remained healthy, aided by increasing biologics adoption, biosimilar launches and Annex 1-related conversions. Management also highlighted improving manufacturing productivity and capacity utilization across its European facilities, which likely supported higher output and operating leverage. Elevated oil, freight and commodity costs may have created some margin headwinds, although pricing actions, operational efficiencies and favorable product mix are expected to have largely offset these pressures.

Within the Proprietary Products segment, HVP Components are likely to have remained the primary growth engine. Demand from GLP-1 therapies should have stayed robust, supported by expanding patient adoption, broader reimbursement, new indications and continued injectable market growth. At the same time, non-GLP-1 HVP Components are expected to have benefited from strong biologics demand, increasing NovaPure adoption, biosimilar commercialization and continued customer migration toward higher-value products under Annex 1 compliance initiatives.

HVP Delivery Devices are also expected to have posted healthy growth, supported by SelfDose and Crystal Zenith, while SmartDose volumes likely remained elevated ahead of the planned divestiture. Standard Products, however, may have recorded only modest growth as ongoing customer conversions toward HVP Components continued to weigh on legacy product volumes.

West Vantage is expected to have delivered steady growth, supported by increasing demand for drug-handling services and self-injection devices used in obesity and diabetes therapies. However, the ongoing transition from the continuous glucose monitoring contract may have partially offset the benefit.

Earnings are likely to have benefited from favorable HVP mix, manufacturing efficiencies and pricing discipline. Continued operating leverage and disciplined capital spending should have supported earnings growth despite inflationary cost pressures, positioning the company for another quarter of healthy margin expansion and solid EPS performance.

Earnings Beat LikelyOur proven model predicts an earnings beat for WST this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (earnings of $2.09 per share) and the Zacks Consensus Estimate, is +0.66%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: The company sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Worth a LookHere are some other medical product stocks worth considering, as these too have the right combination of elements to post an earnings beat this reporting cycle.

Henry Schein (HSIC - Free Report) has an Earnings ESP of +0.41% and a Zacks Rank #2 at present.

HSIC’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 3.74%. The Zacks Consensus Estimate for HSIC’s second-quarter EPS indicates an improvement of 10.9% from the year-ago reported figure.

Alcon (ALC - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank of 2 at present. The company is set to release second-quarter 2026 results on August 10.

ALC’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 3.66%. The Zacks Consensus Estimate for ALC’s second-quarter EPS implies an improvement of 1.3% from the year-ago reported figure.

Cardinal Health (CAH - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank of 2 at present. The company is slated to release fourth-quarter fiscal 2026 results on Aug 11.

CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%. The Zacks Consensus Estimate for CAH’s fourth-quarter EPS reflects a gain 16.4% from the year-ago reported figure.

Key Takeaways WST completed the sale and transfer of SmartDose 3.5mL manufacturing and supply rights to AbbVie.WST shares have lost 3.1% since July 1 but gained 28.5% year to date against the industry's decline.WST will continue developing other SmartDose platforms, including the 10mL system for larger volumes. West Pharmaceutical Services (WST - Free Report) recently completed the sale and transfer of the manufacturing and supply rights for its SmartDose 3.5mL On-Body Delivery System and associated facilities to AbbVie (ABBV - Free Report) . The transaction follows the $112.5 million sale agreement with AbbVie announced in January, subject to working capital and other adjustments.

Per management, West Pharmaceutical's pioneering work in on-body delivery technology has improved the lives of people worldwide. Following a portfolio review, the company decided to transfer the SmartDose 3.5mL product to AbbVie to focus on customer development pipeline and advance patient-centered, large-volume on-body delivery solutions that drive durable and profitable growth.

Likely Trend of WST Stock Following the NewsShares of WST have lost 3.1% since the announcement on July 1. Year to date, the stock has gained 28.5% against the industry’s 1.2% decline. The S&P 500 has risen 9.5% in the same timeframe.

The completion of the transaction is likely to support West Pharmaceutical's long-term growth strategy by allowing the company to concentrate resources on higher-growth drug delivery technologies. The divestiture streamlines WST’s product portfolio while reinforcing its commitment to developing innovative solutions for larger-volume injectable medicines.

WST currently has a market capitalization of $25.16 billion.

Image Source: Zacks Investment Research

More on the NewsAt the time of the announcement, the SmartDose 3.5mL platform was expected to contribute approximately 4% of West Pharmaceutical's fiscal 2025 revenues, making it a relatively small part of the company's overall business. The completion of the sale allows West Pharmaceutical to move forward with a more focused portfolio centered on its core drug delivery business.

Following the transaction, the company will continue developing and manufacturing its other SmartDose platforms, including the SmartDose 10mL On-Body Delivery System designed for larger-volume drug delivery.

Industry Prospects Favoring the MarketGoing by data provided by Fortune Business Insights, the on-body drug delivery devices market is anticipated to be valued at $486.43 million in 2026 and is expected to witness a CAGR of 6.9% through 2034.

Factors like the growing demand for on-body drug delivery devices, increasing use of biologic drugs and biosimilars, rising prevalence of chronic diseases, greater adoption of self-administered subcutaneous therapies and a shift toward home-based healthcare are driving the market’s growth.

Other NewsIn June, West Pharmaceutical appointed Michel Lagarde as president, CEO and a member of its board of directors, effective Aug. 31, 2026, succeeding retiring president, CEO and board chair Eric M. Green. As part of the leadership transition, lead independent director Robert F. Friel will assume the role of board chair.

In March, West Pharmaceutical expanded its Dublin facility with a new 165,000 square foot building, significantly boosting its contract manufacturing capacity. The move is aimed at supporting rising global demand for high-volume injectable therapies, particularly in fast-growing areas like diabetes and obesity.

WST’s Zacks Rank & Other Key PicksCurrently, WST carries a Zacks Rank #2 (Buy).

Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) and Pacific Biosciences of California (PACB - Free Report) .

Intuitive Surgical, carrying a Zacks Rank #2 at present, reported first-quarter 2026 core earnings per share of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Intuitive Surgical has a long-term estimated growth rate of 14.3%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

Pacific Biosciences of California, carrying a Zacks Rank #2 at present, reported a first-quarter 2026 adjusted loss per share of 12 cents, which came narrower than the Zacks Consensus Estimate by 29.4%. Revenues of $37.2 million missed the Zacks Consensus Estimate by 9.3%.

Pacific Biosciences of California has an estimated earnings growth rate of 22.6% for 2026. PACB’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 29.8%.

, /PRNewswire/ -- West Pharmaceutical Services, Inc. (NYSE: WST), a global leader in innovative solutions for injectable drug administration, today announced the company completed the sale and transfer of the manufacturing and supply rights for SmartDose® 3.5mL On-Body Delivery System and associated facilities. The transaction closed as planned on July 1, 2026.

West will continue to develop and manufacture all other versions of SmartDose, including SmartDose® 10mL On-Body Delivery System, adaptive technology for larger volumes.

About West
West Pharmaceutical Services, Inc. is a leading provider of innovative, high-quality injectable solutions and services. As a trusted partner to established and emerging drug developers, West helps ensure the safe, effective containment and delivery of life-saving and life-enhancing medicines for patients. With over 10,000 team members across 50 sites, including 26 manufacturing facilities worldwide, West helps support our customers by delivering over 41 billion components and devices each year.  

Headquartered in Exton, Pennsylvania, West in its fiscal year 2025 generated $3.07 billion in net sales. West is traded on the New York Stock Exchange (NYSE: WST) and is included on the Standard & Poor's 500 index. For more information, visit www.westpharma.com. 

All trademarks and registered trademarks used in this release are the property of West Pharmaceutical Services, Inc. or its subsidiaries, in the United States and other jurisdictions, unless otherwise noted. 

SOURCE West Pharmaceutical Services, Inc.