West Pharmaceutical Services (WST) Q1 2026 earnings summary

Executive summary

• Net sales reached $844.9 million in Q1 2026, up 21% year-over-year and 15.3% organically, with adjusted diluted EPS of $2.13, up 46.9% year-over-year.

• Growth was broad-based across all segments, led by high-value product components and strong execution in manufacturing and operational excellence.

• Net income increased 54.6% to $138.8 million, with diluted EPS at $1.92.

• 1.2 million shares repurchased for $297.6 million during the quarter.

• Full-year 2026 guidance was raised for both revenue and adjusted EPS, reflecting ongoing business momentum.

Financial highlights

• Adjusted operating margin expanded to 21.4%, up 350 basis points year-over-year; gross margin improved to 35.1%, up 190 basis points.

• Operating cash flow was $89.9 million; free cash flow totaled $47.2 million; capital expenditures were $42.7 million, down from $71 million last year.

• Ended Q1 with $521 million in cash and cash equivalents.

• Proprietary Products segment net sales grew 23.3% to $694.3 million; West Vantage segment net sales increased 11.6% to $150.6 million.

• Net income for the quarter was $138.8 million, up from $89.8 million a year ago.

Outlook and guidance

• Full-year 2026 net sales guidance raised to $3.295–$3.350 billion; organic revenue growth expected at 7%–9%.

• Adjusted EPS guidance for 2026 increased to $8.40–$8.75, representing 15%–20% growth year-over-year.

• Q2 2026 revenue expected at $830–$850 million, with adjusted EPS of $2.05–$2.12.

• Guidance incorporates higher oil/commodity costs, mitigated by hedging and operational actions; capital expenditures projected at $250–$275 million.

• Full-year tax rate expected at 19%.