West Pharmaceutical Services (WST) Q2 2026 earnings summary

Executive summary

• Q2 2026 net sales reached $872.3M, up 13.8% year-over-year and 12.7% organically, with adjusted diluted EPS rising 28.8% to $2.37 and reported EPS at $2.15.

• Growth was driven by strong demand for High Value Product Components, especially in Biologics and GLP-1, and effective recovery from a cyber incident.

• Proprietary Products segment led growth, while West Vantage segment faced margin pressure due to a May 2026 cyber incident.

• Gross margin improved by 200 bps to 37.7% year-over-year.

• Full-year 2026 guidance was raised for both net sales and EPS.

Financial highlights

• Q2 2026 adjusted operating profit margin was 22.6%, up 230 bps year-over-year; reported operating margin was 20.5%.

• Operating cash flow for Q2 was $213.9M; free cash flow was $128.0M after $85.9M in capital expenditures.

• Six-month net income was $292.8M, up from $221.6M in the prior year.

• 1.8M shares repurchased for $454.3M in H1 2026.

• Dividend payments totaled $31.5M in H1 2026.

Outlook and guidance

• Full-year 2026 net sales expected between $3.345B and $3.38B (10%-11% organic growth); adjusted EPS guidance raised to $8.85–$9.05.

• Q3 2026 net sales projected at $820M–$835M, with adjusted EPS of $2.14–$2.24.

• HVP components (GLP-1 and non-GLP-1) expected to grow high teens organically for the year.

• Over 200 bps of operating margin expansion expected for FY26.

• Capital spending guidance unchanged at $250M–$275M for the year.