01—Abstract
Summary
Summary of the 10-Q filed April 23, 2026. Cited figures are marked; the original filing is the authoritative source.
West Pharmaceutical Services, Inc. reported first-quarter 2026 net sales of $844.9 milliona, up from $698.0 million in the first quarter of 2025, with net income of $138.8 million (diluted EPS of $1.92) compared with $89.8 million (diluted EPS of $1.23).
Operating profit rose to $177.1 millionb from $107.0 million. Proprietary Products net sales were $694.3 million versus $563.0 million, and West Vantage net sales were $150.6 million versus $135.0 million. The filing states that consolidated net sales growth was 21.0% as reported and 15.3% excluding foreign currency translation, and that adjusted consolidated operating profit was $181.0 million, or 21.4% of net sales.
Results included a one-time tax cost of $12.0 millionc from an internal legal entity restructuring, which raised the effective tax rate to 24.8% from 21.8%. Cash flow and capital allocation were dominated by buybacks. Net cash provided by operating activities was $89.9 million, down from $129.4 million, reflecting working capital changes and higher incentive payments.
Shares repurchased totaled $297.6 milliond, or 1,222,019 shares at an average price of $243.57. Cash and cash equivalents fell to $521.4 million from $791.3 million at December 31, 2025, while total debt was steady at $202.8 million. Shares outstanding declined to 70.9 million at March 31, 2026 from 72.0 million at year-end, and the Board authorized a new $1.0 billion repurchase program in February 2026, with $702.35 million remaining at March 31, 2026.
The filing also discloses a pending agreement, announced in December 2025, to sell SmartDose 3.5mL On-Body Delivery System manufacturing and supply rights to AbbVie for approximately $112.5 million, expected to close in mid-2026. A securities class action filed in May 2025 remains at the motion-to-dismiss stage, and the company states it cannot yet estimate any potential losses.
02—Key points
Key Highlights
- Net sales rose 21.0% to $844.9 million, or 15.3% excluding foreign currency translation, with Proprietary Products up 23.3% as reported.
- Operating profit increased to $177.1 million from $107.0 million; adjusted operating profit was $181.0 million, a 21.4% margin versus 17.9% a year earlier.
- Diluted EPS was $1.92 versus $1.23, and net income was $138.8 million versus $89.8 million.
- Effective tax rate rose to 24.8% from 21.8%, driven mainly by a one-time $12.0 million tax cost tied to an internal legal entity restructuring.
- Share repurchases of $297.6 million drove cash down to $521.4 million, while operating cash flow fell to $89.9 million from $129.4 million.
- A $1.0 billion share repurchase program was authorized in February 2026, with $702.35 million still available at March 31, 2026.
- The pending sale of SmartDose 3.5mL manufacturing and supply rights to AbbVie for approximately $112.5 million is expected to close in mid-2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, West Pharmaceutical Services kept $0.16.
- Revenue$844.9M100.0%
- Cost of revenue−$548.5M64.9%
- Gross profit$296.4M35.1%
- Operating costs−$119.3M14.1%
- Operating income$177.1M21.0%
- Interest, other & tax−$38.3M4.5%
- Net income$138.8M16.4%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 23, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $844.90M$698.00M | +21.0% |
| Cost of Revenue | $548.50M$466.10M | +17.7% |
| Gross Profit | $296.40M$231.90M | +27.8% |
| R&D Expenses | $15.80M$16.30M | −3.1% |
| SG&A Expenses | $99.50M$88.00M | +13.1% |
| Operating Income | $177.10M$107.00M | +65.5% |
| Net Income | $138.80M$89.80M | +54.6% |
| EPS (Basic) | $1.93$1.24 | +55.6% |
| EPS (Diluted) | $1.92$1.23 | +56.1% |
| Shares Outstanding (Basic) | 72.00M72.50M | −0.7% |
| Shares Outstanding (Diluted) | 72.40M73.00M | −0.8% |
05—Questions
Frequently Asked Questions
What drove the increase in West's first-quarter 2026 profitability?
The filing attributes the gross profit increase primarily to increased customer demand, particularly for high-value components, and sales price increases in Proprietary Products. Gross profit rose to $296.4 million from $231.9 million, and operating profit rose to $177.1 million from $107.0 million. The prior-year period also included $17.8 million of restructuring and other charges, versus $1.4 million in 2026.
How much did the company spend on share repurchases, and what capacity remains?
West repurchased 1,222,019 shares for $297.6 million, an average of $243.57 per share, during the quarter. Under the new program authorized in February 2026, $702.35 million remained available at March 31, 2026. The program has no expiration date and may be suspended or terminated at any time.
Is the company's debt position or liquidity a concern?
Total debt was unchanged at $202.8 million. The $500.0 million multi-currency revolving credit facility had no outstanding borrowings and $497.7 million of available capacity at March 31, 2026. The company states it was in compliance with all debt covenants and believes cash on hand, operating cash flow and revolver availability will be adequate for foreseeable needs.
What is the status of the pending SmartDose sale and the securities class action?
The SmartDose 3.5mL On-Body Delivery System manufacturing and supply rights and associated facilities are being sold to AbbVie for approximately $112.5 million, subject to adjustments and closing conditions, with closing expected in mid-2026. Related assets of $58.2 million are classified as held for sale. In the securities class action, defendants filed a motion to dismiss, which was fully briefed by March 31, 2026. The company believes the claims are without merit but cannot yet reasonably estimate potential losses.
06—Continue