01—Abstract
Summary
Summary of the 10-Q filed July 23, 2026. Cited figures are marked; the original filing is the authoritative source.
West Pharmaceutical Services, Inc. reported second-quarter 2026 net sales of $872.3 milliona, up 13.8% as reported and 12.7% excluding foreign currency translation, compared with $766.5 million in the second quarter of 2025.
Growth was led by Proprietary Products, where net sales rose 16.6% as reported, driven by HVP components, which the filing ties to strong demand for Biologics and GLP-1 products, and by HVP delivery devices, which benefited from demand for SmartDose 3.5mL self-injection devices ahead of the July 2026 sale. Net income was $154.0 millionb, or $2.15 per diluted share, versus $131.8 million, or $1.82 per diluted share, a year earlier. Management's non-GAAP adjusted diluted EPS for the quarter was $2.37, compared with $1.84 in the prior-year quarter.
For the six months ended June 30, 2026, net sales were $1,717.2 millionc, up 17.3% as reported, and net income was $292.8 million, or $4.07 per diluted share. Operating cash flow declined to $213.9 million from $306.5 million, mainly due to working capital changes and higher incentive payments. Cash and cash equivalents fell to $435.8 million from $791.3 million at December 31, 2025, as the company repurchased $454.3 million of its common stock during the six months under a $1.0 billion program authorized in February 2026.
The filing also discloses a material cybersecurity attack in May 2026 that temporarily disrupted global operations, with West Vantage revenue affected by approximately $7 milliond from production downtime. Separately, the company agreed to sell its SmartDose 3.5mL On-Body Delivery System business to AbbVie for $112.5 million, closed on July 1, 2026 for cash proceeds of approximately $136 million, and expects a third-quarter pre-tax gain of $55 million to $60 million. A securities class action filed in May 2025 remains in early stages, and the company says it cannot reasonably estimate losses.
02—Key points
Key Highlights
- Second-quarter net sales were $872.3 million, up 13.8% as reported and 12.7% excluding foreign currency translation, with volume and mix contributing $67.0 million and sales price increases contributing $30.3 million.
- Second-quarter operating profit rose to $179.1 million from $153.7 million, and diluted EPS was $2.15 versus $1.82; adjusted diluted EPS (non-GAAP) was $2.37 versus $1.84.
- Proprietary Products net sales grew 16.6% as reported in the quarter, while West Vantage net sales grew 2.0%, which the filing notes was affected by roughly $7 million of downtime from the May 2026 cyber incident.
- Operating cash flow for the first six months was $213.9 million, down from $306.5 million, and capital expenditures fell to $85.9 million from $146.5 million.
- The company repurchased $454.3 million of common stock in the first six months of 2026 (1,760,610 shares), leaving $545.72 million available under the $1.0 billion program at June 30, 2026.
- The SmartDose 3.5mL business sale to AbbVie for $112.5 million closed on July 1, 2026 for approximately $136 million in cash, with a third-quarter pre-tax gain expected in the range of $55 million to $60 million.
- Total debt was $202.9 million at June 30, 2026, and the company reported that it was in compliance with all debt covenants and had $497.7 million of available capacity under its revolving credit facility.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, West Pharmaceutical Services kept $0.18.
- Revenue$872.3M100.0%
- Cost of revenue−$543.1M62.3%
- Gross profit$329.2M37.7%
- Operating costs−$150.1M17.2%
- Operating income$179.1M20.5%
- Interest, other & tax−$25.1M2.9%
- Net income$154.0M17.7%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed July 23, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $872.30M$766.50M | +13.8% |
| Cost of Revenue | $543.10M$492.60M | +10.3% |
| Gross Profit | $329.20M$273.90M | +20.2% |
| R&D Expenses | $19.70M$19.10M | +3.1% |
| SG&A Expenses | $117.60M$95.90M | +22.6% |
| Operating Income | $179.10M$153.70M | +16.5% |
| Net Income | $154.00M$131.80M | +16.8% |
| EPS (Basic) | $2.17$1.82 | +19.2% |
| EPS (Diluted) | $2.15$1.82 | +18.1% |
| Shares Outstanding (Basic) | 70.80M72.20M | −1.9% |
| Shares Outstanding (Diluted) | 71.30M72.50M | −1.7% |
05—Questions
Frequently Asked Questions
How did West Pharmaceutical perform in the second quarter of 2026?
Net sales were $872.3 million, up 13.8% as reported and 12.7% excluding currency effects. Operating profit was $179.1 million, net income was $154.0 million, and diluted EPS was $2.15, compared with $1.82 a year earlier. Gross margin improved to 37.7% from 35.7%.
What was the impact of the May 2026 cybersecurity incident?
The filing describes a material cyberattack in which certain data was exfiltrated and certain systems were encrypted. The company took systems offline globally for containment, which temporarily disrupted operations. West Vantage revenue was negatively affected by approximately $7 million from production downtime, and the company recorded $6.9 million of nonrecurring professional fees in the second quarter related to legal matters and the incident. The company states its operations have fully recovered.
Why did operating cash flow decline, and how is the company returning capital?
Operating cash flow was $213.9 million for the first six months of 2026 versus $306.5 million a year earlier, which the filing attributes primarily to working capital fluctuations and higher incentive payments. The company repurchased $454.3 million of stock and paid $31.5 million in dividends during the period, and cash and equivalents declined to $435.8 million from $791.3 million at year-end 2025.
What is the status of the SmartDose 3.5mL sale and its expected financial effect?
The sale of manufacturing and supply rights and associated facilities to AbbVie, originally agreed for $112.5 million subject to adjustments, was completed on July 1, 2026 for cash proceeds of approximately $136 million, including an initial working capital adjustment. The company expects to recognize a pre-tax gain of $55 million to $60 million in the third quarter of 2026 and is providing transition services.
Are there any significant pending legal or tax items?
A securities class action filed in May 2025 in the U.S. District Court for the Eastern District of Pennsylvania is in early stages, with a motion to dismiss pending. The company believes the claims are without merit but states it cannot reasonably estimate losses. For taxes, the six-month effective tax rate of 21.3% includes a one-time $12.0 million tax cost tied to an internal legal entity restructuring in the first quarter of 2026.
06—Continue