01—Abstract
Summary
Summary of the 10-Q filed October 29, 2026. Cited figures are marked; the original filing is the authoritative source.
West Pharmaceutical Services, Inc. reported third-quarter 2026 net sales of $874.5 milliona, up from $804.6 million a year earlier, and net income of $214.0 million, compared with $140.0 million.
Diluted EPS was $3.02b, versus $1.92 in the prior-year quarter. Operating profit rose to $267.4 million, helped by a $55.7 million pre-tax gain on the sale of the SmartDose® 3.5mL On-Body Delivery System to AbbVie, which closed July 1, 2026 for $126.9 million in cash. The filing states that a one-time tax cost of $22.4 million was associated with that sale.
For the nine months, net sales were $2,591.7 millionc and net income was $506.8 million. Growth was led by HVP components within Proprietary Products, which the filing attributes to demand for Biologics and GLP-1 products. Cash and cash equivalents fell to $464.1 million from $791.3 million at December 31, 2025, mainly because of $685.3 million of share repurchases in the nine months.
Operating cash flow was $403.4 milliond, down from $503.7 million, which the filing attributes primarily to higher receivables and inventory. The company repurchased 663,511 shares in the third quarter for $231.0 million and had $314.7 million remaining under its $1.0 billion program authorized in February 2026. The filing also discloses a May 2026 cybersecurity attack that temporarily disrupted global operations and a securities class action that remains at an early stage.
On October 26, 2026, the company entered a new $750 million revolving credit facility and a $200 million Term Loan A maturing in 2031, which refinanced the existing term loan. The company also plans to repay its $73.0 million Series C notes on or about November 2, 2026.
02—Key points
Key Highlights
- Net sales of $874.5 million for Q3 2026, up from $804.6 million; the filing attributes $18.0 million of revenue reduction to the SmartDose® 3.5mL product line sold to AbbVie.
- Net income of $214.0 million and diluted EPS of $3.02 for Q3 2026, versus $140.0 million and $1.92 in Q3 2025; includes a $55.7 million pre-tax gain on the SmartDose® sale.
- Proprietary Products net sales rose to $728.8 million, with HVP components driven by Biologics and GLP-1 demand; West Vantage net sales declined to $145.7 million.
- Share repurchases totaled $685.3 million in the nine months ended September 30, 2026; cash and cash equivalents declined to $464.1 million from $791.3 million at year-end 2025.
- Operating cash flow was $403.4 million for the nine months, down from $503.7 million, due primarily to receivables timing and higher inventory.
- May 2026 cybersecurity incident temporarily disrupted global operations; the company states operations have fully recovered and it is defending a securities class action.
- Subsequent to quarter-end, on October 26, 2026, the company entered a new $750 million revolving credit facility and a $200 million Term Loan A maturing in 2031, and plans to repay $73.0 million of Series C notes.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, West Pharmaceutical Services kept $0.24.
- Revenue$874.5M100.0%
- Cost of revenue−$527.1M60.3%
- Gross profit$347.4M39.7%
- Operating costs−$80.0M9.1%
- Operating income$267.4M30.6%
- Interest, other & tax−$53.4M6.1%
- Net income$214.0M24.5%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed October 29, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $874.50M$804.60M | +8.7% |
| Cost of Revenue | $527.10M$510.30M | +3.3% |
| Gross Profit | $347.40M$294.30M | +18.0% |
| R&D Expenses | $18.30M$17.10M | +7.0% |
| SG&A Expenses | $112.90M$102.70M | +9.9% |
| Operating Income | $267.40M$167.60M | +59.5% |
| Net Income | $214.00M$140.00M | +52.9% |
| EPS (Basic) | $3.04$1.94 | +56.7% |
| EPS (Diluted) | $3.02$1.92 | +57.3% |
| Shares Outstanding (Basic) | 70.40M72.20M | −2.5% |
| Shares Outstanding (Diluted) | 70.80M72.60M | −2.5% |
05—Questions
Frequently Asked Questions
How did the SmartDose® 3.5mL sale affect third-quarter 2026 results?
The company recognized a $55.7 million pre-tax gain within other expense (income), which lifted operating profit to $267.4 million. The filing also reports a one-time tax cost of $22.4 million associated with the sale, and net sales were reduced by $18.0 million of SmartDose® product revenue.
What drove growth in the Proprietary Products segment?
The filing attributes the increase primarily to strong customer demand for Biologics and GLP-1 products, along with sales price increases. HVP components grew 20.3% excluding currency effects in the quarter, and gross margin for the segment rose to 44.4% from 40.8%.
How is the company using its cash and capital?
The company repurchased $685.3 million of shares in the nine months ended September 30, 2026 and paid $47.0 million in dividends. Cash and cash equivalents decreased to $464.1 million, and the company had $314.7 million remaining under its $1.0 billion repurchase authorization at quarter-end.
What changed in the company's debt structure after the quarter?
On October 26, 2026, the company entered a new senior unsecured credit agreement with a $750 million revolving facility and a $200 million New Term Loan A maturing October 26, 2031, which refinanced the existing $130.0 million term loan. The company has also delivered notice to repay its $73.0 million Series C notes on or about November 2, 2026.
What operational and legal risks does the filing disclose?
The filing discloses a May 2026 cybersecurity attack in which data was exfiltrated and systems were encrypted, temporarily disrupting global operations; the company states operations have fully recovered. It also describes a securities class action filed in May 2025 that is in early stages, and the company states it is unable to estimate losses at this time.
06—Continue