Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
WST delivered a strong Q1 FY2026 with revenue surging 21.0% YoY to $844.9M and operating income jumping 65.5% to $177.1M, driven by significant margin expansion, though operating cash flow declined 30.5% amid aggressive share buybacks.
Revenue
$844.9M
+21.05% YoY
EPS (Diluted)
$1.92
+56.10% YoY
Gross Margin
35.1%
+1.9 pts YoY
Operating Income
$177.1M
+65.51% YoY
Source: SEC XBRL
West Pharmaceutical Services (WST) reported Q1 FY2026 revenue of $844.9M, up 21.0% year over year. Operating margin was 21.0%, up 5.7 points from 15.3% a year earlier. Operating cash flow was $89.9M, down 30.5% year over year. WST's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.37 | 2.10 | Beat +12.8% |
| Mar 2026This filing | 2.13 | 1.69 | Beat +25.8% |
| Dec 2025 | 2.04 | 1.85 | Beat +10.2% |
| Sep 2025 | 1.96 | 1.70 | Beat +15.4% |
Adjusted (non-GAAP) EPS of $2.13 versus the $1.69 analyst consensus — a +25.8% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.92.
Compiled by AI from this SEC filing
Revenue grew 21.0% year-over-year to $844.9M in Q1 FY2026 (vs. $698.0M in Q1 FY2025), reflecting robust demand for WST's drug packaging and delivery components. This top-line acceleration significantly outpaced cost growth, setting the stage for meaningful margin expansion.
Source: 10-Q Income Statement
Gross margin expanded approximately 186 basis points to 35.1% (from 33.2%), while operating margin surged 563 basis points to 21.0% (from 15.3%). Operating income of $177.1M represented a 65.5% YoY increase, indicating strong operating leverage as revenue scaled faster than costs.
Source: 10-Q Income Statement & Key Ratios
Cost of revenue rose 17.7% YoY to $548.5M, meaningfully below the 21.0% revenue growth rate, driving gross profit up 27.8% to $296.4M. SG&A expenses grew 13.1% to $99.5M, also below revenue growth, while R&D declined slightly by 3.1% to $15.8M.
Source: 10-Q Income Statement
WST repurchased $297.6M in shares during Q1 FY2026, a 122.9% increase from $133.5M in the prior-year period. This drove financing cash outflows to -$308.7M and contributed to the decline in operating cash flow net of capital returns, reflecting management's confidence in the business.
Source: 10-Q Cash Flow Statement
Total assets grew 13.6% to $4.11B, cash and equivalents increased 29.0% to $521.4M, and long-term debt remained essentially flat at $202.8M. The debt-to-equity ratio stands at a conservative 0.37x, and the current ratio of 2.71x signals strong short-term liquidity.
Source: 10-Q Balance Sheet
Compiled by AI from this SEC filing · 1 high, 2 medium, 2 low
Operating cash flow fell 30.5% YoY to $89.9M despite net income of $138.8M, suggesting potential working capital headwinds or timing differences in cash collections. If this divergence between earnings and cash generation persists, it could constrain WST's ability to fund operations and capital returns simultaneously.
Source: 10-Q Cash Flow Statement
WST accelerated share repurchases to $297.6M in Q1 FY2026, more than double the prior year's $133.5M, resulting in total financing outflows of $308.7M. While the balance sheet remains healthy, sustaining this buyback pace alongside capital investment needs could pressure free cash flow over time.
Source: 10-Q Cash Flow Statement
Current liabilities grew 28.0% YoY to $674.0M, slightly faster than current assets growth of 25.3% to $1.83B. While the current ratio remains healthy at 2.71x, the faster growth in short-term obligations warrants monitoring for any tightening of near-term liquidity.
Source: 10-Q Balance Sheet
WST's revenue is closely tied to pharmaceutical and biotech customers' production and inventory cycles. A slowdown in drug manufacturing activity, customer destocking, or reduced biologics demand could disproportionately impact WST's top-line growth given its specialized product focus.
Source: 10-Q Income Statement (inferred from business model)
SG&A expenses grew 13.1% YoY to $99.5M while R&D declined 3.1% to $15.8M, suggesting a shift in spending toward sales and administration rather than innovation. Sustained underinvestment in R&D relative to revenue growth could affect WST's long-term product differentiation and competitive positioning.
Source: 10-Q Income Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $M | 844.90 $M | 698.00 $M | +21.05% |
Cost of Revenue $M | 548.50 $M | 466.10 $M | +17.68% |
Gross Profit $M | 296.40 $M | 231.90 $M | +27.81% |
Operating Income $M | 177.10 $M | 107.00 $M | +65.51% |
Net Income $M | 138.80 $M | 89.80 $M | +54.57% |
EPS (Basic) $ | 1.93 $ | 1.24 $ | +55.65% |
EPS (Diluted) $ | 1.92 $ | 1.23 $ | +56.10% |
R&D Expense $M | 15.80 $M | 16.30 $M | -3.07% |
SG&A Expense $M | 99.50 $M | 88.00 $M | +13.07% |
Answers draw on this SEC filing and the data on this page
West Pharmaceutical Services (WST) delivered strong Q2 FY2026 results with revenue up 13.8% YoY to $872.3M and net income up 16.8% to $154.0M, driven by robust Proprietary Products demand (HVP components and delivery devices tied to GLP-1 and Biologics growth), though West Vantage segment profitability was pressured by a May 2026 cybersecurity incident.
WST delivered solid FY2025 results with revenue growing 6.3% to $3.07B and gross margin expanding 140 bps to 35.9%, though net income was nearly flat at $493.7M (+0.2%) as SG&A costs surged 16.3%.
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