West Pharmaceutical Revenue Jumps 21% to $844.9M in Q1 FY2026

West Pharmaceutical Services, Inc. (NYSE: WST), a Pennsylvania-based manufacturer of packaging and delivery systems for injectable medicines, posted net revenue of $844.9 million for the three months ending March 31, 2026, a 21% increase from $698.0 million in the first quarter of fiscal 2025. Read more earnings reports.

Net income for the quarter reached $138.8 million, up 55% from $89.8 million in the prior-year period. Diluted earnings per share climbed to $1.92 from $1.23, based on 72.4 million weighted average diluted shares outstanding compared to 73.0 million a year earlier.

Operating income rose 66% to $177.1 million from $107.0 million in Q1 fiscal 2025. The company's gross profit expanded to $296.4 million from $231.9 million, reflecting a gross margin improvement as cost of goods sold increased at a slower pace than revenue. Cost of goods sold totaled $548.5 million, up from $466.1 million in the year-ago quarter.

Selling, general and administrative expenses climbed to $99.5 million from $88.0 million, while research and development spending declined slightly to $15.8 million from $16.3 million. The company's effective tax rate was 24.4% for the quarter, with income tax expense of $44.7 million compared to $24.1 million in the prior-year period.

Cash and cash equivalents stood at $521.4 million as of March 31, 2026, down from $791.3 million at the end of fiscal 2025. The decline reflects cash used in financing activities of $308.7 million during the quarter, partially offset by $89.9 million generated from operations. Cash from investing activities was negative $42.7 million.

Total assets decreased to $4.11 billion from $4.27 billion at December 31, 2025. Stockholders' equity declined to $2.99 billion from $3.18 billion over the same period, driven primarily by increased treasury stock holdings. The company had 70.9 million common shares outstanding at quarter-end, down from 72.0 million at the prior fiscal year-end.

Accounts receivable rose to $685.6 million from $574.4 million at the end of fiscal 2025, while inventory increased modestly to $452.6 million from $443.9 million. Property, plant and equipment decreased slightly to $1.70 billion from $1.73 billion. Total liabilities increased to $1.12 billion from $1.09 billion, with long-term debt remaining flat at $202.8 million.

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