West Pharmaceutical Services, Inc.

West Pharmaceutical Services, Inc.

WST

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Market Cap$24B
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Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
West Pharmaceutical Services, Inc.West Pharmaceutical Services, Inc.43.30.26%19%7.60.1

Earnings Call Q2 2026

July 23, 2026 - AI Summary

Strong Q2 performance; raised full-year guidance (good) - Revenues: $872m, +13.8% reported / +12.7% organic YoY, exceeding expectations. - Adjusted EPS: $2.37, +29% YoY, also $0.28 above the prior guidance midpoint. - Profitability: Q2 gross margin 37.7% (+200 bps YoY) and adjusted operating margin 22.6% (+230 bps YoY), aided by mix toward HVP Components and price. - Guidance raised for 2026: - Organic revenue growth: 10%–11% (up from 7%–9%). - Adjusted EPS: $8.85–$9.05 (implies +21% to +24% YoY). - Reported revenue growth now 8.8%–10%; FX tailwind assumption improved (now ~1% tailwind vs ~2% previously).
HVP Components driving outperformance; non-GLP-1 strength was the surprising upside (good + surprising) - Proprietary segment: +15.5% organic (West Vantage only +0.8% organic). - HVP Components revenues: $424m, +18.4% organic; now ~49% of total company revenue (vs 46% prior-year quarter). - Within HVP Components, the company highlighted “3 growth drivers”: - Biologics/Biosimilars: +29% organic (strong win rates >90% for new large molecules). - HVP upgrades including Annex 1 (mix shift toward higher-value containment/finishing). - GLP-1 components: high teens organic growth. - Management emphasized non-GLP-1 HVP Components exceeded expectations; key reasons cited: - Strong pipeline and participation >90% in new biologics. - Annex 1-driven upgrades: ~800 projects in hand, +50% YoY; upgrades can add process steps (e.g., pharma washing / Envision) with no incremental volume for customers but higher ASP/mix.
Cyber incident impact improving but still a near-term drag (bad/overhang) - West Vantage was specifically impacted and did not fully recover in Q2, pushing some revenue to later quarters. - Management estimate: mid-single-digit impact to Q2 growth, expected to be made up in the remainder of 2026. - Gross margin dip in West Vantage due to the incident was more than offset by strong Proprietary results. - Call-out: 3 growth drivers remained intact, but guidance prudently accounts for recovery timing.

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$382.75

Target Price by Analysts

9.7% upsideWest Pharmaceutical Services Target Price DetailsTarget Price
$96.76

Current Fair Value

72.3% downside

Overvalued by 72.3% based on the discounted cash flow analysis.

Share Statistics

Market cap$24.00 Billion
Enterprise Value$23.94 Billion
Dividend Yield$0.88 (0.26%)
Earnings per Share$6.83
Beta1.16
Outstanding Shares70,800,000

Return

Return on Equity18.89%ROE
Return on Assets13.86%
Return on Invested Capital19.84%

Valuation & Multiples

P/E Ratio43.32P/E Ratio
PEG257.21PEG
Price to Sales7.58Price to Sales
Price to Book Ratio8.3Price to Book Ratio
Enterprise Value to Revenue7.2
Enterprise Value to EBIT35.12
Enterprise Value to Net Income42
Total Debt to Enterprise0.02
Debt to Equity0.13Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
July 23, 2026
EPS Estimate
$2.08
Average shareholder expectation
Revenue Estimate
$839.98 M
Average shareholder expectation

Next Earnings Call

Expected Date
October 22, 2026
EPS Estimate
$2.18
Average shareholder expectation
Revenue Estimate
$824.60 M
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.0000▼ 229.19%
Total Calls-▼ 100.00%
Total Puts2,300▼ 99.54%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %4.73%▼ 93.60%
Total Invested$1.21B▼ 93.19%
Investors Holding307▼ 461.00%

ESG Score

No data

About West Pharmaceutical Services, Inc.

CEO: Eric Green

Relevant Senate Committees

Joint Committee on Taxation

This committee provides the technical analysis and revenue estimates for all tax legislation, directly influencing corporate tax structures and financial policies that impact West Pharmaceutical Services' profitability and investment decisions.

Finance

This committee controls taxation, trade, and entitlement spending (e.g., Medicare pricing). Its decisions directly impact WST's corporate profitability, international supply chains, and the revenue of its pharmaceutical customers through drug pricing policies.

Appropriations

This committee's subcommittees allocate discretionary federal spending, including for healthcare programs and scientific research, directly affecting the funding and market for WST's pharmaceutical customers and the broader healthcare industry.

Health, Education, Labor, and Pensions

This committee directly regulates the FDA and NIH, whose drug approval processes and research funding are paramount to the pharmaceutical and biotech sectors (WST's customers), directly influencing demand for WST's drug delivery components.