West Pharmaceutical Services, Inc.

Q2 revenue was $872 million, up 13.8% reported and 12.7% organically, with price contributing 4 percentage points. Adjusted EPS was $2.37, up 29% year over year and $0.28 above the midpoint of prior guidance. Total company gross margin was 37.7%, up 200 basis points year over year, and adjusted operating margin was 22.6%, up 230 basis points. Operating cash flow was $124 million, capital expenditures were $43 million, and the company repurchased just over 0.5 million shares for $157 million while paying $16 million in dividends. For 2026, West now expects revenue of $3.345 billion-$3.380 billion, organic growth of 10%-11%, reported growth of 8.8%-10%, and adjusted EPS of $8.85-$9.05. For Q3, it guided to revenue of $820 million-$835 million and adjusted EPS of $2.14-$2.24.

Eric Green framed the quarter as evidence that West’s growth strategy is working, pointing to execution, operational excellence, and recovery from the cyber incident. He highlighted three key growth drivers: biologics, GLP-1s, and Annex 1/other HVP conversions, and said the business is benefiting from durable macro trends and a strong competitive moat. His tone was upbeat but measured, and he also emphasized the upcoming leadership transition to Michel Lagarde.

Bob McMahon emphasized that the quarter beat expectations across revenue, margin, and EPS, with HVP Components driving the outperformance. He cited a 37.7% gross margin, 22.6% adjusted operating margin, 17.9% tax rate, $124 million of operating cash flow, and $43 million of capex, and said capex guidance stays at $250 million-$275 million for the year. He also said the company repurchased $157 million of stock in Q2 and $454 million in the first half, and noted that share count for the year is expected to be roughly 71.5 million. On guidance, he said full-year operating margin expansion should be over 200 basis points versus 2025 and that pricing, mix shift, and the SmartDose divestiture should support margins.

Analysts focused on the sustainability of non-GLP-1 HVP strength, the size and duration of the Annex 1 opportunity, second-half conservatism in guidance, capacity at key sites, and margins. Management said non-GLP-1 HVP growth is being driven by biologics/biosimilars, Annex 1-related upgrades, and operational excellence, and added that Annex 1 is still in the early innings with roughly 800 projects in hand and potential spillover beyond Europe. On West Vantage and delivery devices, management said Q3 should be the trough for West Vantage, with a ramp in drug handling and better margins into Q4 and 2027. They also said the GLP-1 guidance is prudently conservative, not reflective of a market slowdown, and that Medicare expansion and non-U.S. GLP-1 growth should support demand over time.