EXTON, PA — West Pharmaceutical Services Inc. (NYSE: WST) raised its full-year 2026 sales and earnings forecasts after third-quarter profit surged 57.3%, driven by growing demand for high-value pharmaceutical packaging components that lifted revenue and expanded operating margins.
The Exton-based manufacturer reported third-quarter net sales of $874.5 million, an 8.7% increase from a year earlier, while organic revenue grew 11.9%.
Diluted earnings rose to $3.02 per share, up 57.3%, while adjusted diluted earnings increased 35.7% to $2.66 per share. Both sales and adjusted earnings exceeded management’s expectations.
West increased its full-year revenue forecast to between $3.41 billion and $3.42 billion, compared with its previous projection of $3.345 billion to $3.38 billion.
The company also raised its adjusted earnings guidance to $9.38 to $9.48 per diluted share, up from its earlier range of $8.85 to $9.05.
The revised outlook reflects stronger performance in West’s Proprietary Products segment, particularly its high-value components business, which supplies specialized products used in injectable drug packaging and delivery.
Proprietary Products generated $728.8 million in quarterly revenue, an increase of 12.6%, with organic growth reaching 16.6%.
Within that segment, High-Value Product Components sales climbed 19.7% to $466.7 million, representing approximately 53% of total company revenue. Organic sales in the business increased 20.3%.
The performance made high-value components the primary contributor to West’s revenue growth during the quarter.
“Our results were again led by our High-Value Product (HVP) Components business,” Chief Executive Officer Michel Lagarde stated. “The robust sales performance drove strong operating income margin expansion and EPS growth.”
High-Value Product Delivery Devices generated $99.1 million in sales, essentially unchanged from the prior year on a reported basis.
Excluding foreign currency effects and the divestiture of the SmartDose 3.5mL product, however, organic revenue in the delivery devices business increased 26.4%.
SmartDose 3.5mL contributed $11.8 million in third-quarter revenue, compared with $29.8 million a year earlier. West excludes those sales from both periods when calculating organic growth.
Standard Products revenue increased 2.9% to $163 million, with organic growth of 3.1%. The business accounted for approximately 19% of quarterly sales.
Performance was weaker in West Vantage, where revenue declined 7.3% to $145.7 million. Organic sales fell 6.6%, and the segment represented approximately 17% of company revenue.
Despite that decline, growth in proprietary products supported the company’s improved financial outlook.
West now expects full-year organic revenue growth of 11.3% to 11.6%, compared with its previous forecast of 10% to 11%.
The company also reduced its planned capital expenditures for 2026 to between $215 million and $220 million, down from an earlier estimate of $250 million to $275 million.
West generated $403 million in operating cash flow during the first nine months of 2026 while spending $125 million on capital projects.
The company repurchased $231 million of its shares during the third quarter, bringing total repurchases for the first nine months to $685 million.
West’s board also declared a fourth-quarter dividend of 26 cents per share on Oct. 19, an 18% increase from the 22-cent dividend paid in the preceding quarter.
The company’s revised guidance excludes SmartDose 3.5mL sales when calculating organic growth. West recorded $55.3 million in revenue from that product during the second half of 2025 and does not expect additional sales from it during the remainder of 2026.
West supplies injectable drug packaging components and delivery systems to pharmaceutical companies, biotechnology manufacturers and contract development and manufacturing organizations.
Its third-quarter results reflect accelerating demand for higher-value components, which helped offset declining revenue in West Vantage and supported a higher earnings forecast for the remainder of the year.
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