WST earnings analysis
What we found in WST's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
West reported strong Q1 2026 results with consolidated net sales of $844.9 million, up 21.0% year-over-year, and improved margins (gross margin 35.1%, operating margin 21.0%). GAAP diluted EPS was $1.92 (adjusted diluted EPS $2.13) and operating profit rose to $177.1 million (up $70.1 million, or 65.5%). Cash from operations was $89.9 million while the company repurchased 1,222,019 shares for $297.6 million during the quarter. Management flagged potential inflationary pressure on petro-chemical dependent raw materials but stated they do not expect a material impact to 2026 results.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Top-line beat and strong growth
- Consolidated net sales were $844.9 million, up 21.0% versus $698.0 million in Q1 2025 (organic increase of 15.3%).
- Margin expansion
- Consolidated gross profit margin expanded to 35.1% (up 1.9 margin points year-over-year) and consolidated operating profit margin rose to 21.0% from 15.3%.
- Significant operating profit improvement
- Consolidated operating profit increased to $177.1 million, up $70.1 million or 65.5% versus $107.0 million in Q1 2025.
- Adjusted EPS ahead
- GAAP diluted EPS was $1.92 and adjusted diluted EPS was $2.13 for the three months ended March 31, 2026 (adjusted EPS compares to adjusted $1.45 in Q1 2025).
- Strong proprietary-products growth
- Proprietary Products net sales were $694.3 million, up 23.3% year-over-year (organic +17.5%).
- Capital return activity
- The company purchased 1,222,019 shares under its repurchase program at a cost of $297.6 million (average price $243.57 per share) during the quarter.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Operating cash flow declined
- Net cash provided by operating activities decreased by $39.5 million year-over-year to $89.9 million (Q1 2026 vs $129.4 million in Q1 2025).
- Large reduction in cash balances
- Cash and cash equivalents fell to $521.4 million at March 31, 2026 from $791.3 million at December 31, 2025 (decline of $269.9 million).
- Working capital contraction and AR build
- Working capital decreased by $170.5 million to $1,152.8 and accounts receivable increased to $685.6 million from $574.4 million (increase of $111.2 million).
- One-time tax and related rate pressure
- The effective tax rate rose to 24.8% from 21.8% in Q1 2025 primarily due to a one-time tax cost of $12.0 million related to an internal legal entity restructuring.
- Transaction and restructuring charges
- Q1 2026 included pre-tax restructuring and other charges of $1.4 million and $1.9 million of charges related to the SmartDose® 3.5mL sale to AbbVie.
- Financing outflow from buybacks
- Net cash used in financing activities was $308.7 million in Q1 2026 versus $147.0 million in Q1 2025, driven primarily by share repurchases (costing $297.6 million).
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.92
- Gross margin
- 35.1%
- Operating margin
- 21.0%
- Segment
- Proprietary Products: $694.3 million (up 23.3% vs Q1 2025; organic +17.5%)
- Segment
- West Vantage: $150.6 million (up 11.6% vs Q1 2025; organic +6.2%)
What they said about what is next.
This Form 10-Q contains qualitative forward-looking statements but does not provide numeric full-year or quarterly guidance. MD&A states management 'anticipates future inflationary pressures' on petro-chemical dependent raw material costs but 'does not expect those impacts to have a material impact' to 2026 results; the filing also notes available borrowing capacity of $497.7 million (including $2.3 million of letters of credit) and cash and cash equivalents of $521.4 million. (No numeric guidance presented in this 10-Q.)
The filing reads better than the one before it.
What came before.
- 10-K · February 17, 2026
- West positions itself as a global leader in integrated containment and delivery systems for injectable drugs, competing on proprietary technologies, regulatory/quality expertise and a broad manufacturing footprint. 2025…
- 10-Q · July 24, 2025
- West reported a Q2 (three months ended June 30, 2025) revenue beat with net sales of $766.5M (+$64.4M vs year‑ago $702.1M) and margin expansion: gross profit was $273.9M and operating profit $153.7M. Diluted EPS rose to…
- 10-Q · October 24, 2024
- West reported net sales of $746.9 million for the three months ended September 30, 2024, essentially flat versus $747.4 million a year earlier, with diluted EPS of $1.85. Gross profit and operating profit declined…
- 10-Q · July 25, 2024
- West reported Q2 net sales of $702.1 million, down from $753.8 million in Q2 2023, with gross profit falling to $230.0 million and diluted EPS to $1.51. Operating profit declined to $126.2 million and cash balances were…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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