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…
Earnings analysis · 10-Q
WST earnings analysis
Filed April 23, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.92
What stood out
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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%).
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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%.
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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.
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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).
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Strong proprietary-products growth
Proprietary Products net sales were $694.3 million, up 23.3% year-over-year (organic +17.5%).
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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.
What to watch
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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).
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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).
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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).
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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.
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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.
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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).
Management's outlook
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.)
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.