Research · Sep 3, 2026
[WST] West Pharmaceutical Thesis 2026: GLP-1 Device Wave Opens the $8 EPS Path
West Pharmaceutical Services (WST) FY25 (Dec 2025) revenue $3.074B (+6.2%, first $3B+ year); gross margin 35.9% (+120bp); op income $617.4M (+3.8%); net income $493.7M (~flat GAAP; adj EPS ~$7.09 +~8%); FCF $468.9M (+69.7%); total debt $416.7M; cash $791.3M (+63%). CapEx $285.9M (-24%); buybacks $134M (reduced from $566M FY24). HVP components (48% of revenue): 9% organic FY25; Q1 FY26 +23% organic. GLP-1 revenues = 10% of total company sales Q1 FY26 (9% Q3 FY25). Non-GLP-1 HVP growing high teens Q1 FY26. Biologics +26% organic Q1 FY26. Annex 1 EU regulatory upgrade: 375 active HVP upgrade projects. HVP delivery devices: SmartDOS 3.5 growing; legacy SmartDose 3.5 mL divested (closing mid-2026). Dublin contract manufacturing fully operational; CGM contract exiting H2 FY26. West Synchrony prefillable syringe system launched FY25. FY26 guidance raised (post-Q1): 7-9% organic revenue growth (from 5-7%); adj EPS $8.40-$8.75 (from $8.025 midpoint). Q2 FY26 guide: $830-850M revenue, adj EPS $2.05-$2.12. Tariff impact fully mitigated in FY26. Risks: GLP-1 oral displacement, CGM exit headwind, biologics destocking recurrence, premium valuation.