Third quarter 2026
Filed Oct 29, 2026West Reports Third-Quarter 2026 Results Raising Full-Year Net Sales and Adjusted-Diluted EPS guidance
Third-quarter net sales increased 8.7%, organic net sales increased 11.9%, adjusted-diluted EPS increased 35.7%, reported operating profit margin expanded to 30.6%, and the company raised full-year net sales and adjusted-diluted EPS guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30, 2026GAAP | $874.5M | – | 8.7% |
| Organic net sales, three months ended September 30, 2026non-GAAP | $866.7M | – | 11.9% |
| Gross profit, three months ended September 30, 2026GAAP | $347.4M | – | – |
| Gross profit margin, three months ended September 30, 2026GAAP | 39.7% | – | – |
| Research and development, three months ended September 30, 2026GAAP | $18.3M | – | – |
| Selling, general and administrative expenses, three months ended September 30, 2026GAAP | $112.9M | – | – |
| Other expense (income), net, three months ended September 30, 2026GAAP | −$51.2M | – | – |
| Operating profit, three months ended September 30, 2026GAAP | $267.4M | – | – |
| Reported operating profit margin, three months ended September 30, 2026GAAP | 30.6% | – | – |
| Adjusted operating profit, three months ended September 30, 2026non-GAAP | $221.5M | – | – |
| Adjusted operating profit margin, three months ended September 30, 2026non-GAAP | 25.3% | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | $58M | – | – |
| Net income, three months ended September 30, 2026GAAP | $214M | – | – |
| Diluted EPS, three months ended September 30, 2026GAAP | $3.02 | – | 57.3% |
| Adjusted net income, three months ended September 30, 2026non-GAAP | $188.8M | – | – |
| Adjusted-diluted EPS, three months ended September 30, 2026non-GAAP | $2.66 | – | 35.7% |
| Net sales, nine months ended September 30, 2026GAAP | $2.59B | – | 14.2% |
| Organic net sales, nine months ended September 30, 2026non-GAAP | $2.54B | – | 13.2% |
| Gross profit, nine months ended September 30, 2026GAAP | $973M | – | – |
| Gross profit margin, nine months ended September 30, 2026GAAP | 37.5% | – | – |
| Operating profit, nine months ended September 30, 2026GAAP | $623.6M | – | – |
| Reported operating profit margin, nine months ended September 30, 2026GAAP | 24.1% | – | – |
| Adjusted operating profit, nine months ended September 30, 2026non-GAAP | $599.9M | – | – |
| Adjusted operating profit margin, nine months ended September 30, 2026non-GAAP | 23.1% | – | – |
| Net income, nine months ended September 30, 2026GAAP | $506.8M | – | – |
| Diluted EPS, nine months ended September 30, 2026GAAP | $7.09 | – | – |
| Adjusted net income, nine months ended September 30, 2026non-GAAP | $512.5M | – | – |
| Adjusted-diluted EPS, nine months ended September 30, 2026non-GAAP | $7.16 | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $403.4M | – | – |
| Capital expenditures, nine months ended September 30, 2026GAAP | −$125M | – | – |
| Shares purchased under share repurchase programs, nine months ended September 30, 2026GAAP | −$685.3M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Proprietary Products, three months ended September 30, 2026Organic net sales were $720.0 million, compared with $617.7 million, an increase of 16.6%. HVP Components net sales increased 19.7% and Standard Products net sales increased 2.9%. | $728.8M | – | 12.6% |
| West Vantage, three months ended September 30, 2026Organic net sales were $146.7 million, compared with $157.1 million, a decline of 6.6%. | $145.7M | – | (7.3)% |
| HVP Components, three months ended September 30, 2026Organic net sales were $469.1 million, compared with $390.0 million, an increase of 20.3%. HVP Components accounted for 53% of total company net sales in the quarter. | $466.7M | – | 19.7% |
| HVP Delivery Devices, three months ended September 30, 2026Organic net sales were $87.6 million, compared with $69.3 million, an increase of 26.4%, excluding foreign currency translation effects and the impact of the SmartDose® 3.5mL divestiture. | $99.1M | – | — % |
| Standard Products, three months ended September 30, 2026Organic net sales were $163.3 million, compared with $158.4 million, an increase of 3.1%. | $163M | – | 2.9% |
Full-Year 2026 outlook
- Revenue$3.41 billion to $3.42 billion
- NoteOrganic net sales growth: 11.3% to 11.6%
- NoteReported-diluted EPS (U.S. GAAP): $9.31 to $9.41
- NoteAdjusted-diluted EPS (Non-U.S. GAAP): $9.38 to $9.48
- NoteCapital spending: $215 million to $220 million
- NoteNo additional SmartDose® 3.5mL product sales are expected for the remainder of the year.
Capital returns
- The Company repurchased $231 million of stock in the quarter, bringing the year-to-date total to $685 million.
- Shares purchased under share repurchase programs were $(685.3) million for the nine months ended September 30, 2026, compared with $(134.0) million in the prior-year period.
- The Board of Directors declared a fourth-quarter dividend of $0.26 per share on October 19, 2026, an increase of 18% over the $0.22 per share paid in the prior quarter.
- Dividend payments were $(47.0) million for the nine months ended September 30, 2026, compared with $(45.4) million in the prior-year period.
What drove it
- Consolidated third-quarter organic net sales increased 11.9%.
- Proprietary Products organic net sales increased 16.6%, led by HVP Components organic net sales growth of 20.3%.
- HVP Delivery Devices organic net sales increased 26.4% after excluding foreign currency translation effects and the SmartDose® 3.5mL transaction.
- Reported operating profit margin was 30.6%, compared with 20.8%, while adjusted operating profit margin was 25.3%, compared with 21.1%.
- The company recorded a $55.7 million net gain on the sale of SmartDose® 3.5mL On-Body Delivery System assets during the three and nine months ended September 30, 2026.
Concerns
- West Vantage net sales decreased 7.3% and organic net sales declined 6.6% in the third quarter.
- Generics reported net sales decreased 5.7% and organic net sales declined 4.5% in the third quarter.
- Year-to-date operating cash flow was $403.4 million, compared with $503.7 million in the prior-year period.
- The company recorded a one-time tax cost of $22.4 million associated with the gain on the sale of SmartDose® 3.5mL On-Body Delivery System.
- No additional SmartDose® 3.5mL product sales are expected for the remainder of the year.
What to watch
- Execution against full-year net sales guidance of $3.41 billion to $3.42 billion and organic net sales growth guidance of 11.3% to 11.6%.
- Execution against full-year adjusted-diluted EPS guidance of $9.38 to $9.48 and reported-diluted EPS guidance of $9.31 to $9.41.
- Whether HVP Components sustains its 20.3% third-quarter organic growth rate.
- Whether West Vantage, which declined 6.6% organically in the third quarter, improves.
- Capital spending within updated guidance of $215 million to $220 million.
Balance sheet and cash flow
- Cash and cash equivalents were $464.1 million as of September 30, 2026, compared with $791.3 million as of December 31, 2025.
- Long-term debt was $202.9 million as of September 30, 2026, compared with $202.8 million as of December 31, 2025.
- Net cash provided by operating activities was $403.4 million for the nine months ended September 30, 2026, compared with $503.7 million in the prior-year period.
- Capital expenditures were $(125.0) million for the nine months ended September 30, 2026, compared with $(209.8) million in the prior-year period.
- Proceeds from sale of assets were $126.9 million and disbursement associated with the sale of assets was $(8.9) million for the nine months ended September 30, 2026.
- Net cash used in financing activities was $(715.3) million for the nine months ended September 30, 2026, compared with $(173.4) million in the prior-year period.
Analysis
West reported a strong third quarter, with net sales of $874.5 million, up 8.7%, and organic net sales of $866.7 million, up 11.9%. Proprietary Products was the principal growth engine, with sales of $728.8 million and organic growth of 16.6%. HVP Components delivered $466.7 million of sales, increased 19.7%, and represented 53% of company net sales. HVP Delivery Devices reported flat sales of $99.1 million, but organic sales increased 26.4% after the specified foreign-exchange and SmartDose® 3.5mL adjustments.
Profitability expanded materially. Gross profit margin was 39.7%, compared with 36.6%, while reported operating profit margin was 30.6%, compared with 20.8%. Adjusted operating profit rose to $221.5 million from $170.1 million and the adjusted operating profit margin was 25.3%, compared with 21.1%. GAAP diluted EPS was $3.02, up 57.3%, and adjusted-diluted EPS was $2.66, up 35.7%. Reported results included a $55.7 million gain on the sale of SmartDose® 3.5mL On-Body Delivery System assets, reflected within M&A activities in the non-GAAP reconciliation.
The performance was not uniform across the portfolio. West Vantage sales declined 7.3% to $145.7 million, and organic sales declined 6.6%. Within Proprietary Products market groups, Generics sales declined 5.7% and organic sales declined 4.5%. By contrast, Asia Pacific net sales increased 42.4%, Biologics reported organic sales growth of 23.2%, and Pharma reported organic sales growth of 21.4%.
The company increased full-year 2026 net sales guidance to $3.41 billion to $3.42 billion, increased organic net sales growth guidance to 11.3% to 11.6%, and raised adjusted-diluted EPS guidance to $9.38 to $9.48. It also updated capital spending guidance downward to $215 million to $220 million. Year-to-date operating cash flow was $403.4 million versus $503.7 million in the prior-year period, while capital expenditures were $(125.0) million. Capital allocation included $231 million of third-quarter share repurchases and $(685.3) million of repurchases over the first nine months, alongside a declared fourth-quarter dividend of $0.26 per share.
Management, verbatim
I am pleased to report strong third-quarter 2026 results, with net sales and adjusted EPS exceeding our expectations. Our results were again led by our High-Value Product (HVP) Components business. The robust sales performance drove strong operating income margin expansion and EPS growth. As a result of our team's strong execution in the third quarter, we are increasing our full-year 2026 guidance.
Michel Lagarde, President and Chief Executive Officer
I want to thank our global teams for their relentless focus on execution to deliver products and services for our customers and the patients they serve. West is a critical primary containment and drug delivery partner for pharmaceutical companies, biotechs and CDMOs around the world.
Michel Lagarde, President and Chief Executive Officer
Not in the filing
stated, not guessed- Quarterly operating cash flow was not reported.
- Quarterly free cash flow was not reported.
- Free cash flow for the nine months ended September 30, 2026 was not reported.
- Quarterly cash and debt balances were not reported.
- Prior-quarter financial comparisons were not reported for the key operating metrics.
- Full-year 2026 gross margin, operating expenses, and tax-rate guidance were not reported. The release did not provide a separately supplied previous outlook section for actual-versus-prior-guidance comparisons.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.