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West Pharmaceutical Services: Is Riding The Biologics Boom — But How Sustainable Is This High-Growth Wave?

West Pharmaceutical Services reported a robust start to fiscal year 2026, with first-quarter revenues reaching $845 million, marking a 21% increase on a reported basis and 15% on an organic basis, surpassing company expectations. Adjusted operating margins expanded by 350 basis points to 21.4%, and adjusted earnings per share rose 47% year-over-year to $2.13. These results led the company to raise its full-year 2026 outlook, now projecting organic revenue growth of 7% to 9% (up from previous guidance of 5% to 7%) and adjusted EPS of $8.40 to $8.75, representing a 15% to 20% increase. The Proprietary Products segment’s High-Value-Added Pharmaceutical (HVP) components, accounting for 48% of net sales, were a principal growth driver, growing 23% organically. Growth was fueled by both GLP-1 and non-GLP-1 products, with GLP-1 revenues maintaining 10% of company sales amid early-stage oral product adoption expanding the market.