West Pharmaceutical Services (WPS) AI Stock Analysis

Company Guidance

Management now anticipates full year revenue to be in the range of $3.41 billion-$3.42 billion, up from a prior range of $3.345 billion-$3.38 billion, with full year 2026 organic sales growth of 11.3%-11.6%, up from a prior range of 10%-11%; FX is expected to have a full year benefit of 120 basis points, while the SmartDose 3.5 divestiture negatively impacts reported growth by 160 basis points. Q4 revenues are expected at $820 million-$830 million, representing 6%-7% organic revenue growth and double-digit growth in HVP Components. Full year 2026 adjusted EPS is expected to be in the range of $9.38-$9.48, up from a prior range of $8.85-$9.05, representing growth of 29%-30% year over year, with full year operating margins expected to expand almost 300 basis points; projected full-year net interest income is $5 million, the tax rate is slightly lower than 18%, affiliate profits are roughly $18 million, and diluted shares outstanding are 71.4 million. Full year CapEx is expected to be between $215 million-$220 million, within the 6%-8% of revenue corridor, long-term price is 2%-3%, and new HVP finishing capacity is expected to come online in 18 to 24 months.