West Pharmaceutical Services (NYSE:WST) shares gained momentum Thursday after the injectable-solution leader posted a fourth-quarter earnings beat and provided a bullish 2026 outlook, fueled by the explosive growth of GLP-1 "obesity" drugs and a massive jump in free cash flow.
The Exton, Pennsylvania-based company reported fourth-quarter net sales of $805 million, a 7.5% increase that beat analyst consensus of $796 million.
While revenue was strong, the real story was the bottom line: adjusted diluted EPS rose 12.1% to $2.04, significantly outperforming the $1.84 estimate.
For the full year 2025, revenue topped $3.07 billion, supported by high-single-digit organic growth in the company's "High-Value Product" (HVP) segment, which includes the specialized components used in popular weight-loss and diabetes auto-injectors.
Efficiency gains and disciplined capital spending helped free cash flow, sending it up 70% to $468.9 million for the year.
This liquidity allowed West to return value to shareholders through $134 million in share repurchases.
Looking to 2026, the company set an optimistic guidance range for adjusted EPS of $7.85 to $8.20, well above the $7.76 analysts had projected.