West Pharma Lifts Outlook On Surging GLP-1 Demand, Stock Soars

West Pharmaceutical Services, Inc. (NYSE:WST) shares are surging Thursday after the injectable pharmaceutical packaging and delivery systems company delivered a robust beat on its second-quarter 2025 earnings and revenue, while also significantly raising its full-year guidance.

The strong performance was largely driven by exceptional growth in its High-Value Product (HVP) segment, particularly due to strong demand for GLP-1 elastomer products and ongoing momentum in HVP conversions.

The company reported second-quarter 2025 adjusted earnings of $1.84, up from $1.52 a year ago, beating the consensus of $1.51. Similarly, sales reached $766.5 million, outperforming the $726.45 million consensus.

Also Read: West Pharmaceutical Defies Doubters: EPS Jumps, Outlook Raised Despite Tariff Drag

Net sales grew by 9.2%. Organic net sales growth was 6.8%. The Proprietary Products Segment’s sales increased by 10.7% to $619.8 million and 8.4% organically.

High-Value Product (HVP) (components and devices) represented around 47% of total company net sales and increased 11.3%, driven by strength in Westar and NovaChoice products.

Standard Products, 21% of total company net sales, increased by 0.4%. HVP Delivery Devices represented 13% of total company net sales and increased 30.0%, driven mainly by Daikyo Crystal Zenith and Administration Systems.

The company’s biologics, pharma, and generics market units each had high-single-digit organic net sales growth.

Contract-manufactured products, representing 19% of total company net sales, increased by 3.0% to $146.7 million, or up 0.5% organically. Segment performance was driven by an increase in sales of self-injection devices for obesity and diabetes, partially offset by a decrease in sales of healthcare diagnostic devices.

On Monday, West Pharmaceutical appointed Robert McMahon as the company’s new Chief Financial Officer, effective August 4. Mr. McMahon will succeed Bernard Birkett, CFO, who announced his intention to retire earlier this year.

Eric Green, president, CEO and chair of the board, commented, “I am pleased to report that we exceeded our expectations for the second quarter driven by solid growth in HVP components. This was the result of strong GLP-1 elastomer growth, ongoing momentum in HVP conversion mainly related to Annex 1 projects and the continued normalization of customer ordering patterns. The improved performance was concentrated in higher margin products, which drove strong margin expansion in the quarter.”

Outlook

West Pharmaceutical Services raised the 2025 adjusted EPS guidance from $6.15-$6.35 to $6.65-$6.85 compared to the consensus of $6.29.

The company said updated adjusted-diluted EPS guidance incorporates our estimate of $15 to $20 million for the net impact of recently implemented tariffs.

The company raised sales guidance from $2.94 billion-$2.98 billion to $3.04 billion-$3.06 billion versus the consensus of $2.96 billion.

Organic net sales growth is expected to be approximately 3% to 3.75%, up from the previous guidance range of 2% to 3%.

Following the company’s strong second-quarter 2025 earnings report and raised full-year guidance, William Blair maintained its Outperform rating on the stock.

“The rating is predicated on West being a high-quality, franchise name that provides quality and dependable earnings and cash flow, a clear leadership competitive position, and access to attractive end-market trends without single product or technology risk,” analyst Matt Larew said on Thursday.

Price Action: WST stock is trading higher by 24.95% to $284.02 at last check Thursday.

Read Next:

• Dow Cuts Dividend In Half As Losses Mount And Tariffs Amplify Industry Pain

Photo via Shutterstock