What Happened?
Shares of healthcare products company West Pharmaceutical Services (NYSE: WST) jumped 12.3% in the afternoon session after the company reported strong third-quarter 2025 results that surpassed analyst estimates and raised its full-year financial forecast.
The company announced adjusted earnings of $1.96 per share on revenue of $804.6 million, beating Wall Street's expectations of $1.69 per share and $787.7 million, respectively. Sales grew 7.7% compared to the same period in the previous year. Bolstered by these results, West Pharmaceutical lifted its full-year 2025 guidance, raising the midpoint for sales to $3.07 billion and for adjusted earnings to $7.09 per share. The strong performance, particularly the significant earnings beat and improved outlook, reassured investors about the company's profitability and operational stability.
Is now the time to buy West Pharmaceutical Services? Access our full analysis report here.
What Is The Market Telling Us
West Pharmaceutical Services’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. But moves this big are rare even for West Pharmaceutical Services and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 29 days ago when the stock gained 3.1% on the news that a research note from KeyBanc Capital Markets indicated positive momentum in the bioprocessing sector following an industry conference. The note came after the BioProcess International conference, which hosted over 250 contract development and manufacturing organizations (CDMOs) and suppliers. The event provided evidence that the industry was rebounding after a period of slower growth. KeyBanc stated it expected the sector to resume its historical 8-10% growth rate. The research also pointed to extended lead times for fill/finish equipment as a positive indicator for West Pharmaceutical Services. This broader industry optimism signaled a potential for increased business and supported the stock's move.
West Pharmaceutical Services is down 6.6% since the beginning of the year, and at $306.72 per share, it is trading 11.8% below its 52-week high of $347.87 from January 2025. Investors who bought $1,000 worth of West Pharmaceutical Services’s shares 5 years ago would now be looking at an investment worth $1,088.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
