WST (West Pharmaceutical Services) Operating Income: $690 Mil (TTM As of Mar. 2026)


WST West Pharmaceutical Services Inc WST
95 GF Score
Price $359.54
GF Value $362.09
Valuation Fairly Valued
! 9 Warning Signs
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What is West Pharmaceutical Services Operating Income?

West Pharmaceutical Services WST -1.70% 95 Operating Income is $690 Mil as of Mar. 2026. GuruFocus rates WST with a GF Score™ of 95/100 and a GF Value™ of $362.09 (Fairly Valued). The stock has 9 warning signs investors should review.

West Pharmaceutical Services's Operating Income for the three months ended in Mar. 2026 was $181 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $690 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. West Pharmaceutical Services's Operating Income for the three months ended in Mar. 2026 was $181 Mil. West Pharmaceutical Services's Revenue for the three months ended in Mar. 2026 was $845 Mil. Therefore, West Pharmaceutical Services's Operating Margin % for the quarter that ended in Mar. 2026 was 21.43%.

Warning Sign:

West Pharmaceutical Services Inc operating margin has been in a 5-year decline. The average rate of decline per year is -1.8%.

West Pharmaceutical Services's 5-Year average Growth Rate for Operating Margin % was -1.80% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. West Pharmaceutical Services's annualized ROC % for the quarter that ended in Mar. 2026 was 17.84%. West Pharmaceutical Services's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 29.94%.

West Pharmaceutical Services  (NYSE:WST) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

West Pharmaceutical Services's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=724.4 * ( 1 - 24.82% )/( (2967.3 + 3138)/ 2 )
=544.60392/3052.65
=17.84 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4270 - 511.4 - ( 791.3 - max(0, 654.9 - 1978.2+791.3))
=2967.3

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4109.8 - 450.4 - ( 521.4 - max(0, 674 - 1826.8+521.4))
=3138

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

West Pharmaceutical Services's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=728/( ( (1843.4 + max(554.7, 0)) + (1812.4 + max(652.8, 0)) )/ 2 )
=728/( ( 2398.1 + 2465.2 )/ 2 )
=728/2431.65
=29.94 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(574.4 + 443.9 + 168.6) - (511.4 + 51.9 + 68.9)
=554.7

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(685.6 + 452.6 + 167.2) - (450.4 + 0 + 202.2)
=652.8

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

West Pharmaceutical Services's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=181.1/844.9
=21.43 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

West Pharmaceutical Services Operating Income Related Terms

West Pharmaceutical Services Operating Income Historical Data

* Premium members only.

The historical data trend for West Pharmaceutical Services's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

West Pharmaceutical Services Operating Income Chart

West Pharmaceutical Services Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 760.20 760.80 707.40 590.90 636.10

West Pharmaceutical Services Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 127.60 158.90 174.50 175.10 181.10
WST
95GF Score
West Pharmaceutical Services Inc WST
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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West Pharmaceutical Services Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $690 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of $690 Mil mean?
West Pharmaceutical Services (WST) has a Operating Income of $690 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on West Pharmaceutical Services and its competitors.
Is West Pharmaceutical Services' Operating Income too high?
West Pharmaceutical Services' current Operating Income is $690 Mil. Overall, West Pharmaceutical Services has a GF Score™ of 95/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does West Pharmaceutical Services' Operating Income compare to RMD and MDLN?
West Pharmaceutical Services' Operating Income of $690 Mil can be compared against companies in the Medical Devices & Instruments industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Medical Devices & Instruments company?
A good Operating Income depends on the Medical Devices & Instruments industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on West Pharmaceutical Services and its competitors. West Pharmaceutical Services's current Operating Income is $690 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is West Pharmaceutical Services stock overvalued right now?
Based on GuruFocus' analysis, West Pharmaceutical Services (WST) is currently considered Fairly Valued. The stock's GF Value™ is $362.09, compared to a current price of $359.54 — trading 0.7% below its estimated fair value. The current Operating Income is $690 Mil. West Pharmaceutical Services' overall GF Score™ is 95/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For West Pharmaceutical Services (WST), the current Operating Income is $690 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is West Pharmaceutical Services (WST) Overvalued in 2026?

Based on GuruFocus' analysis, West Pharmaceutical Services stock appears to be undervalued. The current stock price of $359.54 is trading 0.7% below its estimated GF Value™ of $362.09. GuruFocus considers West Pharmaceutical Services to be Fairly Valued.

Key valuation signals for WST:

  • Operating Income: $690 Mil
  • GF Value™: $362.09 vs. price of $359.54 (0.7% below fair value)
  • GF Score™: 95/100 with 9 warning signs

No single metric tells the full story. See the WST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

West Pharmaceutical Services Business Description

Address 530 Herman O. West Drive, Exton, PA, USA, 19341-1147
West Pharmaceutical Services is based in Pennsylvania and is a key supplier to firms in the pharmaceutical, biotechnology, and generic drug industries. West sells elastomer-based packaging components (including stoppers, seals, and plungers), nonglass containment solutions, and auto-injectors for injectable drugs, which include large-molecule biologics, peptides such as GLP-1 receptor agonists, and small-molecule drugs. The company reports in two segments: proprietary products (about 80% of total revenue) and contract-manufactured products (about 20% of total revenue). It generates approximately 55% of its revenue from international markets and 45% from the United States.
95GF Score

Get the complete analysis for WST

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$359.54
Price
$362.09
GF Value