West Pharmaceutical Services, Inc. stock research
FY2025 Q3
West Pharmaceutical Services (WST) Gross Margin — Quarter Ended Sep 30, 2025
Revenue, gross profit, and cost of revenue all increased, with gross profit growing faster than cost of revenue, resulting in a higher gross margin. The improvement reflects a favorable relationship between top-line growth and input costs.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue, gross profit, and cost of revenue all increased, with gross profit growing faster than cost of revenue, resulting in a higher gross margin. The improvement reflects a favorable relationship between top-line growth and input costs.
- The strongest observable margin driver is the growth in revenue exceeding the growth in cost of revenue, which directly expanded the gross margin percentage.
- Compared with the immediately preceding quarter, all three metrics—revenue, gross profit, and cost of revenue—were higher, and gross margin improved. The same pattern held when compared with the same quarter one year earlier, with revenue, gross profit, and cost of revenue all higher and gross margin strengthened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.6%
Gross profit
$294.3M
Revenue
$804.6M
Cost of revenue
$510.3M
Quarter-over-quarter change
+0.8 pts
Year-over-year change
+1.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2024 | $748.8M | $273.6M | $475.2M | 36.5% |
| Mar 31, 2025 | $698.0M | $231.9M | $466.1M | 33.2% |
| Jun 30, 2025 | $766.5M | $273.9M | $492.6M | 35.7% |
| Sep 30, 2025 | $804.6M | $294.3M | $510.3M | 36.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+0.8 pts
Year-over-year change
Sep 30, 2024
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the growth in revenue exceeding the growth in cost of revenue, which directly expanded the gross margin percentage.
Compared with the immediately preceding quarter, all three metrics—revenue, gross profit, and cost of revenue—were higher, and gross margin improved. The same pattern held when compared with the same quarter one year earlier, with revenue, gross profit, and cost of revenue all higher and gross margin strengthened.
Monitor the trajectory of cost of revenue relative to revenue, as any shift in that relationship could alter the gross margin going forward.