West Pharmaceutical Services, Inc. stock research
FY2025 Q4
West Pharmaceutical Services (WST) Gross Margin — Quarter Ended Dec 31, 2025
Revenue was relatively stable compared to the prior quarter and higher than the same quarter last year. Gross profit improved and cost of revenue decreased sequentially, leading to a higher gross margin; versus the year-ago quarter, both revenue and costs were higher, but gross profit growth outpaced cost growth, resulting in an improved gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue was relatively stable compared to the prior quarter and higher than the same quarter last year. Gross profit improved and cost of revenue decreased sequentially, leading to a higher gross margin; versus the year-ago quarter, both revenue and costs were higher, but gross profit growth outpaced cost growth, resulting in an improved gross margin.
- The ratio of gross profit to revenue improved both sequentially and year-over-year, reflecting a more favorable balance between revenue and cost of revenue.
- Compared to the immediately preceding quarter, revenue was essentially stable while gross profit increased and cost of revenue decreased, yielding a higher gross margin. Compared to the same quarter one year earlier, revenue and cost of revenue were both higher, but the increase in gross profit was proportionally larger, resulting in an improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
37.8%
Gross profit
$303.9M
Revenue
$805.0M
Cost of revenue
$501.1M
Quarter-over-quarter change
+1.2 pts
Year-over-year change
+1.2 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $805.0M | $303.9M | $501.1M | 37.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+1.2 pts
Year-over-year change
Dec 31, 2024
+1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The ratio of gross profit to revenue improved both sequentially and year-over-year, reflecting a more favorable balance between revenue and cost of revenue.
Compared to the immediately preceding quarter, revenue was essentially stable while gross profit increased and cost of revenue decreased, yielding a higher gross margin. Compared to the same quarter one year earlier, revenue and cost of revenue were both higher, but the increase in gross profit was proportionally larger, resulting in an improved gross margin.
Monitor the trend in cost of revenue relative to revenue, as the sequential decline in cost contributed significantly to margin improvement.