WST · 10-Q · 2026Q3 · Full report

Income Tax Rate Changes

WEST PHARMACEUTICAL SERVICES INC · 2026-10-29 · Importance 39 · Surprise 50

The effective tax rate for the three months ended September 30, 2026 was 21.7%, compared with 19.8% in the prior-year quarter, on income tax expense of $58.0 million versus $34.0 million. The quarterly rate increase primarily reflected a one-time $22.4 million tax cost associated with the SmartDose® 3.5mL sale, partly offset by favorable geographic earnings mix. For the first nine months, the effective rate was 21.5%, compared with 20.1%, and tax expense was $134.9 million versus $88.3 million. The nine-month rate increase also reflected a one-time $12.0 million cost from an internal legal-entity restructuring, in addition to the $22.4 million SmartDose® sale tax cost.

Key facts

• WEST PHARMACEUTICAL SERVICES INC’s effective tax rate was 21.5% for the nine months ended September 30, 2026, versus 20.1% in 2025; the increase primarily reflected one-time tax costs of $12.0 million for internal restructuring and $22.4 million for the SmartDose® sale. source
• WEST PHARMACEUTICAL SERVICES INC recorded a one-time tax cost of $12.0 million for an internal legal entity restructuring in the first quarter of 2026. source
• WEST PHARMACEUTICAL SERVICES INC recorded a one-time tax cost of $22.4 million associated with the gain on the sale of SmartDose® 3.5mL On-Body Delivery System. source
• WEST PHARMACEUTICAL SERVICES INC’s effective tax rate was 21.7% for the three months ended September 30, 2026, versus 19.8% in 2025; the increase primarily reflected a $22.4 million one-time tax cost on the SmartDose® 3.5mL sale, partly offset by favorable geographic earnings mix. source