WuXi AppTec’s 1H26 results validate commercialization-led growth; Bernstein sharply raises forecasts
WuXi AppTec’s 1H26 results validated the core thesis that growth is being driven by commercial manufacturing and that earnings quality continues to improve.
WuXi AppTec’s 1H26 results validated the core thesis that growth is being driven by commercial manufacturing and that earnings quality continues to improve.
WuXi Chemistry revenue rose 53% year over year, while small-molecule development and manufacturing revenue increased 73% and TIDES revenue rose 44%. Group gross margin jumped to 53.2% in 1H26 from 43.8% in 1H25.
Backlog increased 25% to about RMB 66 billion even as revenue grew 48%, providing visibility into FY27, according to the note.
Bernstein raised its FY26-28 revenue forecasts by 13%-18% and its EPS forecasts by 24%-30%. Bernstein maintained an Outperform rating.
The note said the results support WuXi AppTec, China’s CDMO/CXO sector, and the TIDES and peptide-related supply chain. It said the latest results and margin improvement have not been fully priced in, citing Bernstein’s active upward revisions to earnings forecasts and its view that the current share price does not yet reflect the improvements.
Key catalysts identified in the note are whether WuXi Chemistry revenue can reach the expected RMB 28.1 billion in 2H26, representing 39% year-over-year growth; whether TIDES can sustain 54% year-over-year growth; whether gross margin can remain elevated in 2H26; the progress of the new Changzhou facility’s ramp-up; and progress on global capacity expansion.
WuXi Chemistry revenue rose 53% year over year, while small-molecule development and manufacturing revenue increased 73% and TIDES revenue rose 44%. Group gross margin jumped to 53.2% in 1H26 from 43.8% in 1H25.
Backlog increased 25% to about RMB 66 billion even as revenue grew 48%, providing visibility into FY27, according to the note.
Bernstein raised its FY26-28 revenue forecasts by 13%-18% and its EPS forecasts by 24%-30%. Bernstein maintained an Outperform rating.
The note said the results support WuXi AppTec, China’s CDMO/CXO sector, and the TIDES and peptide-related supply chain. It said the latest results and margin improvement have not been fully priced in, citing Bernstein’s active upward revisions to earnings forecasts and its view that the current share price does not yet reflect the improvements.
Key catalysts identified in the note are whether WuXi Chemistry revenue can reach the expected RMB 28.1 billion in 2H26, representing 39% year-over-year growth; whether TIDES can sustain 54% year-over-year growth; whether gross margin can remain elevated in 2H26; the progress of the new Changzhou facility’s ramp-up; and progress on global capacity expansion.