WuXi AppTec announced robust financial results for the first half of 2026, surpassing analyst expectations. The company's revenue surged by 38.9% year-over-year, reaching RMB 58.0 billion, equivalent to approximately $8.07 billion. This strong performance was driven by the success of multiple customer products and its CRDMO model. The adjusted non-IFRS net profit saw an 83% increase, with adjusted non-IFRS diluted EPS up 78.2% year-over-year. Contract backlog for Continuing Operations also grew significantly by 25.2% year-over-year to RMB 66.43 billion as of June 30, 2026.
Following these impressive H1 results, WuXi AppTec raised its full-year 2026 guidance. The total revenue target was increased to RMB 58.5-60.5 billion (from the previous RMB 51.3-53.0 billion), with Continuing Operations revenue now projected to grow 35-39% year-over-year. Capex guidance was also raised to RMB 7.5-8.5 billion to support accelerated global capacity expansion, including the early initiation of a new site in Changzhou. Consequently, the adjusted free cash flow guidance was adjusted upwards to RMB 13.5-14.5 billion.
Despite the strong financial performance, Jefferies' head of healthcare research for Asia, Cui Cui, highlighted potential long-term challenges. She noted that while near-term earnings visibility for 2026 and 2027 remains strong due to existing orders, the longer-term outlook is less clear. This uncertainty stems from the US reshoring drive, where large US pharmaceutical companies are expected to bring manufacturing in-house around 2028 or 2029. Additionally, increased US scrutiny of Chinese biotech firms, despite the final Biosecure Act not naming WuXi AppTec, contributes to a less certain revenue environment beyond the immediate future. Multinational pharmaceutical companies are also increasingly looking at contract development and manufacturing organizations in other markets like India and Singapore.
