We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why You Should Add Avantor Stock to Your Portfolio for Now
Read MoreHide Full Article
Key Takeaways
Avantor raised 2026 organic growth guidance and lifted adjusted EPS guidance after strong Q2 results.
VWR returned to 1.7% organic growth, helped by stronger execution, new wins and improved e-commerce trends.
BMP fell 5.6% organically, but double-digit order growth and a 1.1x book-to-bill support a recovery.
Avantor, Inc. (AVTR - Free Report) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism led by strong second-quarter 2026 results and cost transformation progress also looks promising. However, weakness in the VWR Distribution & Services segment remains a cause for concern.
In the year-to-date period, this Zacks Rank #2 (Buy) stock has gained 34.8% compared with 3.3% growth of the industry and the 11.2% rise of the S&P 500.
The renowned provider of mission-critical products and services has a market capitalization of $10.25 billion. The company expects 1.6% earnings growth for the next five years and anticipates witnessing continued improvements in its business. Avantor’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, missed once, delivering an average surprise of 4.3%.
Image Source: Zacks Investment Research
Factors Favoring AVTR’s Growth
Product Portfolio: Avantor's broad portfolio of high-value specialty products, including J.T. Baker high-purity chemicals and NuSil customized silicones, remains a key competitive strength across life sciences, healthcare and advanced manufacturing markets. The company continues to differentiate itself through integrated solutions that combine specialty products, services and digital capabilities, while its Avantor Business System supports execution and continuous improvement across operations.
Digital initiatives are gaining traction following upgrades to the VWR e-commerce platform, with second-quarter 2026 improvements in direct traffic, conversion rates and daily sales. The company also reported healthier demand trends across its specialty portfolio, including double-digit BMP order growth and a 1.1x book-to-bill ratio, driven by strength in Process Chemicals and Fluid Handling. Management expects these improving order trends, along with continued investments in sourcing, pricing and digital capabilities, to support BMP's return to growth in the second half of 2026.
Revival Program and Execution Discipline: Avantor continues to use Avantor Revival as its company-wide framework to restore growth and improve execution across commercial performance, operations, portfolio management, simplification and talent. Second-quarter 2026 provided broader evidence that the program is affecting results.
VWR returned to organic growth ahead of expectations, rising 1.7%, with management attributing more than half of the improvement to deliberate commercial actions. BMP remained down 5.6% organically, but delivered double-digit order growth and a 1.1x book-to-bill ratio, supporting management’s expectation that the segment will return to growth in the second half of 2026.
Avantor raised full-year 2026 organic revenue growth guidance to negative 0.5% to positive 0.5% from negative 2.5% to negative 0.5%, and lifted adjusted earnings per share guidance to 80-83 cents from 77-83 cents. Management also expects VWR growth to accelerate through the second half. The raised outlook suggests execution gains are beginning to offset still-mixed end-market conditions.
Strong Q2 Results: Avantor exited the second quarter of 2026 with better-than-expected results, wherein earnings and revenues both surpassed their respective estimates. The company also raised its 2026 organic revenue growth and adjusted earnings guidance, reflecting stronger-than-anticipated performance and improved expectations for the second half of the year.
The quarter’s key positive was the return of VWR Distribution & Services to organic growth ahead of schedule. The segment benefited from stronger commercial execution, new business wins, improved e-commerce trends and better engagement with large global and small and mid-sized customers. Bioscience & Medtech Products also performed near the high end of management’s expectations, supported by strength in process chemicals, double-digit order growth and a book-to-bill ratio of 1.1 times.
Uneven Demand and BMP Weakness: Avantor's recovery remains mixed despite signs of improving demand across parts of the business. While VWR Distribution & Services returned to 1.7% organic growth in the second quarter of 2026, Bioscience & Medtech Products continued to lag with a 5.6% organic revenue decline, reflecting weaker performance in Fluid Handling, NuSil, Electronic Materials and Serum, along with unfavorable customer ordering patterns and shipment comparisons. Although BMP posted double-digit order growth and a healthy 1.1x book-to-bill ratio, supporting management's expectation of a second-half recovery, the company's full-year organic growth outlook of negative 0.5% to positive 0.5% suggests that the rebound is likely to remain gradual and dependent on end-market demand and execution.
Estimate Trend
Avantor has been witnessing a stable estimate revision trend for 2026. Over the past 30 days, the Zacks Consensus Estimate for its earnings per share has remained stable at 81 cents.
The Zacks Consensus Estimate for third-quarter 2026 revenues is pegged at $1.64 billion, which indicates 1.1% growth from the year-ago reported number.
Other Stocks to Consider
Some other top-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , Veracyte (VCYT - Free Report) and West Pharmaceutical (WST - Free Report) .
Globus Medical, currently carrying a Zacks Rank #2, reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Veracyte, currently flaunting a Zacks Rank #1, reported a second-quarter 2026 adjusted EPS of 54 cents, which surpassed the Zacks Consensus Estimate by 25.6%. Revenues of $150.3 million beat the Zacks Consensus Estimate by 4.1%.
VCYT has an estimated earnings growth rate of 8.4% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 41.8%.
West Pharmaceutical, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.
WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.4%.
View the Zacks #1 Rank List
Image: Bigstock
Here's Why You Should Add Avantor Stock to Your Portfolio for Now
Key Takeaways
Avantor, Inc. (AVTR - Free Report) is well-poised for growth in the coming quarters, courtesy of its strong product portfolio. The optimism led by strong second-quarter 2026 results and cost transformation progress also looks promising. However, weakness in the VWR Distribution & Services segment remains a cause for concern.
In the year-to-date period, this Zacks Rank #2 (Buy) stock has gained 34.8% compared with 3.3% growth of the industry and the 11.2% rise of the S&P 500.
The renowned provider of mission-critical products and services has a market capitalization of $10.25 billion. The company expects 1.6% earnings growth for the next five years and anticipates witnessing continued improvements in its business. Avantor’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, missed once, delivering an average surprise of 4.3%.
Image Source: Zacks Investment Research
Factors Favoring AVTR’s Growth
Product Portfolio: Avantor's broad portfolio of high-value specialty products, including J.T. Baker high-purity chemicals and NuSil customized silicones, remains a key competitive strength across life sciences, healthcare and advanced manufacturing markets. The company continues to differentiate itself through integrated solutions that combine specialty products, services and digital capabilities, while its Avantor Business System supports execution and continuous improvement across operations.
Digital initiatives are gaining traction following upgrades to the VWR e-commerce platform, with second-quarter 2026 improvements in direct traffic, conversion rates and daily sales. The company also reported healthier demand trends across its specialty portfolio, including double-digit BMP order growth and a 1.1x book-to-bill ratio, driven by strength in Process Chemicals and Fluid Handling. Management expects these improving order trends, along with continued investments in sourcing, pricing and digital capabilities, to support BMP's return to growth in the second half of 2026.
Revival Program and Execution Discipline: Avantor continues to use Avantor Revival as its company-wide framework to restore growth and improve execution across commercial performance, operations, portfolio management, simplification and talent. Second-quarter 2026 provided broader evidence that the program is affecting results.
VWR returned to organic growth ahead of expectations, rising 1.7%, with management attributing more than half of the improvement to deliberate commercial actions. BMP remained down 5.6% organically, but delivered double-digit order growth and a 1.1x book-to-bill ratio, supporting management’s expectation that the segment will return to growth in the second half of 2026.
Avantor raised full-year 2026 organic revenue growth guidance to negative 0.5% to positive 0.5% from negative 2.5% to negative 0.5%, and lifted adjusted earnings per share guidance to 80-83 cents from 77-83 cents. Management also expects VWR growth to accelerate through the second half. The raised outlook suggests execution gains are beginning to offset still-mixed end-market conditions.
Strong Q2 Results: Avantor exited the second quarter of 2026 with better-than-expected results, wherein earnings and revenues both surpassed their respective estimates. The company also raised its 2026 organic revenue growth and adjusted earnings guidance, reflecting stronger-than-anticipated performance and improved expectations for the second half of the year.
The quarter’s key positive was the return of VWR Distribution & Services to organic growth ahead of schedule. The segment benefited from stronger commercial execution, new business wins, improved e-commerce trends and better engagement with large global and small and mid-sized customers. Bioscience & Medtech Products also performed near the high end of management’s expectations, supported by strength in process chemicals, double-digit order growth and a book-to-bill ratio of 1.1 times.
Avantor, Inc. Price
Avantor, Inc. price | Avantor, Inc. Quote
A Factor That May Offset AVTR’s Growth
Uneven Demand and BMP Weakness: Avantor's recovery remains mixed despite signs of improving demand across parts of the business. While VWR Distribution & Services returned to 1.7% organic growth in the second quarter of 2026, Bioscience & Medtech Products continued to lag with a 5.6% organic revenue decline, reflecting weaker performance in Fluid Handling, NuSil, Electronic Materials and Serum, along with unfavorable customer ordering patterns and shipment comparisons. Although BMP posted double-digit order growth and a healthy 1.1x book-to-bill ratio, supporting management's expectation of a second-half recovery, the company's full-year organic growth outlook of negative 0.5% to positive 0.5% suggests that the rebound is likely to remain gradual and dependent on end-market demand and execution.
Estimate Trend
Avantor has been witnessing a stable estimate revision trend for 2026. Over the past 30 days, the Zacks Consensus Estimate for its earnings per share has remained stable at 81 cents.
The Zacks Consensus Estimate for third-quarter 2026 revenues is pegged at $1.64 billion, which indicates 1.1% growth from the year-ago reported number.
Other Stocks to Consider
Some other top-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , Veracyte (VCYT - Free Report) and West Pharmaceutical (WST - Free Report) .
Globus Medical, currently carrying a Zacks Rank #2, reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Veracyte, currently flaunting a Zacks Rank #1, reported a second-quarter 2026 adjusted EPS of 54 cents, which surpassed the Zacks Consensus Estimate by 25.6%. Revenues of $150.3 million beat the Zacks Consensus Estimate by 4.1%.
VCYT has an estimated earnings growth rate of 8.4% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 41.8%.
West Pharmaceutical, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.
WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 17.4%.