On October 26, WuXi AppTec (02359, 603259.SH) released its third-quarter report. According to the report, the company's key operating metrics for the first three quarters have already surpassed full-year 2025 levels, with third-quarter revenue reaching a new single-quarter high.
Revenue growth was primarily driven by order volume expansion. In the third quarter, the company's newly signed orders totaled at least RMB 26 billion, which is 1.6 times third-quarter revenue, indicating that new order growth is outpacing revenue recognition. As of the end of the third quarter, the company's backlog exceeded RMB 70 billion, equivalent to more than four quarters of revenue, providing strong visibility for performance growth over the next one to two years.
Meanwhile, the order mix continued to improve. In the third quarter, small molecule D&M commercial projects exceeded 100 for the first time, with commercial and Phase III clinical projects continuing to increase, reflecting that client projects are accelerating toward later-stage development and commercialization. In the first three quarters of 2026, the company converted 314 molecules from R to D, and the small molecule D&M pipeline added a cumulative 1,089 molecules, bringing the total to a new high of 3,863. As molecules advance to later stages, this is expected to further boost per-project service revenue and overall profitability.
Supported by improvements in both orders and project mix, the company continues to increase investment. The 2026 capital expenditure guidance has been adjusted to RMB 8 billion to 8.5 billion, with global capacity construction advancing as needed. Based on the greater success of multiple client products, the company raised its full-year revenue guidance for the fourth time in 16 months to RMB 61 billion to 61.9 billion, while simultaneously raising its continuing operations revenue growth rate, capital expenditure, and adjusted free cash flow guidance. Free cash flow for the first three quarters has already exceeded full-year 2025 levels, providing support for future expansion and shareholder returns.
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