Perrigo (NYSE:PRGO) Posts Earnings Results, Misses Estimates By $0.03 EPS

Perrigo (NYSE:PRGO) announced its quarterly earnings results on Thursday. The company reported $0.77 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.80 by ($0.03), Briefing.com reports. The company had revenue of $1.11 billion during the quarter, compared to analysts’ expectations of $1.09 billion. Perrigo had a negative net margin of 1.21% and a positive return on equity of 9.16%. The business’s revenue for the quarter was down 2.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.93 EPS. Perrigo updated its FY 2026 guidance to 2.250-2.550 EPS.

Here are the key takeaways from Perrigo’s conference call:

• Management guided CORE Perrigo organic net sales of -3.5% to +0.5% for 2026 and CORE EPS of $2.25–$2.55, warning of an approximately $0.60 EPS headwind from temporary plant under‑absorption in 2026.
• Perrigo said its Three‑S strategy delivered clear marketplace momentum—accelerating share gains, over $100M in new retailer distribution, and roughly $320M of benefits from Project Energize and Supply Chain Reinvention that improved operating income and EPS.
• The infant formula business remains under strategic review after steep net‑sales declines (~25% Q, ~10% FY), elevated inventories and working‑capital strain, and the company recorded a $1.3B goodwill impairment while warning of up to $350M additional non‑cash impairment possible in Q1 2026.
• Perrigo is launching a global operational enhancement program (including ~7% workforce reduction) expected to generate material productivity savings and margin improvement, with one‑time implementation costs of about $80–$90M.
• Balance‑sheet and capital priorities remain: $532M cash at year‑end, net leverage about 4.0x, dividend maintained, and management expects proceeds from the planned dermacosmetics sale to help reduce debt while targeting sub‑3x leverage over the next 2–3 years.

Perrigo Trading Down 1.6%

Shares of NYSE PRGO traded down $0.23 during midday trading on Thursday, reaching $14.18. 8,204,242 shares of the stock were exchanged, compared to its average volume of 2,158,228. The stock has a 50 day moving average price of $14.41 and a 200-day moving average price of $17.55. The company has a current ratio of 2.51, a quick ratio of 1.44 and a debt-to-equity ratio of 0.81. The company has a market capitalization of $1.95 billion, a P/E ratio of -37.32, a P/E/G ratio of 1.29 and a beta of 0.39. Perrigo has a 52-week low of $12.17 and a 52-week high of $30.93.

Perrigo Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 24th. Stockholders of record on Monday, March 2nd will be issued a dividend of $0.29 per share. The ex-dividend date is Monday, March 2nd. This represents a $1.16 dividend on an annualized basis and a dividend yield of 8.2%. Perrigo’s payout ratio is -305.26%.

Wall Street Analysts Forecast Growth

PRGO has been the topic of several research analyst reports. Canaccord Genuity Group decreased their price target on Perrigo from $40.00 to $20.00 and set a “buy” rating on the stock in a research note on Thursday, November 6th. Jefferies Financial Group reiterated a “hold” rating on shares of Perrigo in a research report on Thursday. Argus upgraded Perrigo to a “hold” rating in a research report on Wednesday, January 14th. Weiss Ratings reiterated a “sell (d+)” rating on shares of Perrigo in a research report on Monday, December 22nd. Finally, Wall Street Zen downgraded shares of Perrigo from a “buy” rating to a “hold” rating in a report on Saturday, November 8th. One equities research analyst has rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Perrigo has an average rating of “Hold” and an average target price of $20.33.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Price T Rowe Associates Inc. MD lifted its stake in shares of Perrigo by 3.9% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 17,574,227 shares of the company’s stock worth $244,634,000 after purchasing an additional 653,925 shares during the period. Fuller & Thaler Asset Management Inc. increased its stake in Perrigo by 291.9% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 7,824,759 shares of the company’s stock valued at $108,921,000 after purchasing an additional 5,828,076 shares during the last quarter. State Street Corp lifted its position in Perrigo by 9.5% during the second quarter. State Street Corp now owns 7,340,323 shares of the company’s stock worth $196,134,000 after buying an additional 637,678 shares during the period. Invesco Ltd. boosted its stake in Perrigo by 134.2% in the 4th quarter. Invesco Ltd. now owns 4,542,415 shares of the company’s stock worth $63,230,000 after buying an additional 2,602,724 shares during the last quarter. Finally, Ion Asset Management Ltd. grew its holdings in Perrigo by 34.7% in the 2nd quarter. Ion Asset Management Ltd. now owns 3,817,621 shares of the company’s stock valued at $102,007,000 after buying an additional 983,727 shares during the period. 95.91% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Perrigo

Here are the key news stories impacting Perrigo this week:

• Positive Sentiment: Revenue slightly beat analyst expectations for Q4 at $1.11B (consensus ~$1.09B), showing resilience in top-line despite soft category demand. Press Release / Slide Deck
• Positive Sentiment: Management launched an operational enhancement program expected to deliver $80–$100M of pre-tax annualized savings, which could support margin recovery over time. PR Newswire Release
• Neutral Sentiment: Company introduced a new reporting structure and a “CORE” outlook (excludes infant formula and certain divestitures), improving operating clarity but reducing near-term comparability to prior periods. Earnings Presentation
• Negative Sentiment: Q4 EPS missed consensus: $0.77 reported vs. $0.80 expected and down from $0.93 a year ago—an earnings shortfall that pressured sentiment. Zacks: Q4 Earnings Lag
• Negative Sentiment: FY2026 “all-in” guidance came in below Street expectations: EPS guide of $2.25–2.55 (consensus ~2.70) and revenue guide toward the low end of $4.0–4.2B. Lower-than-expected guidance is the main near-term driver of the stock pullback. PR Newswire Release
• Negative Sentiment: Organic net sales declined ~4.5% year-over-year (overall net sales -2.5%), highlighting persistent demand weakness in some categories. PR Newswire Release

About Perrigo

Perrigo Company plc is a global healthcare supplier specializing in over-the-counter (OTC) and self-care products, as well as generic prescription pharmaceuticals and active pharmaceutical ingredients. The company develops, manufactures and distributes a broad array of consumer health products, including analgesics, vitamins and supplements, digestive health remedies, topical treatments, and infant formulas. Perrigo’s focus on private-label solutions has made it a leading partner for retailers and pharmacy chains seeking high-quality, value-oriented alternatives to branded medications and health supplements.

Organized across three principal business segments—Consumer Healthcare, Prescription Pharmaceuticals and Active Pharmaceutical Ingredients—Perrigo’s operations span research and development, manufacturing, quality assurance and global distribution.