Perrigo (NYSE:PRGO) Releases Quarterly Earnings Results, Beats Estimates By $0.19 EPS

Perrigo (NYSE:PRGO) announced its quarterly earnings data on Wednesday. The company reported $0.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.31 by $0.19, FiscalAI reports. Perrigo had a negative net margin of 43.50% and a positive return on equity of 9.96%. The firm had revenue of $1.02 billion during the quarter, compared to analyst estimates of $1.02 billion. During the same quarter in the prior year, the firm posted ($0.06) earnings per share. Perrigo’s quarterly revenue was down 3.1% on a year-over-year basis. Perrigo updated its FY 2026 guidance to 2.250-2.550 EPS.

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

• Market share gains continued despite weak categories: U.S. store-brand OTC volumes grew 1.5% and gained 50 basis points of share, while European key brands grew 3.3% and also gained 50 basis points.
• Perrigo reaffirmed its full-year 2026 outlook, citing improving category trends, innovation and distribution gains, operational savings, and lower interest expense following debt repayment.
• Q2 core net sales fell 3.1% and core adjusted EPS declined to $0.46, while core adjusted gross margin dropped 250 basis points to 37%. Results benefited from approximately $10 million in tariff recoveries and a $6 million CEO-transition benefit, limiting the significance of the earnings beat.
• The company applied most of the $359 million Dermacosmetics sale proceeds to debt reduction, lowering its revolving credit balance, while its operational enhancement program remains on track to generate $80 million–$100 million in savings by 2027.
• Strategic reviews of the infant formula and oral care businesses are progressing, with Perrigo considering optimization, partnerships, or divestitures; management said improved infant-formula performance provides greater optionality but does not alter the review process.

Perrigo Trading Down 6.2%

NYSE PRGO traded down $0.82 during trading on Thursday, hitting $12.45. The stock had a trading volume of 2,156,480 shares, compared to its average volume of 3,209,959. The company has a quick ratio of 1.59, a current ratio of 2.72 and a debt-to-equity ratio of 1.45. The company has a market capitalization of $1.72 billion, a PE ratio of -0.95, a PEG ratio of 1.29 and a beta of 0.51. The firm has a 50 day moving average price of $10.56 and a 200 day moving average price of $11.55. Perrigo has a twelve month low of $9.23 and a twelve month high of $24.60.

Perrigo Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Friday, August 28th will be given a $0.29 dividend. This represents a $1.16 annualized dividend and a yield of 9.3%. The ex-dividend date of this dividend is Friday, August 28th. Perrigo’s payout ratio is currently -8.85%.

Wall Street Analyst Weigh In

A number of research firms recently commented on PRGO. Zacks Research upgraded Perrigo from a “strong sell” rating to a “hold” rating in a report on Monday, April 27th. Weiss Ratings raised Perrigo from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, July 21st. One research analyst has rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Perrigo has an average rating of “Hold” and a consensus target price of $19.33.

Institutional Investors Weigh In On Perrigo

Hedge funds have recently added to or reduced their stakes in the business. Corient Private Wealth LLC acquired a new position in shares of Perrigo in the fourth quarter worth $283,000. T. Rowe Price Investment Management Inc. boosted its holdings in Perrigo by 35.5% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 1,386,111 shares of the company’s stock valued at $19,295,000 after purchasing an additional 363,501 shares during the period. Invesco Ltd. grew its stake in Perrigo by 134.2% during the 4th quarter. Invesco Ltd. now owns 4,542,415 shares of the company’s stock worth $63,230,000 after purchasing an additional 2,602,724 shares in the last quarter. Vident Advisory LLC increased its holdings in Perrigo by 7.0% during the 4th quarter. Vident Advisory LLC now owns 51,098 shares of the company’s stock worth $711,000 after purchasing an additional 3,350 shares during the period. Finally, First Citizens Bank & Trust Co. increased its holdings in Perrigo by 126.3% during the 4th quarter. First Citizens Bank & Trust Co. now owns 39,207 shares of the company’s stock worth $546,000 after purchasing an additional 21,884 shares during the period. 95.91% of the stock is currently owned by institutional investors and hedge funds.

Perrigo News Roundup

Here are the key news stories impacting Perrigo this week:

• Positive Sentiment: Perrigo reported second-quarter adjusted earnings of $0.50 per share, well above the $0.31 analyst consensus. Net income was $74.5 million, reversing a prior-year loss, while reported diluted EPS from continuing operations improved to $0.63 from breakeven. Perrigo Reports Second Quarter 2026 Financial Results From Continuing Operations
• Positive Sentiment: Management updated fiscal 2026 EPS guidance to $2.25-$2.55, above the roughly $2.11 consensus estimate, and reaffirmed expectations for stronger performance in the second half of the year. Perrigo Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: The company cited market-share gains in U.S. store-brand over-the-counter products and key European brands. Infant Formula sales also rose 23.1%, helped by contract-shipment timing and stronger store-brand demand.
• Neutral Sentiment: Perrigo completed its Dermacosmetics divestiture and continues strategic reviews of its Infant Formula and Oral Care businesses, signaling ongoing efforts to streamline the portfolio but also introducing uncertainty around future operations.
• Negative Sentiment: Second-quarter revenue fell about 3.1%-3.2% year over year to $1.02 billion, in line with estimates. Core organic sales declined 3.5%, reflecting category softness and macroeconomic headwinds. Perrigo Q2 Net Sales Fall 3.2 Percent to $1.02 Billion
• Negative Sentiment: Perrigo remains highly leveraged, with approximately $3.3 billion in debt versus $400 million in cash. Its reported net margin was also deeply negative, which may be weighing on investor confidence despite the earnings improvement.

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.