Perrigo (NYSE:PRGO) Posts Quarterly Earnings Results, Beats Expectations By $0.16 EPS

Key Points

• Perrigo beat quarterly expectations: EPS was $0.50 versus the $0.34 analyst consensus, while revenue reached $1.02 billion, slightly above estimates. Net income improved to $74.5 million from a year-earlier loss.
• Underlying sales remained pressured: Revenue fell about 3.1% year over year, core adjusted gross margin declined 250 basis points, and management cited weak categories and macroeconomic headwinds despite continued market-share gains.
• Full-year 2026 guidance was reaffirmed: Perrigo expects EPS of $2.25-$2.55 and is benefiting from debt reduction, planned cost savings and portfolio reviews. The company also declared a quarterly dividend of $0.29, representing an annualized yield of roughly 8.6%.

Perrigo (NYSE:PRGO - Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $0.50 earnings per share for the quarter, topping analysts' consensus estimates of $0.34 by $0.16, FiscalAI reports. Perrigo had a positive return on equity of 9.96% and a negative net margin of 43.50%.The firm had revenue of $1.02 billion during the quarter, compared to analysts' expectations of $1.01 billion. During the same quarter last year, the firm earned ($0.06) EPS. The business'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 Stock Performance

Shares of PRGO stock traded up $2.77 on Wednesday, hitting $13.54. The company had a trading volume of 5,841,156 shares, compared to its average volume of 3,200,532. Perrigo has a twelve month low of $9.23 and a twelve month high of $24.60. 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 firm has a market cap of $1.87 billion, a P/E ratio of -1.03, a price-to-earnings-growth ratio of 1.28 and a beta of 0.51. The company has a 50-day moving average price of $10.52 and a 200-day moving average price of $11.56.

Perrigo Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Friday, August 28th will be issued a $0.29 dividend. This represents a $1.16 annualized dividend and a dividend yield of 8.6%. The ex-dividend date of this dividend is Friday, August 28th. Perrigo's payout ratio is -8.85%.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on PRGO. Zacks Research raised Perrigo from a "strong sell" rating to a "hold" rating in a report on Monday, April 27th. Weiss Ratings raised shares of Perrigo from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Tuesday, July 21st. One investment 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. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $19.33.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Amundi increased its holdings in shares of Perrigo by 11.7% during the 1st quarter. Amundi now owns 5,292 shares of the company's stock valued at $148,000 after purchasing an additional 556 shares in the last quarter. Goldman Sachs Group Inc. grew its position in Perrigo by 126.6% during the first quarter. Goldman Sachs Group Inc. now owns 1,159,768 shares of the company's stock valued at $32,520,000 after buying an additional 647,982 shares during the period. United Services Automobile Association purchased a new position in Perrigo in the first quarter valued at $250,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Perrigo by 6.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 513,112 shares of the company's stock valued at $14,388,000 after buying an additional 32,151 shares in the last quarter. Finally, Geneos Wealth Management Inc. raised its position in shares of Perrigo by 439.1% in the first quarter. Geneos Wealth Management Inc. now owns 965 shares of the company's stock worth $27,000 after acquiring an additional 786 shares during the period. 95.91% of the stock is owned by institutional investors and hedge funds.

Perrigo News Roundup

Here are the key news stories impacting Perrigo this week:

• Positive Sentiment: Q2 earnings beat estimates: Perrigo reported adjusted earnings of $0.50 per share, above the $0.31-$0.34 analyst consensus and up from a loss of $0.06 per share in the year-ago quarter. Revenue of approximately $1.02 billion also topped the $1.01 billion estimate. Perrigo Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Profitability improved substantially: Net income was $74.5 million versus a net loss of $8.4 million a year earlier. Reported diluted earnings from continuing operations were $0.63 per share, compared with break-even results in the prior-year period. Perrigo Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Full-year guidance was maintained and earnings expectations increased: Perrigo provided FY 2026 EPS guidance of $2.25-$2.55, above the roughly $2.11 consensus estimate. Management expects sequentially stronger performance in the second half and cited market-share gains in U.S. store-brand over-the-counter products and key European brands. Perrigo Q2 Key Metrics
• Neutral Sentiment: Perrigo completed its Dermacosmetics divestiture and continues strategic reviews of its Infant Formula and Oral Care businesses, actions that could streamline the portfolio but also introduce execution uncertainty.
• Negative Sentiment: Sales remained under pressure: Q2 net sales declined 3.2% year over year to $1.02 billion, while core organic sales fell 3.5%. Management cited category softness and macroeconomic headwinds, although Infant Formula sales rose 23.1% primarily because of shipment timing. Perrigo Q2 Net Sales Report

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.

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