Perrigo (NYSE:PRGO) Releases Quarterly Earnings Results, Beats Estimates By $0.16 EPS

Perrigo (NYSE:PRGO) released its earnings results on Wednesday. The company reported $0.50 EPS for the quarter, topping analysts’ consensus estimates of $0.34 by $0.16, FiscalAI reports. Perrigo had a negative net margin of 43.50% and a positive return on equity of 9.96%. The company had revenue of $1.02 billion during the quarter, compared to analysts’ expectations of $1.01 billion. During the same period last year, the business earned ($0.06) EPS. Perrigo’s revenue for the quarter 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 Up 24.1%

NYSE PRGO traded up $2.59 on Wednesday, hitting $13.37. 8,186,493 shares of the stock were exchanged, compared to its average volume of 2,841,376. 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 50-day moving average price of $10.56 and a 200-day moving average price of $11.55. The company has a market cap of $1.85 billion, a PE ratio of -1.02, a PEG ratio of 1.29 and a beta of 0.51. Perrigo has a fifty-two week low of $9.23 and a fifty-two week high of $24.60.

Perrigo Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Friday, August 28th will be issued a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a yield of 8.7%. The ex-dividend date is Friday, August 28th. Perrigo’s payout ratio is -8.85%.

Hedge Funds Weigh In On Perrigo

Several hedge funds have recently added to or reduced their stakes in the stock. Amundi grew its holdings in shares of Perrigo by 11.7% during the first quarter. Amundi now owns 5,292 shares of the company’s stock worth $148,000 after purchasing an additional 556 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in shares of Perrigo by 126.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,159,768 shares of the company’s stock worth $32,520,000 after buying an additional 647,982 shares in the last quarter. United Services Automobile Association acquired a new stake in Perrigo in the first quarter valued at $250,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of 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 purchasing an additional 32,151 shares during the period. Finally, Geneos Wealth Management Inc. lifted its position in shares of Perrigo by 439.1% during the 1st quarter. Geneos Wealth Management Inc. now owns 965 shares of the company’s stock valued at $27,000 after acquiring an additional 786 shares during the period. 95.91% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Perrigo

Here are the key news stories impacting Perrigo this week:

• Positive Sentiment: Quarterly earnings surpassed expectations. Perrigo reported adjusted EPS of approximately $0.50, above the $0.31-$0.34 analyst estimates and ahead of the $0.57 earned a year earlier on a comparable basis. Revenue of about $1.02 billion also exceeded the roughly $1.01 billion consensus estimate. Perrigo Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Full-year EPS guidance is above consensus. Perrigo provided FY 2026 EPS guidance of $2.25-$2.55, compared with the analyst consensus of $2.11, while reaffirming expectations for stronger performance in the second half of the year. Revenue guidance of $4.0-$4.2 billion broadly surrounds the $4.1 billion consensus estimate. Perrigo Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management highlighted operational progress. Perrigo cited market-share gains in U.S. store-brand over-the-counter products and key European brands, completed its Dermacosmetics divestiture, and continued efforts to streamline the portfolio and reduce debt. Infant Formula sales rose 23.1%, helped by contract-shipment timing and higher store-brand sales. Perrigo Second Quarter Results
• Negative Sentiment: Sales declined year over year. Second-quarter net sales fell about 3.1%-3.2% to $1.02 billion, while core organic sales declined 3.5%. Perrigo also pointed to category softness and macroeconomic headwinds, indicating that the earnings improvement has not yet translated into broad-based revenue growth. Perrigo Q2 Net Sales Fall
• Neutral Sentiment: Portfolio reviews remain a catalyst and uncertainty. Strategic reviews of the Infant Formula and Oral Care businesses could lead to additional streamlining, but the eventual impact on revenue and earnings is not yet clear.

Analysts Set New Price Targets

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

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.