Perrigo (NYSE:PRGO) Announces Earnings Results, Misses Expectations By $0.03 EPS

Perrigo (NYSE:PRGO) issued its quarterly earnings results on Thursday. The company reported $0.77 EPS for the quarter, missing the consensus estimate of $0.80 by ($0.03), Briefing.com reports. The company had revenue of $1.11 billion for the quarter, compared to analyst estimates of $1.09 billion. Perrigo had a positive return on equity of 9.16% and a negative net margin of 1.21%.The business’s revenue for the quarter was down 2.5% on a year-over-year basis. During the same period last year, the company posted $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 Stock Down 1.6%

Shares of NYSE:PRGO traded down $0.23 during mid-day trading on Thursday, hitting $14.18. 8,204,242 shares of the company traded hands, compared to its average volume of 2,158,228. The firm’s 50 day simple moving average is $14.41 and its 200 day simple moving average is $17.55. The firm has a market cap of $1.95 billion, a P/E ratio of -37.32, a PEG ratio of 1.29 and a beta of 0.39. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.44 and a current ratio of 2.51. Perrigo has a 52-week low of $12.17 and a 52-week high of $30.93.

Perrigo Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, March 24th. Investors of record on Monday, March 2nd will be issued a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a dividend yield of 8.2%. The ex-dividend date is Monday, March 2nd. Perrigo’s dividend payout ratio (DPR) is presently -305.26%.

Institutional Trading of Perrigo

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

Analyst Upgrades and Downgrades

A number of analysts have recently commented on PRGO shares. Weiss Ratings restated a “sell (d+)” rating on shares of Perrigo in a report on Monday, December 22nd. Zacks Research raised Perrigo from a “strong sell” rating to a “hold” rating in a research report on Friday, February 13th. Jefferies Financial Group restated a “hold” rating on shares of Perrigo in a research note on Thursday. Wall Street Zen lowered Perrigo from a “buy” rating to a “hold” rating in a research note on Saturday, November 8th. Finally, Canaccord Genuity Group decreased their target price on Perrigo from $40.00 to $20.00 and set a “buy” rating for the company in a report on Thursday, November 6th. One equities research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Perrigo currently has a consensus rating of “Hold” and an average price target of $20.33.

Trending Headlines about 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

Perrigo Company Profile

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.