Perrigo (NYSE:PRGO) Releases Quarterly Earnings Results, Beats Estimates By $0.09 EPS

Perrigo (NYSE:PRGO) posted its quarterly earnings results on Wednesday. The company reported $0.60 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.51 by $0.09, FiscalAI reports. Perrigo had a negative net margin of 41.85% and a positive return on equity of 11.25%. The business had revenue of $988.60 million during the quarter, compared to analysts’ expectations of $984.80 million. During the same quarter last year, the company posted $0.80 earnings per share. The business’s quarterly revenue was down 5.2% on a year-over-year basis.

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

• Sequential operating trends improved: Core sales declined 1.7% year over year, a narrower drop than in the first half, while core adjusted operating margin rose to 14.3% from 13.4% in Q2. Perrigo also gained 30 basis points of U.S. store-brand OTC share and 80 basis points across key European brands.
• Retailer inventory caution and European softness weighed on results and outlook. Management said retailers built less cough-and-cold inventory than expected and European demand remained weak; it lowered its 2026 sales outlook, while noting seasonal replenishment could fall in Q4 or Q1.
• Core adjusted operating margin fell 210 basis points year over year to 14.3%, and core adjusted EPS declined $0.06 to $0.61. Lower sales and unfavorable mix hurt results; a 3.5% adjusted tax rate, including a year-to-date catch-up, added about $0.10 to quarterly core EPS.
• The infant formula divestiture is expected to simplify the business, improve its margin profile, and reduce future capital needs. Perrigo expects to use proceeds in line with its capital priorities, including debt reduction, while continuing its review of oral care; its cost program delivered $42 million of savings year to date.

Perrigo Price Performance

Shares of Perrigo stock traded up $0.78 on Wednesday, hitting $16.48. 3,079,502 shares of the company were exchanged, compared to its average volume of 3,032,065. Perrigo has a 1-year low of $9.23 and a 1-year high of $17.48. The stock has a market capitalization of $2.29 billion, a price-to-earnings ratio of -1.31, a price-to-earnings-growth ratio of 1.81 and a beta of 0.71. The company has a quick ratio of 1.32, a current ratio of 2.32 and a debt-to-equity ratio of 1.31. The company has a 50-day moving average price of $14.89 and a 200 day moving average price of $12.49.

Perrigo Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Friday, November 27th will be issued a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a dividend yield of 7.0%. The ex-dividend date is Friday, November 27th. Perrigo’s payout ratio is currently -9.27%.

Analyst Ratings Changes

Several research firms have weighed in on PRGO. Wall Street Zen downgraded Perrigo from a “buy” rating to a “hold” rating in a research note on Saturday. Weiss Ratings raised shares of Perrigo from a “sell (d-)” rating to a “sell (d)” rating in a report on Thursday, August 6th. Canaccord Genuity Group raised their price target on shares of Perrigo from $17.00 to $19.00 and gave the company a “buy” rating in a research report on Friday, October 30th. Finally, Zacks Research cut Perrigo from a “hold” rating to a “strong sell” rating in a research report on Thursday, October 29th. One research analyst has rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Reduce” and a consensus price target of $18.50.

More Perrigo News

Here are the key news stories impacting Perrigo this week:

• Positive Sentiment: Adjusted EPS was $0.60, above the $0.51 FactSet estimate, and revenue of $988.6 million modestly exceeded the $984.8 million estimate. The company also cited sequential operating improvement and market-share gains in U.S. store-brand OTC products and key European brands. Perrigo third-quarter results
• Neutral Sentiment: Perrigo said its planned Infant Formula divestiture should simplify its portfolio and focus investment on higher-return consumer self-care categories. A strategic review of its Oral Care business is ongoing. Perrigo third-quarter results
• Negative Sentiment: The company slipped to a reported loss. Revenue fell 5.2% year over year, and adjusted EPS was below the $0.80 earned in the year-ago quarter. Perrigo updated its 2026 outlook to account for the divestiture, more measured retailer inventory positioning, and continued weakness in Europe. Perrigo slips to loss in Q3

Perrigo Company Profile

Perrigo Company plc is a global consumer self-care company that develops, manufactures and markets over-the-counter health products, wellness products and personal care items. Its portfolio includes products for allergy, pain relief, digestive health, skin care, smoking cessation, women’s health and other everyday health needs, along with vitamins, nutritional supplements and infant nutrition products.

Perrigo supplies products under its own brands, acquired brands and retailer-owned private-label labels.