PRGO Q4 Earnings Miss, Sales Beat, Stock Down on Weak 2026 View

Perrigo PRGO reported adjusted earnings per share (EPS) of 77 cents for the fourth quarter of 2025, which missed the Zacks Consensus Estimate of 80 cents. The reported figure decreased 17.2% year over year, primarily due to headwinds in its Infant Formula business.

Net sales declined 2.5% year over year to $1.11 billion but marginally beat the Zacks Consensus Estimate of $1.10 billion. The decline was attributed to the soft sales performance of its Infant Formula and the loss of sales stemming from exited businesses and product lines, partially offset by favorable currency movements.

In the fourth quarter, sales dropped 0.4% year over year on account of exited businesses and product lines but benefited 2.3% from favorable currency movements. At constant currency (excluding foreign currency translation), sales fell 4.9%. Organic net sales (excluding the effects of acquisitions and divestitures, and the impacts of currency) declined 4.5%.

More on PRGO’s Earnings

Perrigo reports its results under two segments: Consumer Self Care Americas (“CSCA”) and Consumer Self Care International (“CSCI”).

CSCA: The segment’s net sales in the fourth quarter came in at $697 million, down 6.3% year over year. Sales grew across the Upper Respiratory, Healthy Lifestyle, Oral Care and Women’s Health categories, offsetting lower sales in the Infant Formula, Digestive Health and Skin Care businesses. Organic net sales declined 6.3%. Segment sales beat the Zacks Consensus Estimate of $696 million but missed our model estimate of $711.7 million.

CSCI:The segment reported net sales of $412.6 million, up 4.7% from the year-ago period. At constant-currency rates, sales fell 2.1% year over year. Organically, sales declined 1%. CSCI sales beat the Zacks Consensus Estimate and our model estimate of $406 million and $398 million, respectively.

Perrigo ended the fourth quarter with cash and investments of $531.6 million compared with $432.1 million as of Sept. 30, 2025.

PRGO’s Full-Year 2025 Results

For 2025, Perrigo reported net sales of $4.25 billion, down 2.75% year over year.

For full-year 2025, the company recorded adjusted net EPS of $2.75 compared with $2.57 in the year-ago period.

PRGO’s 2026 Guidance

Building on current business conditions and expected savings from the company's organizational efficiency program, Perrigo issued its financial guidance for full-year 2026 using two perspectives — “All In” and “CORE Perrigo”. All In reflects historical operations and CORE represents the go-forward business excluding Infant Formula and announced divestitures, primarily the Dermacosmetics unit.

The company expects All In net sales to decline 1.5%–5.5% year over year in 2026. Adjusted EPS is projected in the range of $2.00-$2.30.

For its CORE business, sales are forecast to be down 3% to up 1%. Adjusted earnings per share are expected in the range of $2.25-$2.55.

However, the sales and earnings forecasts fell short of consensus estimates. The lower-than-expected guidance likely dampened investor sentiment, which led the stock to fall 1.5% on Thursday.

Over the past year, shares of Perrigo have lost 52.7% compared with the industry’s 14.3% decline.

PRGO’s New Reporting Segments Take Effect from Q1 2026

The company has restructured its reporting framework, beginning in the first quarter of 2026. Under the new structure, it will operate through three core segments — Self Care, Specialty Care and Infant Formula. The Self Care segment will encompass Upper Respiratory, Digestive Health, Pain & Sleep Aids and Healthy Lifestyles categories, covering both branded and store-brand products, whereas the Specialty Care segment will include Women’s Health and Skin Health businesses. The Infant Formula segment will continue to represent the company’s established infant nutrition business. An additional “Other” category will include oral care, the Dermacosmetics business, currently being divested, and smaller non-core brands.

Perrigo’s Recent Key Developments

In July 2025, the company signed a deal with KKR-backed Kairos Bidco AB to sell its Dermacosmetics-branded business for up to €327 million. Perrigo expects to close this transaction in the second quarter of 2026.

Perrigo Company plc Price, Consensus and EPS Surprise

Perrigo Company plc price-consensus-eps-surprise-chart | Perrigo Company plc Quote

PRGO’s Zacks Rank & Other Stocks to Consider

Perrigo currently has a Zacks Rank #2 (Buy).

Some top-ranked stocks in the biotech sector are Castle Biosciences CSTL, which currently sports a Zacks Rank #1 (Strong Buy), and ANI Pharmaceuticals ANIP and Assertio Holdings ASRT, each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Castle Biosciences’ 2026 loss per share have narrowed from $1.06 to 96 cents. CSTL shares have risen 30.6% over the past year.

Castle Biosciences’ earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 66.11%.

Over the past 60 days, estimates for ANI Pharmaceuticals’ earnings per share have increased from $8.08 to $8.22 for 2026. Over the past year, shares of ANIP have surged 41.7%.

ANI Pharmaceuticals' earnings beat estimates in each of the trailing four quarters, with the average surprise being 21.24%.

Over the past 60 days, estimates for Assertio’s 2026 loss per share have narrowed from 30 cents to 28 cents. ASRT shares have gained 0.2% over the past year.

Assertio’s earnings beat estimates in one of the trailing four quarters and missed in the remaining three quarters, with the average negative surprise being 35.21%.

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This article originally published on Zacks Investment Research (zacks.com).

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