Perrigo (PRGO Quick QuotePRGO - Free Report) reported first-quarter 2026 All In adjusted earnings per share (EPS) of 43 cents, which beat the Zacks Consensus Estimate of 39 cents. The reported figure declined 28.3% year over year due to the impact of lower sales volumes and the carryover impact of prior-year manufacturing volumes in U.S. OTC and Infant Formula.

All In net sales declined 7.2% year over year to $969.2 million and missed the Zacks Consensus Estimate of $1.01 billion. The decline was attributed to weaker consumer demand in the United States and Europe due to lower cough and cold incidents and retailer inventory destocking, partially offset by growth in Infant Formula and Women’s Health products.

In the first quarter of 2026, All In sales rose 0.1% year over year on account of exited businesses and product lines and benefited 2.9% from favorable currency movements. At constant currency (excluding foreign currency translation), sales fell 10%. Organic net sales (excluding the effects of acquisitions and divestitures and the impacts of currency) declined 9.9%.

To remind investors, Perrigo had announced a restructuring of its reporting framework in the fourth quarter of 2025. Beginning in 2026, the company reported results using two perspectives — “All In” and “Core”. “All In” reflects historical operations and “Core” represents the go-forward business excluding Infant Formula and announced divestitures, primarily the Dermacosmetics unit.

Core adjusted EPS for the first quarter was 40 cents, down 20% year over year. Perrigo recorded $842 million in core adjusted sales, down 8.3% year over year.

Year to date, shares of Perrigo have declined 11.9% compared with the industry’s 22.4% decline.

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More on PRGO’s Q1 Earnings

Under the new structure, beginning in the first quarter of 2026, Perrigo reported results under three separate segments: Self Care, Specialty Care and Infant Formula.

The Self Care segment encompasses Upper Respiratory, Digestive Health, Pain and Sleep Aids, and Healthy Lifestyles categories, covering both branded and store-brand products. Meanwhile, the Specialty Care segment includes Women’s Health and Skin Health businesses. The Infant Formula segment continues to represent the company’s established infant nutrition business.

An additional “All Other” category includes oral care, the Dermacosmetics business, currently being divested, and smaller non-core brands.

Self Care: The segment’s net sales in the first quarter came in at $543.3 million, down 11.5% year over year, primarily due to lower consumption in the United States and Europe.

SpecialtyCare: The segment reported net sales of $207 million, up 4% from the year-ago period, driven mainly by growth in the Women's Health category.

Infant Formula: In this segment, net sales rose 2.1% year over year to $89.7 million, driven by growth in contract infant formula.

Under the All other category, net sales decreased 9.5% year over year to $129.2 million.

Perrigo ended the first quarter with cash and investments of $357.2 million compared with $531.6 million as of Dec. 31, 2025.

PRGO’s 2026 Guidance

Building on current business conditions and expected savings from the company's organizational efficiency program, Perrigo reaffirmed its financial guidance for full-year 2026.

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

For its Core business, sales are forecast to range from a 3% decline to 1% growth. Core adjusted earnings per share are expected to be in the range of $2.25-$2.55.

PRGO Completes Divestiture of Dermacosmetics Business

In April, Perrigo completed the sale of its branded Dermacosmetics business to Karo Healthcare for up to €332.6 million, including €305.6 million in upfront cash and potential milestone-based payments of €27 million over three years.

Per management, the divestiture aligns with its “Three-S” strategy to Stabilize, Streamline and Strengthen the company and focus on core categories, while the proceeds will mainly be used to reduce debt and strengthen the balance sheet. The Dermacosmetics business generated about €120 million in 2025 sales and accounted for roughly 5% of Perrigo’s adjusted operating income.

PRGO’s Zacks Rank & Stocks to Consider

Perrigo currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Amarin Corporation (AMRN Quick QuoteAMRN - Free Report) and Indivior Pharmaceuticals (INDV Quick QuoteINDV - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy), and Catalyst Pharmaceuticals (CPRX Quick QuoteCPRX - Free Report) , which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Amarin’s 2026 loss per share have narrowed from $7.01 to $6.36. Over the same period, loss per share estimates for 2027 have also narrowed from $5.50 to $4.64. AMRN shares have risen 6.8% year to date.

Amarin’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 50.02%.

Over the past 60 days, estimates for Indivior Pharmaceuticals’ 2026 earnings per share have increased from $3.03 to $3.35. Over the same period, EPS estimates for 2027 have risen to $3.69 from $3.46. INDV shares have risen 13.1% year to date.

Indivior Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 65.44%.

Over the past 60 days, estimates for Catalyst Pharmaceuticals’ 2026 earnings per share have declined from $2.82 to $2.79. Over the same period, EPS estimates for 2027 have surged from $3.20 to $3.28. CPRX shares have gained 30.8% year to date.

Catalyst Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 35.19%.