It has been about a month since the last earnings report for Perrigo (PRGO Quick QuotePRGO - Free Report) . Shares have added about 13.8% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Perrigo due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Perrigo Company plc before we dive into how investors and analysts have reacted as of late.

Q2 Earnings & Sales Beat Estimates

Perrigo reported second-quarter 2026 All In adjusted earnings per share (EPS) of 50 cents, which beat the Zacks Consensus Estimate of 31 cents. The reported figure declined 12.3% year over year owing to lower sales volumes and the carryover impact of planned under-absorption stemming from lower prior-year sales volumes.

All In net sales declined 3.2% year over year to $1.02 billion but marginally beat the Zacks Consensus Estimate of $1 billion. The decline was attributed to softer consumer demand, lower retail inventory levels and the impact of divestitures, partially offset by the growth in Infant Formula sales.

In the second quarter of 2026, All In sales declined 2.2% year over year on account of exited businesses and product lines but benefited 0.3% from favorable currency movements. At constant currency (excluding foreign currency translation), sales fell 3.5%. Organic net sales (excluding the effects of acquisitions and divestitures and the impacts of currency) declined 1.3%.

Core adjusted EPS for the second quarter was 46 cents, down 20.7% year over year. Perrigo recorded $907 million in core adjusted sales, down 3.1% year over year.

Segment Discussion

Self Care: The segment’s net sales in the second quarter came in at $577 million, down 3.7% year over year, primarily due to continued softness in category consumption across the United States and Europe.

SpecialtyCare: The segment reported net sales of $227 million, down 2.8% from the year-ago period, mainly due to weaker Skin Health performance, partly offset by growth in the Women's Health category.

Infant Formula: In this segment, net sales rose 23.1% year over year to $101 million, driven by the timing of contract infant formula shipments.

Under the All Other category, net sales decreased 16.9% year over year to $119 million.

Perrigo ended the second quarter with cash and investments of $399.7 million compared with $357.2 million as of March 31, 2026.

Reaffirms 2026 Guidance

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 EPS is expected to be in the range of $2.25-$2.55.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates revision.

The consensus estimate has shifted -6.52% due to these changes.

VGM Scores

At this time, Perrigo has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Perrigo has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.