PRGO earnings analysis
What we found in PRGO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Perrigo Company plc reported Q1 2026 results featuring a revenue of $969 million, missing expectations of $1.02 billion, while EPS was $0.43, beating estimates of $0.33. The overall performance challenges stem from lower consumption rates in key markets and a substantial goodwill impairment charge impacting operating income, which turned negative at $(372.3 million). Management anticipates recovery in the latter half of 2026 amidst ongoing restructuring efforts following recent divestitures.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Beat EPS Estimates
- Perrigo reported an EPS of $0.43, exceeding the estimate of $0.33 by 30.3%.
- Revenue Decline
- Net sales fell to $969 million, down $74.7 million or 7.2% year-over-year, missing the consensus estimate of $1.02 billion.
- Operating Loss Significantly Increased
- Operating income plunged to $(372.3) million, a drop of $419.2 million from $46.9 million in Q1 2025, largely due to a goodwill impairment charge.
- Specialty Care Segment Grows
- The Specialty Care segment saw a revenue increase of $7.9 million, or 4.0%, driven by foreign currency translation and strong performance of specific brands.
- Significant Cash Outflow from Operations
- Operating cash flow was negative at $(113.6) million, worsening from $(64.5) million in the same quarter last year.
- Goodwill Impairment Charge
- The company recognized a substantial goodwill impairment charge totaling $330.8 million, heavily impacting operating margins.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Goodwill Impairment Risk
- Perrigo recorded a goodwill impairment charge of $330.8 million, raising concerns over future asset valuations.
- Supply Chain and Inflationary Pressures
- Ongoing inflation and supply chain disruptions could adversely impact margins and sales, complicating recovery efforts.
- Legal and Regulatory Risks
- Potential litigation or regulatory issues, particularly in the infant formula segment, may lead to significant financial liabilities.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.43
- Gross margin
- 33.6%
- Operating margin
- -38.4%
- Segment
- Self Care
- Segment
- Specialty Care
- Segment
- Infant Formula
- Segment
- All Other
What they said about what is next.
Management anticipates improved performance in the second half of 2026 but did not provide specific numerical guidance.
The filing reads worse than the one before it.
What came before.
- 10-K · February 26, 2026
- Perrigo positions itself as a pure‑play self‑care company focused on store brands and a set of higher‑margin branded franchises, executing a ‘Three‑S’ plan to Stabilize, Streamline and Strengthen the business. The 10‑K…
- 10-Q · November 5, 2025
- Perrigo reported net sales of $1,043.3 million for the three months ended September 27, 2025, down from $1,087.5 million a year ago, with gross profit of $377.1 million (gross margin ~36.1%) and operating income of…
- 10-Q · August 6, 2025
- Perrigo reported quarterly net sales of $1,056.3 million (three months ended June 28, 2025) versus $1,065.5 million a year ago, and GAAP diluted EPS (loss) of $(0.06) versus $(0.79) in the prior-year quarter. Operating…
- 10-Q · May 7, 2024
- Perrigo reported Q1 net sales of $1,082.1 million (down $99.6M or ~8.4% YoY from $1,181.7M) and a GAAP diluted EPS of $0.01 (net income $2.0M) versus a net loss of $(3.0)M year-ago. Gross profit fell to $357.7M (gross…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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