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Earnings analysis · 10-Q

PRGO earnings analysis

Filed May 6, 2026 · Our reading of the company's report

The latest report

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…

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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.

Read the original on SEC.gov

Gross and operating margin

How much of each revenue dollar the business keeps.

37% Gross margin Operating margin Nov 2022 May 2026

One point per quarterly or annual filing. Both margins are shares of that report's revenue.

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $66 Operating expenses $72 Left as operating profit $-38

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish Nov 2022 May 2026

Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.

Reported figures

Earnings per share
$0.43
Segment
Self Care
Segment
Specialty Care
Segment
Infant Formula
Segment
All Other

What stood out

  • 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.

What to watch

  • 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.

Management's outlook

Management anticipates improved performance in the second half of 2026 but did not provide specific numerical guidance.

Earlier filings 4

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 itself. Analysis can contain errors; check the source document for full context.