Perrigo expects $2.25-$2.45 all-in adjusted EPS as infant formula is moved to discontinued operations (NYSE:PRGO)

Perrigo (PRGO) reported Q3 earnings with net sales declines in self-care and specialty care segments. Adjusted EPS fell to 61 cents, with a lower tax rate providing some benefit. The company expects 2026 sales declines and adjusted EPS of $2.15-$2.35. Perrigo is divesting infant formula and other businesses to simplify operations and reduce debt. Cash and debt at quarter-end were $437M and $3.3B, respectively.

Perrigo Company plc set its 2026 adjusted diluted EPS outlook at $2.25 to $2.45, excluding its infant formula unit, which it classified as discontinued operations. Core EPS is expected at $2.15 to $2.35, with core sales declining 2.5% to 3.6% and an adjusted operating margin of 14% to 15%. The company plans to sell the unit to MeridianMade for up to $175 million, with $40 million upfront.

Perrigo (PRGO) reported Q3 2026 core net sales declined 1.7% YoY, with organic sales down 1.1%. Adjusted gross margin fell 140 bps to 37.9%. The company updated its 2026 outlook downward, citing retailer inventory positioning and European softness. Interim CEO Albert Manzone highlighted share gains, innovation, and e-commerce growth as priorities. The infant formula divestiture is complete, and oral care is under strategic review.

Perrigo (PRGO) reported Q3 2026 earnings, highlighting operational improvements and a strategic focus on simplifying the business. The company saw sequential improvements in core net sales and operating margins, with a 1.7% decline in sales and a 14.3% operating margin. Perrigo announced the sale of its infant formula business and updated its 2026 outlook, reflecting divestments and market conditions.

Perrigo reported Q3 2026 improvements in core adjusted operating margins (12.8% to 14.3%) due to its Three-S plan. The company is simplifying its portfolio, including divesting the infant formula business, to focus on higher-margin categories. Market share gains in U.S. and European OTC brands were noted, along with e-commerce expansion. Management updated 2026 and 2027 outlooks, emphasizing debt reduction and operational improvements. Q3 results included a $4.5M one-time tariff benefit.

Perrigo reported 2026 nine-month net sales of $988.6M, down 5.2% YoY, and a net loss of $27.5M, compared to a net income of $7.5M in the prior year. Diluted loss per share was $0.2, versus earnings of $0.05. The decline was attributed to soft consumer demand, lower retailer inventories, and the sale of the Dermacosmetics business. Perrigo plans to sell its Infant Formula business for up to $175M and expects $80M-$100M in annual savings from a two-year efficiency program.