PERRIGO Co plc (PRGO) · Nov 4, 2026 · Earnings
Beat — Adj. EPS $0.60 vs ~$0.51 consensus; revenue $988.6M vs ~$984.8M
Perrigo’s Q3 earnings narrowly beat estimates, but weaker self-care demand drove a cut to Core 2026 sales, margin and EPS guidance.
Perrigo is in the middle of a Three-S turnaround: simplifying the portfolio around consumer self-care, cutting exposure to Infant Formula, and trying to rebuild margins while consumer demand remains soft. The quarter delivered a small earnings beat, but the more important change was a weaker underlying outlook for the continuing Core business. The published Q3 consensus was roughly $0.51 of adjusted EPS and $984.8 million of revenue, making the $0.60 EPS and $988.6 million revenue outcome a narrow beat.
The quarter beat on earnings, but the operating trend deteriorated. Core organic sales fell 1.1%, adjusted gross margin dropped 140 basis points to 37.9%, adjusted operating margin fell 210 basis points to 14.3%, and Core adjusted EPS declined 9% to $0.61. The weakness was concentrated in lower consumer consumption, cautious retailer inventory positioning before cough-and-cold season, lower contract manufacturing volumes, unfavorable mix and higher promotional spending.
Management cut the Core outlook rather than treating the softness as temporary. Core organic sales guidance moved to a decline of 3.6% to 2.5%, from a prior range of down 3.0% to up 1.0%; adjusted gross margin fell to 37.5%-38.5% from 39.0%-40.0%; adjusted operating margin fell to 14.0%-15.0% from 15.0%-16.0%; and adjusted EPS fell to $2.15-$2.35 from $2.25-$2.55. This is a genuine reset to the continuing business, not merely the mechanical effect of removing Infant Formula. 〔0〕
The portfolio cleanup is strategically useful, but it comes with a near-term accounting cost. Perrigo is selling Infant Formula for up to $175 million, consisting of $40 million upfront and up to $135 million tied to future milestones; the business will move into discontinued operations beginning in the fourth quarter. The sale was already announced on October 29, so the transaction itself is partly known, but this filing quantifies the expected fourth-quarter impairment at $275 million-$375 million and confirms that the business is currently loss-making at the segment operating level.
| Metric | Q3 2026 | Q3 2025 | Consensus / Prior guide |
|---|---|---|---|
| Revenue (Income Statement) | $988.6M | $1,043.3M | ~$984.8M consensus |
| Core organic sales (Financial Highlights) | $913M (-1.1%) | $924M | — |
| Core adjusted EPS (Financial Highlights) | $0.61 (-9.0%) | $0.67 | ~$0.51 consensus |
| Core adjusted operating margin (Financial Highlights) | 14.0%-15.0% | — | 15.0%-16.0% prior guide |
| Core adjusted EPS guidance (Fiscal 2026 Outlook) | $2.15-$2.35 | — | $2.25-$2.55 prior guide |
| Expected Infant Formula impairment (Divestiture disclosure) | $275M-$375M | — | — |
Bottom line: Perrigo beat the low quarterly bar, but the business is not tracking cleanly: management lowered the continuing Core outlook across sales, margins and EPS. The Infant Formula exit improves strategic focus over time, yet the immediate signal is mixed and leans negative because the core operating reset outweighs the modest earnings beat.
Infant Formula closing expected in the first half of 2027
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