PRGO Q4 Results Fall Short, Revenue Surpasses Estimates, Shares Drop Due to Soft 2026 Outlook

Perrigo Q4 2025 Earnings Overview

Perrigo (PRGO) posted adjusted earnings per share of $0.77 for the fourth quarter of 2025, falling short of the Zacks Consensus Estimate of $0.80. This result marks a 17.2% decrease compared to the same period last year, largely due to ongoing challenges in the Infant Formula division.

The company’s net sales reached $1.11 billion, a 2.5% year-over-year decline, though this figure slightly surpassed the consensus estimate of $1.10 billion. The decrease was mainly driven by weaker performance in Infant Formula and the impact of discontinued operations and product lines, partially offset by favorable currency exchange rates.

During the quarter, sales dropped 0.4% year over year, with exited businesses and product lines weighing on results. However, currency tailwinds contributed a 2.3% benefit. On a constant currency basis, sales were down 4.9%. Excluding acquisitions, divestitures, and currency effects, organic net sales fell 4.5%.

Segment Performance

Perrigo divides its operations into two main segments: Consumer Self Care Americas (CSCA) and Consumer Self Care International (CSCI).

• CSCA: Fourth-quarter net sales for this segment totaled $697 million, representing a 6.3% year-over-year decrease. Growth in Upper Respiratory, Healthy Lifestyle, Oral Care, and Women’s Health was offset by declines in Infant Formula, Digestive Health, and Skin Care. Organic net sales also dropped 6.3%. Segment sales exceeded the Zacks Consensus Estimate of $696 million but were below internal projections of $711.7 million.
• CSCI: This segment reported net sales of $412.6 million, up 4.7% from the prior year. When adjusted for currency, sales declined 2.1%, and organic sales slipped 1%. CSCI outperformed both the Zacks Consensus Estimate ($406 million) and internal estimates ($398 million).

At the end of the quarter, Perrigo held $531.6 million in cash and investments, up from $432.1 million as of September 30, 2025.

Full-Year 2025 Results

For the full year, Perrigo reported net sales of $4.25 billion, a 2.75% decrease compared to the previous year. Adjusted net earnings per share for 2025 were $2.75, up from $2.57 in 2024.

2026 Outlook

Looking ahead, Perrigo provided its 2026 financial guidance using two approaches: “All In,” which includes all historical operations, and “CORE Perrigo,” which excludes the Infant Formula business and announced divestitures such as the Dermacosmetics unit.

• “All In” net sales are expected to decline between 1.5% and 5.5% in 2026, with adjusted EPS projected between $2.00 and $2.30.
• For the “CORE” business, sales are anticipated to range from a 3% decrease to a 1% increase, with adjusted EPS between $2.25 and $2.55.

Both sales and earnings forecasts came in below market expectations, which contributed to a 1.5% drop in Perrigo’s share price on Thursday. Over the past year, Perrigo’s stock has fallen 52.7%, compared to a 14.3% decline for the broader industry.

Image Source: Zacks Investment Research

New Segment Structure Starting Q1 2026

Beginning with the first quarter of 2026, Perrigo will reorganize its reporting into three main segments: Self Care, Specialty Care, and Infant Formula. The Self Care segment will cover Upper Respiratory, Digestive Health, Pain & Sleep Aids, and Healthy Lifestyles, including both branded and store-brand products. Specialty Care will focus on Women’s Health and Skin Health, while the Infant Formula segment will continue to represent the company’s infant nutrition business. An “Other” category will include Oral Care, the Dermacosmetics business (currently being divested), and other smaller non-core brands.

Recent Strategic Moves

In July 2025, Perrigo agreed to sell its Dermacosmetics-branded business to KKR-backed Kairos Bidco AB for up to €327 million. The transaction is expected to close in the second quarter of 2026.

Stock Performance and Analyst Ratings

Perrigo currently holds a Zacks Rank #2 (Buy).

Other notable biotech stocks include:

• Castle Biosciences (CSTL): Zacks Rank #1 (Strong Buy). Over the past 60 days, 2026 loss per share estimates improved from $1.06 to $0.96. CSTL shares have climbed 30.6% over the past year. The company beat earnings estimates in three of the last four quarters, with an average surprise of 66.11%.
• ANI Pharmaceuticals (ANIP): Zacks Rank #2. Earnings per share estimates for 2026 have increased from $8.08 to $8.22 in the past 60 days. ANIP shares have jumped 41.7% in the last year, beating estimates in all four recent quarters with an average surprise of 21.24%.
• Assertio Holdings (ASRT): Zacks Rank #2. 2026 loss per share estimates narrowed from $0.30 to $0.28 over the past 60 days. ASRT shares are up 0.2% year over year. The company exceeded earnings expectations in one of the last four quarters, with an average negative surprise of 35.21%.

For a full list of Zacks #1 Rank stocks, click here.

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Additional Resources

• Perrigo Company plc (PRGO): Free Stock Analysis Report
• ANI Pharmaceuticals, Inc. (ANIP): Free Stock Analysis Report
• Assertio Holdings, Inc. (ASRT): Free Stock Analysis Report
• Castle Biosciences, Inc. (CSTL): Free Stock Analysis Report

For more details, visit Zacks Investment Research.