Perrigo's higher profit forecast covers a smaller business
The forecast for the continuing comparison business weakened. A higher All In earnings range covers a different set of businesses from August.
Ticker Byline
Perrigo Company plc
Perrigo sells branded and store-brand consumer-health products. It has agreed to sell its infant-formula business, with closing expected in the first half of 2027.
- Ticker
- PRGO
- Exchange
- XNYS
- SEC CIK
- 0001585364
Recent operating results
| Measure | 2026 | 2025 |
|---|---|---|
| Revenue | 988.6 | 1,043.3 |
| GAAP operating income | 23.1 | 72.6 |
| GAAP continuing income (loss) | (14.3) | 12.7 |
| Core adjusted EPS | $0.61 | $0.67 |
Core adjusted earnings exclude infant formula and previously announced divestitures, as well as specified costs. November's lower Core forecast uses the same portfolio basis as August's.
Which earnings forecast is comparable?
The annual Core adjusted earnings forecast is $2.15 to $2.35 a share, below August's $2.25 to $2.55. The Core gross-margin outlook fell to 37.5% to 38.5% from 39% to 40%.
The new All In forecast excludes infant formula because the company will report it as discontinued operations for the fourth quarter and full year. Its higher earnings range is therefore not a direct improvement against August's range, which included that business.
Completed and pending divestitures
The Dermacosmetics business sale was completed in April. Brands sold included ACO, Biodermal and Iwostin. The separate infant-formula transaction remains pending. Perrigo's strategic review of Oral Care is also ongoing. Proceeds from the completed Dermacosmetics sale funded a $335 million repayment on the revolving credit facility in May.
The October 29 sale agreement provides for $40 million of upfront cash and as much as $135 million in conditional payments through 2030. Closing is expected in the first half of 2027. The company also expects a fourth-quarter noncash impairment charge of $275 million to $375 million.
At September 26, cash and cash equivalents were $436.6 million. Current debt was $11.3 million and long-term debt was $3.283 billion. Year-to-date operating cash flow was $65.2 million, capital spending was $45.6 million and dividends were $120.3 million.
Perrigo expects about $21 million of formula-business capital spending through March 2027, including approximately $18 million for its manufacturing-network program. The plan assumes the sale closes that month; the buyer would fund capital spending after closing.
Quarterly operating cash inflow was approximately $96 million, including about $28 million of tariff refunds received.
Read our analysis of Perrigo's profit forecast and formula exit.
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