Major goodwill hit drives Perrigo (NYSE: PRGO) Q1 2026 loss as it keeps 2026 EPS outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Perrigo Company plc reported a large first‑quarter 2026 loss driven by a non‑cash goodwill impairment but kept its full‑year outlook. All In net sales from continuing operations fell to $969.2 million, down 7.2% year over year, with Core net sales down 8.3% as weaker cough, cold and other categories offset share gains.
Reported gross margin declined to 33.6% and reported operating margin dropped to (38.4)% after a $330.8 million goodwill impairment and higher restructuring charges. Reported diluted EPS from continuing operations was $(2.81), while All In adjusted diluted EPS was $0.43, down from $0.60. Specialty Care grew net sales 4.0% with stronger Women’s Health brands such as Opill and ellaOne, while Self Care net sales fell 11.5%.
After quarter end, Perrigo completed the sale of its Dermacosmetics business, receiving about €305.6 million in upfront cash expected to support debt reduction. Management reaffirmed 2026 guidance, including All In adjusted EPS of $2.00–$2.30 and Core adjusted EPS of $2.25–$2.55, and continues to highlight second‑half improvement despite current category and macro headwinds.
Positive
- Completed divestiture of the Dermacosmetics business with upfront cash proceeds of approximately €305.6 million, which the company plans to use to reduce debt, supporting its leverage target of around 4.0x adjusted EBITDA.
- Maintained full‑year 2026 outlook, including All In adjusted EPS of $2.00–$2.30 and Core adjusted EPS of $2.25–$2.55, and highlighted expected second‑half improvement as manufacturing and category headwinds ease.
Negative
- Recorded a substantial $330.8 million goodwill impairment, driving reported operating margin down to (38.4)% and a reported diluted EPS loss from continuing operations of $(2.81).
- All In net sales declined 7.2% to $969.2 million, Core net sales fell 8.3%, and All In adjusted diluted EPS dropped from $0.60 to $0.43, reflecting weaker demand and margin compression.
- Cash from operating activities swung to an outflow of $113.6 million, while cash and cash equivalents decreased to $357.2 million against total debt of about $3.6 billion, limiting near‑term financial flexibility.
Insights
Large impairment drives Q1 loss, but leverage and outlook hinge on execution.
Perrigo posted All In net sales of $969.2 million, down 7.2%, and an operating loss of $372.3 million after a $330.8 million goodwill impairment. Core net sales declined 8.3%, reflecting softer category consumption and retailer destocking despite share gains.
Profitability compressed, with reported gross margin at 33.6% and All In adjusted operating margin at 11.6%. All In adjusted EPS fell to $0.43 from $0.60, while Core adjusted EPS declined to $0.40. Cash from operating activities moved to an outflow of $113.6 million, and cash balances dropped to $357.2 million against total debt of about $3.6 billion.
Management reaffirmed a full‑year adjusted EPS range of $2.00–$2.30 All In and $2.25–$2.55 Core, and expects second‑half benefits from growth initiatives and lapping manufacturing headwinds, which they estimate will reduce 2026 EPS by about $0.60. Upfront Dermacosmetics proceeds of roughly €305.6 million designated for debt reduction and a target net leverage of around 4.0x adjusted EBITDA underscore a focus on balance sheet and portfolio simplification.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
All In net sales: $969.2 million
Goodwill impairment charge: $330.8 million
Reported diluted EPS (continuing ops): $(2.81) per share
+5 more
8 metrics
All In net sales
$969.2 million
Three months ended March 28, 2026; down 7.2% year over year
Goodwill impairment charge
$330.8 million
Recorded in Q1 2026 operating expenses, driving operating loss
Reported diluted EPS (continuing ops)
$(2.81) per share
Three months ended March 28, 2026; vs $0.00 prior year
All In adjusted diluted EPS
$0.43 per share
Q1 2026; decreased from $0.60 in Q1 2025
Dermacosmetics upfront proceeds
€305.6 million
Cash consideration after quarter end, earmarked for debt reduction
Cash from operating activities
$(113.6) million
Outflow in Q1 2026; compared with $(64.5) million in Q1 2025
Total debt
$3.6 billion
Total debt balance as of March 28, 2026
2026 All In adjusted EPS guidance
$2.00–$2.30
Fiscal year 2026 outlook reaffirmed
Key Terms
Core Perrigo, organic net sales, adjusted gross margin, goodwill impairment charge, +2 more
6 terms
Core Perrigo financial
"the Company now reports results on both an All In and Core Perrigo basis"
organic net sales financial
"Change in net sales on an organic basis excludes the effects of acquisitions, divestitures and exited products"
Organic net sales represent the revenue generated from a company's core business activities, excluding the effects of acquisitions, divestments, or currency changes. It shows how well the company is growing through its existing products and services, similar to tracking how a plant grows from its own roots rather than by adding new plants. Investors use this measure to assess the true growth and health of a company's ongoing operations.
adjusted gross margin financial
"Core adjusted gross margin decreased 160 basis points to 39.2%"
Adjusted gross margin is a measure of how much profit a company makes from its sales after accounting for certain expenses or one-time costs, but before deducting other operating expenses. It helps investors see the company's core profitability more clearly by removing factors that might distort the usual profit picture, similar to a runner measuring their speed without considering obstacles or weather. This metric provides a clearer view of the company's ongoing financial health.
goodwill impairment charge financial
"due to the $330.8 million goodwill impairment charge"
Goodwill impairment charge is an accounting write-down taken when the extra value a company recorded from buying another business — things like reputation, customer relationships or brand name — is later judged to be worth less than originally paid. For investors it matters because the charge reduces reported profits and shareholder equity, often signaling that an acquisition didn’t deliver expected benefits and prompting closer scrutiny of future cash flow and management decisions.
Operational Enhancement Program financial
"benefits from the Operational Enhancement Program, and favorable currency translation"
non-GAAP financial measures financial
"The Company provides non-GAAP financial measures as additional information that it believes is useful to investors"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Earnings Snapshot
All In net sales: $969.2 million · Guidance included
Q1 2026
All In net sales
$969.2 million
-7.2% year over year
Core net sales
$841.8 million
-8.3% year over year
All In adjusted diluted EPS
$0.43
-28.3% year over year
Core adjusted diluted EPS
$0.40
-20.0% year over year
Reported diluted EPS (continuing ops)
$(2.81)
vs $0.00 prior year
Guidance
Perrigo reaffirmed 2026 guidance, targeting All In adjusted EPS of $2.00–$2.30 and Core adjusted EPS of $2.25–$2.55, with second‑half improvement expected as prior‑year headwinds ease.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
_______________________________________________
FORM 8-K
______________________________________________
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
______________________________________________
(Exact name of registrant as specified in its charter)
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Commission file number 001-36353
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| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
+353 1 7094000
(Address, including zip code, and telephone number, including
area code, of registrant’s principal executive offices)
Not Applicable
(Former name or former address, if changed since last report)
________________________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
(17 CFR 230.425)
(17 CFR 240.14a-12)
(17 CFR 240.14d-2(b))
(17 CFR 240.13e-4(c))
Securities Registered pursuant to section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02. Results of Operations and Financial Condition
On May 6, 2026, Perrigo Company plc (the “Company”) released earnings for the first quarter ended March 28, 2026. The press release related to the Company’s earnings is attached as Exhibit 99.1.
The Company provides non-GAAP financial measures as additional information that it believes is useful to investors and analysts in evaluating the performance of the Company's ongoing operating trends, facilitating comparability between periods and, where applicable, with companies in similar industries and assessing the Company's prospects for future performance. These non-GAAP financial measures exclude items, such as amortization expense, unusual litigation, impairment charges, restructuring charges, and acquisition and integration-related charges, that by their nature affect comparability of operational performance or that we believe obscure underlying business operational trends. The intangible asset amortization excluded from these non-GAAP financial measures represents the entire amount recorded within the Company’s GAAP financial statements and is excluded because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised. The revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. The non-GAAP measures the Company provides are consistent with how management analyzes and assesses the operating performance of the Company, and disclosing them provides investor insight into management’s view of the business. Management uses these adjusted financial measures for planning and forecasting in future periods, and evaluating segment and overall operating performance. In addition, management uses certain of the profit measures as factors in determining compensation.
Non-GAAP measures related to profit measurements, which may include adjusted gross profit, adjusted net income, adjusted operating income, adjusted diluted earnings per share, adjusted gross margin, constant currency net sales, and adjusted operating margin are useful to investors as they provide them with supplemental information to enhance their understanding of the Company’s underlying business performance and trends, and enhance the ability of investors and analysts to compare the Company’s period-to-period financial results. Management believes that adjusted gross margin and adjusted operating margin are useful to investors, in addition to the reasons discussed above, by allowing them to more easily compare and analyze trends in the Company’s peer business group and assisting them in comparing the Company’s overall performance to that of its competitors. The Company also discloses net sales growth excluding the impact of currency on an organic basis. In addition, the Company presents non‑GAAP measures for 'Core' Perrigo, reflecting its go‑forward business and excluding infant formula currently under strategic review and previously announced divestitures. Core measures may include Core net income, Core net sales, Core organic net sales, Core gross profit, Core operating income, Core diluted earnings per share, Core gross margin, and Core operating margin, including on an organic, constant‑currency basis. Management believes these measures provide greater consistency in financial reporting and facilitate meaningful comparisons of underlying operating results and acquisition and divestiture activity.
The Company cannot reconcile its ‘All In’ or ‘Core’ expected organic net sales growth, adjusted gross margin, adjusted operating margin, adjusted earnings per share, adjusted diluted earnings per share, or adjusted effective tax rate to the most directly comparable GAAP measures under "Fiscal Year 2026 Outlook from Continuing Operations" without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time. These items include, but are not limited to, uncertainty of non-recurring infant formula related charges and timing and amount of restructuring charges and the income tax effects of these items or other income tax-related events.
The Company believes these supplemental financial measures provide investors with consistency in financial reporting, enabling meaningful comparisons of past and present underlying operating results, and also facilitate analysis of the Company’s operating performance and acquisition and divestiture trends.
Investors should consider the non-GAAP measures provided in the attached earnings release in conjunction with, and not in lieu of, the Company's reported financial statements in accordance with GAAP.
In deriving some or all of the non-GAAP measures provided, reported results for the periods below were adjusted for the following items:
Three Months Ended March 28, 2026 and March 29, 2025 Results
•Amortization expense related primarily to acquired intangible assets
•Unusual litigation
•Restructuring charges and other termination benefits
•Impairment charges
•Loss on debt extinguishment
•Infant formula remediation
•Loss on divestitures and investment securities
•Other non-GAAP adjustments
•Non-GAAP tax adjustments
•Divestitures
•Infant Formula
•Foreign currency translation movement
The information in this Current Report on Form 8-K is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
ITEM 9.01. Financial Statements and Exhibits
(d)Exhibits
| Exhibit Number | Description | |||||||
| 99.1 | Press Release issued by Perrigo Company plc on May 6, 2026 furnished solely pursuant to Item 2.02 of Form 8-K. | |||||||
| 104 | Cover Page Interactive Data file (embedded within the Inline XBRL document). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| (Registrant) | ||||||||||||||
| PERRIGO COMPANY PLC | ||||||||||||||
| By: | /s/ Eduardo Bezerra | |||||||||||||
| Dated: | May 6, 2026 | Eduardo Bezerra | ||||||||||||
| Chief Financial Officer | ||||||||||||||
EXHIBIT 99.1
Perrigo Reports First Quarter 2026 Financial Results From Continuing Operations
•Mitigating category headwinds with market share gains through implementation of Three‑S plan.
•Specialty Care segment achieved net sales and segment operating income growth, led by continued momentum in Compeed®, Opill®, and ellaOne® brands.
•Completed divestiture of Dermacosmetics business after quarter end; upfront proceeds of approximately €306 million will support debt reduction.
•Maintained full‑year 2026 outlook with continued expectation for second half improvement.
DUBLIN, May 6, 2026 /PRNewswire/ -- Perrigo Company plc (NYSE: PRGO) ("Perrigo" or the "Company"), a leading provider of Consumer Self-Care Products, today announced financial results from continuing operations for the first quarter ended March 28, 2026.
"Our first quarter results reflect tangible progress as we continue to transform Perrigo into a more focused, disciplined, and consistent business," said President and CEO Patrick Lockwood-Taylor. "Despite a challenging operating environment, we are advancing a clear plan to address the factors within our control. Our Three‑S plan and shift to a category‑led operating model are strengthening execution and accountability, and the momentum we are seeing in areas such as U.S. Store Brand and Women’s Health are encouraging. We also continue to simplify and streamline the organization through disciplined portfolio actions, including the sale of our Dermacosmetics business, with proceeds expected to be used to support debt reduction.
“We are maintaining our full‑year guidance, supported by clear, quantifiable factors expected to drive improvement in the second half of the year. We recognize that the environment is dynamic, and we are monitoring potential impacts related to geopolitical developments in the Middle East and retailer inventory destocking. Against this backdrop, we are well-positioned to deliver on our 2026 outlook while building a foundation for long-term growth.”
1
First Quarter Results
As announced last quarter, the Company now reports results on both an All In and Core Perrigo basis. All In results reflect the entirety of our business, while Core represents our go-forward business and excludes Infant Formula and previously announced divestitures.
| All In | Core | ||||||||||||||||||||||||||||||||||
| 1Q'26 | 1Q'25 | Change | 1Q'26 | 1Q'25 | Change | ||||||||||||||||||||||||||||||
| Reported Net Sales | $969 | $1,044 | (7.2)% | $842 | $918 | (8.3)% | |||||||||||||||||||||||||||||
| Reported Gross Margin | 33.6% | 37.6% | (400)bps | ||||||||||||||||||||||||||||||||
| Reported Operating Margin | (38.4)% | 4.5% | n/m | ||||||||||||||||||||||||||||||||
| Reported Diluted Earnings Per Share ("EPS") | $(2.81) | $0.00 | n/m | ||||||||||||||||||||||||||||||||
| All In | Core | ||||||||||||||||||||||||||||||||||
| 1Q'26 | 1Q'25 | Change | 1Q'26 | 1Q'25 | Change | ||||||||||||||||||||||||||||||
Organic Net Sales(1) | $939 | $1,042 | (9.9)% | $817 | $918 | (11.0)% | |||||||||||||||||||||||||||||
| Adj. Gross Margin | 37.6% | 41.0% | (340)bps | 39.2% | 40.8% | (160)bps | |||||||||||||||||||||||||||||
| Adj. Operating Margin | 11.6% | 14.0% | (240)bps | 12.8% | 13.9% | (110)bps | |||||||||||||||||||||||||||||
| Adj. Diluted EPS | $0.43 | $0.60 | (28.3)% | $0.40 | $0.50 | (20.0)% | |||||||||||||||||||||||||||||
(1) See attached Appendix for details. Change in net sales on an organic basis excludes the effects of acquisitions, divestitures and exited products, and the impact of currency.
(2) Share gains according to Circana 13-weeks ending 03/29/26 vs. prior year period in the categories where Perrigo participates in cough cold, allergy, digestive health, pain, nicotine replacement, skin care, and women’s health.
(3) All tables and data may not add due to rounding. Percentages are based on actuals.
Net Sales
•Core net sales were $842 million, declining 8.3% year over year, while Core organic net sales decreased 11.0%. Core organic results primarily reflect lower consumption across both the U.S. and Europe. Reduced consumption was driven in part by lower seasonal incidence of cough and cold versus the prior year, which was an approximately 3.5% net sales headwind, and also led to lower retailer inventory levels, creating an additional net sales headwind of approximately 3.0%. These factors were partially offset by continued market share gains, supported by innovation launches and performance of Women’s Health products. Core organic net sales comprised net pricing of 0.2% and volume/mix of -11.0%.
•All In reported net sales declined 7.2% year over year to $969 million. The decrease was driven by the same factors impacting Core net sales, partially offset by Infant Formula net sales growth.
Gross Margin
•Reported gross margin was 33.6%, a decrease of 400 basis points versus the prior year due to the impact of prior-year manufacturing volume headwinds in Infant Formula and U.S. OTC, and lower net sales volumes, primarily within our Self Care reporting segment, partially offset by the net recognition of a recovery of a portion of previously paid tariffs of approximately $21 million.
•Core adjusted gross margin decreased 160 basis points to 39.2% driven by lower net sales volumes, the carryover impact of prior-year manufacturing volume headwinds in U.S. OTC, and unfavorable mix. These factors were partially offset by the net recognition of a recovery of a portion of previously paid tariffs and favorable currency translation.
•All In adjusted gross margin decreased 340 basis points to 37.6%, driven by the same factors impacting Core adjusted gross margin in addition to prior year manufacturing volume headwinds in Infant Formula.
2
Operating Margin
•Reported operating margin was (38.4)% compared to 4.5% in the prior-year due to the $330.8 million goodwill impairment charge.
•Core adjusted operating margin decreased 110 basis points to 12.8% primarily due to unfavorable gross margin. This decline was partially offset by reduced advertising and promotional expense, primarily from planned lower Opill® investment levels, benefits from the Operational Enhancement Program, and favorable currency translation.
•All In adjusted operating margin decreased 240 basis points to 11.6%, primarily driven by the same factors impacting Core adjusted operating margin in addition to the impact from Infant Formula.
Other Items
•Reported net interest and other expense decreased $2.4 million to $36.2 million due to the hedging of expected proceeds in Euro from the Dermacosmetics business sale.
•Net adjusted interest and other expense increased $5.0 million to $42.9 million due to lower interest income compared to prior year.
•The Company's reported effective tax rate was 4.6%. The Company’s adjusted effective tax rate decreased 790 basis points to 15.5%, primarily due to the release of reserves for uncertain tax positions in 2026.
Diluted EPS
•Reported diluted EPS was $(2.81) due primarily to the $330.8 million goodwill impairment charge.
•Core adjusted EPS declined 10 cents to $0.40, a 20.0% decrease from the prior year.
•All In adjusted diluted EPS declined 17 cents to $0.43, a 28.3% decrease from the prior year.
3
Business Segment Results
| 1Q'26 | 1Q'25 | Change | Organic Change | ||||||||||||||||||||
Segment net sales: | |||||||||||||||||||||||
Self Care | $543 | $614 | (11.5)% | (14.0)% | |||||||||||||||||||
Specialty Care | 207 | 199 | 4.0% | (0.8)% | |||||||||||||||||||
| Infant Formula | 90 | 88 | 2.1% | 1.9% | |||||||||||||||||||
Total segment net sales | 840 | 901 | (6.8)% | (9.5)% | |||||||||||||||||||
All Other | 129 | 143 | (9.5)% | (11.8)% | |||||||||||||||||||
Consolidated net sales | $969 | $1,044 | (7.2)% | (9.9)% | |||||||||||||||||||
| 1Q'26 | 1Q'25 | Change | |||||||||||||||
Segment operating income: | |||||||||||||||||
Self Care | $68 | $113 | (39.3)% | ||||||||||||||
Specialty Care | 55 | 42 | 31.4% | ||||||||||||||
| Infant Formula | (7) | 11 | n/m | ||||||||||||||
Total segment operating income | $116 | $165 | (29.7)% | ||||||||||||||
All Other | 32 | 21 | 52.1% | ||||||||||||||
| Unallocated | (35) | (40) | (11.2)% | ||||||||||||||
| Consolidated adjusted operating income | $113 | $147 | (23.0)% | ||||||||||||||
Self Care
Net sales decreased 11.5% compared to the prior year, inclusive of a 2.8% favorable impact of currency translation. The decline was driven by lower consumption in the U.S. and Europe, partly reflecting reduced seasonal incidence of cough and cold versus the prior year. This lower incidence pressured sales in the Upper Respiratory and Pain & Sleep categories, accounting for a significant portion of the segment's net sales decline. The remaining decline reflected softer consumption in the Digestive Health and Healthy Lifestyles categories. Reduced consumption also led to lower retail inventory levels across the segment. These factors were partially offset by continued market share gains in the U.S. and Europe. Notably, Perrigo U.S. store brand OTC volume share2 increased 100 basis points.
Segment operating income decreased 39.3%, due primarily to the impact of prior-year manufacturing volume headwinds, lower net sales volumes, and unfavorable mix. These factors were partially offset by the net recognition of a recovery of a portion of previously paid tariffs in addition to favorable currency translation.
Specialty Care
Net sales increased 4.0%, inclusive of a 4.8% favorable effect of currency translation, driven by growth in the Women’s Health category, particularly continued momentum from Opill® and ellaOne®. This growth was partially offset by Skin Health results as lower store brand sales of Minoxidil at one customer were partially offset by share gains in Compeed® and Jungle Formula®.
Segment operating income increased 31.4% as lower advertising and promotional spend, including planned lower Opill® investment levels, favorable currency translation, and the net recognition of a recovery of a portion of previously paid tariffs more than offset the impact of prior-year manufacturing volume headwinds and unfavorable mix.
4
Infant Formula
Net sales increased 2.1%, inclusive of a 0.3% favorable effect of currency translation, driven by growth in contract infant formula. This growth was partially offset by lower net sales in store brand and branded infant formula due to tougher prior‑year comparisons, including elevated sales from customer inventory replenishment.
Segment operating income decreased primarily due to unfavorable gross profit flow through from prior-year manufacturing volume headwinds, partly offset by lower operating expenses.
All Other
Net sales decreased 9.5%, inclusive of a 2.4% favorable effect of currency translation, driven in part by reduced distribution of lower-margin products.
Segment operating income increased 52.1% due to the net recognition of a recovery of a portion of previously paid tariffs, favorable mix in the Oral Care category, and lower operating expenses.
Cash Flow and Balance Sheet
•First quarter 2026 cash for operating activities decreased $49 million to an outflow of $114 million due to lower earnings and higher working capital, in line with the Company's expected full‑year cash flow phasing.
•First quarter capital expenditures were $14 million and the Company returned $40 million to shareholders through dividends.
•Cash and cash equivalents as of March 31, 2026, were $357 million while total debt was $3.6 billion.
•After quarter end, the Company completed the sale of its Dermacosmetics business for total consideration of up to €332.6 million. The transaction consists of €305.6 million in upfront cash, including €5.6 million in net working capital adjustments, and up to an additional €27.0 million contingent on the achievement of net sales milestones over the next three years.
Fiscal 2026 Outlook
The Company reaffirms its 2026 outlook. Second-half results are expected to benefit from previously stated growth initiatives, the Operational Enhancement Program, and lapping of prior-year category consumption and manufacturing volume headwinds. As indicated last quarter, prior-year manufacturing volume headwinds are expected to result in an unfavorable All In EPS impact of approximately $0.60 in 2026. The Company experienced roughly $0.26 of that impact in the first quarter. The Company continues to closely monitor potential impacts from geopolitical developments in the Middle East. The Company is also monitoring retailer inventory levels and expects stabilization as consumption trends improve.
| All In | Ex Infant Formula | Ex Divestitures | Core | Foreign Currency | Organic Core | ||||||||||||||||||||||||||||||
| Net Sales Growth | (5.5)% to (1.5)% | — | ~270 bps | (3.0)% to +1.0% | (0.5)% | (3.5)% to +0.5% | |||||||||||||||||||||||||||||
| Adj. Gross Margin | 36.5% to 37.5% | ~240 bps | ~(10) bps | 39.0% to 40.0% | |||||||||||||||||||||||||||||||
| Adj. Operating Margin | 12.5% to 13.5% | ~260 bps | ~(10) bps | 15.0% to 16.0% | |||||||||||||||||||||||||||||||
| Adj. EPS | $2.00 to $2.30 | ~$0.30 | ~$(0.05) | $2.25 to $2.55 | |||||||||||||||||||||||||||||||
Other assumptions
•Net interest expense of approximately $156 million.
•Adjusted effective tax rate of approximately 20.0%.
•Adjusted weighted average shares outstanding of approximately 140.5 million.
5
•Net leverage of, or slightly lower than, approximately 4.0 times adjusted EBITDA.
•Cash from operating activities as a percentage of adjusted net income in the mid-60% range.
Webcast and Conference Call Information
Perrigo previously announced that management will host a call/webcast to discuss its first quarter 2026 financial results beginning at 08:30 A.M. (EST) Wednesday, May 6, 2026. The call will be available live via webcast to interested parties in the investor relations section of the Perrigo website at http://perrigo.investorroom.com/events-webcasts or by phone at 800-836-8184, International 646-357-8785, and reference ID # 82404. A taped replay of the call will be available beginning at approximately 12:00 P.M. (EST) Wednesday, May 6, until midnight Wednesday, May 13, 2026. To listen to the replay, dial 888-660-6345, International 646-517-4150, and use access code 82404#.
About Perrigo
Perrigo Company plc (NYSE: PRGO) is a leading provider of Consumer Self-Care Products and over-the-counter (OTC) health and wellness solutions that enhance individual well-being by empowering consumers to proactively prevent or treat conditions that can be self-managed.
For more information, visit www.perrigo.com.
Forward-Looking Statements
Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our, or our industry’s actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about our expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this report, including certain statements contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” "forecast," “predict,” “potential” or the negative of those terms or other comparable terminology. We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control, including: our ability to complete the proposed divestment of the Dermacosmetics branded business, receipt of works council and regulatory approval regarding the transaction, performance by counterparties to the transaction and the likelihood of satisfying the deferred payment milestones associated with the transaction, supply chain impacts on our business, including those caused or exacerbated by armed conflict, trade and other economic sanctions and/or disease; general economic, credit, and market conditions; increased or new tariffs by the U.S. or foreign governments (and any retaliatory or reciprocal tariffs) and changes in global trade relations; the impact of the war in Ukraine and any escalation thereof, including the effects of economic and political sanctions imposed by the United States, United Kingdom, European Union, and other countries related thereto; the outbreak or escalation of conflict in other regions where we do business, including the ongoing conflict and social, political and economic environment in Israel and the broader Middle East; current and future impairment charges, if we determine that the carrying amount of specific assets may not be recoverable from the expected future cash flows of such assets; customer acceptance of new products; competition from other industry participants, some of whom have greater marketing resources or larger market shares in certain product categories than we do; pricing pressures from customers and consumers;
6
resolution of uncertain tax positions and any litigation relating thereto, ongoing or future government investigations and regulatory initiatives; uncertainty regarding our ability to obtain and maintain our regulatory approvals; potential costs and reputational impact of product recalls or sales halts; potential adverse changes to U.S. and foreign tax, healthcare and other government policy; the effect of epidemic or pandemic disease; the timing, amount and cost of any share repurchases (or the absence thereof) and/or any refinancing of outstanding debt at or prior to maturity; fluctuations in currency exchange rates and interest rates; receipt of potential earnout payments in connection with the sale of the HRA Rare Diseases Business and the risk that potential costs or liabilities incurred or retained in connection with this transaction may exceed our estimates or adversely affect our business or operations; the risk that potential costs or liabilities incurred or retained in connection with the sale of our Rx business may exceed our estimates or adversely affect our business or operations; the consummation and success of other announced and unannounced acquisitions or dispositions, and our ability to realize the desired benefits thereof; and our ability to execute and achieve the desired benefits of announced cost-reduction efforts and other strategic initiatives and investments, including our ability to achieve the expected benefits from our ongoing restructuring programs and strategic review processes described herein. Adverse results with respect to pending litigation could have a material adverse impact on our operating results, cash flows and liquidity, and could ultimately require the use of corporate assets to pay damages, reducing assets that would otherwise be available for other corporate purposes. These and other important factors, including those discussed in our Form 10-K for the year ended December 31, 2025, and in any subsequent filings with the United States Securities and Exchange Commission, may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements in this press release are made only as of the date hereof, and unless otherwise required by applicable securities laws, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Non-GAAP Measures
This press release contains certain non-GAAP measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts different from the most directly comparable measure calculated and presented in accordance with U.S. Generally Accepted Accounting Principles (GAAP) in the statements of operations, balance sheets or statements of cash flows of the Company. Pursuant to the requirements of the U.S. Securities and Exchange Commission, the Company has provided reconciliations to the most directly comparable U.S. GAAP measures for the following ‘All In’ and ‘Core’ non-GAAP financial measures referred to in this press release:
•net sales growth on an organic basis, which excludes acquisitions, divestitures and exited products, and the impact of currency,
•adjusted gross profit,
•adjusted gross margin,
•adjusted operating income,
•adjusted operating margin,
•adjusted net income,
•adjusted diluted earnings per share,
These non-GAAP financial measures should be considered as supplements to the GAAP reported measures, should not be considered replacements for, or superior to the GAAP measures and may not be comparable to similarly named measures used by other companies. The Company presents these non-GAAP financial measures in order to provide transparency to our investors because they are measures that management uses to assess both management performance and the financial performance of our operations and to allocate resources. In addition, management believes that these measures may assist investors with understanding and evaluating our initiatives to drive improved financial performance and enables investors to supplementally compare our operating
7
performance with the operating performance of our competitors including with those of our competitors having different capital structures. While we have excluded certain of these items from historical non-GAAP financial measures, there is no guarantee that the items excluded from non-GAAP financial measures will not continue into future periods. For instance, we expect to continue to experience and report restructuring-related charges associated with continued execution of our strategic initiatives.
The Company provides non-GAAP financial measures as additional information that it believes is useful to investors and analysts in evaluating the performance of the Company's ongoing operating trends, facilitating comparability between periods and, where applicable, with companies in similar industries and assessing the Company's prospects for future performance. These non-GAAP financial measures exclude items, such as amortization expense, unusual litigation, impairment charges, restructuring charges, and acquisition and integration-related charges, that by their nature affect comparability of operational performance or that we believe obscure underlying business operational trends. The intangible asset amortization excluded from these non-GAAP financial measures represents the entire amount recorded within the Company’s GAAP financial statements and is excluded because the amortization, unlike the related revenue, is not affected by operations of any particular period unless an intangible asset becomes impaired or the estimated useful life of an intangible asset is revised. The revenue generated by the associated intangible assets has not been excluded from the related non-GAAP financial measure. The non-GAAP measures the Company provides are consistent with how management analyzes and assesses the operating performance of the Company, and disclosing them provides investor insight into management’s view of the business. Management uses these adjusted financial measures for planning and forecasting in future periods, and evaluating segment and overall operating performance. In addition, management uses certain of the profit measures as factors in determining compensation.
Non-GAAP measures related to profit measurements, which may include adjusted gross profit, adjusted net income, adjusted operating income, adjusted diluted earnings per share, adjusted gross margin, constant currency net sales, and adjusted operating margin are useful to investors as they provide them with supplemental information to enhance their understanding of the Company’s underlying business performance and trends, and enhance the ability of investors and analysts to compare the Company’s period-to-period financial results. Management believes that adjusted gross margin and adjusted operating margin are useful to investors, in addition to the reasons discussed above, by allowing them to more easily compare and analyze trends in the Company’s peer business group and assisting them in comparing the Company’s overall performance to that of its competitors. The Company also discloses net sales growth excluding the impact of currency on an organic basis. In addition, the Company presents non‑GAAP measures for 'Core' Perrigo, reflecting its go‑forward business and excluding infant formula currently under strategic review and previously announced divestitures. Core measures may include Core net income, Core net sales, Core organic net sales, Core gross profit, Core operating income, Core diluted earnings per share, Core gross margin, and Core operating margin, including on an organic, constant‑currency basis. Management believes these measures provide greater consistency in financial reporting and facilitate meaningful comparisons of underlying operating results and acquisition and divestiture activity.
The Company cannot reconcile its ‘All In’ or ‘Core’ expected organic net sales growth, adjusted gross margin, adjusted operating margin, adjusted earnings per share, adjusted diluted earnings per share, or adjusted effective tax rate to the most directly comparable GAAP measures under "Fiscal Year 2026 Outlook from Continuing Operations" without unreasonable effort because certain items that impact net income and other reconciling metrics are out of the Company's control and/or cannot be reasonably predicted at this time. These items include, but are not limited to, uncertainty
8
of non-recurring infant formula related charges and timing and amount of restructuring charges and the income tax effects of these items or other income tax-related events.
The Company believes these supplemental financial measures provide investors with consistency in financial reporting, enabling meaningful comparisons of past and present underlying operating results, and also facilitate analysis of the Company’s operating performance and acquisition and divestiture trends.
A copy of this press release, including the reconciliations, is available on the Company's website at www.perrigo.com.
Perrigo Contacts
Eric Jacobson, Vice President, Global Investor Relations
(616) 886-0375, eric.jacobson@perrigo.com
Nick Gallagher, Associate Director, Global Investor Relations
(269) 686-3238, nicholas.gallagher@perrigo.com
9
PERRIGO COMPANY PLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except per share amounts)
(unaudited)
| Three Months Ended | |||||||||||
| March 28, 2026 | March 29, 2025 | ||||||||||
| Net sales | $ | 969.2 | $ | 1,043.9 | |||||||
| Cost of sales | 643.7 | 651.6 | |||||||||
| Gross profit | 325.5 | 392.3 | |||||||||
| Operating expenses | |||||||||||
| Distribution | 22.6 | 22.8 | |||||||||
| Research and development | 24.6 | 26.7 | |||||||||
| Selling | 129.7 | 146.2 | |||||||||
| Administration | 115.0 | 112.2 | |||||||||
| Impairment charges | 330.8 | 3.1 | |||||||||
| Restructuring | 75.1 | 29.4 | |||||||||
| Other operating expense, net | — | 5.0 | |||||||||
| Total operating expenses | 697.8 | 345.4 | |||||||||
| Operating income (loss) | (372.3) | 46.9 | |||||||||
| Interest expense, net | 40.8 | 39.0 | |||||||||
| Other (income), net | (6.0) | (0.4) | |||||||||
| Loss on extinguishment of debt | 1.4 | — | |||||||||
| Income (loss) from continuing operations before income taxes | (408.5) | 8.3 | |||||||||
| Income tax expense (benefit) | (18.7) | 8.2 | |||||||||
| Income (loss) from continuing operations | (389.8) | 0.1 | |||||||||
| Loss from discontinued operations, net of tax | (8.7) | (6.5) | |||||||||
| Net income (loss) | $ | (398.6) | $ | (6.4) | |||||||
Earnings (loss) per share | |||||||||||
| Basic | |||||||||||
| Continuing operations | $ | (2.81) | $ | 0.00 | |||||||
| Discontinued operations | (0.06) | (0.05) | |||||||||
| Basic earnings (loss) per share | $ | (2.87) | $ | (0.05) | |||||||
| Diluted | |||||||||||
| Continuing operations | $ | (2.81) | $ | 0.00 | |||||||
| Discontinued operations | (0.06) | (0.05) | |||||||||
| Diluted earnings (loss) per share | $ | (2.87) | $ | (0.05) | |||||||
| Weighted-average shares outstanding | |||||||||||
| Basic | 138.7 | 137.7 | |||||||||
| Diluted | 138.7 | 137.7 | |||||||||
10
PERRIGO COMPANY PLC
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, except per share amounts)
(unaudited)
| March 28, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Cash and cash equivalents | $ | 357.2 | $ | 531.6 | |||||||
Accounts receivable, net of allowance for credit losses of $4.3 and $6.5, respectively | 697.1 | 612.8 | |||||||||
| Inventories | 1,121.4 | 1,149.0 | |||||||||
| Prepaid expenses and other current assets | 272.2 | 231.4 | |||||||||
| Current assets held for sale | 264.6 | 272.6 | |||||||||
| Total current assets | 2,712.4 | 2,797.4 | |||||||||
| Property, plant and equipment, net | 877.7 | 898.7 | |||||||||
| Operating lease assets | 162.3 | 167.8 | |||||||||
| Goodwill and indefinite-lived intangible assets | 1,706.4 | 2,054.7 | |||||||||
| Definite-lived intangible assets, net | 2,259.3 | 2,351.5 | |||||||||
| Deferred income taxes | 4.7 | 3.3 | |||||||||
| Other non-current assets | 260.5 | 261.8 | |||||||||
| Total non-current assets | 5,270.9 | 5,737.8 | |||||||||
| Total assets | $ | 7,983.3 | $ | 8,535.2 | |||||||
| Liabilities and Shareholders’ Equity | |||||||||||
| Liabilities | |||||||||||
| Accounts payable | $ | 434.8 | $ | 474.5 | |||||||
| Payroll and related taxes | 153.5 | 112.2 | |||||||||
| Accrued customer programs | 105.7 | 111.4 | |||||||||
| Other accrued liabilities | 234.7 | 230.6 | |||||||||
| Accrued income taxes | 28.6 | 20.8 | |||||||||
| Current indebtedness | 11.4 | 36.6 | |||||||||
| Current liabilities held for sale | 28.9 | 26.8 | |||||||||
| Total current liabilities | 997.6 | 1,012.9 | |||||||||
| Non-current liabilities | |||||||||||
| Long-term debt, less current portion | 3,621.1 | 3,603.6 | |||||||||
| Deferred income taxes | 153.5 | 168.9 | |||||||||
| Other non-current liabilities | 712.3 | 814.3 | |||||||||
| Total non-current liabilities | 4,486.9 | 4,586.8 | |||||||||
| Total liabilities | 5,484.5 | 5,599.7 | |||||||||
Contingencies - Refer to Note 16 | |||||||||||
| Shareholders’ equity | |||||||||||
| Controlling interests: | |||||||||||
Preferred shares, $0.0001 par value per share, 10 shares authorized | — | — | |||||||||
Ordinary shares, €0.001 par value per share, 10,000 shares authorized | 6,578.1 | 6,608.2 | |||||||||
| Accumulated other comprehensive income (loss) | (3.0) | 4.8 | |||||||||
| Retained earnings (accumulated deficit) | (4,076.3) | (3,677.5) | |||||||||
| Total shareholders’ equity | 2,498.8 | 2,935.5 | |||||||||
| Total liabilities and shareholders' equity | $ | 7,983.3 | $ | 8,535.2 | |||||||
| Supplemental Disclosures of Balance Sheet Information | |||||||||||
Preferred shares, issued and outstanding | — | — | |||||||||
Ordinary shares, issued and outstanding | 138.1 | 137.6 | |||||||||
11
PERRIGO COMPANY PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
| Three Months Ended | |||||||||||
| March 28, 2026 | March 29, 2025 | ||||||||||
| Cash Flows From (For) Operating Activities | |||||||||||
| Net income (loss) | $ | (398.6) | $ | (6.4) | |||||||
| Adjustments to derive cash flows: | |||||||||||
| Depreciation and amortization | 83.3 | 79.9 | |||||||||
| Restructuring charges | 71.4 | 29.4 | |||||||||
| Share-based compensation | 14.4 | 11.6 | |||||||||
| Impairment charges | 330.8 | 3.1 | |||||||||
| Amortization of debt discount | 2.2 | 2.2 | |||||||||
| Deferred income taxes | (12.9) | (3.1) | |||||||||
| Amortization on hedging instruments | (4.9) | (6.4) | |||||||||
| Other non-cash adjustments, net | (3.2) | 4.6 | |||||||||
| Subtotal | 82.7 | 114.9 | |||||||||
| Increase (decrease) in cash due to: | |||||||||||
| Inventories | 23.6 | (62.5) | |||||||||
| Accrued income taxes | (13.2) | 3.6 | |||||||||
| Payroll and related taxes | (24.9) | (18.4) | |||||||||
| Accounts payable | (35.9) | 7.2 | |||||||||
| Accrued customer programs | (2.5) | 6.4 | |||||||||
| Other accrued liabilities | (7.7) | (56.1) | |||||||||
| Accounts receivable | (92.5) | (65.2) | |||||||||
| Other long term liabilities | 2.7 | (0.5) | |||||||||
| Prepaid expenses and other current assets | (45.9) | 6.1 | |||||||||
| Subtotal | (196.3) | (179.4) | |||||||||
| Net cash for operating activities | (113.6) | (64.5) | |||||||||
| Cash Flows From (For) Investing Activities | |||||||||||
| Proceeds from royalty rights | 1.4 | 1.7 | |||||||||
| Asset acquisitions, net | — | (1.5) | |||||||||
| Additions to property, plant and equipment | (13.8) | (25.5) | |||||||||
| Other investing, net | — | (0.4) | |||||||||
| Net cash for investing activities | (12.4) | (25.7) | |||||||||
| Cash Flows From (For) Financing Activities | |||||||||||
| Payments on long-term debt | (424.3) | (8.8) | |||||||||
| Cash dividends | (39.9) | (40.6) | |||||||||
| Borrowings of revolving credit agreements and other financing, net | 427.6 | — | |||||||||
Payments for debt issuance costs | (5.5) | — | |||||||||
| Shares used to settle taxes | (2.8) | (11.9) | |||||||||
| Other financing, net | (0.5) | (0.5) | |||||||||
| Net cash for financing activities | (45.3) | (61.8) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (3.1) | 10.3 | |||||||||
| Net decrease in cash and cash equivalents | (174.4) | (141.7) | |||||||||
| Cash and cash equivalents of continuing operations, beginning of period | 531.6 | 558.8 | |||||||||
| Cash and cash equivalents held for sale, beginning of period | 2.3 | — | |||||||||
| Less cash and cash equivalents held for sale, end of period | (2.3) | (7.2) | |||||||||
| Cash and cash equivalents of continuing operations, end of period | $ | 357.2 | $ | 409.9 | |||||||
12
TABLE I
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
SELECTED CONSOLIDATED INFORMATION
(in millions, except per share amounts)
(unaudited)
| Three Months Ended March 28, 2026 | Three Months Ended March 29, 2025 | ||||||||||||||||||||||||||||
| Consolidated Continuing Operations | Gross Profit | Operating Income (Loss) | Income (Loss) from Continuing Operations | Diluted Earnings (Loss) per Share | Gross Profit | Operating Income | Income from Continuing Operations | Diluted Earnings per Share | |||||||||||||||||||||
| Reported | $ | 325.5 | $ | (372.3) | $ | (389.8) | $ | (2.81) | $ | 392.3 | $ | 46.9 | $ | 0.1 | $ | 0.00 | |||||||||||||
As a % of reported net sales(1) | 33.6 | % | (38.4) | % | (40.2) | % | 37.6 | % | 4.5 | % | — | % | |||||||||||||||||
Pre-tax adjustments(2): | |||||||||||||||||||||||||||||
| Amortization expense related primarily to acquired intangible assets | 35.4 | 54.5 | 54.5 | 0.39 | 34.5 | 55.0 | 55.6 | 0.40 | |||||||||||||||||||||
Impairment charges(3) | — | 330.8 | 330.8 | 2.39 | — | 3.1 | 3.1 | 0.02 | |||||||||||||||||||||
| Unusual litigation | — | 16.6 | 16.6 | 0.12 | — | 8.9 | 8.9 | 0.06 | |||||||||||||||||||||
Restructuring charges and other termination benefits | — | 75.1 | 75.1 | 0.54 | — | 29.4 | 29.4 | 0.21 | |||||||||||||||||||||
Infant formula remediation | — | — | — | — | 0.9 | 0.9 | 0.9 | 0.01 | |||||||||||||||||||||
| Loss on divestitures | — | — | — | — | — | — | 0.2 | — | |||||||||||||||||||||
Loss on debt extinguishment | — | — | 1.4 | 0.01 | — | — | — | — | |||||||||||||||||||||
Other(4) | 3.4 | 8.2 | 0.2 | — | — | 2.4 | 2.4 | 0.02 | |||||||||||||||||||||
Non-GAAP tax adjustments(5) | — | — | (29.6) | (0.21) | — | — | (17.3) | (0.12) | |||||||||||||||||||||
| Adjusted | $ | 364.3 | $ | 112.8 | $ | 59.1 | $ | 0.43 | $ | 427.7 | $ | 146.6 | $ | 83.2 | $ | 0.60 | |||||||||||||
As a % of reported net sales(1) | 37.6 | % | 11.6 | % | 6.1 | % | 41.0 | % | 14.0 | % | 8.0 | % | |||||||||||||||||
Diluted weighted average shares outstanding (in millions) | |||||||||||||||||||||||||||||
Reported | 138.7 | 137.7 | |||||||||||||||||||||||||||
Effect of dilution as reported amount was a loss, while adjusted amount was income(6) | 0.3 | 0.9 | |||||||||||||||||||||||||||
Adjusted | 139.0 | 138.6 | |||||||||||||||||||||||||||
Note: Amounts may not add or recalculate due to rounding. Percentages are based on actuals.
(1) Reported net sales for the three months ended March 28, 2026 and March 29, 2025 were $969.2 million and $1,043.9 million, respectively.
(2) Individual pre-tax line item adjustments have not been tax effected, as tax expense on these items are aggregated in the "Non-GAAP tax adjustments" line item.
(3) During the three months ended March 28, 2026, we determined the carrying value of our reporting units exceeded their estimated fair value and recorded a goodwill impairment charge of $330.8 million. During the three months ended March 29, 2025, we determined the carrying value of the Richard Bittner Business net assets held for sale exceeded their fair value less costs to sell, resulting in a total impairment charge of $3.1 million, inclusive of a goodwill impairment charge of $1.2 million.
(4) Other pre-tax adjustments impacting reported income from continuing operations for the three months ended March 28, 2026 includes $4.7 million of professional consulting fees for potential divestiture activity more than offset by $8.0 million of favorable hedging activity related to potential divestiture activity and $3.5 million of accelerated depreciation. Other pre-tax adjustments for the three months ended March 29, 2025 are related to professional consulting fees for potential divestiture activity.
(5) Non-GAAP tax adjustments for the three months ended March 28, 2026 are primarily due to (1) removal of $22.9 million of tax benefit on pre-tax non-GAAP adjustments and (2) removal of $7.3 million of tax benefits related to the release of uncertain tax positions. Non-GAAP tax adjustments for the three months ended March 29, 2025 are primarily due to $19.6 million of tax expense on pre-tax non-GAAP adjustments.
(6) In the period of a net loss, reported diluted shares outstanding equal basic shares outstanding.
13
TABLE II
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
SELECTED CONSOLIDATED INFORMATION
(in millions, except per share amounts)
(unaudited)
| Three Months Ended March 28, 2026 | Three Months Ended March 29, 2025 | ||||||||||||||||||||||
| Consolidated Continuing Operations | R&D Expense | DSG&A Expense | Restructuring, Impairments and Other | R&D Expense | DSG&A Expense | Restructuring, Impairments and Other | |||||||||||||||||
| Reported | $ | 24.6 | $ | 267.3 | $ | 405.9 | $ | 26.7 | $ | 281.2 | $ | 37.5 | |||||||||||
As a % of reported net sales(1) | 2.5 | % | 27.6 | % | 41.9 | % | 2.6 | % | 26.9 | % | 3.6 | % | |||||||||||
Pre-tax adjustments(2): | |||||||||||||||||||||||
| Amortization expense related primarily to acquired intangible assets | (0.2) | (18.9) | — | (0.2) | (20.3) | — | |||||||||||||||||
Impairment charges(3) | — | — | (330.8) | — | — | (3.1) | |||||||||||||||||
Restructuring charges and other termination benefits | — | — | (75.1) | — | — | (29.4) | |||||||||||||||||
| Unusual litigation | — | (16.6) | — | — | (3.8) | (5.1) | |||||||||||||||||
Other(4) | (0.1) | (4.7) | — | — | (2.4) | — | |||||||||||||||||
| Adjusted | $ | 24.3 | $ | 227.2 | $ | — | $ | 26.5 | $ | 254.6 | $ | — | |||||||||||
As a % of reported net sales(1) | 2.5 | % | 23.4 | % | — | % | 2.5 | % | 24.4 | % | — | % | |||||||||||
Note: Amounts may not add or recalculate due to rounding. Percentages are based on actuals.
(1) Reported net sales for the three months ended March 28, 2026 and March 29, 2025 were $969.2 million and $1,043.9 million, respectively.
(2) Individual pre-tax line item adjustments have not been tax effected, as tax expense on these items are aggregated in the "Non-GAAP tax adjustments" line item.
(3) During the three months ended March 28, 2026, we determined the carrying value of our reporting units exceeded their estimated fair value and recorded a goodwill impairment charge of $330.8 million. During the three months ended March 29, 2025, we determined the carrying value of the Richard Bittner Business net assets held for sale exceeded their fair value less costs to sell, resulting in a total impairment charge of $3.1 million, inclusive of a goodwill impairment charge of $1.2 million.
(4) Other pre-tax adjustments for the three months ended March 28, 2026 includes $4.7 million of professional consulting fees for potential divestiture activity. Other pre-tax adjustments for the three months ended March 29, 2025 are related to professional consulting fees for potential divestiture activity.
14
TABLE III
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
SELECTED CONSOLIDATED INFORMATION
(in millions, except per share amounts)
(unaudited)
| Three Months Ended March 28, 2026 | Three Months Ended March 29, 2025 | ||||||||||||||||
| Consolidated Continuing Operations | Interest and Other | Income Tax Expense (Benefit) | Interest and Other | Income Tax Expense | |||||||||||||
| Reported | $ | 36.2 | $ | (18.7) | $ | 38.6 | $ | 8.2 | |||||||||
As a % of reported net sales(1) | 3.7 | % | (1.9) | % | 3.7 | % | 0.8 | % | |||||||||
| Effective tax rate | 4.6 | % | 99.0 | % | |||||||||||||
Pre-tax adjustments(2): | |||||||||||||||||
| Amortization expense related primarily to acquired intangible assets | — | — | (0.5) | — | |||||||||||||
| Loss on divestitures | — | — | (0.2) | — | |||||||||||||
Loss on debt extinguishment | (1.4) | — | — | — | |||||||||||||
Other(3) | 8.0 | — | — | — | |||||||||||||
Non-GAAP tax adjustments(4) | — | 29.6 | — | 17.3 | |||||||||||||
| Adjusted | $ | 42.9 | $ | 10.8 | $ | 37.9 | $ | 25.5 | |||||||||
As a % of reported net sales(1) | 4.4 | % | 1.1 | % | 3.6 | % | 2.4 | % | |||||||||
| Adjusted effective tax rate | 15.5 | % | 23.4 | % | |||||||||||||
Note: Amounts may not add or recalculate due to rounding. Percentages are based on actuals.
(1) Reported net sales for the three months ended March 28, 2026 and March 29, 2025 were $969.2 million and $1,043.9 million, respectively.
(2) Individual pre-tax line item adjustments have not been tax effected, as tax expense on these items are aggregated in the "Non-GAAP tax adjustments" line item.
(3) Other pre-tax adjustments impacting reported interest and other from continuing operations for the three months ended March 28, 2026 includes $8.0 million of favorable hedging activity related to potential divestiture activity.
(4) Non-GAAP tax adjustments for the three months ended March 28, 2026 are primarily due to (1) removal of $22.9 million of tax benefit on pre-tax non-GAAP adjustments and (2) removal of $7.3 million of tax benefits related to the release of uncertain tax positions. Non-GAAP tax adjustments for the three months ended March 29, 2025 are primarily due to $19.6 million of tax expense on pre-tax non-GAAP adjustments.
15
TABLE IV
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
SELECTED CONSOLIDATED INFORMATION
(in millions, except per share amounts)
(unaudited)
| Three Months Ended | |||||||||||||||||
| Consolidated Continuing Operations | March 28, 2026 | March 29, 2025 | % Change | ||||||||||||||
| Net Sales | $ | 969.2 | $ | 1,043.9 | (7.2)% | ||||||||||||
Less: Currency impact(1) | 30.1 | — | 2.9% | ||||||||||||||
| Constant currency net sales | $ | 939.2 | $ | 1,043.9 | (10.0)% | ||||||||||||
Less: Divestitures and exited products(2) | 0.1 | 2.0 | 0.1% | ||||||||||||||
| Organic net sales | $ | 939.1 | $ | 1,041.9 | (9.9)% | ||||||||||||
Self Care | |||||||||||||||||
| Net Sales | $ | 543.3 | $ | 614.3 | (11.5)% | ||||||||||||
Less: Currency impact(1) | 16.9 | — | 2.8% | ||||||||||||||
| Constant currency net sales | $ | 526.4 | $ | 614.3 | (14.3)% | ||||||||||||
Less: Divestitures and exited products(2) | 0.1 | 2.0 | 0.3% | ||||||||||||||
| Organic net sales | $ | 526.4 | $ | 612.3 | (14.0)% | ||||||||||||
Specialty Care | |||||||||||||||||
| Net Sales | $ | 207.0 | $ | 199.1 | 4.0% | ||||||||||||
Less: Currency impact(1) | 9.5 | — | 4.8% | ||||||||||||||
| Organic net sales | $ | 197.5 | $ | 199.1 | (0.8)% | ||||||||||||
| Infant Formula | |||||||||||||||||
| Net Sales | $ | 89.7 | $ | 87.8 | 2.1% | ||||||||||||
Less: Currency impact(1) | 0.2 | — | 0.3% | ||||||||||||||
| Organic net sales | $ | 89.5 | $ | 87.8 | 1.9% | ||||||||||||
All Other | |||||||||||||||||
| Net Sales | $ | 129.2 | $ | 142.7 | (9.5)% | ||||||||||||
Less: Currency impact(1) | 3.4 | — | 2.4% | ||||||||||||||
| Organic net sales | $ | 125.8 | $ | 142.7 | (11.8)% | ||||||||||||
Note: Amounts may not add or recalculate due to rounding. Percentages are based on actuals.
(1) Currency impact is calculated using the exchange rates used to translate our financial statements in the comparable prior year period to show what current period US dollar results would have been if such currency exchange rates had not changed.
(2) Represents divestiture of the Richard Bittner Business and exited products within the Self Care segment.
16
TABLE V
PERRIGO COMPANY PLC
RECONCILIATION OF NON-GAAP MEASURES
SELECTED CONSOLIDATED INFORMATION
(in millions, except per share amounts)
(unaudited)
| Three Months Ended March 28, 2026 | Three Months Ended March 29, 2025 | ||||||||||||||||||||||||||||||||||
| Consolidated Continuing Operations | Net Sales | Gross Profit | Operating Income | Income from Continuing Operations | Diluted Earnings per Share | Net Sales | Gross Profit | Operating Income | Income from Continuing Operations | Diluted Earnings per Share | |||||||||||||||||||||||||
All In Adjusted | $ | 969.2 | $ | 364.3 | $ | 112.8 | $ | 59.1 | $ | 0.43 | $ | 1,043.9 | $ | 427.7 | $ | 146.6 | $ | 83.2 | $ | 0.60 | |||||||||||||||
As a % of reported net sales | 37.6 | % | 11.6 | % | 6.1 | % | 41.0 | % | 14.0 | % | 8.0 | % | |||||||||||||||||||||||
Core Adjustments: | |||||||||||||||||||||||||||||||||||
Less: Prior Year Divestitures(1) | 0.1 | 0.1 | 0.1 | 0.1 | — | 2.0 | 1.4 | 0.8 | 0.8 | 0.01 | |||||||||||||||||||||||||
| Less: Infant Formula | 89.7 | 10.6 | (7.4) | (7.4) | (0.05) | 87.8 | 32.6 | 10.6 | 10.6 | 0.08 | |||||||||||||||||||||||||
Less: Previously Announced Divestitures(2) | 37.7 | 23.7 | 12.3 | 12.3 | 0.09 | 36.5 | 19.0 | 7.5 | 7.5 | 0.05 | |||||||||||||||||||||||||
| Non-GAAP tax adjustments | — | — | — | (0.8) | 0.01 | — | — | — | (4.5) | (0.03) | |||||||||||||||||||||||||
Core Adjusted | $ | 841.8 | $ | 329.8 | $ | 107.9 | $ | 54.9 | $ | 0.40 | $ | 917.6 | $ | 374.6 | $ | 127.7 | $ | 68.7 | $ | 0.50 | |||||||||||||||
As a % of Core net sales | 39.2 | % | 12.8 | % | 5.7 | % | 40.8 | % | 13.9 | % | 7.5 | % | |||||||||||||||||||||||
Less: Currency impact(3) | 25.3 | ||||||||||||||||||||||||||||||||||
Core Organic | $ | 816.5 | |||||||||||||||||||||||||||||||||
Diluted weighted average shares outstanding (in millions) | |||||||||||||||||||||||||||||||||||
Reported | 138.7 | 137.7 | |||||||||||||||||||||||||||||||||
Effect of dilution as reported amount was a loss, while adjusted amount was income(4) | 0.3 | 0.9 | |||||||||||||||||||||||||||||||||
Adjusted | 139.0 | 138.6 | |||||||||||||||||||||||||||||||||
Note: Amounts may not add or recalculate due to rounding. Percentages are based on actuals.
(1) Represents divestiture of the Richard Bittner Business and exited products within the Self Care segment.
(2) Represents previously announced divestitures, primarily Dermacosmetics, and exited products.
(3) Currency impact is calculated using the exchange rates used to translate our financial statements in the comparable prior year period to show what current period U.S. dollar results would have been if such currency exchange rates had not changed.
(4) In the period of a net loss, reported diluted shares outstanding equal basic shares outstanding.
17
FAQ
How did Perrigo (PRGO) perform financially in Q1 2026?
Perrigo reported Q1 2026 All In net sales of $969.2 million, down 7.2% year over year. A $330.8 million goodwill impairment led to a reported diluted EPS loss of $(2.81), while All In adjusted diluted EPS declined to $0.43 from $0.60.
What is Perrigo’s 2026 earnings outlook after Q1 2026 results?
Perrigo reaffirmed its 2026 outlook, guiding to All In adjusted EPS of $2.00–$2.30 and Core adjusted EPS of $2.25–$2.55. Management expects second‑half improvement from growth initiatives, its Operational Enhancement Program, and lapping prior‑year consumption and manufacturing headwinds.
What drove Perrigo’s large Q1 2026 loss from continuing operations?
The Q1 2026 loss from continuing operations of $(389.8) million was mainly driven by a non‑cash goodwill impairment charge of $330.8 million and higher restructuring charges. These items pushed reported operating margin to (38.4)%, despite underlying positive adjusted profitability.
How did Perrigo’s business segments perform in Q1 2026?
In Q1 2026, Self Care net sales declined 11.5%, pressured by lower cough, cold, and pain categories. Specialty Care net sales grew 4.0%, supported by Women’s Health brands like Opill and ellaOne. Infant Formula net sales increased 2.1%, mainly from contract formula growth.
What are the details of Perrigo’s Dermacosmetics divestiture?
After Q1 2026, Perrigo completed the sale of its Dermacosmetics business for total consideration of up to €332.6 million. The deal includes €305.6 million in upfront cash, including working capital adjustments, and up to €27.0 million of contingent payments tied to future net sales milestones.
What is Perrigo’s cash and debt position following Q1 2026?
At March 28, 2026, Perrigo held $357.2 million in cash and cash equivalents and total debt of about $3.6 billion. Management targets net leverage at or slightly below roughly 4.0x adjusted EBITDA, supported by Dermacosmetics sale proceeds directed toward debt reduction.