PRGO

It has been about a month since the last earnings report for Perrigo (PRGO). Shares have added about 13.8% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Perrigo due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Perrigo Company plc before we dive into how investors and analysts have reacted as of late. Q2 Earnings & Sales Beat Estimates Perrigo reported second-quarter 2026 All In adjusted earnings per share (EPS) of 50 cents, which beat the Zacks Consensus Estimate of 31 cents. The reported figure declined 12.3% year over year owing to lower sales volumes and the carryover impact of planned under-absorption stemming from lower prior-year sales volumes.All In net sales declined 3.2% year over year to $1.02 billion but marginally beat the Zacks Consensus Estimate of $1 billion. The decline was attributed to softer consumer demand, lower retail inventory levels and the impact of divestitures, partially offset by the growth in Infant Formula sales.In the second quarter of 2026, All In sales declined 2.2% year over year on account of exited businesses and product lines but benefited 0.3% from favorable currency movements. At constant currency (excluding foreign currency translation), sales fell 3.5%. Organic net sales (excluding the effects of acquisitions and divestitures and the impacts of currency) declined 1.3%.Core adjusted EPS for the second quarter was 46 cents, down 20.7% year over year. Perrigo recorded $907 million in core adjusted sales, down 3.1% year over year. Segment Discussion Self Care: The segment’s net sales in the second quarter came in at $577 million, down 3.7% year over year, primarily due to continued softness in category consumption across the United States and Europe. SpecialtyCare: The segment reported net sales of $227 million, down 2.8% from the year-ago period, mainly due to weaker Skin Health performance, partly offset by growth in the Women's Health category. Infant Formula: In this segment, net sales rose 23.1% year over year to $101 million, driven by the timing of contract infant formula shipments. Under the All Other category, net sales decreased 16.9% year over year to $119 million.Perrigo ended the second quarter with cash and investments of $399.7 million compared with $357.2 million as of March 31, 2026. Reaffirms 2026 Guidance The company expects All In net sales to decline by 1.5%-5.5% year over year in 2026. All In adjusted EPS is projected to be in the range of $2.00-$2.30.For its Core business, sales are forecast to range from a 3% decline to 1% growth. Core adjusted EPS is expected to be in the range of $2.25-$2.55. Since the earnings release, investors have witnessed a downward trend in estimates revision. The consensus estimate has shifted -6.52% due to these changes. At this time, Perrigo has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Perrigo has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Perrigo Company plc (PRGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 8:30 a.m. ET Interim President and Chief Executive Officer - Albert Manzone Executive Vice President and Chief Financial Officer - Eduardo Bezerra VP Global Investor Relations - Eric Jacobson Operator: Good morning, ladies and gentlemen, and welcome to the Perrigo Q2 2026 Financial Results Conference Call. [Operator Instructions] This call is being recorded on Wednesday, August 5, 2026. I would now like to turn the conference over to Eric Jacobson, VO (sic) [ VP ] Global Investor Relations. Please go ahead, sir. Eric Jacobson: Good morning and good afternoon, everyone. Welcome to Perrigo's Second Quarter 2026 Earnings Conference Call. A copy of the release we issued today and the accompanying presentation are available within the Investors section of the perrigo.com website. Joining today's call are Perrigo's Interim President and CEO, Albert Manzone; and CFO, Eduardo Bezerra. During this presentation, participants will make certain forward-looking statements. Please refer to the slides for information regarding these statements, which are subject to important risks and uncertainties. We will reference adjusted financial measures that are non-GAAP in nature. See the appendix to the earnings presentation for additional details and reconciliations of all non-GAAP to GAAP financial measures presented. Now to the agenda. First, Albert will discuss the leadership transition and his priorities. He will then review our progress against the Three-S plan, provide a market overview and discuss our second quarter performance. Albert will close with an update on the key priorities expected to support improved execution and long-term value creation. Eduardo will then provide a financial review and discuss our 2026 outlook. With that, I'll turn it over to Albert. Albert Manzone: Thanks, Eric. Good morning, good afternoon, and thank you for joining today's call. I'd like to start by stating that it is an honor and an enormous responsibility to serve as Perrigo's Interim President and CEO. I want to assure our customers, our investors and my fellow Perrigo colleagues that I am 100% committed to our mission of being a world leader in affordable consumer self-care. We have important work ahead of us, and I am moving quickly to advance our key priorities. I have served on Perrigo's Board since 2022, and I have spent more than three decades leading and transforming consumer businesses at critical inflection points, including in OTC Healthcare. I know this company, and I have a clear view of what it takes to create value here. I spent my first month on the road, listening. Three things stand out. First, our customers. They value what Perrigo brings to the market, and they want to do more business with us. We have a great deal to offer and a clear right to win. Second, our investors. I have heard from them directly. The confidence of the investment community must be re-earned, and I take this personally. Third, our team. This is an experienced team with the capabilities needed to achieve our goals. During the quarter, we also strengthened the Board with two accomplished new directors, Salman Amin and Omer Gajial, whose consumer, operational and strategic experience will help guide our value creation agenda. My message today is simple. The Board, the management team and I are confident in Perrigo's future. Let me start with who we are. We are the leader in store brand OTC in the U.S. and our portfolio of OTC brands in Europe includes several that lead their respective categories. Our sales are roughly half store brand and half branded, although that mix is geographically concentrated. In the U.S., we're almost entirely store brand. And in Europe, we're almost entirely branded. This combination is unique within our industry. Through our category-led operating model and One Perrigo approach, we serve consumers across brands, store brands, categories and price points, which is increasingly important as consumers focus more on value. In the second quarter, those capabilities translated into market share gains across our portfolio, even as the categories we compete in remain challenged. Results in the U.S. were particularly strong as we grew dollar, unit and volume consumption. Category trends improved as the quarter progressed, and that momentum is carrying into the third quarter. We're also reaffirming our full year 2026 outlook weighted towards the second half and supported by clear tangible drivers. We remain mindful of an uncertain consumer and economic environment, but we are executing on what we control, gaining share, streamlining the portfolio and reducing debt. Our progress runs through the Three-S plan: Stabilize, streamline and strengthen. On Stabilize, we have improved the consistency of our operations, our service levels and our execution across key categories. Since 2023, U.S. service levels are up 1,600 basis points to 91% and international service levels are up 1,000 basis points to 95%. Better service has strengthened customer relationship and directly supported our share gains. On Streamline, we have simplified the portfolio, strengthened the balance sheet and taken costs out. Since 2024, divestitures have generated approximately $600 million in upfront proceeds, mainly applied to debt reduction, including this quarter's sale of Dermacosmetics for $359 million. Our operational enhancement program is on track to deliver $80 million to $100 million of savings by 2027. We are also advancing the strategic reviews of Infant Formula and Oral Care, examining whether to optimize, partner or divest each. Our approach is disciplined. Any outcome must enhance shareholder value and sharpen the focus of the portfolio. In the meantime, we have improved the Infant Formula business through capacity rationalization, greater efficiency and innovation. Those actions have improved stability, increased visibility and strengthened the business regardless of the outcome of those reviews. On Strengthen, we have built the capabilities that drive future growth, a new category-led operating model, a substantially larger innovation pipeline, deeper retailer partnerships and stronger demand generation. The value of our innovation pipeline has more than tripled since 2024 with over 55% of projects now leveraging shared platforms. That makes our investment more efficient and more scalable, driving share gains across U.S. store brand OTC and key European brands. Taken together, the Three-S plan has created a more focused company and a foundation for growth. While we have more work ahead of us, the momentum in the business is encouraging and the path is clear. A quick word on the market. Consumption is still below historical averages, but it is improving. U.S. value and volume trends improved sequentially through the quarter, and Europe improved as well. The improvement has continued into the third quarter. U.S. OTC volumes in the categories where we compete turned positive in the 4 weeks ended July 19. Softness has been concentrated in seasonal categories within the self-care segment, including cough, cold, pain and allergy, reflecting lower seasonal incidence and tough year-over-year comparisons. We view this softness as temporary, and it does not change our view of long-term demand. We expect category trends to keep improving as comparisons ease through the year. Our purpose is to expand access to quality, affordable self-care and that purpose has never been more relevant than it is today with consumers focused on value. That alignment plus better execution and a differentiated model is producing measurable share gains. In the U.S., the categories we compete in declined 1.1% in volume, yet we grew our store brand OTC volumes across health care and Specialty Care by a combined 1.5%, taking 50 basis points of market share. In Europe, category value declined 0.6%, while our key brands grew 3.3%, again, taking 50 basis points of market share. Those share gains are the output of our growth building blocks and a few examples show the model in action. Opill continues to build in its second year with rising velocities across major retailers, strong repeat rates and consumers trading up to larger packs. This is proof that focused innovation paired with targeted demand generation can grow a category. Compeed accelerated through the quarter on earlier seasonal activation and better in-store execution across Europe, delivering share gains and record retail sales. It shows what brand investment plus commercial execution can do. And our store brand allergy business kept gaining share on the back of innovation, distribution wins and demand generation that is lifting household penetration. The common thread is a more integrated, more scalable engine, one category-led model, one innovation pipeline deployed across categories, markets and price points. Turning briefly to the numbers before Eduardo takes you through the detail. Core net sales declined 3.1% year-over-year and all-in net sales declined 3.2%, driven by continued category softness against a strong prior year, a slow start to summer categories and retailer de-stocking. Within all-in, Infant Formula grew 23%, more than offset by the Dermacosmetics divestiture. Core adjusted EPS was $0.46 and all-in adjusted EPS was $0.50. Earnings came ahead of our expectation, driven largely by onetime cost benefits, which is why we're maintaining not raising our outlook. The indicators we care most about, market share, execution, cost savings, debt reduction and portfolio actions all move in the right direction. We called 2026 a transition year with softer reported results in the first half, masking real operational progress, that is how it has played out. We continue to gain share, which is a clear sign our strategy is working and that we will benefit when demand normalizes. And our growth building blocks, innovation, demand generation and distribution are building toward a sequentially stronger second half. Let me close with where we're going because that is what will define Perrigo. First, we will sustain market share growth by expanding access to quality, affordable self-care products. In the U.S., our goal is not only to gain share within store brand OTC but to grow the category. Store brands are under-penetrated, and we're uniquely positioned to expand the category by partnering with our retail customers to bring more consumers quality self-care at a better value. In Europe, we have strong brands like Compeed and Jungle Formula that lead their categories. We're investing behind those winners and focusing our resources where we have the strongest opportunities to win. This approach allows us to be nimble and competitive in the areas where we choose to play. Second, we will continue to simplify and strengthen our portfolio to sharpen focus, discipline and consistency. The actions we have taken over the past several years, including portfolio transformation and ongoing strategic reviews are helping create a more focused and consistent consumer health-care company. Third, we will strengthen the balance sheet and continue de-leveraging, which gives us the flexibility to invest and to create value. Our plan is built to drive improvement in key metrics, including better sales growth, stronger margins and lower leverage. To ensure our capital allocation framework remains aligned with our strategy and market opportunities, we regularly review the most effective uses of capital across growth investments, debt reduction and shareholder returns, including assessing the dividend on a quarterly basis. But let me be clear. Our priority is to deliver our '26 commitments while positioning Perrigo for sustainable long-term growth. Underlying all of this are two things I will focus on: strategy and execution. Perrigo is becoming a more focused consumer self-care company, and I am confident we are building real durable shareholder value. With that, I'll turn it over to Eduardo to walk through the financial results in more detail. Eduardo Bezerra: Thank you, Albert. I appreciate everyone joining us today. Other than for references to net sales, my comments will focus on adjusted non-GAAP results unless otherwise noted. Turning to our results, starting with the top line. Core net sales declined 3.1% year-over-year, while Core organic net sales declined 3.5%. Results were impacted by approximately 1.2% due to continued softness in category consumption compared to the strong prior year period, particularly in cough, cold and certain summer seasonal categories. We also continue to see retailer inventory reductions, most notably in Europe, which impacted sales by approximately 1.8%. While these dynamics pressured reported results, category trends improved as the quarter progressed, supporting our confidence in the underlying trajectory of the business. Within Self-Care, performance was impacted by continued category softness and a slower start to the summer season. This softness was most pronounced in Europe, where delayed allergy and sun seasons pressured demand across seasonal categories. Despite these headwinds, we continue to gain market share across key categories, supported by innovation and distribution gains, including strong performance in our store brand allergy business driven by distribution wins in the U.S. Specialty Care net sales declined modestly. Strong growth in women's health was driven by continued momentum from Opill and ellaOne, supported by strong consumer engagement, encouraging repeat purchase trends and ongoing health care professional outreach and expanded distribution in Europe. Skin Health results were impacted by a slower start to key summer seasonal categories, lower sales of store brand Minoxidil and a difficult prior year comparison in Mederma due to the timing of inventory restocking. Encouragingly, trends improved throughout the quarter with leading brands such as Compeed accelerating as seasonal demand strengthened in Europe. On an all-in basis, net sales declined 3.2% driven by the same category dynamics in addition to the impact of the Dermacosmetics divestiture. This decline was partially offset by the strong performance in Infant Formula, which grew 23% year-over-year, driven by timing of contract sales and growth in store brand formula. Currency translation provided a modest benefit to both Core and all-in net sales during the quarter. Now to adjusted operating income. Looking first at Self-Care, all-in operating income declined $15 million or 16.2%, driven primarily by lower net sales volumes, planned under-absorption stemming from lower prior year sales volumes in U.S. OTC and unfavorable mix. We also saw pressure from continued retailer inventory reductions in Europe and a slower start to the summer season, which weighed on several higher-margin seasonal categories. These headwinds were partially offset by benefits from our operational enhancement program. Specialty Care operating income decreased $18 million or around 28%, driven primarily by lower profitability in Skin Health, reflecting a slower start to key summer seasonal categories, retailer inventory reductions and lower contract manufacturing sales of store brand Minoxidil. The segment's performance also reflected higher advertising and promotional investment to support second half growth initiatives, including a refreshed Opill marketing campaign as well as the impact of planned under-absorption stemming from lower prior year sales volumes. In Infant Formula, operating income improved by approximately $60 million year-over-year as actions to rationalize capacity, improve efficiency and stabilize the business continued to gain traction. In addition, the business benefited from lapping isolated production variability in the prior year period that had resulted in elevated product scrap and pressured profitability. These factors more than offset planned under-absorption stemming from lower prior year sales volumes. Within All Other, operating income was consistent with the prior year, driven by the net recognition of a recovery of a portion of previously paid tariffs in addition to improved profitability in Oral Care. These factors offset the impact of the Dermacosmetics divestiture. Corporate operating expenses declined year-over-year, driven by operational enhancement program savings and a onetime benefit related to the second quarter CEO transition of $6 million. Turning to margins. Drivers of both Core and all-in margin changes were consistent with the segment results just discussed. Core adjusted gross margin declined 250 basis points to 37%, primarily due to lower sales volumes, planned under-absorption stemming from lower prior year sales volumes and unfavorable mix. All-in adjusted gross margin declined 250 basis points to 35.6% due to the same factors impacting Core gross margin in addition to the impact of divestitures. These factors were partially offset by strong performance in the Infant Formula category. Core adjusted operating margin decreased 160 basis points to 13%, reflecting gross margin flow-through, partially mitigated by benefits from the operational enhancement program and the onetime benefit from the CEO transition. All-in adjusted operating margin decreased 60 basis points to 12.2% due to the same factors as Core operating margin in addition to Infant Formula performance, which more than offset the impact of divestitures. Second quarter Core adjusted earnings per share was $0.46, a $0.12 decline from the prior year period, but above our expectations, primarily due to lower operating expenses in the quarter, driven by the accelerated implementation of our operational enhancement program in addition to a onetime benefit from the CEO transition. All-in adjusted diluted earnings per share declined $0.07 to $0.50 due to the impact of lower sales volumes and the carryover impact of prior year manufacturing volumes, partly offset by the timing of Infant Formula contract business. Turning to cash flow. Second quarter 2026 cash from operating activities was $83 million, in line with our expectations. Capital expenditures totaled $14 million, and we returned $40 million to shareholders through dividends. Turning to balance sheet. Cash and cash equivalents were $400 million and total debt was $3.3 billion. During the quarter, we applied the majority of the $359 million cash proceeds from the Dermacosmetics sale towards debt reduction, significantly reducing the balance withdrawn on our revolving credit facility. We remain focused on disciplined capital allocation, balancing capital expenditures for growth, de-leveraging our balance sheet and shareholder returns. Looking ahead, while first half earnings results were ahead of our expectations, given the dynamic external environment and timing of Infant Formula contract sales, we are taking a measured approach for the balance of the year. As such, we are maintaining our full year outlook for Core and all-in net sales, margin and earnings per share metrics. The underlying assumptions supporting our outlook remain intact, including continued progress on our growth initiatives, benefits from the operational enhancement program and improving category trends as we move through the balance of the year. Based on our year-to-date performance, we are adjusting our estimated full year effective tax rate from approximately 20% to approximately 18%. We're also updating our estimate for diluted shares outstanding in full year 2026 to 139.3 million (sic) [ 139.6 million ] shares. All other guidance assumptions remain unchanged. As Albert noted, we continue to expect results to be weighted toward the second half of the year. Turning now to our sales outlook. As we have highlighted, underlying category trends improved as the second quarter progressed, and our first half net sales performance was broadly consistent with our expectations. As a result, we are maintaining our full year outlook for both Core and all-in net sales. Our expectations for second half sequential performance are supported by three factors: First, the increasing contribution from our growth building blocks, including innovation, distribution gains and demand generation, which are already underway and expected to build momentum as the year progresses; second, continued sequential improvement in category trends, which strengthened through the first half of the year; and third, growth of our base business and the normalization of seasonal trends compared to weaker prior year seasonal performance. Looking at 2026 adjusted earnings per share guidance, we're taking a measured approach for the balance of the year. We remain mindful of continued consumer weakness and macroeconomic pressures, particularly in Europe. Second half sequential earnings improvement is supported by clear, quantifiable drivers, including the revenue building blocks, the partial reduction of under-absorption stemming from lower prior year sales volumes, benefits from our operational enhancement program and lower interest expense from the second quarter debt paydown. Offsetting the sequential benefits in the second half are higher expected advertising and promotion investments to support our demand generation and innovation launches and the normalization of incentive compensation versus the prior year. First half results also included benefits related to the second quarter CEO transition and the recovery of tariffs. As indicated previously, planned under-absorption stemming from lower prior year sales volumes is expected to result in an unfavorable all-in earnings per share impact of approximately $0.60 in 2026. Roughly $0.26 of that impact was recognized in the first quarter and $0.18 was recognized in the second quarter. In summary, our outlook is based on clear drivers supporting our second half expectations, many of which are well underway, while acknowledging the dynamic macro environment. As Albert outlined, the Three-S plan is driving tangible improvements, and we're confident that we are positioning Perrigo to generate sustainable growth of shareholder value. Before I turn the call back to Eric, I want to thank our 8,000 employees for their commitment, focus and resilience in delivering our first half results, and I look forward to continuing our progress for the remainder of the year. Eric? Eric Jacobson: Thank you, Eduardo. Operator, we're now ready for questions. Operator: [Operator Instructions] Your first question comes from Chris Schott with JPMorgan. Ethan Brown: This is Ethan on for Chris. Just starting off, can you provide any updates on the infant formula strategic review, the progress that you're making there and latest thoughts on timing more broadly for further updates? Albert Manzone: Chris, this is Albert Manzone, nice to talk to you. Thank you for the question. With regard to our reviews that are going on, they are all proceeding well, and we will update you as soon as we have something to say. We're looking at different options. As I said in my opening remarks, the process is proceeding well, and we will update you as soon as we have information. Ethan Brown: Great. And then overall, as you look at the business today and looking ahead to 2027, understanding it's still early, how are you thinking about the different pushes and pulls within the business on earnings as you're seeing them? And maybe as part of that, where do you have more confidence in the business' performance and maybe what remains just more uncertain in your eyes? Albert Manzone: Looking, what I can tell you is that we are working on a strategy that is working as we speak. We are gaining share as we reported and as you can see, we're driving operational enhancement. We're staying the course, which is very important as I came in. The strategy is the right one. And as you look at the second half and we look forward, we remain obviously conscious from a consumer demand standpoint, but we are doubling down essentially on our platform approach, be it on the innovation, and I'm very happy to tell you, as I say, that we are growing this one threefold across our platforms. What is important with the platforms is that you are able out of an innovation and a platform to then deliver it both on a store brand as well as a branded across different price points, which if you think about it from a return on investment, that's a much more focused approach and a much smarter approach vis-a-vis who Perrigo is and the unique advantages of Perrigo. We are also working on consumer demand generation and partnering with our retailers. Our service levels are up. As you know, we're very happy with 95% in Europe, 91% in the U.S. and that varies per customer. But essentially, that gives us now the opportunity to sit down, partner with them, both in developing innovation and growing not only share, but also the category in the U.S. and then delivering demand generation, you will see some of that in the second half. So what I will tell you when we look forward is our objective is to have a sound strategy and to out-execute. And that is what we're going to do quarter after quarter. Ethan Brown: Great. And then just last question for me is how large of an impact did the reversal of tariffs and any of the other onetime costs have on the quarter? Albert Manzone: I will let -- Yes, thank you, Chris. I will let Eduardo answer that question. Eduardo Bezerra: Yes. So for Q2, let's say, the benefit that we had related to tariffs was around $10 million. And as I talked in my opening remarks, the benefit on the OpEx related to the CEO transition was about $6 million. Operator: The next question comes from Susan Anderson with Canaccord. Susan Anderson: I guess maybe I wanted to follow up just on the private label, the new kind of store brand strategy where you guys are adding more demand generation, more marketing, et cetera, around the brands. I'm curious if that's rolled out yet to other retailers and other categories. I believe allergy was kind of the first one. So just curious if you've seen a similar response from consumers and within other categories. Albert Manzone: Yes. Susan, great question. So -- we are doing this across all our categories, yes, that's the answer. But what I'm happy to tell you is that this is absolutely what we're at and doing. And this demand generation is possible with partnering with the retailers because our objective, you can see that we're gaining share. We gained 50 basis points in the U.S. We have, as of the last 4 weeks in July, gained another 60 basis points. So we're happy with that. But our objective is also to grow the category with the retailers. And for that, we need to do exactly the things that you talked about, and we're working to do this across different -- all the categories we are in retailers. And we see a lot of enthusiasm from the retailers and that as you know, when it works with one or two or three, it tends to expand and there is more demand. And so again, our objective is to execute and out-execute on this and on this strategy and looking forward to more quarters like this. Susan Anderson: Okay. Great. And then I guess maybe just on the Infant Formula, I guess, how are you thinking about the profitability there as sales kind of recover? Should we expect it to go towards historical profitable levels? Or is it not going to reach that point again? And then I guess, as the business does improve, I know it's still under review, but is there a thought process that potentially you'll just end up keeping it? Albert Manzone: Let me -- and I will pass it on to Eduardo, but I would say that doesn't change our strategic reviews on the categories that we have announced. If anything, the good news is that it gives you more optionality, of course. So that's always good. Some of it is driven by timing of shipments. So some of it is driven by store brands. But essentially, no, that doesn't change the strategic review, and I'll let Eduardo comment more on some of the other aspects of your question. Eduardo Bezerra: Yes. Susan, so a couple of comments in addition to what Albert said. So remember that we talk about we're going to be looking to optimizing the business, partnerships and potential divestments, right? So in terms of optimization, you saw that in the second quarter, we took some hard, tough decisions on reducing significantly our drying capacity in Vermont. And the good news is we have a very recent audit from the FDA, and there were no observations. So a lot of the stabilization work that we have started years ago showing that we did the right work. Also, we had recently the Secretary of HHS visiting our Wisconsin facility, and he was very impressed with the standard and mentioned this was a state-of-the-art facility for the industry. So I think that those are right choices that we did. There are significant impacts on our performance and our results, but that will pay back on the long term. So from an optimization standpoint, it's really good. On a quality standpoint, our program to have right the first time it's going very well. So you mentioned -- you saw that I mentioned in the call that we have a significant reduction in obsolescence or scrap. That's mainly because as you're doing things right the first time, you have much better absorption and lower throw rates. And so this has not only improved our margin, but also improved the efficiency of how we're managing the business going forward. Also, we had a benefit that was timing-related regarding contract sales that we do not expect that to translate into increase in the full year. But we're seeing a store brand picking up on the non-WIC market, we're seeing some positive share gains of store brand that gives us confidence on that side. And also the important thing is we are seeing very positive early signs of innovation. So we launched an equivalent format to one of the largest imported competitors in the marketplace, and the early signs are very positive. Susan Anderson: Okay. Great. And then one last question, if I could add. Just curious any comments around how your inventory is at retailer competitors as well? I think some of your competitors on the branded side have talked about some detoc -- destocking in the OTC space. Just curious if that's impacting your products at all. Albert Manzone: Yes. And we did mention this across our opening remarks. We had some of the same impact in Q1 and Q2. That was driven obviously by seasonality that was below the norm. And the good news is as we get into second half, that has subsided. And we are remaining cautious as we said on the consumer side, but we expect a normalization of seasonality on our core, even if we won't return to the levels of 2 years ago, but we are cautiously optimistic in terms of the trends. Eduardo Bezerra: And Susan, just to add, we mentioned that out of the around 3% decline in core net sales, right? So 1.8 was related to retailer inventory destocking, most notably in Europe. Operator: The next question comes from Keith Devas with Jefferies. Keith Devas: Maybe I'll just zoom out a bit back to the overall category performance. It sounds like you're noting outside of some of the seasonal segments that category performance is improving. I'd love to just get your context on what you think is driving that. Obviously, your execution is improving, and that's resulting in some share gains. But I think for a long period of time, we've been surprised seeing the category being kind of stagnant. And I think your commentary suggests that it's starting to improve and maybe turn a corner. So any context you can give on just maybe what's driving that, why the consumer is returning, might be helpful for us to think about the trajectory from here. Albert Manzone: Good. Hi, Keith. Nice to talk to you. So Ethan, with regard to the category, it has been declining, as you know, some of it has been due to the seasonality, and we had a low cough, cold season. We had also on the allergy side, also there, the seasonality was not great this year. What you start to see in the end of the second quarter and you start to see it in the beginning of Q3, you start to see a recovery of the category. Some of it is due to the fact that we are off of that seasonality. So as we said, we are planning for a more normal seasonality going forward even COVID won't return at the levels of 2 or 3 years ago. The second thing is there is a certain amount of innovation that we're bringing to the market in this second half. There is also -- and so that's on the innovation side. And as I said, we are really working across platforms. So you can expect the platform, which is really not what we have been doing in the past, to continue forward. And for next year, we start to have more than 50% of our innovation coming on platform. Therefore, things that we are going to see across Europe, U.S. store brand, branded and different price points. So that's one. And the second one is that we have strong brands, be it Opill, be it Compeed in Europe or Opill in the U.S. that are really getting stronger. So if I take those two examples, Opill in the U.S. is doing better and better, growing. We have repeat rates, which are above 60%, which we're very happy. It's really across our retailers, and we are going to work the second half to really push that product in terms of consumer demand, and we're very excited about it. If you take Compeed in Europe, today, the same way that you use Kleenex for your nose, you use a Compeed for whatever you need across Europe. We have become #1 in France, #1 in Italy. We were #1 in the U.K., #1 in Spain. So we are really getting strong. We're very excited about the innovation we have launched. It's doing very well. So essentially, we keep focusing on what we do on the execution behind the strategy that's really, for me, very important. It's not only about strategy, but it's also about execution. And I think that's what is going to take us forward. We remain, of course, very mindful of the consumer in the second half in terms of inflation, affordability, et cetera. So we are cautious. But we are focusing on what we can control, and that is working with the retailers to co-innovate and co-promote the brands, working on the innovation, working on demand generation. Those are the things we control. We have the relationship with the retailers, and we have the brands in Europe to do that. Keith Devas: Great. Maybe just a very quick follow-up. I think some competitors across consumer health plus personal care are seeing this dynamic of channel shifting occurring. I'm curious how you see that phenomenon impacting your business and how you guys feel you're positioned as demand starts to shift more towards -- away from in-person brick-and-mortar retail and more towards e-commerce. Albert Manzone: This is something that we're seeing also, and I'm very happy to tell you that this is something we're very much -- and this is -- the portfolio we have is a good portfolio for e-commerce first and foremost. So we are very excited about the progress we're making in e-commerce in the U.S., and this is growing very fast. And I would tell you that in Europe, it's moving exactly in the same direction. So we are on it. This is leading for us, and we have a very strong relationship. We have some of those e-commerce big groups that are -- come visited with us, sat down with us, visited our plants, share the best practices. And as you know, when you talk about e-commerce, seeing a human is always a very good sign, and we have seen a lot of humans lately coming to us and co-developing with us. So we're very excited about the opportunity, and we are all over it. Eduardo Bezerra: And Keith, just to reinforce the message is, our growth in share is accelerating in e-commerce, much ahead of brick-and-mortar as well. Operator: At this time, there are no further questions. I will now transfer the conference over to Mr. Albert Manzone. Please go ahead, sir. Albert Manzone: Thank you, Angeline. And I want to thank everybody for joining the call for your questions, which were very insightful. And what I can tell you is that in my first weeks, I have been focused on listening to our stakeholders and what I have heard has strengthened my confidence in the future of Perrigo. Our customer base is engaged and wants to do more business with us, which represents a meaningful opportunity. Our passionate and capable team, who I want to thank, is committed to our mission of providing affordable self-care to consumers. And we have a clear path to rebuilding trust with investors through consistent execution. Earning that trust will be the result of delivering on our commitments quarter by quarter. My priorities for the remainder of the year are straightforward: sustain our market share gains by executing on our key growth building blocks, deliver our cost savings plan, advance our strategic reviews to further simplify our business and achieve our 2026 financial outlook. I am focused on ensuring Perrigo is positioned to capitalize on our long-term opportunities and create sustainable value for our shareholders. And I'm confident that we're taking the right steps and building momentum across the business. So thank you all for your interest in Perrigo. Operator: Thank you. Ladies and gentlemen, this concludes the conference call for today. Thank you for participating. Please disconnect your lines. Before you buy stock in Perrigo Plc, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Perrigo Plc wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Perrigo (PRGO) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Perrigo Company plc? Here are five stocks we like better. Second-quarter earnings beat internal expectations, but core net sales fell 3.1% and adjusted EPS declined to $0.46 as soft self-care demand, retailer destocking and delayed seasonal activity weighed on results. Perrigo continued to gain market share in the U.S. and Europe, supported by Opill, Compeed and store-brand allergy products, while infant formula sales rose 23% and profitability improved. The company maintained its full-year 2026 outlook, expecting stronger second-half performance from innovation and operational savings. Perrigo also used proceeds from its $359 million Dermacosmetics sale to reduce debt and is reviewing strategic options for its infant formula and oral care businesses. High Yield Revival: 3 Cash-Rich Dividend Payers on Sale Perrigo (NYSE:PRGO) reported second-quarter 2026 results that exceeded its internal earnings expectations, while sales declined amid soft consumer self-care categories, retailer inventory reductions and a slower start to seasonal demand. The company maintained its full-year outlook, citing improving category trends, market-share gains and expected second-half contributions from innovation, distribution and demand-generation efforts. Core net sales fell 3.1% year over year, while all-in net sales declined 3.2%. Core adjusted earnings per share were $0.46, down $0.12 from the prior-year period, while all-in adjusted diluted EPS was $0.50, down $0.07. CFO Eduardo Bezerra said earnings exceeded expectations primarily because of lower operating expenses, including accelerated operational-enhancement savings and a one-time $6 million benefit associated with the CEO transition. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling These 3 Dividend Stocks Combine Strong Yields With Upside Interim President and CEO Albert Manzone said the company remains focused on its “Three-S” plan to stabilize operations, streamline the portfolio and strengthen growth capabilities. Manzone, who recently assumed the interim CEO role, said Perrigo’s board and management are working to rebuild investor confidence through consistent execution. Bezerra said continued softness in category consumption reduced core sales by approximately 1.2%, particularly in cough, cold and certain summer seasonal categories. Retailer inventory reductions, most notably in Europe, reduced sales by another approximately 1.8%. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Seasonal demand was particularly weak in Europe, where delayed allergy and sun seasons weighed on self-care sales. Skin-health performance also reflected a slower seasonal start, lower sales of store-brand minoxidil and a difficult comparison for Mederma related to prior-year inventory restocking. Despite the sales decline, management pointed to improved category conditions later in the quarter and into the third quarter. Manzone said U.S. OTC volumes in Perrigo’s categories turned positive during the four weeks ended July 19. He said the company expects category comparisons to become easier through the balance of the year, though executives remained cautious about consumer demand and macroeconomic conditions. → No Hangover: Revisiting Microsoft One Week After Earnings Infant formula was a notable offset to the broader sales pressure, with revenue increasing 23% year over year. Bezerra attributed the increase to the timing of contract sales and growth in store-brand formula. He cautioned that the timing-related contract-sales benefit is not expected to translate into a higher full-year outlook. Management emphasized that Perrigo gained share in both the United States and Europe. In the U.S., the categories in which Perrigo competes declined 1.1% in volume, while the company’s combined store-brand OTC volumes across self-care and specialty care increased 1.5%, producing a 50-basis-point market-share gain. In Europe, category value declined 0.6%, while Perrigo’s key brands grew 3.3%, also resulting in a 50-basis-point share gain. Manzone said the company gained another 60 basis points of U.S. share during the latest four-week period discussed on the call. The company cited performance from Opill, Compeed and store-brand allergy products as examples of its growth strategy. Opill continued to see rising retail velocity, repeat purchases and consumer movement toward larger pack sizes. Manzone said repeat rates for Opill were above 60%. Compeed benefited from earlier seasonal activation and stronger in-store execution in Europe, while store-brand allergy growth was supported by innovation, distribution gains and demand-generation initiatives. Manzone said Perrigo is expanding demand-generation programs for store brands beyond allergy products and across its categories. He added that e-commerce share growth is advancing faster than brick-and-mortar growth, with similar channel-shift trends occurring in both the U.S. and Europe. Core adjusted gross margin declined 250 basis points to 37%, while all-in adjusted gross margin also fell 250 basis points to 35.6%. The company attributed the declines to lower sales volumes, planned under-absorption from lower prior-year manufacturing volumes and unfavorable mix. Divestitures also affected all-in margins. Core adjusted operating margin declined 160 basis points to 13%, and all-in adjusted operating margin decreased 60 basis points to 12.2%. Self-care operating income fell $15 million, or 16.2%, while specialty-care operating income decreased $18 million, or roughly 28%, as lower sales, seasonal weakness, retailer destocking and investment in advertising and promotional activity weighed on results. Infant formula operating income improved by about $16 million year over year. Bezerra said capacity rationalization, efficiency improvements and business-stabilization actions helped results, along with the absence of prior-year production variability that had increased scrap. Perrigo reduced drying capacity at its Vermont facility during the quarter, while continuing to review strategic options for the business. The company is evaluating whether to optimize, partner or divest its infant formula and oral care businesses. Manzone said the reviews are progressing but did not provide a timeline for an update. He said operational improvements in infant formula provide Perrigo with greater optionality regardless of the eventual outcome. Perrigo sold its Dermacosmetics business during the quarter for $359 million and applied most of the proceeds to debt reduction, significantly reducing its revolving-credit-facility balance. Since 2024, the company’s divestitures have generated approximately $600 million in upfront proceeds, mainly used to reduce debt. At quarter-end, Perrigo had $400 million of cash and cash equivalents and $3.3 billion of total debt. Cash from operating activities totaled $83 million, capital expenditures were $14 million and dividends paid totaled $14 million. The company reiterated its full-year 2026 outlook for core and all-in net sales, margins and EPS. It expects results to be weighted toward the second half, supported by innovation launches, distribution gains, improving category trends, operational-enhancement savings and lower interest expense following debt repayment. Perrigo expects planned under-absorption from lower prior-year sales volumes to reduce all-in EPS by approximately $0.60 in 2026. About $0.26 of that impact occurred in the first quarter and $0.18 occurred in the second quarter. The company revised its expected full-year effective tax rate to approximately 18% from approximately 20% and updated its diluted-share estimate to 139.3 million shares. Perrigo Company plc is a global healthcare supplier specializing in over-the-counter (OTC) and self-care products, as well as generic prescription pharmaceuticals and active pharmaceutical ingredients. The company develops, manufactures and distributes a broad array of consumer health products, including analgesics, vitamins and supplements, digestive health remedies, topical treatments, and infant formulas. Perrigo's focus on private-label solutions has made it a leading partner for retailers and pharmacy chains seeking high-quality, value-oriented alternatives to branded medications and health supplements. Organized across three principal business segments—Consumer Healthcare, Prescription Pharmaceuticals and Active Pharmaceutical Ingredients—Perrigo's operations span research and development, manufacturing, quality assurance and global distribution. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Perrigo Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Perrigo (PRGO) is drawing fresh attention after second quarter 2026 adjusted earnings per share came in ahead of consensus, supported by strong Infant Formula sales and a reaffirmed full year outlook for declining net sales. For investors, this mix of outperformance on adjusted earnings, weaker overall sales and a maintained guidance range for net sales decline between 5.5% and 1.5% raises practical questions about how the stock’s recent performance lines up with the underlying business trends. See our latest analysis for Perrigo. The recent Q2 earnings beat, reaffirmed 2026 guidance for declining net sales and the July dividend decision appear to have shifted sentiment in the short term. A 7 day share price return of 27% and a 30 day share price return of 22.05% contrast with a 1 year total shareholder return that is down 38.2%, suggesting momentum has picked up lately after a weaker long term performance. If Perrigo’s rebound has you rethinking where growth and income could come from next, it can help to widen the search using a dedicated screener for resilient dividend ideas. For income focused investors, now may be a good time to scan the market for other stocks offering robust yields and fundamentals through the 8 dividend fortresses Bulls point to Perrigo’s earnings beat, Infant Formula strength and dividend, while bears focus on falling sales, recent losses and the long slide in returns. Which side does the current valuation actually support next? The most followed narrative values Perrigo at $16.50 per share, compared with the latest close at $12.84, framing the stock as materially discounted on that view. Read the complete narrative. Read the complete narrative. Want to see what sits behind that $16.50 fair value for Perrigo? The narrative focuses on a profitability turnaround, steady revenue expectations and a future earnings multiple that is closer to high growth stocks than to the broader pharmaceuticals group. Result: Fair Value of $16.50 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this Perrigo narrative still faces pressure if soft category consumption persists, or if infant formula competition and supply issues weigh on margins and market share. Find out about the key risks to this Perrigo narrative. If the mixed sentiment around Perrigo has you on the fence, take a moment to look at both sides of the story quickly and form your own stance using the full breakdown of 4 key rewards and 1 important warning sign Do not stop with Perrigo. If you want more potential opportunities on your radar, use the Simply Wall St screener to surface ideas that fit your own goals. Target potential upside by checking stocks that appear priced below their estimated value with the 51 high quality undervalued stocks Focus on resilience by scanning companies that show stronger balance sheets and healthier fundamentals through the solid balance sheet and fundamentals stocks screener (49 results) Aim to get in early by reviewing the screener containing 19 high quality undiscovered gems before they draw wider attention. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include PRGO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Perrigo PRGO reported second-quarter 2026 All In adjusted earnings per share (EPS) of 50 cents, which beat the Zacks Consensus Estimate of 31 cents. The reported figure declined 12.3% year over year owing to lower sales volumes and the carryover impact of planned under-absorption stemming from lower prior-year sales volumes. All In net sales declined 3.2% year over year to $1.02 billion but marginally beat the Zacks Consensus Estimate of $1 billion. The decline was attributed to softer consumer demand, lower retail inventory levels and the impact of divestitures, partially offset by growth in Infant Formula sales. In the second quarter of 2026, All In sales declined 2.2% year over year on account of exited businesses and product lines but benefited 0.3% from favorable currency movements. At constant currency (excluding foreign currency translation), sales fell 3.5%. Organic net sales (excluding the effects of acquisitions and divestitures and the impacts of currency) declined 1.3%. To remind investors, Perrigo had announced a restructuring of its reporting framework in the fourth quarter of 2025. Beginning in 2026, the company reported results using two perspectives, “All In” and “Core”. “All In” reflects historical operations and “Core” represents the go-forward business excluding Infant Formula and announced divestitures, primarily the Dermacosmetics unit. Core adjusted EPS for the first quarter was 46 cents, down 20.7% year over year. Perrigo recorded $907 million in core adjusted sales, down 3.1% year over year. PRGO stock gained 23% on Wednesday, likely due to better-than-expected earnings results. Investors reacted positively to the earnings beat. Year to date, shares of Perrigo have risen 0.1% against the industry’s 15.7% decline. Image Source: Zacks Investment Research Under the new structure, beginning in the first quarter of 2026, Perrigo reports results under three separate segments: Self Care, Specialty Care and Infant Formula. The Self Care segment encompasses the Upper Respiratory, Digestive Health, Pain and Sleep Aids, and Healthy Lifestyles categories, covering both branded and store-brand products. Meanwhile, the Specialty Care segment includes Women’s Health and Skin Health businesses. The Infant Formula segment continues to represent the company’s established infant nutrition business. An additional “All Other” category includes oral care, the Dermacosmetics business, currently being divested and smaller non-core brands. Self Care: The segment’s net sales in the second quarter came in at $577 million, down 3.7% year over year, primarily due to continued softness in category consumption across the United States and Europe. Specialty Care: The segment reported net sales of $227 million, down 2.8% from the year-ago period, mainly due to weaker Skin Health performance, partly offset by growth in the Women's Health category. Infant Formula: In this segment, net sales rose 23.1% year over year to $101 million, driven by the timing of contract infant formula shipments. Under the All Other category, net sales decreased 16.9% year over year to $119 million. Perrigo ended the second quarter with cash and investments of $399.7 million compared with $357.2 million as of March 31, 2026. Perrigo Company plc price-consensus-eps-surprise-chart | Perrigo Company plc Quote The company expects All In net sales to decline by 1.5%-5.5% year over year in 2026. All In adjusted EPS is projected to be in the range of $2.00-$2.30. For its Core business, sales are forecast to range from a 3% decline to 1% growth. Core adjusted EPS is expected to be in the range of $2.25-$2.55. Perrigo currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector are Harmony Biosciences HRMY and Liquidia Corporation LQDA, each currently sporting a Zacks Rank #1 (Strong Buy) and Altimmune ALT, which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Over the past 60 days, earnings per share estimates for Harmony Biosciences have increased from $3.20 to $3.33 for 2026. Over the same period, estimates for earnings per share increased from $3.64 to $3.87 for 2027. HRMY shares have risen 2.2% year to date. Harmony Biosciences missed on earnings in three of the trailing four quarters and beat in the remaining one, delivering an average negative surprise of 13.97%. Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have increased to $3.02 from $2.97. Over the same period, EPS estimates for 2027 have risen to $5.31 from $4.81. LQDA shares have gained 158.4% year to date. Liquidia’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 54.40%. Over the past 60 days, estimates for Altimmune’s 2026 loss per share have narrowed from 69 cents to 64 cents. Over the same period, loss estimates for 2027 have also improved from 73 cents to 64 cents. ALT shares have declined 16.1% year to date. Altimmune’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, the average surprise being 15.81%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Perrigo Company plc (PRGO) : Free Stock Analysis Report Altimmune, Inc. (ALT) : Free Stock Analysis Report Liquidia Corporation (LQDA) : Free Stock Analysis Report Harmony Biosciences Holdings, Inc. (HRMY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Perrigo (PRGO) came out with quarterly earnings of $0.5 per share, beating the Zacks Consensus Estimate of $0.31 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +61.29%. A quarter ago, it was expected that this drug company would post earnings of $0.39 per share when it actually produced earnings of $0.43, delivering a surprise of +10.26%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Perrigo, which belongs to the Zacks Medical - Products industry, posted revenues of $1.02 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.89%. This compares to year-ago revenues of $1.06 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Perrigo shares have lost about 22.6% since the beginning of the year versus the S&P 500's gain of 13%. While Perrigo has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Perrigo was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.61 on $1.01 billion in revenues for the coming quarter and $2.09 on $4.11 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Haemonetics (HAE), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This provider blood management systems for health care providers and blood collectors is expected to post quarterly earnings of $1.07 per share in its upcoming report, which represents a year-over-year change of -2.7%. The consensus EPS estimate for the quarter has been revised 0.2% lower over the last 30 days to the current level. Haemonetics' revenues are expected to be $327.95 million, up 2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Perrigo Company plc (PRGO) : Free Stock Analysis Report Haemonetics Corporation (HAE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Core Net Sales: Declined 3.1% year-over-year; core organic net sales declined 3.5%. All-in Net Sales: Declined 3.2% year-over-year. Infant Formula Net Sales: Grew 23% year-over-year, driven by timing of contract sales and growth in store brand formula. Core Adjusted Gross Margin: Declined 150 basis points to 37%. All-in Adjusted Gross Margin: Declined 250 basis points to 35.6%. Core Adjusted Operating Margin: Decreased 160 basis points to 13%. All-in Adjusted Operating Margin: Decreased 60 basis points to 12.2%. Core Adjusted EPS: $0.46, a $0.12 decline from the prior year period. All-in Adjusted Diluted EPS: Declined $0.07 to $0.50. Cash from Operating Activities: $83 million in Q2 2026. Capital Expenditures: Totaled $14 million. Dividends Returned to Shareholders: $14 million. Cash and Cash Equivalents: $400 million. Total Debt: $3.3 billion. Self-Care Operating Income: Declined $15 million or 16.2%. Specialty Care Operating Income: Decreased $18 million, or around 28%. Infant Formula Operating Income: Improved by approximately $16 million year-over-year. Divestiture Proceeds: Sale of Derma Cosmetics for $359 million, applied mainly to debt reduction. Warning! GuruFocus has detected 4 Warning Signs with PRGO. Is PRGO fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Perrigo Co PLC (NYSE:PRGO) gained market share across its portfolio, with US store brand OTC volumes growing 1.5% and European key brands growing 3.3%, each taking 50 basis points of share despite category declines. The company's operational enhancement program is on track to deliver $80 million to $100 million in savings by 2027, with accelerated implementation contributing to better-than-expected Q2 earnings. Infant formula showed strong improvement, growing 23% year-over-year, with operating income up approximately $16 million due to capacity rationalization, efficiency gains, and a successful FDA audit with no observations. Perrigo Co PLC (NYSE:PRGO) strengthened its balance sheet by applying the majority of the $359 million Derma Cosmetics divestiture proceeds to debt reduction, significantly lowering its revolving credit facility balance. The innovation pipeline value has more than tripled since 2024, with over 55% of projects leveraging shared platforms, enabling more efficient and scalable investments across brands and store brands. Service levels have improved significantly, up 1,600 basis points to 91% in the US and 1,000 basis points to 95% internationally since 2023, strengthening customer relationships and supporting share gains. Core net sales declined 3.1% year-over-year, impacted by continued category softness, a slow start to summer seasonal categories, and retailer destocking, particularly in Europe. The company experienced a 1.8% negative impact from retailer inventory reductions, most notably in Europe, which pressured reported results despite improving category trends. Core adjusted gross margin declined 150 basis points to 37%, driven by lower sales volumes, planned underabsorption from prior year sales volumes, and unfavorable mix. Self-care operating income declined 16.2% and specialty care operating income decreased 28%, pressured by lower volumes, a slower start to seasonal categories, and higher advertising investments. Perrigo Co PLC (NYSE:PRGO) maintained its full-year outlook despite Q2 earnings beating expectations, citing one-time benefits like a $6 million CEO transition cost and $10 million tariff recovery that are not expected to recur. The company faces ongoing uncertainty from consumer weakness and macroeconomic pressures, particularly in Europe, with planned underabsorption expected to result in an unfavorable all-in EPS impact of approximately $0.60 in 2026. Q: Can you provide any updates on the infant formula strategic review, the progress you're making there, and latest thoughts on timing more broadly for further updates? A: Albert Manzoni (Interim President and CEO): The reviews are proceeding well, and we will update you as soon as we have something to say. We are looking at different options, and the process is disciplined. Any outcome must enhance shareholder value and sharpen the focus of the portfolio. Q: As you look at the business today and ahead to 2027, how are you thinking about the different pushes and pulls within the business on earnings? Where do you have more confidence and what remains more uncertain? A: Albert Manzoni (Interim President and CEO): The 3S strategy is working, as evidenced by our market share gains. We are doubling down on our platform approach to innovation, which allows us to deliver products across store brands and branded segments at different price points, improving ROI. We are also focused on consumer demand generation and partnering with retailers, with service levels up to 95% in Europe and 91% in the US. Our objective is to have a sound strategy and outline security, delivering quarter after quarter. Q: How large of an impact did the reversal of tariffs and any of the other one-time costs have on the quarter? A: Eduardo Bezerra (CFO): For Q2, the benefit related to tariffs was around $10 million, and the benefit on OpEx related to the CEO transition was about $6 million. Q: Regarding the private label store brand strategy with more demand generation and marketing, has this rolled out to other retailers and categories beyond allergy? Have you seen a similar consumer response? A: Albert Manzoni (Interim President and CEO): We are doing this across all our categories. We gained 50 basis points of market share in the US, and in the last four weeks of July, we gained another 60 basis points. Our objective is to grow the category with retailers, and we see a lot of enthusiasm from them. As this works with one or two or three retailers, it tends to expand, and there is more demand. Q: As infant formula sales recover, should we expect profitability to return to historical levels? And as the business improves, is there a thought process that you might end up keeping it? A: Albert Manzoni (Interim President and CEO) and Eduardo Bezerra (CFO): The improved performance doesn't change the strategic review, but it gives us more optionality. Eduardo added that they took tough decisions to reduce drying capacity in Vermont, and a recent FDA audit had no observations. The "right at first time" quality program has significantly reduced scrap, improving margins and efficiency. They are seeing positive share gains in store brand formula and very positive early signs from an innovation launch equivalent to a major competitor's format. Q: Can you comment on retailer and competitor inventory levels? Some competitors have talked about destocking in the OTC space. Is that impacting your products? A: Albert Manzoni (Interim President and CEO) and Eduardo Bezerra (CFO): We had similar impacts in Q1 and Q2 driven by below-normal seasonality. As we get into the second half, that has subsided. We remain cautious on the consumer side but expect a normalization of seasonality. Eduardo added that out of the around 3% decline in core net sales, 1.8% was related to retailer inventory destocking, most notably in Europe. Q: Outside of some seasonal segments, category performance is improving. What do you think is driving that, and why is the consumer returning? A: Albert Manzoni (Interim President and CEO): The category decline was partly due to poor cough/cold and allergy seasons. We are now seeing a recovery as we lap that seasonality, though we plan for a more normal seasonality, not at levels of two or three years ago. We are bringing innovation to the market, with more than 50% of our innovation coming from platforms shared across Europe, the US, store brands, and branded segments. Strong brands like OPL in the US and Compeed in Europe are getting stronger, with Compeed becoming number one in France, Italy, the UK, and Spain. Q: Some competitors are seeing channel shifting away from brick-and-mortar retail towards e-commerce. How do you see that impacting your business? A: Albert Manzoni (Interim President and CEO) and Eduardo Bezerra (CFO): We are seeing the same dynamic, and our portfolio is well-suited for e-commerce. We are making fast progress in e-commerce in the US and Europe, with major e-commerce groups visiting us to collaborate. Eduardo reinforced that our share growth is accelerating in e-commerce much ahead of brick-and-mortar. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed the 3.1% core net sales decline to temporary category softness in seasonal segments like cough, cold, and allergy, alongside retailer destocking in Europe. The company achieved 50 basis points of market share growth in both U.S. store brand OTC and key European brands, outperforming declining categories through improved service levels and distribution wins. The 'Three-S' plan (Stabilize, Streamline, Strengthen) has improved U.S. service levels by 1,600 basis points to 91%, directly enabling deeper retailer partnerships and category-led growth. Strategic portfolio simplification is being driven by the $359 million divestiture of Dermacosmetics and ongoing reviews of the Infant Formula and Oral Care businesses to sharpen corporate focus. Innovation efficiency has improved by tripling the pipeline value since 2024, with 55% of projects now utilizing shared platforms to scale across different price points and geographies. Management noted that while consumption remains below historical averages, U.S. OTC volumes turned positive in July, signaling a potential normalization of demand trends. The unique geographic mix—predominantly store brand in the U.S. and branded in Europe—is being leveraged to capture value-conscious consumers across all price tiers. Full-year 2026 guidance is maintained with a heavy weighting toward the second half, supported by innovation launches, distribution gains, and easing year-over-year comparisons. The financial framework assumes a $0.60 per share headwind from manufacturing under-absorption, though this is expected to diminish sequentially as production volumes stabilize. Management expects the operational enhancement program to deliver $80 million to $100 million in savings by 2027, providing a buffer against macroeconomic uncertainty. Capital allocation priorities remain focused on debt reduction and de-leveraging to provide future flexibility for growth investments and shareholder returns. Guidance assumes a measured approach to European consumer demand, factoring in continued macroeconomic pressures and potential volatility in seasonal incidence. The Infant Formula segment saw a $60 million year-over-year improvement in operating income following capacity rationalization and the lapping of prior-year production variability. A one-time $6 million benefit related to the CEO transition reduced corporate operating expenses, while a recovery of previously paid tariffs positively impacted operating income within the All Other segment. Retailer inventory reductions in Europe impacted core net sales by approximately 1.8%, reflecting a broader trend of supply chain tightening among retail partners. Based on year-to-date performance, the estimated full year effective tax rate for 2026 was adjusted from approximately 20% to approximately 18%. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated the reviews are proceeding well and exploring options including optimization, partnership, or divestment. The recent capacity reduction in Vermont and positive FDA audit results have improved the business's stability and optionality regardless of the final strategic outcome. Perrigo is expanding its demand generation strategy across all categories to grow the total category size rather than just gaining share from brands. Retailers are showing high enthusiasm for co-innovation and co-promotion, particularly in the allergy segment where distribution wins are driving household penetration. Opill is seeing strong repeat purchase rates above 60% and increasing velocities as consumers trade up to larger pack sizes. Management plans to increase advertising and promotional spend in the second half to further accelerate momentum for this key innovation. Management highlighted that Perrigo's e-commerce share growth is currently outpacing its brick-and-mortar performance. The company is actively co-developing products with major e-commerce groups, leveraging its flexible manufacturing and platform-based innovation model.

Execution of Three-S plan driving continued improvement in underlying business fundamentals, including market share growth in U.S. store-brand OTC and key European brands Streamlined portfolio through completion of Dermacosmetics divestiture and continuing strategic reviews of Infant Formula and Oral Care businesses Reaffirmed full-year 2026 outlook with sequentially stronger second-half performance DUBLIN, Aug. 5, 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 second quarter ended June 27, 2026. "We continued to execute our Three-S plan in the second quarter, strengthening areas of the business within our control, improving operational performance, streamlining our portfolio, and further reducing debt," said Albert Manzone, Interim President and Chief Executive Officer. "While results were impacted by ongoing category softness and macroeconomic headwinds, we again drove market share gains as our broad portfolio of quality self-care products across all price points continues to resonate with consumers seeking value and affordability. We also took another important step in simplifying our portfolio by completing the previously announced sale of our Dermacosmetics business, and are continuing the strategic reviews of our Infant Formula and Oral Care businesses. We are becoming a more focused consumer self-care company, and are making progress in strengthening the underlying fundamentals of our business." "Looking ahead, we are reaffirming our full-year 2026 outlook with a sequentially stronger second half, supported by clear and tangible drivers, including the expected moderation of planned under absorption stemming from lower prior-year sales volumes, more favorable category comparisons, and continued strong operational execution. While mindful of an uncertain consumer and macroeconomic environment, we are continuing to gain market share, streamline our portfolio, and strengthen our balance sheet. At the same time, we remain focused on converting our operational progress into sustainable growth and long-term shareholder value." Second Quarter ResultsAs announced previously, 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. Net Sales Core net sales were $907 million, declining 3.1% year-over-year, while Core organic net sales decreased 3.5%. Core results reflected ongoing softness in consumption compared to a strong prior-year period, along with continued lower retail inventory levels. Consumption trends improved throughout the quarter, and Perrigo continued to gain market share across key categories driven by innovation and strong commercial execution. Pricing declined 0.7% and volume/mix decreased 2.4%. All In reported net sales declined 3.2% year-over-year to $1.02 billion. All In results were primarily driven by the same factors as Core net sales in addition to Infant Formula net sales growth of 23.1% year-over-year, which was more than offset by the impact of divestitures. Gross Margin Reported All In gross margin was 30.7%, a decrease of 370 basis points versus the prior year due to the impact of lower net sales volumes, primarily within the Self Care segment, the carry over impact of planned under absorption stemming from lower prior-year sales volumes, and unfavorable mix, partially offset by improved Infant Formula productivity and the net recognition of a recovery of a portion of previously paid tariffs. Core adjusted gross margin decreased 250 basis points to 37.0% driven by lower net sales volumes, the carry over impact of planned under absorption stemming from lower prior-year sales volumes in U.S. OTC, and unfavorable mix. These headwinds were partially offset by the net recognition of a recovery of a portion of previously paid tariffs and the gross margin contribution from innovation and continued market share gains. All In adjusted gross margin decreased 250 basis points to 35.6%, driven by the same factors impacting Core adjusted gross margin in addition to the impact of divestitures. These pressures were partially offset by improved Infant Formula productivity, which more than offset planned under absorption stemming from lower prior-year sales volumes. Operating Margin Reported operating margin was 2.3% compared to 4.3% in the prior year due to unfavorable gross profit flow through partially offset by lower administrative expenses primarily related to the Operational Enhancement Program. Core adjusted operating margin decreased 160 basis points to 13.0% primarily due to unfavorable gross profit flow through. This decline was partially offset by reduced operating expenses primarily driven by benefits from the Operational Enhancement Program. All In adjusted operating margin decreased 60 basis points to 12.2%, driven by the same factors impacting Core adjusted operating margin as well as the impact of divestitures. These factors were partially offset by the strong performance of Infant Formula. Other Items Reported net interest and other income increased $124.1 million to $81.9 million primarily due to the gain on the sale of the Dermacosmetics business. Net adjusted interest and other expense decreased $0.6 million to $39.3 million due to the reduction in debt outstanding. The Company's reported effective tax rate was 16.0%. The Company's adjusted effective tax rate increased 60 basis points to 17.5%. Diluted EPS Reported diluted EPS was $0.63 compared to $0.00 in the prior year, benefiting from the gain on sale of the Dermacosmetics business, as well as prior year isolated production variability in Infant Formula and restructuring expenses. Core adjusted EPS declined $0.12 to $0.46, a 20.7% decrease from the prior year. All In adjusted diluted EPS declined $0.07 to $0.50, a 12.3% decrease from the prior year. Business Segment Results Self Care Net sales decreased 3.7% compared to the prior year, inclusive of a 0.5% favorable impact of currency translation. The decline was driven by continued softness in category consumption across both the U.S. and Europe and a slower start to certain summer seasonal categories, which led to a continued reduction of retail inventory levels, most notably in Europe. Innovation, distribution gains, and strong commercial execution drove continued market share gains across key categories. Segment operating income decreased 16.2%, primarily due to lower net sales volumes, unfavorable mix, and the planned under absorption stemming from lower prior-year sales volumes. These pressures were partially offset by benefits from the Operational Enhancement Program. Specialty Care Net sales decreased 2.8%, inclusive of a 0.1% favorable impact of currency translation. The decline was driven by Skin Health results, which were impacted by a slower start in summer seasonal categories, lower sales of store brand Minoxidil, and a difficult prior-year comparison for Mederma® due to the timing of inventory restocking. This sales decline was partially offset by growth in the Women's Health category led by continued momentum from Opill® and ellaOne®. Segment operating income decreased 27.9% due to unfavorable mix, higher advertising and promotional investments to support second-half growth initiatives, and the planned under absorption stemming from lower prior-year sales volumes. These pressures were partially offset by benefits from the Operational Enhancement Program. Infant Formula Net sales increased 23.1% primarily driven by timing of contract infant formula shipments, in addition to increased net sales of store brand formula. This growth was partially offset by lower net sales of branded infant formula. Segment operating income increased primarily due to improved gross profit flow through from the lapping of isolated production variability in the prior-year period that resulted in higher product scrap, and the benefit of higher net sales. These factors were partially offset by planned under absorption stemming from lower prior-year sales volumes. All Other Net sales decreased 16.9%, inclusive of a 0.1% favorable impact of currency translation, primarily due to the impact of divestitures. Segment operating income increased 0.5% due to the net recognition of a recovery of a portion of previously paid tariffs in addition to improved productivity and lower operating expenses in the Oral Care category. These factors more than offset the impact of divestitures. Cash Flow and Balance Sheet Net cash from operating activities was $83 million in the second quarter. Second quarter capital expenditures were $14 million and the Company returned $40 million to shareholders through dividends. Cash and cash equivalents as of June 27, 2026 were $400 million while total debt was $3.3 billion. The substantial majority of the approximately $359 million of cash proceeds from the Dermacosmetics divestiture were applied toward debt reduction, reducing borrowings under the revolving credit facility and enhancing financial flexibility to support the Company's Three-S plan and long-term value creation. Fiscal 2026 Outlook The Company reaffirms its 2026 outlook. Second-half results are expected to benefit from the moderation of planned under absorption stemming from lower prior-year sales volumes, more favorable category comparisons, lower interest expense, continued cost benefits from the Operational Enhancement Program and progress across the Company's key growth initiatives, including innovation, distribution gains and demand generation. As indicated previously, planned under absorption stemming from lower prior-year sales volumes is expected to result in an unfavorable All In EPS impact of approximately $0.60 in 2026. Approximately $0.26 of that impact was recognized in the first quarter and $0.18 was recognized in the second quarter. The Company continues to closely monitor the consumer and macroeconomic environment. Other assumptions Net interest expense of approximately $156 million. Adjusted effective tax rate of approximately 18.0%. Adjusted weighted average shares outstanding of approximately 139.3 million. 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 second quarter 2026 financial results beginning at 08:30 A.M. (EDT) Wednesday, August 5, 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 # 98476. A taped replay of the call will be available beginning at approximately 12:00 P.M. (EDT) Wednesday, August 5, until midnight Wednesday, August 12, 2026. To listen to the replay, dial 888-660-6345, International 646-517-4150, and use access code 98476#. 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 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," "outlook," "momentum," "continue," "estimate," "forecast," "predict," "potential" or the negative of those terms or other comparable terminology. The information presented under "Fiscal 2026 Outlook" is inherently forward-looking. 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: 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; 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 satisfaction of certain deferred payment milestones associated with the Dermacosmetics business divestment; 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, adjusted effective tax rate, constant currency net sales. 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 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, adjusted operating margin and adjusted effective tax rate 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. 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, [email protected] Nick Gallagher, Associate Director, Global Investor Relations(269) 686-3238, [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/perrigo-reports-second-quarter-2026-financial-results-from-continuing-operations-302843509.html