Perrigo Q2 2026: $1.02B in Sales, $74.5M Net Income, and a Reaffirmed Full-Year Outlook Amid Turnaround
PRGO sits 44% above its 52-week low of $9.225.
Summary
Perrigo reported Q2 2026 net income of $74.5 million on $1.02 billion in sales, rebounding from a Q1 loss, and reaffirmed its full-year adjusted EPS outlook. The quarter included a $129.5 million gain from the Dermacosmetics divestiture, while underlying margins remain under pressure.
Key Events · Earnings and Guidance · PRGO
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Q2 Profitability Restored
Net income of $74.5 million ($0.53 diluted EPS) versus a $398.6 million loss in Q1 2026, driven by a $129.5 million pre-tax gain on the Dermacosmetics sale and lower restructuring charges.
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Revenue and Margin Pressure
Net sales fell 3.2% year-over-year to $1.02 billion; gross margin contracted 370 basis points to 30.7% due to lower volumes and unfavorable mix, partially offset by a $9.6 million tariff refund benefit.
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Full-Year Guidance Reaffirmed
Management reaffirmed its 2026 adjusted EPS outlook, signaling confidence that cost-saving programs (Project Energize, Operational Enhancement Program) will offset top-line weakness.
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Dermacosmetics Divestiture Completed
The sale closed April 30, 2026, for $362.9 million in net proceeds; $335 million was used to pay down the revolving credit facility, reducing leverage.
Analysis · PRGO · Life Sciences
A sharp reversal from the $398.6 million loss in Q1—driven by a massive goodwill impairment—Perrigo delivered a profitable second quarter with $74.5 million in net income. The quarter benefited from a $129.5 million gain on the sale of the Dermacosmetics Business, which closed in April and generated $362.9 million in proceeds used to pay down debt. Underlying operations remain under pressure: net sales fell 3.2% year-over-year to $1.02 billion, and gross margin contracted 370 basis points to 30.7%. Still, the company reaffirmed its full-year adjusted EPS guidance, signaling confidence in its restructuring and cost-cutting programs. The filing also details a new segment structure, a reinstated executive severance policy, and a new long-term incentive plan—all part of a broader leadership and strategic reset following the CEO's resignation in June.
At the time of this filing, PRGO was trading at $13.28 on NYSE in the Life Sciences sector, with a market capitalization of approximately $1.8B. The 52-week trading range was $9.23 to $26.99. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.