Monitor the execution of the new operational enhancement program and the divestiture of the Dermacosmetics business. The 2026 guidance suggests continued challenges, but the 7% growth in adjusted EPS indicates underlying improvement in the core business. The stock may react negatively to the goodwill impairment and lowered guidance, but long-term investors should focus on the cost-saving initiatives and performance of the 'CORE' business.
Price Chart
Executive Summary
Perrigo reported a significant goodwill impairment of $1.3 billion, leading to a net loss of $1.41 billion in Q4 2025. Despite this, adjusted EPS increased 7% to $2.75 for the full year. The company launched a new cost-saving program targeting $80-100 million in annualized savings and issued a cautious 2026 outlook with 'All In' EPS guidance of $2.00-$2.30, while 'CORE' business EPS guidance is $2.25-$2.55.
Key Financial Metrics
Key Facts
- $1.3 billion goodwill impairment charge in Q4 2025
- Full-year adjusted EPS increased 7% to $2.75 despite revenue decline
- New operational enhancement program expected to deliver $80-100 million in annualized pre-tax savings
- 2026 'All In' EPS guidance of $2.00-$2.30, below 2025 adjusted EPS of $2.75
- 2026 'CORE' EPS guidance of $2.25-$2.55, indicating core business performance expectations
- Divestiture of Dermacosmetics business for up to $327 million expected in Q2 2026
Financial Impact
The $1.3 billion goodwill impairment significantly impacted reported earnings, but the core business fundamentals show improvement with 7% growth in adjusted EPS. The new cost-saving program could add $80-100 million in annualized savings by 2027.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Consumer Self-Care Americas | $2.6B | -4.0% |
| Consumer Self-Care International | $1.7B | -0.7% |
Risk Factors
- Additional goodwill impairment charges of up to $350 million possible in Q1 2026 due to reallocation of goodwill to new reporting segments
- 2026 guidance indicates continued revenue and earnings pressure
- Execution risk on the new operational enhancement program
- Challenges in the infant formula business continue to impact performance
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001585364-26-000006 |
| Document: prgo-20260226.htm | 0001585364-26-000006 |
| Document: 0001585364-26-000006-index-headers.html | 0001585364-26-000006 |
| Document: 0001585364-26-000006-index.html | 0001585364-26-000006 |
| Document: 0001585364-26-000006.txt | 0001585364-26-000006 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 5, 2026 11w ago | 8-K | $13.27 | awaiting T+60 | — | $16.06 (+20.99%) |
Jun 30, 2026 16w ago | 8-K | $10.31 $14.68 | ▲ +42.39% | ▲ +39.51% | $16.06 (+55.72%) |
May 28, 2026 21w ago | 144 | $11.15 $14.25 | ▲ +27.80% | ▲ +26.07% | $16.06 (+43.99%) |
Apr 22, 2026 26w ago | 8-K | $11.68 $10.72 | ▼ −8.23% | ▼ −13.15% | $16.06 (+37.43%) |
Apr 3, 2026 29w ago | DEFA14A | $10.56 $10.31 | ▼ −2.39% | ▼ −15.56% | $16.06 (+52.01%) |
Mar 20, 2026 31w ago | DEFA14A | $9.23 $10.99 | ▲ +19.04% | ▲ +4.62% | $16.06 (+73.91%) |
Feb 26, 2026 34w ago | 8-K | $14.08 $11.35 | ▲ +19.40% | ▲ +27.15% | $16.06 (−14.01%) |
US Market Status
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