Perrigo Company plc (NYSE:PRGO) reported third-quarter 2026 financial results from continuing operations for the period ended September 26, 2026, disclosing declines across net sales, margins, and adjusted earnings per share alongside an agreement to divest its Infant Formula business.

Key Highlights

  • Core net sales: $908 million for Q3 2026, down 1.7% year-over-year; Core organic net sales declined 1.1%.
  • Reported diluted EPS: $(0.10) compared to $0.09 in the prior-year quarter.
  • Core adjusted diluted EPS: $0.61, a decrease of $0.06, or 9.0%, from the prior year.
  • All In adjusted diluted EPS: $0.60, a decrease of $0.20, or 25.0%, from the prior year.
  • Cash and cash equivalents: $437 million as of September 26, 2026; total debt was $3.3 billion.
  • Infant Formula divestiture: The company announced an agreement to divest its Infant Formula business subsequent to quarter-end.
  • Full-year 2026 outlook updated to reflect the divestiture, more measured retailer inventory positioning, and continued softness in Europe.

Perrigo's Third Quarter 2026 Operating Results and Segment Performance

According to the filing, Perrigo reported All In net sales of $989 million for the third quarter ended September 26, 2026, a decline of 5.2% year-over-year. Core net sales, which exclude Infant Formula and previously announced divestitures, fell 1.7% to $908 million. The company attributed the decline primarily to lower consumption in its Self Care segment, more measured retailer inventory positioning ahead of the cough and cold season, and lower contract manufacturing volumes. Pricing decreased 0.4% and volume/mix decreased 0.7% on a Core basis.

Reported All In gross margin was 32.4%, a decrease of 370 basis points, while Core adjusted gross margin declined 140 basis points to 37.9%. Core adjusted operating margin fell 210 basis points to 14.3%, driven by unfavorable gross profit flow-through and higher operating expenses, including increased advertising and promotional investments and normalization of variable employee compensation. Reported operating margin was 2.3%, down 460 basis points. The company's reported effective tax rate was 21.1%, while the adjusted effective tax rate decreased to 3.5%, which the filing described as reflecting changes in the jurisdictional mix of earnings.

At the segment level, Self Care net sales decreased 3.2% to $613 million and Specialty Care net sales fell 4.6% to $182 million, each inclusive of unfavorable currency translation impacts. Infant Formula net sales declined 9.6% to $81 million. The filing noted that Women's Health within Specialty Care delivered growth, led by ellaOne and Opill, while Skin Health faced headwinds from lower Minoxidil and Mederma sales. Net cash from operating activities was $96 million in the quarter, capital expenditures were $18 million, and the company returned $40 million to shareholders through dividends.

What Was Disclosed

Perrigo filed third-quarter 2026 results showing declines in net sales, gross margin, operating margin, and adjusted EPS across both All In and Core reporting bases, an agreement to divest Infant Formula, and an updated full-year 2026 outlook.