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    Perrigo’s Q2 Return To Profit Amid Lower Sales Might Change The Case For Investing In PRGO

    Simply Wall St·08/15/2026 23:25:17
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    • Perrigo Company plc recently reported its second-quarter 2026 results, with sales of US$1,022.8 million and net income of US$74.5 million, and reaffirmed full-year 2026 guidance calling for an All In net sales decline of between 5.5% and 1.5%.
    • The quarter marked a shift from a net loss a year earlier to positive earnings per share, even as both quarterly and year-to-date sales fell compared with 2025 and the company remained loss-making over the first half.
    • We’ll now examine how Perrigo’s move from quarterly net loss to net income, while reaffirming guidance, may influence its investment narrative.

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    Perrigo Investment Narrative Recap

    To own Perrigo, you have to believe in the long term appeal of affordable OTC and self care products, even as near term growth remains pressured. The latest quarter’s return to positive earnings, paired with reaffirmed guidance for a full year sales decline of 5.5% to 1.5%, suggests the main short term catalyst is whether margin improvements can stick while sales are falling. The biggest risk remains weak category demand and competitive pressure in OTC and infant formula, which this update does not materially change.

    Among recent announcements, the reaffirmed 2026 outlook is most relevant here. Despite Q2 net income of US$74.5 million, Perrigo still posted a US$324.1 million loss for the first half as sales declined versus 2025, and management kept its expectation for lower All In net sales this year. That combination of improving quarterly profitability but a still loss making first half keeps attention firmly on execution in the core OTC and nutrition businesses as the key near term swing factor.

    Yet investors should also weigh the risk that ongoing weak category consumption and intense promotion in infant formula could persist longer than expected and...

    Read the full narrative on Perrigo (it's free!)

    Perrigo’s narrative projects $4.2 billion revenue and $73.4 million earnings by 2029. This implies fairly flat yearly revenue growth and a roughly $1.9 billion earnings increase from -$1.8 billion today.

    Uncover how Perrigo's forecasts yield a $16.50 fair value, a 27% upside to its current price.

    Exploring Other Perspectives

    PRGO 1-Year Stock Price Chart
    PRGO 1-Year Stock Price Chart

    Some of the lowest tier analysts were already assuming roughly flat revenue near US$4.1 billion and only US$92.9 million of earnings by 2029, so if you worry about prolonged category softness and retailer pressure on margins, this new guidance reaffirmation might push you to revisit whether that more pessimistic path still feels too harsh or perhaps closer to your own view.

    Explore 4 other fair value estimates on Perrigo - why the stock might be worth just $16.50!

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    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.