Why Perrigo’s latest earnings are drawing attention
Perrigo (PRGO) is back on investors’ radar after reporting a full year 2025 net loss of US$1,425.4 million and a fourth quarter net loss of US$1,418.1 million, alongside a lower 2026 sales outlook.
For 2026, management guided total net sales to a range from a 5.5% decline to a 1.5% decline versus the prior year, which helps set expectations around near term revenue trends.
See our latest analysis for Perrigo.
The earnings release and softer 2026 sales outlook came after a tough stretch for shareholders, with a 7 day share price return of 18.88% decline and a 1 year total shareholder return of 57.15% decline. This suggests that momentum has weakened and market risk perceptions have shifted.
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With a recent share price of US$11.69, a large reported loss and an analyst price target of US$17.00, the key question is whether Perrigo is currently trading at a discount or if the market already reflects its future prospects.
Most Popular Narrative: 44.3% Undervalued
Compared to the narrative fair value of $21.00, Perrigo’s last close at $11.69 points to a wide gap that centers on its infant nutrition review.
The company has initiated a review of its infant formula business, considering a range of alternatives as part of its "Three S" plan, with a focus on capital allocation, cash flow, portfolio focus, and return on invested capital.
Want to see what sits behind that review, and how it feeds into a higher fair value? The narrative leans on gradual margin repair, a measured revenue path, and a premium future earnings multiple that has to be justified by execution. The numbers are all laid out, but the assumptions driving them are where the real story starts.
Result: Fair Value of $21.00 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, slower infant formula recovery and weaker over the counter consumption trends could put further pressure on revenue, margins, and the assumptions behind that higher fair value.
Find out about the key risks to this Perrigo narrative.
Next Steps
If the mixed tone here leaves you uncertain, use that as a prompt to act promptly and evaluate the full picture yourself with 4 key rewards and 1 important warning sign.
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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.
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