- On March 11, 2026, Perrigo Company plc outlined at the UBS Global Consumer and Retail Conference its plans to focus on core businesses, deepen retailer partnerships and cut about 7% of its global workforce to streamline operations amid a soft market backdrop.
- An interesting angle for investors is how Perrigo aims to balance these cost reductions with continued investment in innovation, geographic expansion and a maintained dividend policy while signaling 2027 as a key year for accelerating its plans.
- We’ll now examine how Perrigo’s planned 7% global workforce reduction may influence the company’s existing investment narrative and risk profile.
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Perrigo Investment Narrative Recap
To own Perrigo today, you need to believe its consumer health and infant nutrition portfolio can eventually convert category softness and recent losses into steadier cash generation. The March 11 workforce reduction and renewed focus on core businesses appear aimed at protecting margins ahead of management’s flagged 2027 ramp. This does not fundamentally change the near term catalyst, which remains visible progress on restoring profitability, or the key risk of weak demand and intense competition limiting that turnaround.
The most relevant recent announcement alongside the UBS conference comments is Perrigo’s February 19 decision to maintain its quarterly dividend at US$0.29 per share. In the context of ongoing net losses and a guided sales decline in 2026, continuing the dividend underscores management’s confidence in future cash flows, but also heightens the risk if earnings do not improve, since dividend commitments can compete with reinvestment and restructuring needs at a time when the business is already under pressure.
Yet behind these efforts to cut costs and sustain the dividend, there is a risk investors should be aware of if consumer demand in key OTC categories continues to...
Read the full narrative on Perrigo (it's free!)
Perrigo's narrative projects $4.6 billion revenue and $183.6 million earnings by 2028. This requires 1.7% yearly revenue growth and a $243.1 million earnings increase from -$59.5 million today.
Uncover how Perrigo's forecasts yield a $17.00 fair value, a 57% upside to its current price.
Exploring Other Perspectives
Some of the lowest ranked analysts were already expecting roughly flat revenue near US$4.2 billion and only US$96.9 million of earnings by 2029, so if infant nutrition headwinds or softer OTC demand worsen after the March cost cutting news, their more pessimistic view of Perrigo’s earnings power could end up looking closer to reality than the consensus you see today.
Explore 3 other fair value estimates on Perrigo - why the stock might be worth just $17.00!
Decide For Yourself
Don't just follow the ticker - dig into the data and build a conviction that's truly your own.
- A great starting point for your Perrigo research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
- Our free Perrigo research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Perrigo's overall financial health at a glance.
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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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