Perrigo (PRGO) opened Q1 2026 with revenue of US$969.2 million and a basic EPS loss of US$2.81, while net income excluding extra items came in at a loss of US$389.9 million. Over the past six reported quarters, revenue has ranged between US$969.2 million and US$1.14 billion and basic EPS has moved from a small profit of US$0.09 in Q3 2025 to a loss of US$10.20 in Q4 2025 and US$2.81 in the latest quarter, giving investors a wide view of how the income statement has changed across different conditions. The latest print keeps attention on how management plans to stabilize margins and narrow losses from here.

See our full analysis for Perrigo.

With the quarterly scorecard on the table, the next step is to see how these results line up against the key stories investors tell about Perrigo, and where the numbers start to challenge those narratives.

Larger Losses On Similar Sales Base

• Net income excluding extra items was a loss of US$389.9 million in Q1 2026 on revenue of US$969.2 million, compared with a small profit of US$12.7 million on US$1,043.3 million of revenue in Q3 2025.
• Consensus narrative points to cost initiatives and portfolio simplification helping margins over time, yet the trailing 12 month loss of US$1.8b against US$4.2b of revenue shows profitability is still under pressure.
  • Analysts expect earnings of US$83.0 million and a 2.0% margin in a few years, while recent quarters include large losses such as US$1.4b in Q4 2025 and US$389.9 million this quarter.
  • This contrast means the balanced view relies on a significant profit recovery from today’s negative EPS of US$2.81 and trailing EPS of US$12.92 in losses.

Revenue Steady, Profitability Swinging

• Over the last six reported quarters, revenue stayed in a narrow band between roughly US$969 million and US$1.14b, while basic EPS ranged from a small profit of US$0.09 in Q3 2025 to a loss of US$10.20 in Q4 2025 and US$2.81 in Q1 2026.
• Bulls argue that modest forecast revenue growth of about 0.9% a year can still support a major earnings improvement, yet the relatively flat trailing 12 month revenue of US$4.2b paired with growing losses challenges how quickly that bullish margin story can show up in the reported EPS line.
  • Forecasts in the optimistic case look for earnings of US$201.2 million and a P/E of 35.2x, which is much higher than the current US Pharmaceuticals industry P/E of 19.0x.
  • Given recent quarters with near breakeven results, like Q2 2025 at a loss of US$0.5 million, and very large losses like Q4 2025 at US$1.4b, the bullish path assumes a much more stable earnings pattern than the volatility in these figures.

On these numbers, bulls are effectively betting that a business with US$4.2b of trailing revenue and very volatile EPS can transition to steady profits and a premium P/E multiple, which is a big swing compared with what is currently on the income statement. 🐂 Perrigo Bull Case

Valuation Gap Versus Loss History

• The stock trades at US$12.26 per share against a stated DCF fair value of about US$54.92, while losses over the last five years have grown at about 60.5% a year and trailing 12 month net income excluding extra items is a loss of US$1.8b.
• Bears highlight that the combination of widening losses and a 9.46% dividend yield that is not covered by earnings or free cash flow puts a lot of pressure on the cautious view that future profits and cash generation can justify analysts’ US$17.00 target.
  • The implied upside from US$12.26 to US$17.00 sits alongside a history of negative EPS across the trailing 12 months, including quarterly EPS losses such as US$10.20 in Q4 2025 and US$2.81 in Q1 2026.
  • With revenue forecasts at only 0.9% annual growth and a long run of negative net income, skeptics focus on whether cost savings and portfolio changes can support both a dividend at 9.46% and a path toward the consensus price target.

For a stock priced well below the DCF fair value but still carrying a large dividend and heavy reported losses, cautious investors are asking whether the earnings recovery story is strong enough to bridge the gap between US$12.26 today and the US$17.00 analyst target. 🐻 Perrigo Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Perrigo on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this balance of risks and rewards seems unclear, move quickly from reading to reviewing the data yourself and stress test the company’s story using the 4 key rewards and 1 important warning sign.

See What Else Is Out There

Perrigo is working through large losses on a steady revenue base, volatile EPS and a dividend that is not covered by earnings or free cash flow.

If you want income ideas where the payout looks better supported by underlying cash and earnings, move quickly and scan the 12 dividend fortresses today.

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.