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Why Perrigo Stock Is Back in Focus After Q2 Earnings
Perrigo (PRGO) is drawing fresh attention after second quarter 2026 adjusted earnings per share came in ahead of consensus, supported by strong Infant Formula sales and a reaffirmed full year outlook for declining net sales.
For investors, this mix of outperformance on adjusted earnings, weaker overall sales and a maintained guidance range for net sales decline between 5.5% and 1.5% raises practical questions about how the stock's recent performance lines up with the underlying business trends.
See our latest analysis for Perrigo.
The recent Q2 earnings beat, reaffirmed 2026 guidance for declining net sales and the July dividend decision appear to have shifted sentiment in the short term. A 7 day share price return of 27% and a 30 day share price return of 22.05% contrast with a 1 year total shareholder return that is down 38.2%, suggesting momentum has picked up lately after a weaker long term performance.
If Perrigo's rebound has you rethinking where growth and income could come from next, it can help to widen the search using a dedicated screener for resilient dividend ideas. For income focused investors, now may be a good time to scan the market for other stocks offering robust yields and fundamentals through the 8 dividend fortresses
Bulls point to Perrigo's earnings beat, Infant Formula strength and dividend, while bears focus on falling sales, recent losses and the long slide in returns. Which side does the current valuation actually support next?
Most Popular Narrative: 22.2% Undervalued
The most followed narrative values Perrigo at $16.50 per share, compared with the latest close at $12.84, framing the stock as materially discounted on that view.
The aging global population and rising consumer interest in self-care and wellness continue to create longer-term demand tailwinds for Perrigo's OTC and nutrition products, providing stable, defensive revenue streams even in periods of macro uncertainty.
Read the complete narrative. Read the complete narrative.
Want to see what sits behind that $16.50 fair value for Perrigo? The narrative focuses on a profitability turnaround, steady revenue expectations and a future earnings multiple that is closer to high growth stocks than to the broader pharmaceuticals group.
Result: Fair Value of $16.50 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, this Perrigo narrative still faces pressure if soft category consumption persists, or if infant formula competition and supply issues weigh on margins and market share.
Find out about the key risks to this Perrigo narrative.
Next Steps
If the mixed sentiment around Perrigo has you on the fence, take a moment to look at both sides of the story quickly and form your own stance using the full breakdown of 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.
Companies discussed in this article include PRGO .
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