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Sep 27
Perrigo Q3 2025 Earnings Report
Perrigo reported Q3 results with modest EPS improvement, despite lower sales and margin compression.
Key Takeaways
Perrigo delivered Q3 2025 results reflecting continued headwinds from soft OTC market consumption and strategic portfolio reviews. Revenue fell 4.1% YoY, while adjusted EPS came in at $0.80, down slightly from $0.81. Adjusted operating margin held relatively stable at 16.6%.
Q3 revenue was $1.043 billion, down 4.1% YoY due to strategic reviews and OTC weakness.
GAAP EPS was $0.09 vs. a loss of ($0.13) YoY; adjusted EPS was $0.80 vs. $0.81.
Adjusted operating income declined 4.9% YoY to $173 million, with a 16.6% margin.
Cash and cash equivalents stood at $432 million; free cash flow was positive YTD at $63 million.
Perrigo
Perrigo
Perrigo Revenue by Segment
Revenue by Segment
Consumer Self-Care Americas Revenue
CapyFin.comConsumer Self-Care International Revenue
CapyFin.com Forward Guidance
Perrigo revised its FY2025 guidance downward due to challenges in the infant formula business and soft OTC demand.
Positive Outlook
- FY25 adjusted EPS guidance maintained at $2.70–$2.80
- Adjusted gross margin expected at ~39%
- Adjusted operating margin guided at ~15%
- Net leverage projected to improve to ~3.8x adjusted EBITDA
- Ongoing savings from Project Energize expected to support margins
Challenges Ahead
- FY25 revenue projected to decline 2.5% to 3.0%
- Organic net sales expected to fall 2.0% to 2.5%
- Infant formula industry dynamics remain a headwind
- OTC consumption softness expected to persist
- Ongoing strategic reviews (Infant Formula, Oral Care) reflect portfolio instability
Revenue & Expenses
Visualization of income flow from segment revenue to net income