Perrigo Sets 2026 Outlook, Sells Infant Formula Unit
The consumer health company set its adjusted earnings guidance and agreed to sell its infant formula business to MeridianMade.
Updated on Nov. 6, 2026 in Consumer Goods
Perrigo set its 2026 all-in adjusted diluted EPS outlook at $2.25 to $2.45 and agreed to sell its infant formula unit to MeridianMade. The infant formula business is being classified as discontinued operations.
Why it matters
Perrigo described the infant formula exit as a way to simplify its operations. Cautious retailer inventories and continued softness among European consumers factored into the company's outlook.
Perrigo's core operations adjusted diluted EPS outlook is $2.15 to $2.35, with a core reported net sales decline of 2.5% to 3.6% and an adjusted operating margin of 14% to 15%. The infant formula sale carries $40 million upfront plus up to $135 million more tied to performance through 2030.
The players
Perrigo
Perrigo is a global consumer self-care company that makes over-the-counter medicines and personal care products.
MeridianMade
MeridianMade is the buyer of Perrigo's infant formula unit under the agreed sale.
The details
Perrigo agreed to sell its infant formula unit to MeridianMade in a deal that includes $40 million upfront and up to $135 million more tied to performance through 2030. The unit had been consuming cash, and the company is treating it as discontinued operations.
Timeline
2026: Perrigo set its all-in adjusted diluted EPS outlook for the year.
Through 2030: Performance period for up to $135 million in additional sale payments.
Market Landscape
Perrigo's guidance reflects retailers holding lean inventories rather than restocking aggressively, a pattern that has pressured branded consumer goods suppliers. The company's decision to exit infant formula follows a broader move to concentrate on its core self-care portfolio.
Shoppers may see changes in the availability of Perrigo's products as the company restructures its portfolio after exiting infant formula. Retailers' cautious stocking decisions could also affect what appears on store shelves in the coming months.
The takeaway
Companies that trim lower-margin lines can focus resources on core products, but retailer restocking will determine how quickly that strategy shows up in sales. Watch for shifts in retailer orders as the season develops.
Further reading
For more on how companies are reshaping their product lines, see the Consumer Goods section.
