What does infant formula — goodwill impairment charge mean?

This is a non-cash expense recognized when the carrying value of goodwill associated with the infant formula segment exceeds its implied fair value. It indicates a downward revision in the long-term earnings expectations or market valuation of the acquired business. Investors monitor this to identify potential operational challenges or overpayment in past acquisition strategies.

Perrigo Company (PRGO) Infant Formula — Goodwill impairment charge

Screener

Other segment segments

Specialty Care

$77.4M—

Self Care

$0—

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DORMHeavy Duty — Goodwill impairment charge

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DORMLight Duty — Goodwill impairment charge

$0—

DORMSpecialty Vehicle — Goodwill impairment charge

$0—

KVHIReportable Segment — Goodwill impairment charge

$0—

Other financials

Income statement

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Revenue$1.0B-3.2%

Gross profit$313.9M-13.5%

Operating income$23.5M-48.2%

Net income$74.5M+987%

EPS (diluted)$0.53+983%

Balance sheet

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Cash & equivalents$399.7M-12.0%

Total debt$3.5B-10.3%

Total equity$2.5B-43.7%

Total assets$7.6B-24.6%

Cash flow

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Operating cash flow-$113.6M-76.1%

CapEx$14.3M-25.5%

Free cash flow-$127.4M-41.6%

Valuation

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Market cap$1.74B-46.4%

Enterprise value$4.82B-27.7%

P/S0.4×-0.3×

Profitability

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Gross margin33.3%-2.5pp

Operating margin-37.7%-44.3pp

Net margin-41.9%-43.9pp

FCF margin4.2%-2.0pp

Returns & leverage

See full

Return on equity-49.6%-51.6pp

Debt / equity1.4×+0.5×

Current ratio2.3×0.0×

Where this comes from

Reported directly by Perrigo Company in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The source filing: Perrigo Company’s 10-Q, filed May 6, 2026.

Filed: May 6, 2026, 4:14 PM EDT
Fiscal quarter: Q1 FY2026
Calendar quarter: Q1 2026
Accession: 0001585364-26-000048

Line item	December 31, 2025	Impairments	Currency translation adjustments	March 28, 2026
Self Care	$1,113.9	—	$(9.4)	$1,104.6
Specialty Care	682.8	(77.4)	(8.1)	597.3
Infant Formula	66.3	(66.3)	—	—
All Other	187.2	(187.2)	—	—
Total goodwill	$2,050.1	$(330.8)	$(17.5)	$1,701.8

ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)

FAQ

What is Perrigo Company's infant formula — goodwill impairment charge?: Perrigo Company (PRGO) reported infant formula — goodwill impairment charge of $66.3M in Q1 2026.
What does infant formula — goodwill impairment charge mean?: This is a non-cash expense recognized when the carrying value of goodwill associated with the infant formula segment exceeds its implied fair value. It indicates a downward revision in the long-term earnings expectations or market valuation of the acquired business. Investors monitor this to identify potential operational challenges or overpayment in past acquisition strategies.