Prestige Consumer Healthcare 2026 Q1 Earnings Misses Targets as Net Income Falls 3.3%

Prestige Consumer Healthcare reported first-quarter fiscal 2026 earnings that fell short of revenue guidance due to extended production issues in the eye care segment. The company lowered its full-year revenue forecast, citing ongoing supply chain constraints.

Revenue
Total revenue for the quarter declined 6.6% year-over-year to $249.28 million, with segment performance reflecting mixed results. The Women’s Health segment remained a strong contributor, posting $56.76 million in revenue, followed closely by Gastrointestinal at $57.78 million. Analgesics generated $28.93 million, while Cough & Cold revenue totaled $19.01 million. Eye & Ear Care and Dermatologicals both reported $32.31 million and $30.11 million, respectively. Oral Care contributed $21.70 million, while the Other OTC category brought in $2.93 million. Collectively, these segments accounted for $249.53 million in total revenue.

Earnings/Net Income
Prestige Consumer Healthcare’s net income for Q1 2026 fell to $47.47 million, a 3.3% decrease from the prior year. Earnings per share declined 2.0% to $0.96, signaling a modest but negative trend in profitability.

Price Action
The stock has continued to underperform since the earnings release, declining 4.77% in the latest trading day and 14.00% month-to-date.

Post Earnings Price Action Review
The post-earnings strategy of buying Prestige shares and holding for 30 days showed moderate returns but underperformed the benchmark, delivering a CAGR of 11.26% versus 48.96%. While the strategy demonstrated minimal volatility with a 0% maximum drawdown and a Sharpe ratio of 0.46, the overall capital appreciation lagged significantly behind the market.

CEO Commentary
CEO Ron Lombardi noted strong international segment growth and improved gross margins, but acknowledged that supply constraints in the Clear Eyes product line negatively impacted shipments. He remains optimistic about improved supply availability in the second half and the strategic benefits of the Pillar5 acquisition.

Guidance
The company now expects full-year 2026 revenue in the range of $1.1 billion to $1.115 billion, with diluted EPS projected between $4.50 and $4.58. The extended supply challenges in the eye care segment are expected to persist through the first half of fiscal 2026. The Pillar5 acquisition, anticipated to close in Q3 2026, is forecasted to be neutral to EPS.

Additional News
On August 8, 2025, Prestige Consumer Healthcare outlined its updated FY26 outlook in a call with investors. CEO Ronald M. Lombardi explained that Q1 sales of approximately $250 million fell below the company’s $258 million to $260 million guidance, primarily due to a prolonged production shutdown in the eye care segment. The company emphasized that while the supply issue was planned, it lasted longer than initially anticipated. The recent revision of its revenue forecast reflects ongoing challenges in the eye care business, which are expected to continue through the first half of the fiscal year. The anticipated acquisition of Pillar5 is not expected to impact earnings per share and is currently on track to close in the third quarter.