Prestige Cuts Fiscal 2027 Outlook After Clear Eyes Supply

The Tip Desk · November 7, 2026 · 3 min read

The consumer healthcare company now sees fiscal 2027 revenue of $1,280 million to $1,290 million after a $336.3 million second-quarter total.

Prestige Consumer Healthcare Inc. (PBH) cut its fiscal 2027 revenue outlook to $1,280 million to $1,290 million from $1,290 million to $1,315 million, citing variability in Clear Eyes® production at the Pillar5 plant that is expected to reduce second-half product availability and sales.

Organic revenue growth was revised to about flat from a prior range of plus 1.0% to plus 3.0%. Adjusted diluted earnings per share guidance moved to $4.48 to $4.55 from $4.55 to $4.65. Adjusted free cash flow guidance was lowered to $265 million or more from $270 million or more.

Chief Executive Officer Ron Lombardi said the update primarily reflected the Clear Eyes® supply issue. He said the outlook for the rest of the portfolio was unchanged, with the base business still delivering growth and the Breathe Right® and LaCorium acquisitions on track for sales and profit consistent with prior guidance. The company continues to invest in Pillar5, he said, with the intent of delivering consistent quality output.

Reported revenue in the second quarter ended September 30, 2026, was $336.3 million, up 22.7% from $274.1 million a year earlier. Excluding foreign currency and a $65.1 million contribution from the Breathe Right® portfolio and LaCorium, revenue declined 1.6%. The company said that organic result reflected the expected headwind from first-quarter order timing and a decline in Clear Eyes®.

That organic path reversed the first quarter, when organic sales rose 3.2% after a $5.9 million Breathe Right® contribution.

GAAP net income was $25.3 million, or $0.53 a share, compared with $42.2 million, or $0.86 a share, a year earlier. Adjusted diluted EPS was $1.13, versus $1.07. Lombardi described the quarter as mid-single-digit earnings growth and said the Breathe Right® portfolio and LaCorium performed as expected in their first full quarter of ownership.

GAAP gross margin was 51.3% of revenue, down from 55.3% a year earlier. Non-GAAP adjusted gross margin was 57.7% after adding $14.4 million of inventory step-up amortization and $7.1 million of Pillar5 remediation, overhead and idle-capacity costs. Non-GAAP EBITDA margin was 26.6%; adjusted EBITDA margin was 33.6%.

North American OTC Healthcare revenue was $271.8 million, including a $47.5 million acquisition contribution, with lower base sales tied to the first-quarter order-timing pull-forward. International OTC Healthcare revenue was $64.5 million, including a $17.6 million acquisition contribution and double-digit Hydralyte® growth.

Net debt was approximately $2 billion at September 30, 2026. On July 15 the company issued $400 million of 6.25% senior notes due 2034 to replace notes previously due in fiscal 2028.

Lombardi said the company remains confident in a medium-term outlook of approximately 10% annual revenue growth, approximately 8% annual EPS growth, and nearly $900 million of aggregate free cash flow over the next three years. He said the Breathe Right® and LaCorium deals provide long-term growth opportunities and that Pillar5 will vertically integrate the eye-care supply chain.