The Cooper Companies, Inc. (COO) Earnings & Analysis

Latest quarter

The Cooper Companies reported Q3 FY2026 revenue of $1.1 billion, up 0.56% from a year earlier. The consensus counted revenue of $1.1 billion, with reported revenue 2.97% below that consensus. The company reported adjusted EPS of $1.15 against the consensus of $1.11, or 3.60% above the consensus; diluted EPS was $2.24, compared with $0.49 a year earlier.

The filing said CooperVision’s Americas sales declined as the company reduced U.S. channel inventory, while EMEA growth reflected silicone-hydrogel contact-lens market gains and favorable exchange rates. The filing attributed Asia-Pacific declines to softness in Japan and China. CooperSurgical’s office and surgical sales rose on surgical products, while fertility sales rose on genetic-testing revenue despite lower equipment sales. Gross margin was 66.8%, versus 65.3%, and operating margin was 20.8%, versus 16.6%. The company reported free cash flow of $273.0 million, compared with $164.5 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Al White said CooperVision proactively reduced U.S. channel inventory during the quarter, which weighed on results and will continue to affect Q4. He said U.S. consumption increased at a mid-single-digit rate during Q3 and the first month of Q4, and he attributed the reduced CooperVision revenue outlook entirely to channel inventory. White said CooperVision’s EMEA and Asia-Pacific results were largely in line with expectations, while the Americas reflected the inventory actions.

White said the company is increasing sales coverage, customer marketing and commercial-execution capabilities at CooperVision, including AI-driven targeting and analytics. In response to analysts’ questions about revenue conversion, he said CooperVision did not have a manufacturing, distribution, logistics, product or contract-win constraint; he said the constraint was commercial execution at the final sales stage. He said the direct-sales-force expansion in the U.S. will add coverage for about 5,000 additional doors. White also said pricing and product mix remained favorable, with higher-priced products performing better, and that the company was actively considering pricing.

On CooperSurgical, White said fertility revenue grew 5% to $141 million, supported by genomics demand, new clinic wins, expansion in existing accounts and recently launched offerings. He said medical devices grew 4% within office and surgical, while Paragard revenue was flat. White said the company had not gained traction with MiSight in China and was reengineering the business there; China represented less than 2% of consolidated revenue in Q3.

Brian Andrews said Q4 commercial investments, foreign-exchange headwinds and lower tariff refunds are expected to pressure gross and operating margins. He said sales-force additions and marketing programs create a near-term margin impact while employees are recruited, trained and deployed. Andrews also said the company generated $273 million of free cash flow in Q3 and repurchased $339 million of shares during the quarter. White said the board completed its strategic review and decided to retain CooperSurgical rather than pursue a transaction at this time.

Guidance

The Cooper Companies’ September outlook calls for Q4 FY2026 total revenue of $1.1 billion and total organic revenue growth of 0.00% to 2.00%. The company expects CooperVision revenue of $692.0 million to $706.0 million and organic revenue growth of −2.00% to 0.00%, while CooperSurgical revenue is expected at $364.0 million to $374.0 million with organic growth of 4.00% to 6.00%. The company expects Q4 non-GAAP EPS of $1.05 to $1.09, a non-GAAP tax rate of 16.0%, and free cash flow excluding litigation-related payments of $170.0 million.