The Cooper Companies, Inc.’s (COO Quick QuoteCOO - Free Report) growth is fueled by CooperVision’s premium lens migration and MiSight’s myopia-management leadership, supported by CooperSurgical’s women’s health and fertility portfolio.

However, channel volatility, private-label transition risks, Asia-Pacific softness and tariff/FX pressures weigh on near-term performance. Long-term opportunities remain strong, but execution and regional challenges could affect margin resilience and growth trajectory.

Shares of this Zacks Rank #2 (Buy) company have declined 12.7% so far this year compared with the industry's 2% decrease and the S&P 500 Index’s 4.1% fall.

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Cooper Companies, with a market capitalization of $13.94 billion, is a global specialty medical device company.

COO’s bottom line is estimated to improve 8.4% over the next five years. Its earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 4.11%.

What's Driving COO’s Performance?

Consistent Market Share Gains and Premium Product Momentum: Cooper Companies continues to demonstrate strong competitive positioning, with CooperVision gaining market share for the 18th consecutive year, outperforming industry growth. Momentum is being driven by premium silicone hydrogel lenses, particularly the MyDay portfolio, alongside strong adoption of torics and multifocals.

Premium offerings, such as MyDay multifocal and Energys, are growing above 15%, reflecting successful premiumization. This shift toward higher-value products enhances both pricing power and margin profile, positioning the company to sustainably outgrow the broader contact lens market over time.

Strong Margin Expansion Driven by Operational Efficiencies and AI Adoption: Cooper delivered notable profitability improvement, with operating margins reaching 26.9%, supported by structural cost reductions and productivity gains from its recent reorganization. Operating expenses declined as a percentage of revenues, reflecting disciplined cost control and increased use of automation and AI across functions, such as forecasting, marketing and shared services.

These efficiencies have enabled reinvestment in growth initiatives while supporting margin expansion. The scalability of these operational improvements suggests continued upside to margins as the company leverages prior IT and infrastructure investments.

Recovery Trends in Fertility Market Support CooperSurgical Growth: CooperSurgical is showing early signs of recovery, particularly in the fertility segment, where improving IVF cycles in the United States and Europe are driving gradual demand normalization.

Management indicated that downside risk in the fertility segment has largely dissipated, with clinics resuming investments in new technologies and equipment. While the recovery is expected to be gradual, stabilization in this segment removes a key overhang from prior periods. Combined with strength in consumables and genomics, this positions CooperSurgical for improved growth contribution through the remainder of 2026.

What's Weighing on the Stock?

Asia-Pacific Weakness, Particularly in Japan, Weighs on Growth: CooperVision’s growth was negatively impacted by declines in Asia-Pacific, especially Japan, where legacy hydrogel products are losing share amid competitive pricing pressures. This led to organic growth below expectations and is expected to remain a headwind in the near term.

While management anticipates recovery driven by new product launches and portfolio upgrades, the transition away from legacy products introduces execution risk. Continued weakness in Japan could delay overall growth acceleration and limit near-term revenue momentum.

Exposure to Geopolitical Risks Affects Fertility Segment: The fertility business faces external uncertainty from geopolitical tensions, particularly in the Middle East, which accounts for a meaningful portion of CooperSurgical’s fertility revenues. Management highlighted risks related to supply disruptions and distribution challenges in the region. While underlying demand remains intact, logistical constraints could impact near-term sales and delay recovery in certain markets. Continued geopolitical instability introduces volatility in an otherwise improving segment.

The Cooper Companies, Inc. Price

The Cooper Companies, Inc. price | The Cooper Companies, Inc. Quote

Estimate Trend

The Zacks Consensus Estimate for fiscal 2026 revenues is pegged at $4.32 billion, implying growth of 5.5% from the year-ago reported figure. The consensus mark for adjusted EPS is pinned at $4.60, indicating an improvement of 11.7% from the previous year’s recorded level.

In the past 60 days, COO’s earnings estimate for fiscal 2026 has moved north 10 cents.

Other Stocks to Consider

Some other top-ranked stocks in the broader medical space are Intuitive Surgical (ISRG Quick QuoteISRG - Free Report) , Align Technology (ALGN Quick QuoteALGN - Free Report) and Cardinal Health (CAH Quick QuoteCAH - Free Report) .

Intuitive Surgical, currently sporting a Zacks Rank #1 (Strong Buy), has an estimated long-term growth rate of 15.7%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 13.24%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Intuitive Surgical’s shares have declined 17.3% compared with the industry’s 12.5% fall so far this year.

Align Technology, carrying a Zacks Rank #2 at present, has an estimated long-term growth rate of 10.1%. ALGN’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.16%.

ALGN’s shares have climbed 13.5% against the industry’s 2% fall so far this year.

Cardinal Health, currently carrying a Zacks Rank of 2, has an estimated long-term growth rate of 15%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 9.3%.

CAH’s shares have gained 1% against the industry’s 2% decline so far this year.