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COO Q3 Earnings Top Estimates, Revenues Miss on Destocking, Stock Down
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Key Takeaways
Cooper Companies' Q3 adjusted EPS rose 4.5% and beat estimates, while revenues missed expectations.
CooperVision sales were pressured by U.S. inventory cuts, though MiSight posted 20% organic growth.
CooperSurgical revenues rose 2%, with fertility growth supported by products, services and clinic wins.
The Cooper Companies, Inc. (COO - Free Report) reported third-quarter fiscal 2026 adjusted earnings per share (EPS) of $1.15, up 4.5% year over year. The figure beat the Zacks Consensus Estimate of $1.11 by 3.6%, aided by expense management and productivity initiatives.
GAAP EPS for the quarter was $2.24, significantly up from the year-ago period’s figure of 49 cents, primarily driven by a $307.2 million discrete tax benefit following the favorable completion of a U.K. tax examination.
COO’s fiscal third-quarter revenues rose 0.6% year over year to $1.066 billion but missed the Zacks Consensus Estimate of $1.099 billion by 3.0%. The quarterly revenues were up 1% year over year at the constant exchange rate (CER). U.S. CooperVision channel inventory reductions weighed on sales. MiSight remained a bright spot, delivering 20% organic growth.
Shares of COO were down 15.9% in after-hours trading following the earnings call. The company’s shares have lost 22.5% in the year-to-date period against the industry’s 4.6% growth. However, the S&P 500 Index was up 11% during the same period.
For the third quarter of fiscal 2026, CooperVision (CVI) revenues were $717.0 million, flat year over year on a reported, CER and organic basis. The segment faced pressure from proactive U.S. channel inventory reductions, which offset underlying demand and strength in several premium product categories.
Category-wise, CVI derives revenues from Toric and multifocal, Sphere and others.
Toric and multifocal revenues were $363.8 million, up 1% year over year and 2% at CER as well as organically. Sphere and other revenues totaled $353.2 million, declined 2% year over year on a reported basis and fell 1% at CER as well as organically. MyDay toric, MyDay multifocal and MyDay Energys each recorded double-digit growth, while MiSight maintained strong momentum.
COO's CooperSurgical Segment Growth Holds Firm
In the third quarter of fiscal 2026, CooperSurgical (CSI) revenues were $349.2 million, up 2% year over year on a reported basis as well as at CER and grew 3% organically.
Category-wise, CSI derives revenues from Office and Surgical, and Fertility.
Office and Surgical revenues were $208 million, up 2% on a reported and organic basis as well as at CER. Medical Devices grew 4%, driven by strength in surgical OB/GYN and specialty device portfolios, while Paragard revenues were flat. Management continued to point to genomics and adoption of the Witness automated laboratory management platform as contributors to fertility performance.
Fertility revenues were $141.2 million, up 3% year over year on a reported basis, up 4% at CER with organic growth of 5%, supported by broad-based strength across products and services, new clinic wins and expansion within existing accounts.
COO's Geographic Results Show a Mixed Trend
Geographically, growth was led by the Americas, while EMEA and Asia Pac remain mixed as strength across several markets was offset by macro headwinds in the Middle East and China.
Within CVI, Americas revenues totaled $281.6 million, down 2% year over year on a reported basis, at CER and organically. The weakness reflected the company's decision to reduce U.S. channel inventory. Management noted that Americas revenues would have grown around 5% without the inventory actions, while underlying U.S. consumption remained at a mid-single-digit growth rate.
EMEA revenues were $309.4 million, up 6% year over year on a reported basis and 5% at CER as well as organically, supported by continued strength across premium offerings. Asia Pacific revenues totaled $126 million, down 10% on a reported basis and 5% at CER and organically, with portfolio rationalization and softer conditions in certain markets weighing on performance.
COO’s Q3 Margin Trend
In the quarter under review, Cooper Companies’ adjusted gross profit declined 0.3% year over year to $711.1 million. The adjusted gross margin was 66.7%, down 60 basis points (bps) from the year-ago period, reflecting higher manufacturing costs and unfavorable foreign exchange.
Selling, general and administrative expenses decreased 4.8% to $401.3 million. Research and development expenses fell 6.7% to $41.6 million. Adjusted operating costs totaled $430.4 million, reflecting a 1.5% decrease from the prior-year quarter’s level.
Adjusted operating profit totaled $280.7 million, up 1.6% from the year-earlier quarter’s level. The adjusted operating margin expanded 30 bps to 26.3%, aided by productivity improvements and disciplined expense management.
Cooper Companies’ Financial Position
COO exited the third quarter of fiscal 2026 with cash and cash equivalents of $154.7 million compared with $138.8 million at the end of the second quarter of fiscal 2026.
Total debt at the end of the fiscal third quarter was $2.54 billion compared with $2.46 billion at the end of the fiscal second quarter.
COO's Outlook for Q4 & FY26
Cooper Companies has issued its outlook for the fiscal fourth quarter and updated its guidance for fiscal 2026.
For the fourth quarter of fiscal 2026, Cooper Companies expects revenues of $1.057-$1.080 billion, representing organic growth of 0-2%, and adjusted EPS of $1.05-$1.09.
CVI revenues are projected at $692-$706 million, implying organic growth of negative 2% to flat, as U.S. inventory reductions continue. CSI revenues are expected at $364-$374 million, representing organic growth of 4-6%.
For fiscal 2026, revenues are now forecast at $4.229-$4.252 billion, with adjusted EPS of $4.51-$4.55. The company expects CVI revenues of $2.828-$2.842 billion, representing organic growth of 1-2% and CSI revenues of $1.401-$1.410 billion, representing organic growth of 4-5%, while reaffirming its objective of more than $2.2 billion in cumulative free cash flow for fiscal 2026-2028.
The Cooper Companies, Inc. Price, Consensus and EPS Surprise
Cooper Companies delivered a mixed third-quarter fiscal 2026 performance, with earnings topping expectations despite softer revenues. CooperVision’s results were hurt by proactive U.S. channel inventory reductions, although underlying consumption in the United States remained healthy at a mid-single-digit growth rate. Strength in premium products continued, with MyDay toric, multifocal and Energys posting double-digit growth, while MiSight delivered 20% organic growth. CooperSurgical remained resilient, led by growth in fertility, supported by genomics, new clinic wins and broader adoption of the Witness platform.
CooperVision’s near-term growth is likely to remain pressured as management expects a similar level of U.S. channel inventory reduction in the fiscal fourth quarter. However, the company expects the majority of the destocking and legacy hydrogel portfolio rationalization to be completed by fiscal year-end, positioning the business for a healthier start to fiscal 2027. COO is also stepping up commercial investments through expanded sales coverage, marketing programs and AI-driven targeting tools. New product initiatives, including MyDay MiSight and upcoming toric and multifocal offerings, should support longer-term growth.
CooperSurgical remains another key growth driver, particularly in fertility, where favorable treatment trends, growing access to IVF and strength in genomics support the outlook. Following its strategic review, the board decided to retain CooperSurgical after determining that transaction proposals did not adequately reflect the business’ long-term value. Foreign exchange headwinds, higher manufacturing costs and increased commercial investments are expected to pressure margins in the fourth quarter, while continued weakness in Asia Pacific and CooperVision destocking remain near-term concerns.
Veracyte, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of 54 cents, which surpassed the Zacks Consensus Estimate by 25.6%. Revenues of $150.3 million beat the Zacks Consensus Estimate by 4.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
VCYT has an estimated earnings growth rate of 8.4% for 2026. The company’s earnings beat estimates in the trailing four quarters, the average surprise being 41.8%.
Globus Medical, currently carrying a Zacks Rank #2 (Buy), reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in the trailing four quarters, the average surprise being 27.9%.
West Pharmaceutical, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.
WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.
View the Zacks #1 Rank List
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COO Q3 Earnings Top Estimates, Revenues Miss on Destocking, Stock Down
Key Takeaways
The Cooper Companies, Inc. (COO - Free Report) reported third-quarter fiscal 2026 adjusted earnings per share (EPS) of $1.15, up 4.5% year over year. The figure beat the Zacks Consensus Estimate of $1.11 by 3.6%, aided by expense management and productivity initiatives.
GAAP EPS for the quarter was $2.24, significantly up from the year-ago period’s figure of 49 cents, primarily driven by a $307.2 million discrete tax benefit following the favorable completion of a U.K. tax examination.
COO’s fiscal third-quarter revenues rose 0.6% year over year to $1.066 billion but missed the Zacks Consensus Estimate of $1.099 billion by 3.0%. The quarterly revenues were up 1% year over year at the constant exchange rate (CER). U.S. CooperVision channel inventory reductions weighed on sales. MiSight remained a bright spot, delivering 20% organic growth.
Shares of COO were down 15.9% in after-hours trading following the earnings call. The company’s shares have lost 22.5% in the year-to-date period against the industry’s 4.6% growth. However, the S&P 500 Index was up 11% during the same period.
Image Source: Zacks Investment Research
COO's CooperVision Segment Faces Inventory Pressure
For the third quarter of fiscal 2026, CooperVision (CVI) revenues were $717.0 million, flat year over year on a reported, CER and organic basis. The segment faced pressure from proactive U.S. channel inventory reductions, which offset underlying demand and strength in several premium product categories.
Category-wise, CVI derives revenues from Toric and multifocal, Sphere and others.
Toric and multifocal revenues were $363.8 million, up 1% year over year and 2% at CER as well as organically. Sphere and other revenues totaled $353.2 million, declined 2% year over year on a reported basis and fell 1% at CER as well as organically. MyDay toric, MyDay multifocal and MyDay Energys each recorded double-digit growth, while MiSight maintained strong momentum.
COO's CooperSurgical Segment Growth Holds Firm
In the third quarter of fiscal 2026, CooperSurgical (CSI) revenues were $349.2 million, up 2% year over year on a reported basis as well as at CER and grew 3% organically.
Category-wise, CSI derives revenues from Office and Surgical, and Fertility.
Office and Surgical revenues were $208 million, up 2% on a reported and organic basis as well as at CER. Medical Devices grew 4%, driven by strength in surgical OB/GYN and specialty device portfolios, while Paragard revenues were flat. Management continued to point to genomics and adoption of the Witness automated laboratory management platform as contributors to fertility performance.
Fertility revenues were $141.2 million, up 3% year over year on a reported basis, up 4% at CER with organic growth of 5%, supported by broad-based strength across products and services, new clinic wins and expansion within existing accounts.
COO's Geographic Results Show a Mixed Trend
Geographically, growth was led by the Americas, while EMEA and Asia Pac remain mixed as strength across several markets was offset by macro headwinds in the Middle East and China.
Within CVI, Americas revenues totaled $281.6 million, down 2% year over year on a reported basis, at CER and organically. The weakness reflected the company's decision to reduce U.S. channel inventory. Management noted that Americas revenues would have grown around 5% without the inventory actions, while underlying U.S. consumption remained at a mid-single-digit growth rate.
EMEA revenues were $309.4 million, up 6% year over year on a reported basis and 5% at CER as well as organically, supported by continued strength across premium offerings. Asia Pacific revenues totaled $126 million, down 10% on a reported basis and 5% at CER and organically, with portfolio rationalization and softer conditions in certain markets weighing on performance.
COO’s Q3 Margin Trend
In the quarter under review, Cooper Companies’ adjusted gross profit declined 0.3% year over year to $711.1 million. The adjusted gross margin was 66.7%, down 60 basis points (bps) from the year-ago period, reflecting higher manufacturing costs and unfavorable foreign exchange.
Selling, general and administrative expenses decreased 4.8% to $401.3 million. Research and development expenses fell 6.7% to $41.6 million. Adjusted operating costs totaled $430.4 million, reflecting a 1.5% decrease from the prior-year quarter’s level.
Adjusted operating profit totaled $280.7 million, up 1.6% from the year-earlier quarter’s level. The adjusted operating margin expanded 30 bps to 26.3%, aided by productivity improvements and disciplined expense management.
Cooper Companies’ Financial Position
COO exited the third quarter of fiscal 2026 with cash and cash equivalents of $154.7 million compared with $138.8 million at the end of the second quarter of fiscal 2026.
Total debt at the end of the fiscal third quarter was $2.54 billion compared with $2.46 billion at the end of the fiscal second quarter.
COO's Outlook for Q4 & FY26
Cooper Companies has issued its outlook for the fiscal fourth quarter and updated its guidance for fiscal 2026.
For the fourth quarter of fiscal 2026, Cooper Companies expects revenues of $1.057-$1.080 billion, representing organic growth of 0-2%, and adjusted EPS of $1.05-$1.09.
CVI revenues are projected at $692-$706 million, implying organic growth of negative 2% to flat, as U.S. inventory reductions continue. CSI revenues are expected at $364-$374 million, representing organic growth of 4-6%.
For fiscal 2026, revenues are now forecast at $4.229-$4.252 billion, with adjusted EPS of $4.51-$4.55. The company expects CVI revenues of $2.828-$2.842 billion, representing organic growth of 1-2% and CSI revenues of $1.401-$1.410 billion, representing organic growth of 4-5%, while reaffirming its objective of more than $2.2 billion in cumulative free cash flow for fiscal 2026-2028.
The Cooper Companies, Inc. Price, Consensus and EPS Surprise
The Cooper Companies, Inc. price-consensus-eps-surprise-chart | The Cooper Companies, Inc. Quote
Our Take on COO’s Q3 Results
Cooper Companies delivered a mixed third-quarter fiscal 2026 performance, with earnings topping expectations despite softer revenues. CooperVision’s results were hurt by proactive U.S. channel inventory reductions, although underlying consumption in the United States remained healthy at a mid-single-digit growth rate. Strength in premium products continued, with MyDay toric, multifocal and Energys posting double-digit growth, while MiSight delivered 20% organic growth. CooperSurgical remained resilient, led by growth in fertility, supported by genomics, new clinic wins and broader adoption of the Witness platform.
CooperVision’s near-term growth is likely to remain pressured as management expects a similar level of U.S. channel inventory reduction in the fiscal fourth quarter. However, the company expects the majority of the destocking and legacy hydrogel portfolio rationalization to be completed by fiscal year-end, positioning the business for a healthier start to fiscal 2027. COO is also stepping up commercial investments through expanded sales coverage, marketing programs and AI-driven targeting tools. New product initiatives, including MyDay MiSight and upcoming toric and multifocal offerings, should support longer-term growth.
CooperSurgical remains another key growth driver, particularly in fertility, where favorable treatment trends, growing access to IVF and strength in genomics support the outlook. Following its strategic review, the board decided to retain CooperSurgical after determining that transaction proposals did not adequately reflect the business’ long-term value. Foreign exchange headwinds, higher manufacturing costs and increased commercial investments are expected to pressure margins in the fourth quarter, while continued weakness in Asia Pacific and CooperVision destocking remain near-term concerns.
COO’s Zacks Rank & Key Picks
COO currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Veracyte (VCYT - Free Report) , Globus Medical (GMED - Free Report) and West Pharmaceutical (WST - Free Report) .
Veracyte, currently flaunting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of 54 cents, which surpassed the Zacks Consensus Estimate by 25.6%. Revenues of $150.3 million beat the Zacks Consensus Estimate by 4.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
VCYT has an estimated earnings growth rate of 8.4% for 2026. The company’s earnings beat estimates in the trailing four quarters, the average surprise being 41.8%.
Globus Medical, currently carrying a Zacks Rank #2 (Buy), reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in the trailing four quarters, the average surprise being 27.9%.
West Pharmaceutical, carrying a Zacks Rank #2 at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.
WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.