COO Declines Despite Q1 Earnings Beat and Raised FY26 Outlook

The Cooper Companies, Inc. COO posted first-quarter fiscal 2026 adjusted earnings per share (EPS) of $1.10, which improved 19.6% year over year. The figure beat the Zacks Consensus Estimate of $1.03 by 6.8%. Operational improvements drove the bottom-line growth.

GAAP EPS for the quarter was 66 cents, up 26.9% year over year.

COO’s Revenues in Detail

Revenues totaled $1.02 billion, up 6% year over year on a reported basis and up 3% organically. The figure was in line with the Zacks Consensus Estimate.

The quarterly revenues were up 3% year over year at constant exchange rate (CER).

The top-line growth was driven by higher sales across both its segments.

Despite strong earnings, shares of COO were down 3.6% in after-hours trading on March 5. The company’s shares have gained 16.6% in the past six months compared with the industry’s rise of 21.2%. The S&P 500 Index was up 6.9% during the same period.

Cooper Companies’ Segmental Details

COO conducts its business via two reportable segments — CooperVision (“CVI”) and CooperSurgical (“CSI”).

For the first quarter of fiscal 2026, the CVI segment’s revenues totaled $695.1 million, up 8% year over year on a reported basis and 3% at CER as well as organically. This figure compares to our segmental projection of $696.4 million.

Growth was driven by strong sales of MyDay and MiSight, combined with rising sales of torics and multifocals, Biofinity and Avaira. MyDay lenses continued its double-digit growth rate. Biofinity and Avaira grew 3%, while MiSight delivered strong growth of 23%. However, softness in Clariti lens sales continued in the fiscal first quarter as the global contact lens market continues to trend toward premium offerings, which included MyDay offerings.

Category-wise, CVI derives revenues from Toric and multifocal, Sphere and others.

In the fiscal first quarter, Toric and multifocal revenues totaled $351.2 million, up 10% year over year on a reported basis, and up 6% organically as well as at CER. This figure compares to our projection of $352.7 million.

Sphere and other revenues totaled $343.9 million, up 5% year over year on a reported basis and up 1% at CER as well as organically. This figure compares to our projection of $343.7 million.

Geographically, CVI derives revenues from the Americas, Europe and the Asia Pacific.

Americas’ revenues totaled $289 million, up 7% year over year on a reported basis and 6% at CER and organically. The growth was driven by strong demand for daily silicone hydrogel lenses. The figure compares to our projection of $285.7 million.

EMEA revenues amounted to $282.3 million, up 15% year over year on a reported basis and up 4% at CER and organically. The company continued to be the leader in the region. This figure compares to our projection of $269.8 million.

Asia Pacific revenues in the fiscal first quarter totaled $123.8 million, down 4% year over year, as well as organically and at CER. Additional sales from new launches were more than offset by softness in Japan, primarily tied to lower-margin older hydrogel products. This figure compares to our projection of $140.9 million.

The CSI segment’s revenues totaled $329 million, which moved up 3% on a reported basis and 2% at CER and organically. The growth was driven by strong global genomics performance, supported by continued commercial and operational execution across product launches, new clinical wins and expansions within existing accounts. These gains were partially offset by softness in the Middle East and lower equipment installations. This figure compares to our projection of $327.9 million.

Category-wise, CSI derives revenues from Office and surgical, and Fertility.
In the fiscal first quarter, Office and surgical revenues totaled $202.4 million, up 2% on a reported and organic basis, and up 1% at CER. This figure compares to our projection of $206.6 million. PARAGARD sales continued declining following a recovery in the fourth quarter of fiscal 2025. Medical devices grew 6%, led by the strong performance of surgical OB/GYN portfolio and continued momentum in specialty surgical products.

Fertility revenues in the fiscal first quarter amounted to $126.6 million, up 6% on a reported basis and up 3% organically and at CER year over year, supported by renewed clinic interest in adopting new technologies along with improving cycles in the United States and several European countries. This figure compares to our projection of $121.3 million.

COO’s Margin Trend

In the quarter under review, Cooper Companies’ adjusted gross profit rose 5.3% to $697.7 million. However, the adjusted gross margin contracted almost 100 basis points (bps) to 68%, hurt by a lighter mix of low-margin Asia Pacific revenue for CVI and tariff headwinds. We had projected 67.2% of gross margin for the fiscal first quarter.

Selling, general and administrative expenses rose 0.6% to $390.2 million. Research and development expenses increased 8.8% to $44.3 million. Adjusted operating costs totaled $422.3 million, reflecting a 0.4% decrease from the prior-year quarter’s level.

Adjusted operating profit totaled $275.4 million, reflecting a 13.8% increase from the year-earlier quarter’s level. The adjusted operating margin in the fiscal first quarter expanded 200 bps to 27%.

Cooper Companies’ Financial Position

COO exited the first quarter of fiscal 2026 with cash and cash equivalents of $124.9 million compared with $110.6 million at the end of the fourth quarter of fiscal 2025.

Total debt at the end of the fiscal first quarter was $2.5 billion compared with $2.51 billion at the end of the fourth quarter of fiscal 2025.

COO’s Guidance

Cooper Companies has raised its outlook for fiscal 2026.

The company now expects revenues in the range of $4,306-$4,346 million (up from prior guidance of $4,299-$4,338 million), suggesting an organic improvement of 4.5-5.5% from the prior-year figure. The Zacks Consensus Estimate is pegged at $4.32 billion.

COO expects the CVI segment’s revenues in the range of $2,906-$2,932 million (up from prior guidance of $2,900-$2,925 million), suggesting an organic improvement of 4.5-5.5% from the year-earlier registered figure.

The company anticipates the CSI segment’s revenues in the band of $1.400-$1,413 million (tightened from prior guidance of $1,399-$1,413 million), indicating an organic improvement of 4-5% from the year-earlier figure.

For the entire fiscal year, adjusted EPS is expected in the $4.58-$4.66 range, up from the prior guidance of $4.45-$4.60. The Zacks Consensus Estimate is pegged at $4.51.

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

The Cooper Companies delivered a solid start to fiscal 2026, with earnings beating estimates for the fiscal first quarter. The company’s operating margin expansion continued on the back of disciplined cost management. It generated $159 million in free cash flow, reflecting strong profitability and improved working capital efficiency. Performance was led by the CVI segment, driven by demand for premium daily silicone hydrogel lenses and strong adoption of the MyDay product family. Meanwhile, CSI sales growth was aided by improving fertility trends and solid demand for consumables and surgical products. However, growth in the Asia Pacific region remained pressured, primarily due to declining sales of older hydrogel lenses in Japan.

For the remainder of fiscal 2026, several growth drivers could support performance. Continued expansion of premium lenses, particularly MyDay and the myopia-control product MiSight, should drive adoption as the CVI segment expands and launches across Europe, the Asia Pacific and Japan. The company is also benefiting from newly secured private-label contracts and stronger commercial momentum in the Americas and EMEA. Additionally, operational efficiencies from last year’s reorganization and broader use of AI-driven automation are expected to sustain margin expansion and boost free cash flow generation.

Asia Pacific softness — especially in Japan — may weigh on near-term growth as legacy hydrogel products decline. Geopolitical uncertainties affecting fertility markets in the Middle East and competitive pricing pressures in parts of Asia could also temper growth. Despite these headwinds, management expects improving momentum in the second half of fiscal 2026 as product launches, contract wins and fertility market recovery begin to translate into stronger revenue growth.

COO’s Zacks Rank and Other Key Picks

COO currently has a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the same medical industry are Globus Medical GMED, Pacific Biosciences of California PACB and Edwards Lifesciences EW.

Globus Medical, sporting a Zacks Rank #1 (Strong Buy) at present, reported fourth-quarter 2025 adjusted EPS of $1.28, beating the Zacks Consensus Estimate by 20.8%. Revenues of $826 million surpassed the Zacks Consensus Estimate by 4.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 9.6% compared with the industry’s 14% rise. The company beat earnings estimates in each of the trailing four quarters, with the average surprise being 13.2%.

Pacific Biosciences of California, currently flaunting a Zacks Rank of 1, reported a fourth-quarter 2025 adjusted loss per share of 12 cents, which surpassed the Zacks Consensus Estimate by 36.8%. Revenues of $45 million beat the Zacks Consensus Estimate by 9.4%.

PACB has an estimated earnings decline rate of 1.9% against the industry’s 11.4% improvement. The company beat earnings estimates in each of the trailing four quarters, with the average surprise being 27.7%.

Edwards Lifesciences, currently carrying a Zacks Rank #2, reported a second-quarter fiscal 2026 adjusted EPS of 58 cents, which missed the Zacks Consensus Estimate by 6.5%. Revenues of $1.57 billion beat the Zacks Consensus Estimate by 2%.

EW has an estimated long-term earnings growth rate of 12.9% compared with the industry’s 14% rise. The company beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 5.5%.

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This article originally published on Zacks Investment Research (zacks.com).

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