Cooper Companies (NASDAQ:COO) Issues Earnings Results, Beats Estimates By $0.03 EPS

Cooper Companies (NASDAQ:COO) posted its quarterly earnings results on Wednesday. The medical device company reported $1.15 EPS for the quarter, topping the consensus estimate of $1.12 by $0.03, Zacks reports. Cooper Companies had a net margin of 13.46% and a return on equity of 10.92%. The company had revenue of $1.07 billion during the quarter, compared to analysts’ expectations of $1.10 billion. During the same quarter in the previous year, the business posted $0.49 EPS. The firm’s revenue was up .5% on a year-over-year basis. Cooper Companies updated its Q4 2026 guidance to 1.050-1.090 EPS and its FY 2026 guidance to 4.510-4.550 EPS.

Here are the key takeaways from Cooper Companies’ conference call:

• Strong cash generation and earnings execution: Third-quarter revenue rose 1% organically, non-GAAP EPS increased 4% to $1.15, and free cash flow reached a company-record $273 million. The company repurchased $339 million of shares and increased its authorization by $1 billion.
• CooperVision was pressured by deliberate U.S. channel destocking: Revenue was essentially flat, although management said underlying U.S. consumption remained up at a mid-single-digit rate. Similar inventory reductions are expected in the fourth quarter, while legacy hydrogel rationalization and Asia-Pacific challenges will also weigh on results.
• The strategic review concluded without a sale of CooperSurgical: The board determined that offers did not adequately reflect the business’s long-term value, citing temporary factors including Paragard competition and the fertility litigation settlement. Management said it remains open to future strategic alternatives while prioritizing organic growth and capital returns.
• CooperSurgical continued to show solid operating momentum: Organic revenue grew 3%, with fertility revenue up 5% to $141 million, supported by genomics, new clinic wins, and market-share gains. Management remains optimistic about long-term fertility demand and is increasing investment in R&D and new product launches.
• Near-term guidance remains subdued: Fourth-quarter organic revenue growth is expected at 0%-2%, with CooperVision down 2% to flat, while additional commercial spending, foreign exchange headwinds, and lower tariff benefits are expected to pressure margins. The scheduled GILTI increase is also expected to raise the fiscal 2027 non-GAAP tax rate to approximately 17.5% from 15.5%.

Cooper Companies Stock Down 14.7%

COO stock opened at $54.17 on Friday. The stock’s 50 day simple moving average is $72.02 and its 200 day simple moving average is $69.81. Cooper Companies has a fifty-two week low of $51.01 and a fifty-two week high of $89.83. The company has a debt-to-equity ratio of 0.23, a quick ratio of 0.78 and a current ratio of 1.27. The company has a market cap of $10.56 billion, a P/E ratio of 18.49, a price-to-earnings-growth ratio of 1.66 and a beta of 0.82.

Hedge Funds Weigh In On Cooper Companies

A number of large investors have recently modified their holdings of the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Cooper Companies by 48.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 22,407 shares of the medical device company’s stock valued at $1,890,000 after acquiring an additional 7,363 shares during the last quarter. First Trust Advisors LP grew its stake in shares of Cooper Companies by 115.8% during the 2nd quarter. First Trust Advisors LP now owns 136,334 shares of the medical device company’s stock worth $9,702,000 after purchasing an additional 73,165 shares during the period. Cresset Asset Management LLC acquired a new position in shares of Cooper Companies during the 2nd quarter worth $291,000. Cerity Partners LLC increased its holdings in shares of Cooper Companies by 4.4% in the 2nd quarter. Cerity Partners LLC now owns 17,870 shares of the medical device company’s stock valued at $1,272,000 after purchasing an additional 757 shares in the last quarter. Finally, Daiwa Securities Group Inc. lifted its stake in shares of Cooper Companies by 2.8% in the second quarter. Daiwa Securities Group Inc. now owns 35,839 shares of the medical device company’s stock valued at $2,551,000 after purchasing an additional 973 shares during the period. 24.39% of the stock is currently owned by institutional investors.

Cooper Companies News Summary

Here are the key news stories impacting Cooper Companies this week:

• Positive Sentiment: Cooper Companies reported fiscal third-quarter adjusted EPS of $1.15, above the roughly $1.11–$1.12 analyst consensus. Free cash flow increased 66% to $273 million, and the company repurchased $339.1 million of stock. CooperCompanies Announces Third Quarter 2026 Results
• Positive Sentiment: The board expanded its share-repurchase authorization from $2 billion to $3 billion, potentially allowing the company to buy back as much as 22.7% of outstanding shares. The authorization signals management’s belief that the stock is undervalued and could support per-share results. CooperCompanies Completes Strategic Review
• Neutral Sentiment: Reported short-interest data showed zero shares short and a zero-day days-to-cover ratio, indicating no meaningful short-interest signal; the figures may reflect incomplete or anomalous data.
• Negative Sentiment: Third-quarter revenue of approximately $1.07 billion missed the $1.10 billion consensus estimate. Management cited U.S. channel inventory reductions and destocking pressure affecting CooperVision and reduced its fiscal 2026 adjusted EPS outlook to $4.51–$4.55, below the $4.63 consensus. Fourth-quarter EPS guidance of $1.05–$1.09 also fell short of expectations. Why Cooper Stock Plunges After Earnings
• Negative Sentiment: Cooper completed its strategic review but decided not to sell or pursue a transaction for CooperSurgical. Investors appear disappointed because a sale could have unlocked value, while fertility-related litigation and competitive pressure from a new non-hormonal IUD add uncertainty. Cooper Cos. Stock Drops After Soft Outlook
• Negative Sentiment: Analysts lowered targets and ratings following the results: JPMorgan cut its target to $58 and UBS to $66, both with neutral ratings; William Blair downgraded the stock to market perform; and Robert W. Baird moved from strong buy to hold with a $61 target.
• Negative Sentiment: Law firms announced securities-fraud investigations concerning whether Cooper Companies adequately disclosed business conditions and the factors behind the outlook reduction, creating an additional overhang for investors. Securities Fraud Investigation Announcement

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on COO shares. Robert W. Baird set a $61.00 price target on Cooper Companies and gave the stock a “neutral” rating in a report on Thursday. The Goldman Sachs Group set a $61.00 price objective on shares of Cooper Companies in a research note on Wednesday, May 27th. Weiss Ratings reissued a “sell (d)” rating on shares of Cooper Companies in a research report on Friday, September 4th. Wall Street Zen upgraded shares of Cooper Companies from a “hold” rating to a “buy” rating in a research note on Sunday, June 21st. Finally, Mizuho set a $75.00 price target on shares of Cooper Companies in a report on Thursday. Five research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Cooper Companies has an average rating of “Hold” and an average price target of $71.47.

Cooper Companies announced that its Board of Directors has approved a share repurchase plan on Wednesday, September 9th that permits the company to repurchase $3.00 billion in shares. This repurchase authorization permits the medical device company to repurchase up to 22.7% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its stock is undervalued.

About Cooper Companies

Cooper Companies, Inc is a global medical device company headquartered in San Ramon, California. Founded in 1958, the company develops, manufactures and markets products through two primary business segments: CooperVision and CooperSurgical.

CooperVision specializes in contact lenses, including daily disposable, toric, multifocal, multifocal toric, specialty and myopia-management lenses. Its products are designed to address a range of vision-correction needs, including astigmatism, presbyopia and irregular corneas.