COOPER COMPANIES, INC. (COO): CooperCompanies Announces Third Quarter 2026 Results
COOPER COMPANIES, INC. (COO) filed an SEC Form 8-K — Results of Operations and Financial Condition. PRESS RELEASE CooperCompanies Announces Third Quarter 2026 Results San Ramon, Calif., September 9, 2026 — CooperCompanies (Nasdaq: COO), a leading global medical device company, today announced financial results for its fiscal third quarter ended July 31, 2026. • Revenue increase
How this was made
The 30-second read
Why it matters
The earnings beat and updated guidance may attract both growth and value investors, potentially lifting the stock.
Market read
Strong Q3 performance and revised FY guidance position COO for near‑term upside in the healthcare sector.
What to watch
Inventory reductions at CooperVision could pressure Q4 margins despite revenue growth.
CooperCompanies Announces Third Quarter 2026 Results
Revenue increased 1% year-over-year, with CooperVision flat and management citing a proactive reduction in U.S. channel inventory that will continue to affect Q4. GAAP EPS rose to $2.24 primarily because of a $307.2 million discrete tax benefit, while non-GAAP EPS increased 4% to $1.15 and free cash flow increased 66% to $273.0 million.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended July 31, 2026GAAP | $1.07B | – | 1 % |
| Net sales, nine months ended July 31, 2026GAAP | $3.17B | – | – |
| Cost of sales, three months ended July 31, 2026GAAP | 354.3 | – | – |
| Cost of sales, nine months ended July 31, 2026GAAP | 1,029.3 | – | – |
| Gross profit, three months ended July 31, 2026GAAP | $711.9M | – | – |
| Gross margin, three months ended July 31, 2026GAAP | 67 % | – | – |
| Non-GAAP gross profit, three months ended July 31, 2026non-GAAP | $711.1M | – | – |
| Non-GAAP gross margin, three months ended July 31, 2026non-GAAP | 67 % | – | down 60 basis points year-over-year |
| Gross profit, nine months ended July 31, 2026GAAP | $2.14B | – | – |
| Gross margin, nine months ended July 31, 2026GAAP | 68 % | – | – |
| Non-GAAP gross profit, nine months ended July 31, 2026non-GAAP | $2.14B | – | – |
| Non-GAAP gross margin, nine months ended July 31, 2026non-GAAP | 68 % | – | – |
| Selling, general and administrative expense, three months ended July 31, 2026GAAP | 401.3 | – | – |
| Selling, general and administrative expense, nine months ended July 31, 2026GAAP | 1,467.7 | – | – |
| Research and development expense, three months ended July 31, 2026GAAP | 41.6 | – | – |
| Research and development expense, nine months ended July 31, 2026GAAP | 128.4 | – | – |
| Amortization of intangibles, three months ended July 31, 2026GAAP | 47.0 | – | – |
| Amortization of intangibles, nine months ended July 31, 2026GAAP | 142.6 | – | – |
| Operating income, three months ended July 31, 2026GAAP | $222M | – | – |
| Operating margin, three months ended July 31, 2026GAAP | 21 % | – | – |
| Non-GAAP operating income, three months ended July 31, 2026non-GAAP | $280.7M | – | – |
| Non-GAAP operating margin, three months ended July 31, 2026non-GAAP | 26 % | – | increased 30 basis points |
| Operating income, nine months ended July 31, 2026GAAP | $403.8M | – | – |
| Operating margin, nine months ended July 31, 2026GAAP | 13 % | – | – |
| Non-GAAP operating income, nine months ended July 31, 2026non-GAAP | $853.3M | – | – |
| Non-GAAP operating margin, nine months ended July 31, 2026non-GAAP | 27 % | – | – |
| Interest expense, three months ended July 31, 2026GAAP | $21.5M | – | – |
| Non-GAAP interest expense, three months ended July 31, 2026non-GAAP | $21.5M | – | – |
| Interest expense, nine months ended July 31, 2026GAAP | 64.8 | – | – |
| Income before income taxes, three months ended July 31, 2026GAAP | 201.8 | – | – |
| Provision for income taxes, three months ended July 31, 2026GAAP | (231.0) | – | – |
| Net income, three months ended July 31, 2026GAAP | $432.8M | – | – |
| GAAP diluted EPS, three months ended July 31, 2026GAAP | $ 2.24 | – | – |
| Non-GAAP net income, three months ended July 31, 2026non-GAAP | $221.5M | – | – |
| Non-GAAP diluted EPS, three months ended July 31, 2026non-GAAP | $ 1.15 | – | up 4% |
| Net income, nine months ended July 31, 2026GAAP | $485.7M | – | – |
| GAAP diluted EPS, nine months ended July 31, 2026GAAP | $ 2.49 | – | – |
| Non-GAAP net income, nine months ended July 31, 2026non-GAAP | $675.9M | – | – |
| Non-GAAP diluted EPS, nine months ended July 31, 2026non-GAAP | $ 3.46 | – | – |
| Free cash flow, three months ended July 31, 2026non-GAAP | $273M | – | up 66% |
| Cash provided by operations, three months ended July 31, 2026GAAP | $341.7M | – | – |
| Capital expenditures, three months ended July 31, 2026other | $68.7M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| CooperVisionComparable to last year’s third quarter on a reported, constant currency, and organic basis. | $717M | – | — % |
| CooperVision Toric and multifocalReported growth was 1%; currency impact was 1%; constant currency growth was 2%. | $363.8M | – | 2% organic |
| CooperVision Sphere, otherReported change was (2)%; currency impact was 1%; constant currency change was (1)%. | 353.2M | – | (1)% organic |
| CooperVision AmericasReported and constant currency changes were (2)%. | $281.6M | – | (2)% organic |
| CooperVision EMEAReported growth was 6%; currency impact was (1)%; constant currency growth was 5%. | 309.4M | – | 5% organic |
| CooperVision Asia PacificReported change was (10)%; currency impact was 5%; constant currency change was (5)%. | 126M | – | (5)% organic |
| CooperSurgicalReported and constant currency revenue growth were 2%; acquisitions and divestitures contributed 1%. | $349.2M | – | 3% organic |
| CooperSurgical Office and surgicalReported and constant currency revenue growth were 2%. | $208M | – | 2% organic |
| CooperSurgical FertilityReported growth was 3%; currency impact was 1%; constant currency growth was 4%; acquisitions and divestitures contributed 1%. | 141.2M | – | 5% organic |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Fiscal fourth quarter 2026 and fiscal 2026 outlook
- RevenueFiscal fourth quarter 2026 total revenue of $1.057 - $1.080 billion (organic growth of 0% to 2%); Fiscal 2026 total revenue of $4.229 - $4.252 billion (organic growth of 2% to 3%)
- NoteFiscal fourth quarter 2026 CVI revenue of $692 -$706 million (organic growth of -2% to 0%)
- NoteFiscal fourth quarter 2026 CSI revenue of $364 - $374 million (organic growth of 4% to 6%)
- NoteFiscal fourth quarter 2026 non-GAAP diluted EPS of $1.05 -$1.09
- NoteFiscal 2026 CVI revenue of $2.828 - $2.842 billion (organic growth of 1% to 2%)
- NoteFiscal 2026 CSI revenue of $1.401 - $1.410 billion (organic growth of 4% to 5%)
- NoteFiscal 2026 non-GAAP diluted EPS of $4.51 - $4.55
- NoteReaffirm previously communicated long-term free cash flow objective exceeding $2.2 billion for fiscal years 2026 through 2028
Capital returns
- Repurchased $339.1 million of common stock during the third quarter.
- Repurchased approximately 4.9 million shares at an average share price of $69.16.
- Following expansion of the share repurchase authorization from $2 billion to $3 billion, approximately $1.5 billion remains available under the program.
What drove it
- The $307.2 million discrete tax benefit followed the favorable completion of HMRC's examination of the fiscal 2021 transfer of intellectual property and related assets to the United Kingdom.
- GAAP gross margin benefited from fiscal 2025 inventory write-offs related to a CooperSurgical product line exit.
- Non-GAAP gross margin was affected by higher manufacturing costs and unfavorable foreign exchange.
- Non-GAAP operating-margin expansion was driven by expense management and productivity initiatives, partially offset by unfavorable foreign exchange.
- Free cash flow reflected cash provided by operations of $341.7 million less capital expenditures of $68.7 million.
- Interest expense declined due to lower interest rates and lower average debt.
Concerns
- Management said a proactive reduction in U.S. channel inventory weighed on CooperVision results and will continue to impact Q4.
- CooperVision revenue was flat on a reported, constant currency, and organic basis.
- CooperVision Asia Pacific revenue declined (10)% on a reported basis and (5)% organically.
- Fiscal fourth quarter CVI organic growth guidance is -2% to 0%.
- Non-GAAP gross margin declined 60 basis points year-over-year due to higher manufacturing costs and unfavorable foreign exchange.
- The $307.2 million discrete tax benefit was the primary driver of the lower GAAP effective tax rate for the quarter.
What to watch
- Execution of the U.S. channel-inventory reduction and its stated impact on fiscal fourth-quarter CooperVision revenue.
- Whether CVI achieves fiscal fourth-quarter organic growth of -2% to 0%.
- Whether CSI delivers fiscal fourth-quarter organic growth of 4% to 6%, including fertility performance.
- Progress toward the reaffirmed long-term free cash flow objective exceeding $2.2 billion for fiscal years 2026 through 2028.
- Capital deployment under the approximately $1.5 billion remaining share-repurchase authorization following the conclusion of the strategic review.
Balance sheet and cash flow
- Cash and cash equivalents were $ 154.7 at July 31, 2026, compared with $ 110.6 at October 31, 2025.
- Short-term debt was $ 628.1 at July 31, 2026, compared with $ 47.8 at October 31, 2025.
- Long-term debt was $ 1,916.1 at July 31, 2026, compared with $ 2,457.5 at October 31, 2025.
- Inventories were 911.5 at July 31, 2026, compared with 846.0 at October 31, 2025.
- Trade receivables, net were 788.9 at July 31, 2026, compared with 829.0 at October 31, 2025.
- Accrued litigation liability was 316.5 at July 31, 2026, compared with 0.7 at October 31, 2025.
- Total assets were $ 12,673.4 at July 31, 2026, compared with $ 12,394.8 at October 31, 2025.
- Total liabilities were 4,345.0 at July 31, 2026, compared with 4,155.7 at October 31, 2025.
Analysis
CooperCompanies delivered $ 1,066.2 of third-quarter net sales, up 1 % year-over-year. Growth was entirely concentrated in CooperSurgical, where revenue rose 2 % on a reported basis and 3% organically to $ 349.2. CooperVision revenue of $ 717.0 was flat across reported, constant-currency, and organic measures. Within CooperVision, EMEA grew 5% organically, while Americas declined (2)% and Asia Pacific declined (5)%; management attributed the overall CooperVision pressure to a proactive reduction of U.S. channel inventory.
Profitability improved substantially on a GAAP basis. Gross margin was 67 %, compared with 65 %, and operating margin was 21 %, compared with 17 %. The release attributes the GAAP improvements in part to fiscal 2025 inventory and long-lived asset write-offs related to a CooperSurgical product line exit, as well as lower operating expenses. Underlying profitability was more restrained: non-GAAP gross margin was 67 %, down 60 basis points year-over-year because of higher manufacturing costs and unfavorable foreign exchange, while non-GAAP operating margin increased 30 basis points to 26% through expense management and productivity initiatives.
GAAP net income was $ 432.8 and GAAP diluted EPS was $ 2.24, versus $ 98.3 and $ 0.49 in the prior-year quarter. The principal contributor was a $307.2 million discrete tax benefit after HMRC completed its examination of the fiscal 2021 transfer of intellectual property and related assets to the United Kingdom with no proposed adjustments. Non-GAAP net income was $ 221.5 and non-GAAP diluted EPS was $ 1.15, up 4% from $ 1.10, better reflecting operating-period earnings without the tax-related effect and other adjustments.
Cash generation was a notable strength. Free cash flow increased 66% to $273.0 million, comprising cash provided by operations of $341.7 million less capital expenditures of $68.7 million. The company repurchased $339.1 million of stock, approximately 4.9 million shares, and has approximately $1.5 billion available under its enlarged $3 billion authorization. Cash and cash equivalents were $ 154.7, short-term debt was $ 628.1, and long-term debt was $ 1,916.1 at July 31, 2026.
The updated outlook calls for fiscal fourth-quarter revenue of $1.057 - $1.080 billion and non-GAAP diluted EPS of $1.05 -$1.09. The company expects CVI organic growth of -2% to 0% in the quarter, explicitly incorporating continued effects from the U.S. channel-inventory action, while CSI organic growth is guided to 4% to 6%. For fiscal 2026, total revenue guidance is $4.229 - $4.252 billion with 2% to 3% organic growth, and non-GAAP diluted EPS guidance is $4.51 - $4.55. The company also reaffirmed its long-term free cash flow objective exceeding $2.2 billion for fiscal years 2026 through 2028.
Management, verbatim
This quarter included a number of notable developments including earnings exceeding expectations, record free cash flow, solid fertility growth at CooperSurgical, and a favorable completion of a significant tax matter. At CooperVision, however, we proactively reduced U.S. channel inventory that weighed on our results and will continue to impact Q4.
Al White, President and CEO of CooperCompanies
Following the completion of the strategic review, we are focused on profitable growth, strong cash flow generation, disciplined capital allocation, and maximizing long-term shareholder value.
Al White, President and CEO of CooperCompanies
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so comparison with prior guidance is unavailable.
- GAAP effective tax rate was not reported as a percentage.
- Dividend amount and dividend declaration information were not reported.
- Prior-quarter comparisons were not reported for the disclosed metrics.
- Cash provided by operating activities and capital expenditures prior-year comparison figures were not reported.
- Fiscal fourth-quarter and fiscal 2026 gross-margin, operating-expense, and tax-rate guidance were not reported.
- A complete consolidated statement of cash flows was not included in the filing text.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
CooperCompanies (Nasdaq: COO) is a global medical‑device firm with segments CooperVision and CooperSurgical.
Ticker impact
CooperCompanies reported Q3 2026 results with revenue of $1.066 B, GAAP EPS $2.24 and updated FY2026 guidance.
Expect modest price appreciation as investors price in higher earnings and updated revenue guidance.
The disclosed tax benefit and strong free cash flow drive earnings beat; updated guidance expands revenue outlook, supporting bullish sentiment.
Market effects
Medical device sector may see broader uplift as CooperCompanies signals resilient demand and strong cash generation.
U.S. listed healthcare stocks could benefit from the positive earnings backdrop.
Limited to healthcare investors; no immediate macro spillover.
Counterpoint
The tax benefit is a one‑time item; future quarters may revert to lower EPS without similar gains.
Key entities
- ExecutiveAl White
President and CEO of CooperCompanies, quoted on results and strategic focus.
