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📘 The Cooper Companies, Inc. (COO) — Investment Overview

🧩 Business Model Overview

The Cooper Companies, Inc. operates as a global medical device company with a focus on two principal business segments: CooperVision and CooperSurgical. CooperVision specializes in the manufacturing and marketing of contact lenses, serving eyecare professionals and consumers worldwide. Its diverse product portfolio addresses a broad spectrum of visual correction needs, including daily and monthly disposable lenses, as well as specialty lenses for conditions like astigmatism and presbyopia. CooperSurgical, on the other hand, provides a wide array of medical devices, fertility and genomics solutions, and surgical products tailored for women’s health and family planning professionals. Cooper Companies services a large and international customer base, reaching both the consumer and healthcare provider channels across developed and emerging markets.

💰 Revenue Model & Ecosystem

The company’s revenue streams are diversified across product sales and value-added services. CooperVision generates income from the recurring sale of contact lenses—largely distributed via optical retailers, online channels, and eye care practitioners—creating steady, predictable cash flows. CooperSurgical’s business unit benefits from sales of medical devices, surgical instruments, and ongoing service contracts with clinics, hospitals, and fertility centers. The company’s ecosystem includes relationships with healthcare practitioners, institutional purchasing organizations, and direct-to-consumer channels, fostering ongoing engagement through product innovation, clinical training, and proprietary technologies.

🧠 Competitive Advantages

  • Brand strength: Cooper Companies owns reputable brands in both vision care and women’s health, benefiting from long-term trust among practitioners and patients.
  • Switching costs: Proprietary lens technologies and tailored healthcare solutions make product switching less attractive for both consumers and clinics.
  • Ecosystem stickiness: Partnerships with healthcare providers and clinics create ecosystem integration that reinforces customer loyalty and repeat business.
  • Scale + supply chain leverage: Global manufacturing capabilities and established distribution enable consistent supply and efficiency, supporting cost effectiveness and product reach.

🚀 Growth Drivers Ahead

Multiple secular trends underpin long-term growth prospects. Global demographic shifts—such as the aging population and increased prevalence of myopia—drive demand for corrective lenses. Urbanization and digital lifestyle adoption heighten the need for vision correction among younger cohorts. In women’s health, advancements in fertility treatments and rising awareness of reproductive health support ongoing demand for medical devices and specialty services. Strategic acquisitions, expansion into emerging markets, and continued R&D investment in next-generation lens materials and surgical solutions further enhance future growth opportunities. Additionally, digital health integration and e-commerce expansion may capture new consumers and improve service delivery.

⚠ Risk Factors to Monitor

The company faces competitive pressure from established industry players and innovative new entrants in both the contact lens and women’s health markets. Regulatory scrutiny and evolving healthcare standards could impact product approvals or limit market access. Margin pressure may result from pricing competition, input cost fluctuations, or reimbursement challenges across global markets. Technological disruption, such as advances in vision correction procedures or alternative medical solutions, poses longer-term risk to traditional product lines. Operational complexities associated with a global supply chain and integration of acquired businesses must also be effectively managed.

📊 Valuation Perspective

Cooper Companies is generally valued with a premium relative to many healthcare device peers, reflecting its strong recurring revenue profile, leadership in niche markets, and robust global footprint. The company’s position in both the stable consumables business and higher-growth specialty medical segments often attracts both growth-oriented and defensive investors. However, valuation may fluctuate based on investor perceptions of competitive threats, regulatory developments, or broader healthcare sector sentiment.

🔍 Investment Takeaway

The investment case for The Cooper Companies, Inc. balances the appeal of resilient, recurring revenues and global leadership across specialized healthcare markets with the challenges of evolving competition, regulatory complexity, and operational execution. Bulls will cite the company’s entrenched market positions, diversified product suite, and favorable exposure to demographic and healthcare trends. Bears may highlight elevated valuation, ongoing competition, and potential margin compression. As with any complex healthcare business, continued monitoring of innovation, execution, and industry dynamics is warranted to support a sound investment thesis.


⚠ AI-generated research summary — not financial advice. Validate using official filings & independent analysis.

📢 Show latest earnings summary

📢 Earnings Summary — COO

Cooper Companies delivered a solid Q4 with record revenue, double-digit EPS growth, and strong free cash flow, underpinned by MyDay momentum and disciplined cost control. The company completed a reorganization that should yield ~$50M in annual savings starting in FY26 and raised its FY26–FY28 free cash flow target to over $2.2B. Guidance calls for 4.5–5.5% organic growth in FY26 with the strongest CVI performance expected in the back half as MyDay gains full traction and new launches roll out. Management accelerated buybacks, expanded the repurchase authorization to $2B, and formalized a strategic alternatives review to enhance shareholder value. While tariffs, mix, and China weakness remain headwinds, the premium mix shift, private-label wins, and improving operating leverage support a constructive outlook.

📈 Growth Highlights

  • Consolidated revenue up 4.6% y/y (+3.4% organic) to a record $1.065B; non-GAAP EPS up 11% to $1.15
  • CooperVision (CVI) revenue up 4.9% (+3.2% organic) to $710M; daily SiHy +5% (MyDay double-digit; Clariti declines)
  • By category: torics and multifocals +5%; spheres +2%; FRP SiHy (Biofinity/Avaira) +2%; MiSight +37%
  • Regional CVI: Americas +5%; EMEA +3%; APAC flat (China -28%)
  • CooperSurgical (CSI) revenue up 4% (+3.9% organic) to $356M; PARAGARD +16%; Medical devices +3%; OBP surgical +35%
  • FY26 organic growth outlook: consolidated +4.5–5.5%; CVI +4.5–5.5%; CSI +4–5%
  • Q1 FY26 organic growth outlook: consolidated +3–4%; CVI +3.5–4.5%; CSI +2–3%

🔨 Business Development

  • Won multiple new private-label MyDay contracts in Q4 across the U.S. and Europe (building on Q3 wins)
  • Accelerating global rollout of MyDay (toric parameter expansion; multifocal rollout in APAC)
  • Planned launches: MyDay Energys (Europe, fiscal Q2 2026), MiSight in Japan (fiscal Q2 2026), MyDay MiSight across Europe (fiscal Q2 2026), and MyDay Toric Multifocal/MyDay MySight in 2026
  • Clariti repositioning in APAC; ‘three add’ multifocal launch in the Americas delivering double-digit growth
  • Fertility: new genomics tests launched; increasing RFP wins; strong clinic interest in WITNESS automated lab tracking system; expanding myopia-control private-label programs in Europe/select markets

💵 Financial Performance

  • Q4 gross margin 66.2% (down slightly; tariffs and mix); operating margin 27% (+9% operating income)
  • Interest expense $23.7M; effective tax rate 14.2%; average diluted shares 198M
  • Q4 free cash flow $150M; CapEx $98M; net debt $2.4B; bank-defined leverage 1.76x
  • FY26 non-GAAP EPS guidance $4.45–$4.60; interest expense ~$85M (25 bps Fed cut would reduce by ~$2M); tax rate 15–16%
  • FY26 free cash flow guidance $575–$625M; CapEx to decline; ~$70M cash outflow for reorg and facility completions
  • FY26–FY28 free cash flow target raised to >$2.2B
  • MiSight FY25 revenue $104M; expected growth of 20–25% in FY26 with further strength in 2027
  • Q1 FY26 non-GAAP EPS guidance $1.20–$1.40; margins improving on opex leverage with gross margin pressure from tariffs/mix

🏦 Capital & Funding

  • Repurchased ~$197.3M of stock in Q4 (2.9M shares); ~$300M in FY25 (~two-thirds of FY25 FCF)
  • Share repurchase authorization increased to $2B; approximately $1B remaining
  • Expect to allocate a similar percentage of FY26 FCF to buybacks; remainder to debt reduction
  • Net debt $2.4B with improving leverage; FCF to support deleveraging, investments, and repurchases
  • Formal strategic alternatives review initiated to evaluate options to unlock shareholder value

🧠 Operations & Strategy

  • Completed reorganization/integration in Q4, leveraging prior IT investments and AI to streamline support functions
  • Booked ~$89M of related charges; expecting ~$50M annual pre-tax savings (~$0.19/share) starting FY26
  • Strategic priorities: sustain CVI share gains via MyDay expansion/private labels; drive earnings and free cash flow; return capital
  • Selective pricing stance—avoiding low-margin e-commerce in China; focusing on premium mix and independent optometrists
  • Governance: chair role transitioned to independent director Colleen Jay; TSR added to executive performance plans
  • Remediated prior IT general controls material weakness (to be reflected in 10-K)

🌍 Market Outlook

  • Contact lens market shifting to premium offerings—tailwind for MyDay/private label; headwind for Clariti
  • CVI expects strongest share gains in 2H FY26 (Q3–Q4) as MyDay achieves full traction
  • Fertility market: consumer spending remains tight (especially APAC); early positive signs include improving U.S. cycle activity and clinic interest in new technology
  • EMEA showed temporary weakness not tied to consumer demand; signs of pickup already in current quarter
  • Company growth expected at or slightly above market (market assumed +4–5%); operating margin expansion driven by opex leverage amid ongoing tariff/mix pressure
  • CapEx expected to normalize to ~5% of revenue by FY27, improving FCF profile

⚠ Risks & Headwinds

  • China softness (28% decline) and aggressive e-commerce pricing dynamics; company not matching low-margin pricing
  • Tariffs and product mix weighing on gross margins
  • Ongoing decline/repositioning of Clariti hydrogel line as market premiumizes
  • Fertility demand variability tied to consumer spending and clinic budgeting (notably in APAC)
  • Execution risk in back-half-weighted FY26 outlook tied to MyDay ramp, contract onboarding, and launches
  • Legacy product softness within surgical portfolio

AI-generated earnings recap sourced from company results & conference call observations. Not investment advice — verify with official filings.

📊 The Cooper Companies, Inc. (COO) — AI Scoring Summary

📊 AI Stock Rating — Summary

The Cooper Companies, Inc. reported quarterly revenue of $1.06 billion with a net income of $98.3 million, translating to an EPS of $0.49. The net margin stands at 9.3%. Free cash flow for the period was $164.5 million, highlighting solid cash generation capabilities. Year-over-year share price performance has declined by 33.7%. Revenue growth remains consistent due to robust demand in the CooperVision and CooperSurgical segments. Operating efficiency is evident through controlled costs, while EPS reflects moderated gains. Free cash flow generation is healthy, reinforcing the company's liquidity position. Cooper maintains a debt-to-equity ratio of 0.3, suggesting moderate leverage with net debt at $2.35 billion. Investor returns are mainly driven by stock price appreciation potential, as reflected in the high price target of $100. However, there are no dividends or significant buybacks, limiting direct shareholder returns. Analyst sentiment remains optimistic with targets suggesting room for price appreciation relative to the current valuation at a P/E of 36.06.

AI Score Breakdown

Revenue Growth — Score: 6/10

Revenue growth is stable, supported by demand in both the CooperVision and CooperSurgical segments. Consistent growth reflects product innovation and market expansion.

Profitability — Score: 5/10

Operating margins and EPS indicate ongoing profitability but suggest some pressure on margins. Efficiency needs improvement despite robust revenue.

Cash Flow Quality — Score: 7/10

Free cash flow is positive, indicating healthy cash generation. No dividends or significant buybacks suggest reinvestment in business operations.

Leverage & Balance Sheet — Score: 7/10

The balance sheet is strong with a debt-to-equity ratio of 0.3, indicating prudent financial management. Net debt is manageable relative to assets.

Shareholder Returns — Score: 3/10

The 1-year price change is a decline of 33.7%, reflecting negative market sentiment without the offset of dividends or substantial buybacks.

Analyst Sentiment & Valuation — Score: 6/10

At a P/E of 36.06, the stock appears to be priced at a premium. Analyst price targets up to $100 suggest potential upside, pending improved market conditions.

⚠ AI-generated — informational only, not financial advice.

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