CooperCompanies delivered a third quarter that met market expectations, with management highlighting robust execution in its premium daily contact lens portfolio and steady contract wins in both private label and branded products. CEO Al White attributed the performance to the global rollout of the MyDay lens line, stating, “Momentum is robust, we’re seeing increasing bidding activity with especially strong interest in our premium comfort MyDay Energous lens.” Despite ongoing softness in the Asia Pacific region, particularly China, management pointed to improved availability and targeted product launches as key drivers behind CooperVision’s growth. CooperSurgical’s performance was supported by share gains in fertility and strong demand for the PARAGARD device, offsetting weaker consumer spending in certain markets.
Is now the time to buy COO? Find out in our full research report (it’s free for active Edge members).
CooperCompanies (COO) Q3 CY2025 Highlights:
- Revenue: $1.07 billion vs analyst estimates of $1.06 billion (4.6% year-on-year growth, in line)
- Adjusted EPS: $1.15 vs analyst estimates of $1.11 (3.3% beat)
- Adjusted EBITDA: $390.6 million vs analyst estimates of $330.8 million (36.7% margin, 18.1% beat)
- Revenue Guidance for Q4 CY2025 is $1.02 billion at the midpoint, roughly in line with what analysts were expecting
- Adjusted EPS guidance for the upcoming financial year 2026 is $4.53 at the midpoint, beating analyst estimates by 3.2%
- Operating Margin: 13.2%, down from 19.5% in the same quarter last year
- Organic Revenue rose 3% year on year vs analyst estimates of 2.8% growth (19.6 basis point beat)
- Market Capitalization: $15.82 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From CooperCompanies’s Q3 Earnings Call
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Jeff Johnson (Baird) asked about the outlook for the Clarity product line and margin trends. CEO Al White explained that Clarity is being repositioned, with new multifocal launches showing promise, but gross margins will remain pressured as the mix shifts toward premium daily lenses.
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Larry Biegelsen (Wells Fargo) pressed on the strategic review and potential separation of CooperVision and CooperSurgical. White reiterated that the review aims to maximize shareholder value and that no decision has been made, with updates expected by the next call.
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Jonathan Block (Stifel) questioned the assumptions behind market growth rates and the regional recovery, especially in Asia Pacific. White responded that while APAC faced challenges in e-commerce channels, these are now a smaller part of the business and less likely to be a drag moving forward.
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Lily (JPMorgan) asked about the back-end-loaded nature of the guidance and drivers of improved free cash flow. White clarified that growth will build as contract wins ramp up, and cash flow will benefit from both higher profits and reduced capital spending.
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David Saxon (Needham and Company) sought details on the reorganization’s impact and retention strategies. White highlighted back office integration, AI-driven efficiency, and a focus on promoting internal talent to maintain execution strength.
Catalysts in Upcoming Quarters
In future quarters, our analysts will track (1) the pace of new product launches, particularly the rollout of MyDay MySight in Europe and MiSight in Japan, (2) evidence of margin expansion and cash flow improvement as restructuring benefits materialize, and (3) progress on the board’s strategic review, including any announcements regarding portfolio changes. Developments in the Asia Pacific market and competitive responses in the fertility and surgical segments will also be key indicators of execution.
CooperCompanies currently trades at $79.68, up from $77.03 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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