COO Q3 Earnings Top Estimates, Revenues Miss on Destocking, Stock Down

• CooperVision revenues were flat year-over-year at $717 million, pressured by proactive U.S. channel inventory cuts, though MiSight myopia control lenses delivered 20% organic growth and MyDay products posted double-digit gains
• CooperSurgical revenues rose 2% to $349.2 million (3% organic growth), driven by fertility segment growth of 5% organically, supported by genomics, new clinic wins, and adoption of the Witness laboratory platform
• Q4 fiscal 2026 guidance calls for revenues of $1.057-$1.080 billion (0-2% organic growth) with adjusted EPS of $1.05-$1.09, as U.S. inventory reductions are expected to continue before normalizing in fiscal 2027

Cooper Companies Q3 FY2026 Earnings Summary

Key Financial Results

Cooper Companies (COO) reported mixed Q3 fiscal 2026 results. Adjusted EPS of $3.32 rose 4.5% year-over-year and beat estimates, while GAAP EPS reached $2.24 (up from $0.49 prior year) due to a $307.2 million discrete tax benefit from a favorable U.K. tax examination. However, revenues of $1.066 billion increased just 0.6% year-over-year, missing the consensus estimate of $1.099 billion by 3.0%.

Segment Performance

CooperVision (CVI): Revenues of $717.0 million remained flat year-over-year, pressured by proactive U.S. channel inventory reductions. Despite headwinds, premium products showed strength with MyDay toric, multifocal, and Energys posting double-digit growth. MiSight delivered 20% organic growth.

CooperSurgical (CSI): Revenues of $349.2 million grew 2% on a reported basis and 3% organically. Fertility segment ($141.2 million) grew 5% organically, supported by genomics, the Witness platform, new clinic wins, and expanded accounts.

Geographic Results

Americas revenues declined 2% due to U.S. inventory reductions but would have grown approximately 5% excluding these actions. EMEA grew 5% organically, while Asia Pacific declined 5% due to portfolio rationalization and soft market conditions.

Margins and Outlook

Adjusted gross margin contracted 60 basis points to 66.7% due to higher manufacturing costs and unfavorable foreign exchange. Adjusted operating margin improved 30 bps to 26.3%.

For Q4 FY2026, COO expects revenues of $1.057-$1.080 billion and adjusted EPS of $1.05-$1.09. Full-year FY2026 revenue guidance is $4.229-$4.252 billion with adjusted EPS of $4.51-$4.55. Management expects destocking