CooperCompanies Announces Third Quarter 2026 Results
— CooperCompanies (Nasdaq: COO), a leading global medical device company, today announced financial results for its fiscal third quarter ended July 31, 2026.
• Revenue increased 1% year-over-year to $1.066 billion, including 1% organic growth.
• GAAP diluted earnings per share (EPS) of $2.24, compared with $0.49 in last year's third quarter, primarily driven by a $307.2 million discrete tax benefit resulting from the favorable completion of a U.K. tax examination.
• Non-GAAP diluted EPS of $1.15, up 4% from last year's third quarter. See "Reconciliation of Selected GAAP Results to Non-GAAP Results" below.
• Free cash flow increased 66% to $273.0 million; repurchased $339.1 million of common stock.
• Completed the Company's strategic review process and announced actions to enhance shareholder value; additional details provided in a separate press release issued today.
"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," said 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."
• Revenue of $1.066 billion, up 1% from last year’s third quarter on a reported basis, up 1% in constant currency, and up 1% organically.
• Gross margin of 67% compared with 65% in last year's third quarter driven by fiscal 2025 inventory write-offs related to a product line exit at CooperSurgical. On a non-GAAP basis, gross margin was 67%, down 60 basis points year-over-year, driven by higher manufacturing costs and unfavorable foreign exchange.
• Operating margin of 21% compared with 17% in last year’s third quarter, driven by lower operating expenses, as well as fiscal 2025 inventory and long-lived asset write-offs related to a product line exit at CooperSurgical. On a non-GAAP basis, operating margin increased 30 basis points to 26%, driven by expense management and productivity initiatives, partially offset by unfavorable foreign exchange.
• Interest expense of $21.5 million compared with $25.4 million in last year's third quarter driven by lower interest rates and lower average debt. On a non- GAAP basis, interest expense was $21.5 million compared with $24.7 million in the prior year period.
• Free cash flow of $273.0 million, up 66% from last year's third quarter, reflecting cash provided by operations of $341.7 million less capital expenditures of $68.7 million.
• Revenue of $717.0 million, comparable to last year’s third quarter on a reported, constant currency, and organic basis.
• Revenue of $349.2 million, up 2% from last year's third quarter on a reported basis, up 2% in constant currency, and up 3% organically.
• During the third quarter, the Company repurchased $339.1 million of common stock, approximately 4.9 million shares, at an average share price of $69.16. Following the Board's approval of an expansion of the share repurchase authorization from $2 billion to $3 billion, approximately $1.5 billion remains available under the program.
• The Company recognized a $307.2 million discrete tax benefit following the favorable completion of the related tax authority's (HMRC) examination of its fiscal 2021 transfer of intellectual property and related assets to the United Kingdom. The benefit was the primary driver of the lower GAAP effective tax rate for the quarter.
The Company updated its fiscal year 2026 financial guidance. Details are summarized as follows:
• Fiscal 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%)
• Reaffirm previously communicated long-term free cash flow objective exceeding $2.2 billion for fiscal years 2026 through 2028
Non-GAAP diluted earnings per share guidance excludes amortization and impairment of intangible assets, and certain income or gains and charges or expenses including acquisition and integration costs which we may incur as part of our continuing operations.
With respect to the Company’s guidance expectations, the Company has not reconciled non-GAAP diluted earnings per share guidance to GAAP diluted earnings per share due to the inherent difficulty in forecasting acquisition-related, integration and restructuring charges and expenses, which are reconciling items between the non-GAAP and GAAP measures. Due to the unknown effect, timing and potential significance of such charges and expenses that impact GAAP diluted earnings per share, the Company is not able to provide such guidance.
To supplement our financial results and guidance presented on a GAAP basis, we provide non-GAAP measures such as non-GAAP gross margin, non-GAAP operating margin, non-GAAP diluted earnings per share, as well as constant currency and organic revenue growth because we believe they are helpful for the investors to understand our consolidated operating results. Management uses supplemental non- GAAP financial measures internally to understand, manage and evaluate our business, to make operating decisions, and to plan and forecast for future periods. The non-GAAP measures exclude costs which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. We provide further details of the non-GAAP
adjustments made to arrive at our non-GAAP measures in the GAAP to non-GAAP reconciliations below. Our non-GAAP financial results and guidance are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
To present constant currency revenue growth, current period revenue for entities reporting in currencies other than the United States dollar are converted into United States dollars at the average foreign exchange rates for the corresponding period in the prior year. To present organic revenue growth, we excluded the effect of foreign currency fluctuations and the impact of any acquisitions, divestitures and discontinuations that occurred in the comparable period.
We define the non-GAAP measure of free cash flow as cash provided by operating activities less capital expenditures. We believe free cash flow is useful for investors as an additional measure of liquidity because it represents cash that is available to grow the business, make strategic acquisitions, repay debt, or buyback common stock. Management uses free cash flow internally to understand, manage, make operating decisions and evaluate our business. In addition, we use free cash flow to help plan and forecast future periods.
Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP. THE COOPER COMPANIES, INC. AND SUBSIDIARIES
(1) Charges included $(1.4) million of facility rationalization costs adjustment related to Cook Medical integration expenses in the three and nine months ended July 31, 2026.
Charges included $5.0 million and $5.0 million of long-lived asset write-offs related to lease abandonment, $3.7 million and $5.5 million of facility rationalization costs, $3.0 million and $7.8 million related to redundant personnel costs for transitional employees, $1.2 million and $3.3 million of inventory fair value step-up amortization, $0.3 million and $2.7 million of professional services fees, and $0.4 million and $0.8 million of other acquisition and integration-related activities in the three and nine months ended July 31, 2025, respectively. The nine months ended July 31, 2025 also included $2.4 million of acquisition-related non-cash cumulative true-up adjustments reflecting changes in compensation. The acquisition and integration- related charges in fiscal 2025 were primarily related to the obp Surgical and Cook Medical acquisition and integration expenses.
Charges in this category may include the direct effects of acquisition accounting, such as amortization of inventory fair value step-up, professional services fees, regulatory fees, and items related to integrating acquired businesses, such as redundant personnel costs for transitional employees, acquisition-related non-cash cumulative true up adjustments reflecting changes in compensation, other acquisition-related costs, integration-related professional services, long-lived asset write-offs, manufacturing integration costs, legal entity and facility rationalization, and other integration-related activities.
(2) There were no charges related to the exit of business in the three months ended July 31, 2026. The nine months ended July 31, 2026 included $1.7 million of specifically-identified long-lived asset write-offs and $0.1 million of other costs related to product line exits.
Charges included $12.7 million of inventory write-offs, $14.3 million of specifically-identified long-lived asset write-offs and $0.2 million of other costs related to product line exits in the three and nine months ended July 31, 2025.
Charges in this category may include costs related to product line exits such as inventory write-offs, employee severance costs, specifically-identified long- lived asset write-offs, and other costs related to product line exits.
(3) Charges represent incremental costs of complying with the new European Union (E.U.) medical device regulations and the E.U. in vitro diagnostic medical device regulation (collectively, the "Medical device regulations") for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be limited to a specific time period.
(4) Charges included $1.1 million and $3.4 million of redundant personnel costs for transitional employees in the three and nine months ended July 31, 2026. The nine months ended July 31, 2026 also included $0.4 million of employee severance costs and $0.3 million of other business optimization charges.
Charges included $2.7 million of employee severance costs in the three and nine months ended July 31, 2025.
Charges in this category represent costs associated with initiatives to increase efficiency and optimize the cost structure, and may include, among other items, changes to our IT infrastructure and operations, employee severance costs, redundant personnel costs for transitional employees, legal entity and other business reorganizations, and inventories associated with the business optimization activities.
(5) Charges included $2.2 million and $274.4 million related to litigation expense and associated legal costs, $2.9 million and $14.1 million related to legal matters, $4.3 million and $4.3 million related to strategic review costs, and $0.9 million and $2.7 million of gains and losses on minority interest investments in the three and nine months ended July 31, 2026.
Charges included $2.4 million and $3.0 million related to legal matters, $0.9 million and $18.8 million of gains and losses on a minority interest investment, and $0.7 million and $2.1 million of accretion of interest attributable to acquisition installment payable in the three and nine months ended July 31, 2025. The gains and losses on the minority interest investment for the nine months ended July 31, 2025 included a $15.7 million loss on the disposal of a minority interest investment.
Charges in this category may include legal matters, litigation expense, strategic review costs, and other items that are not part of ordinary operations. The adjustments to arrive at non-GAAP net income also include gains and losses on minority interest investments and accretion of interest attributable to acquisition installment payables.
(6) In fiscal 2021, the Company transferred its CooperVision intellectual property and related assets to its UK subsidiary. As a result, we recorded a deferred tax asset equal to approximately $2.0 billion as a one-time tax benefit in accordance with U.S. GAAP in fiscal 2021. The deferred tax asset was recorded net of a $307.2 million reserve for an uncertain tax position related to the valuation of the transferred assets.
Non-GAAP adjustments continue to reflect the recurring net deferred tax benefit associated with amortization of the transferred assets under UK tax law. In the 3 rd fiscal quarter 2026, non-GAAP adjustments also include the reversal of the $307.2 million uncertain tax position following completion of the related tax authority examination with no proposed adjustments.
The Company will host an audio webcast today for the public, investors, analysts and news media to discuss its third quarter results, the conclusion of the strategic review and current corporate developments. The audio webcast will be broadcast live on CooperCompanies' website, www.investor.coopercos.com, at approximately 5:00 PM ET. It will also be available for replay on
CooperCompanies' website, www.investor.coopercos.com. Alternatively, you can dial in to the conference call at 800-715-9871; conference ID 9708839.
CooperCompanies (Nasdaq: COO) is a leading global medical device company focused on helping people experience life's beautiful moments through its two business units, CooperVision and CooperSurgical. CooperVision is a trusted leader in the contact lens industry, helping to improve the way people see each day. CooperSurgical is a leading fertility and women's healthcare company dedicated to putting time on the side of women, babies, and families at the healthcare moments that matter most. Headquartered in San Ramon, CA, CooperCompanies has a workforce of more than 15,000, sells products in over 130 countries, and positively impacts over fifty million lives each year. For more information, please visit www.coopercos.com .
This earnings release contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Statements relating to guidance, plans, prospects, goals, strategies, future actions, events or performance and other statements of which are other than statements of historical fact, including our fiscal year 2026 financial guidance, are forward looking. In addition, all statements regarding anticipated growth in our revenues, expected savings from reorganization activities, anticipated effects of any product recalls, anticipated market conditions, planned product launches, restructuring or business transition expectations, regulatory plans, and expected results of operations and integration of any acquisition are forward- looking. To identify these statements look for words like "believes," "outlook," "probable," "expects," "may," "will," "should," "could," "seeks," "intends," "plans," "estimates" or "anticipates" and similar words or phrases. Forward- looking statements necessarily depend on assumptions, data or methods that may be incorrect or imprecise and are subject to risks and uncertainties.
Among the factors that could cause our actual results and future actions to differ materially from those described in forward-looking statements are: adverse changes in the global or regional general business, political and economic conditions including the impact of continuing uncertainty and instability of certain countries, man-made or natural disasters and pandemic conditions, that could adversely affect our global markets, and the potential adverse economic impact and related uncertainty caused by these items; the impact of international conflicts, including the ongoing conflict in the Middle East, and the global response to international conflicts on the global and local economy, financial markets, energy markets, currency rates and our ability to supply product to, or through, or around, affected countries; our substantial and expanding international operations and the challenges of managing an organization spread throughout multiple countries and complying with a variety of
legal, compliance and regulatory requirements; the actual imposition or threats of tariffs, customs duties and fees by the U.S. government and other nations in response and other retaliatory actions, such as trade protection measures, import or export licensing requirements, new or different customs duties, trade embargoes and sanctions and other trade barriers, as well as the impact of the Company’s efforts to mitigate the effects of such tariffs or similar measures; foreign currency exchange rate and interest rate fluctuations including the risk of fluctuations in the value of foreign currencies or interest rates that would decrease our net sales and earnings; our existing and future variable rate indebtedness and associated interest expense is impacted by rate increases, which could adversely affect our financial health or limit our ability to borrow additional funds; changes in tax laws, examinations by tax authorities, and changes in our geographic composition of income; acquisition-related adverse effects including the failure to successfully achieve the anticipated net sales, margins and earnings benefits of acquisitions, integration delays or costs and the requirement to record significant adjustments to the preliminary fair value of assets acquired and liabilities assumed within the measurement period, required regulatory approvals for an acquisition not being obtained or being delayed or subject to conditions that are not anticipated, adverse impacts of changes to accounting controls and reporting procedures, contingent liabilities or indemnification obligations, increased leverage and lack of access to available financing (including financing for the acquisition or refinancing of debt owed by us on a timely basis and on reasonable terms); compliance costs and potential liability in connection with U.S. and foreign laws and health care regulations pertaining to privacy and security of personal information such as the Health Insurance Portability and Accountability Act of 1996 and the California Consumer Privacy Act in the U.S. and the General Data Protection Regulation requirements in Europe, including but not limited to those resulting from data security breaches; a major disruption in the operations of our manufacturing, accounting and financial reporting, research and development, distribution facilities or raw material supply chain due to challenges associated with integration of acquisitions, man-made or natural disasters, pandemic conditions, cybersecurity incidents or other causes; a major disruption in the operations of our manufacturing, accounting and financial reporting, research and development or distribution facilities due to the failure to perform by third-party vendors, including cloud computing providers or other technological problems, including any related to our information systems maintenance, enhancements or new system deployments, integrations or upgrades; a successful cybersecurity attack which could interrupt or disrupt our information technology systems, or those of our third-party service providers, or cause the loss of confidential or protected data; market consolidation of large customers globally through mergers or acquisitions resulting in a larger proportion or concentration of our business being derived from fewer customers; disruptions in supplies of raw materials, particularly components used to manufacture our silicone hydrogel lenses; new U.S. and foreign government laws and regulations, and changes in existing laws, regulations and enforcement guidance, which affect areas of our operations including, but not limited to, those affecting
the health care industry, including the contact lens industry specifically and the medical device or pharmaceutical industries generally, including but not limited to the EU Medical Devices Regulation (MDR) and the EU In Vitro Diagnostic Medical Devices Regulation; legal costs, insurance expenses, settlement costs and the risk of an adverse decision, prohibitive injunction or settlement related to product liability, patent infringement, contractual disputes, or other litigation; limitations on sales following product introductions due to poor market acceptance; new competitors, product innovations or technologies, including but not limited to, technological advances by competitors, new products and patents attained by competitors, and competitors' expansion through acquisitions; reduced sales, loss of customers, reputational harm and costs and expenses, including from claims and litigation related to product recalls and warning letters; failure to receive, or delays in receiving, regulatory approvals or certifications for products; failure of our customers and end users to obtain adequate coverage and reimbursement from third-party payers for our products and services; the requirement to provide for a significant liability or to write off, or accelerate depreciation on, a significant asset, including goodwill, other intangible assets and idle manufacturing facilities and equipment; the success of our research and development activities and other start-up projects; dilution to earnings per share from acquisitions or issuing stock; impact and costs incurred from changes in accounting standards and policies; risks related to environmental laws and requirements applicable to our facilities, products or manufacturing processes, including evolving regulations regarding the use of hazardous substances or chemicals in our products; risks related to environmental, social and corporate governance issues, including those related to regulatory and disclosure requirements, climate change and sustainability; and other events described in our United States Securities and Exchange Commission filings, including the “Business”, “Risk Factors” and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2025, as such Risk Factors may be updated in annual and quarterly filings.
We caution investors that forward-looking statements reflect our analysis only on their stated date. We disclaim any obligation to update or revise them except as required by law.
July 31, 2026 October 31, 2025 ────────────────────────────────────────────────────────────────────────────── ASSETS Current assets: Cash and cash equivalents $ 154.7 $ 110.6 Trade receivables, net 788.9 829.0 Inventories 911.5 846.0 Prepaid expense and other current 426.4 320.8 assets Total current assets 2,281.5 2,106.4 Property, plant and equipment, 2,144.9 2,082.0 net Goodwill 3,876.3 3,853.4 Other intangibles, net 1,445.9 1,586.3 Deferred tax assets 2,267.9 2,077.5 Other assets 656.9 689.2 Total assets $ 12,673.4 $ 12,394.8 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Short-term debt $ 628.1 $ 47.8 Accounts payable 251.2 300.4 Employee compensation and 174.6 210.6 benefits Deferred revenue 129.6 127.9 Accrued litigation liability 316.5 0.7 Other current liabilities 366.6 425.4 Total current liabilities 1,866.6 1,112.8 Long-term debt 1,916.1 2,457.5 Deferred tax liabilities 94.2 93.3 Long-term tax payable 2.4 7.5 Deferred revenue 208.7 201.8 Other liabilities 257.0 282.8 Total liabilities 4,345.0 4,155.7 Stockholders’ equity 8,328.4 8,239.1 Total liabilities and stockholders' $ 12,673.4 $ 12,394.8 equity
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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 increased 1% year-over-year to $1.066 billion, including 1% organic
growth.
• GAAP diluted earnings per share (EPS) of $2.24, compared with $0.49 in last
year's third quarter, primarily driven by a $307.2 million discrete tax benefit
resulting from the favorable completion of a U.K. tax examination.
• Non-GAAP diluted EPS of $1.15, up 4% from last year's third quarter. See
"Reconciliation of Selected GAAP Results to Non-GAAP Results" below.
• Free cash flow increased 66% to $273.0 million; repurchased $339.1 million of
common stock.
• Completed the Company's strategic review process and announced actions to
enhance shareholder value; additional details provided in a separate press
release issued today.
"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," said 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."
Third Quarter Operating Results
• Revenue of $1.066 billion, up 1% from last year’s third quarter on a reported
basis, up 1% in constant currency, and up 1% organically.
• Gross margin of 67% compared with 65% in last year's third quarter driven by
fiscal 2025 inventory write-offs related to a product line exit at
CooperSurgical. On a non-GAAP basis, gross margin was 67%, down 60 basis points
year-over-year, driven by higher manufacturing costs and unfavorable foreign
exchange.
• Operating margin of 21% compared with 17% in last year’s third quarter, driven
by lower operating expenses, as well as fiscal 2025 inventory and long-lived
asset write-offs related to a product line exit at CooperSurgical. On a non-GAAP
basis, operating margin increased 30 basis points to 26%, driven by expense
management and productivity initiatives, partially offset by unfavorable foreign
exchange.
• Interest expense of $21.5 million compared with $25.4 million in last year's
third quarter driven by lower interest rates and lower average debt. On a non-
GAAP basis, interest expense was $21.5 million compared with $24.7 million in
the prior year period.
• Free cash flow of $273.0 million, up 66% from last year's third quarter,
reflecting cash provided by operations of $341.7 million less capital
expenditures of $68.7 million.
Third Quarter CooperVision (CVI) Revenue
• Revenue of $717.0 million, comparable to last year’s third quarter on a
reported, constant currency, and organic basis.
• Revenue by category:
%
(In change Acquis…
millio… y/y Curren… Const… and
3Q26 Repor… Impact Curre… Divest… Organ…
──────────────────────────────────────────────────────────────────────────────
Toric
and $ 363.8 1% 1% 2% —% 2%
multi…
Spher… 353.2 (2)% 1% (1)% —% (1)%
other
Total $ 717.0 —% —% —% —% —%
•
Revenue by geography:
%
(In change Acquis…
millio… y/y Curren… Const… and
3Q26 Repor… Impact Curre… Divest… Organ…
──────────────────────────────────────────────────────────────────────────────
Ameri… $ 281.6 (2)% —% (2)% —% (2)%
EMEA 309.4 6% (1)% 5% —% 5%
Asia 126.0 (10)% 5% (5)% —% (5)%
Pacif…
Total $ 717.0 —% —% —% —% —%
Third Quarter CooperSurgical (CSI) Revenue
• Revenue of $349.2 million, up 2% from last year's third quarter on a reported
basis, up 2% in constant currency, and up 3% organically.
• Revenue by category:
%
(In change Acquis…
millio… y/y Curren… Const… and
3Q26 Repor… Impact Curre… Divest… Organ…
──────────────────────────────────────────────────────────────────────────────
Office
and $ 208.0 2% —% 2% —% 2%
surgi…
Ferti… 141.2 3% 1% 4% 1% 5%
Total $ 349.2 2% —% 2% 1% 3%
Other
• During the third quarter, the Company repurchased $339.1 million of common
stock, approximately 4.9 million shares, at an average share price of $69.16.
Following the Board's approval of an expansion of the share repurchase
authorization from $2 billion to $3 billion, approximately $1.5 billion remains
available under the program.
• The Company recognized a $307.2 million discrete tax benefit following the
favorable completion of the related tax authority's (HMRC) examination of its
fiscal 2021 transfer of intellectual property and related assets to the United
Kingdom. The benefit was the primary driver of the lower GAAP effective tax rate
for the quarter.
Fiscal Year 2026 Financial Guidance
The Company updated its fiscal year 2026 financial guidance. Details are
summarized as follows:
• Fiscal fourth quarter 2026 total revenue of $1.057 - $1.080 billion (organic
growth of 0% to 2%)
◦ CVI revenue of $692 -$706 million (organic growth of -2% to 0%)
◦ CSI revenue of $364 - $374 million (organic growth of 4% to 6%)
• Fiscal fourth quarter 2026 non-GAAP diluted EPS of $1.05 -$1.09
• Fiscal 2026 total revenue of $4.229 - $4.252 billion (organic growth of 2% to
3%)
• CVI revenue of $2.828 - $2.842 billion (organic growth of 1% to 2%)
• CSI revenue of $1.401 - $1.410 billion (organic growth of 4% to 5%)
• Fiscal 2026 non-GAAP diluted EPS of $4.51 - $4.55
• Reaffirm previously communicated long-term free cash flow objective exceeding
$2.2 billion for fiscal years 2026 through 2028
Non-GAAP diluted earnings per share guidance excludes amortization and
impairment of intangible assets, and certain income or gains and charges or
expenses including acquisition and integration costs which we may incur as part
of our continuing operations.
With respect to the Company’s guidance expectations, the Company has not
reconciled non-GAAP diluted earnings per share guidance to GAAP diluted earnings
per share due to the inherent difficulty in forecasting acquisition-related,
integration and restructuring charges and expenses, which are reconciling items
between the non-GAAP and GAAP measures. Due to the unknown effect, timing and
potential significance of such charges and expenses that impact GAAP diluted
earnings per share, the Company is not able to provide such guidance.
Reconciliation of Selected GAAP Results to Non-GAAP Results
To supplement our financial results and guidance presented on a GAAP basis, we
provide non-GAAP measures such as non-GAAP gross margin, non-GAAP operating
margin, non-GAAP diluted earnings per share, as well as constant currency and
organic revenue growth because we believe they are helpful for the investors to
understand our consolidated operating results. Management uses supplemental non-
GAAP financial measures internally to understand, manage and evaluate our
business, to make operating decisions, and to plan and forecast for future
periods. The non-GAAP measures exclude costs which we generally would not have
otherwise incurred in the periods presented as a part of our continuing
operations. We provide further details of the non-GAAP
adjustments made to arrive at our non-GAAP measures in the GAAP to non-GAAP
reconciliations below. Our non-GAAP financial results and guidance are not meant
to be considered in isolation or as a substitute for comparable GAAP measures
and should be read only in conjunction with our consolidated financial
statements prepared in accordance with GAAP.
To present constant currency revenue growth, current period revenue for entities
reporting in currencies other than the United States dollar are converted into
United States dollars at the average foreign exchange rates for the
corresponding period in the prior year. To present organic revenue growth, we
excluded the effect of foreign currency fluctuations and the impact of any
acquisitions, divestitures and discontinuations that occurred in the comparable
period.
We define the non-GAAP measure of free cash flow as cash provided by operating
activities less capital expenditures. We believe free cash flow is useful for
investors as an additional measure of liquidity because it represents cash that
is available to grow the business, make strategic acquisitions, repay debt, or
buyback common stock. Management uses free cash flow internally to understand,
manage, make operating decisions and evaluate our business. In addition, we use
free cash flow to help plan and forecast future periods.
Investors should consider non-GAAP financial measures in addition to, and not as
replacements for, or superior to, measures of financial performance prepared in
accordance with GAAP.
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
GAAP to Non-GAAP Reconciliation
Gross Margin, Operating Margin, and EPS
… …
… …
… …
… … M… … M… M…
… … % 2… % 2… … % 2… %
──────────────────────────────────────────────────────────────────────────────
$ … … % $ … … % $ … … % $ … … %
… — % … 1 % … — % … — %
— — % … 1 % … — % … 1 %
… — % … — % … — % … — %
… — % … 2 % … — % … 1 %
$ … … % $ … … % $ … … % $ … … %
… …
… …
… …
… … M… … M… M…
… … % 2… % 2… … % 2… %
──────────────────────────────────────────────────────────────────────────────
$ … … % $ … … % $ … … % $ … … %
… 4 % … 5 % … 4 % … 5 %
… — % … 1 % … — % … 1 %
— — % … 3 % … — % … 1 %
… — % … — % … — % … — %
… — % … — % … — % … — %
… 1 % … — % … … % … — %
… 5 % … 9 % … … % … 7 %
$ … … % $ … … % $ … … % $ … … %
… N…
… M…
… E…
… J…
… … … 2… … … 3… E… 2… …
──────────────────────────────────────────────────────────────────────────────
$ … $ … $ … $ 0… $ 4… $ … $ … $ 1…
… … … 0… 1… … … 0…
… … … 0… -… … … 0…
— — … 0… 1… … … 0…
… … … 0… 9… … … 0…
… … … 0… 4… … … 0…
… … … 0… 2… … … 0…
… … … -… -… … … -…
… … … 0… -… … … 0…
… … … 0… 1… … … 1…
$ … $ … $ … $ 1… $ 6… $ … $ … $ 2…
… 2… … 2…
EPS, amounts and percentages may not sum or recalculate due to rounding.
(1) Charges included $(1.4) million of facility rationalization costs adjustment
related to Cook Medical integration expenses in the three and nine months ended
July 31, 2026.
Charges included $5.0 million and $5.0 million of long-lived asset write-offs
related to lease abandonment, $3.7 million and $5.5 million of facility
rationalization costs, $3.0 million and $7.8 million related to redundant
personnel costs for transitional employees, $1.2 million and $3.3 million of
inventory fair value step-up amortization, $0.3 million and $2.7 million of
professional services fees, and $0.4 million and $0.8 million of other
acquisition and integration-related activities in the three and nine months
ended July 31, 2025, respectively. The nine months ended July 31, 2025 also
included $2.4 million of acquisition-related non-cash cumulative true-up
adjustments reflecting changes in compensation. The acquisition and integration-
related charges in fiscal 2025 were primarily related to the obp Surgical and
Cook Medical acquisition and integration expenses.
Charges in this category may include the direct effects of acquisition
accounting, such as amortization of inventory fair value step-up, professional
services fees, regulatory fees, and items related to integrating acquired
businesses, such as redundant personnel costs for transitional employees,
acquisition-related non-cash cumulative true up adjustments reflecting changes
in compensation, other acquisition-related costs, integration-related
professional services, long-lived asset write-offs, manufacturing integration
costs, legal entity and facility rationalization, and other integration-related
activities.
(2) There were no charges related to the exit of business in the three months
ended July 31, 2026. The nine months ended July 31, 2026 included $1.7 million
of specifically-identified long-lived asset write-offs and $0.1 million of other
costs related to product line exits.
Charges included $12.7 million of inventory write-offs, $14.3 million of
specifically-identified long-lived asset write-offs and $0.2 million of other
costs related to product line exits in the three and nine months ended July 31,
2025.
Charges in this category may include costs related to product line exits such as
inventory write-offs, employee severance costs, specifically-identified long-
lived asset write-offs, and other costs related to product line exits.
(3) Charges represent incremental costs of complying with the new European Union
(E.U.) medical device regulations and the E.U. in vitro diagnostic medical
device regulation (collectively, the "Medical device regulations") for
previously registered products and primarily include charges for contractors
supporting the project and other direct third-party expenses. We consider these
costs to be limited to a specific time period.
(4) Charges included $1.1 million and $3.4 million of redundant personnel costs
for transitional employees in the three and nine months ended July 31, 2026. The
nine months ended July 31, 2026 also included $0.4 million of employee severance
costs and $0.3 million of other business optimization charges.
Charges included $2.7 million of employee severance costs in the three and nine
months ended July 31, 2025.
Charges in this category represent costs associated with initiatives to increase
efficiency and optimize the cost structure, and may include, among other items,
changes to our IT infrastructure and operations, employee severance costs,
redundant personnel costs for transitional employees, legal entity and other
business reorganizations, and inventories associated with the business
optimization activities.
(5) Charges included $2.2 million and $274.4 million related to litigation
expense and associated legal costs, $2.9 million and $14.1 million related to
legal matters, $4.3 million and $4.3 million related to strategic review costs,
and $0.9 million and $2.7 million of gains and losses on minority interest
investments in the three and nine months ended July 31, 2026.
Charges included $2.4 million and $3.0 million related to legal matters, $0.9
million and $18.8 million of gains and losses on a minority interest investment,
and $0.7 million and $2.1 million of accretion of interest attributable to
acquisition installment payable in the three and nine months ended July 31,
2025. The gains and losses on the minority interest investment for the nine
months ended July 31, 2025 included a $15.7 million loss on the disposal of a
minority interest investment.
Charges in this category may include legal matters, litigation expense,
strategic review costs, and other items that are not part of ordinary
operations. The adjustments to arrive at non-GAAP net income also include gains
and losses on minority interest investments and accretion of interest
attributable to acquisition installment payables.
(6) In fiscal 2021, the Company transferred its CooperVision intellectual
property and related assets to its UK subsidiary. As a result, we recorded a
deferred tax asset equal to approximately $2.0 billion as a one-time tax benefit
in accordance with U.S. GAAP in fiscal 2021. The deferred tax asset was recorded
net of a $307.2 million reserve for an uncertain tax position related to the
valuation of the transferred assets.
Non-GAAP adjustments continue to reflect the recurring net deferred tax benefit
associated with amortization of the transferred assets under UK tax law. In the
3 rd fiscal quarter 2026, non-GAAP adjustments also include the reversal of the
$307.2 million uncertain tax position following completion of the related tax
authority examination with no proposed adjustments.
Audio Webcast and Conference Call
The Company will host an audio webcast today for the public, investors, analysts
and news media to discuss its third quarter results, the conclusion of the
strategic review and current corporate developments. The audio webcast will be
broadcast live on CooperCompanies' website, www.investor.coopercos.com, at
approximately 5:00 PM ET. It will also be available for replay on
CooperCompanies' website, www.investor.coopercos.com. Alternatively, you can
dial in to the conference call at 800-715-9871; conference ID 9708839.
About CooperCompanies
CooperCompanies (Nasdaq: COO) is a leading global medical device company focused
on helping people experience life's beautiful moments through its two business
units, CooperVision and CooperSurgical. CooperVision is a trusted leader in the
contact lens industry, helping to improve the way people see each day.
CooperSurgical is a leading fertility and women's healthcare company dedicated
to putting time on the side of women, babies, and families at the healthcare
moments that matter most. Headquartered in San Ramon, CA, CooperCompanies has a
workforce of more than 15,000, sells products in over 130 countries, and
positively impacts over fifty million lives each year. For more information,
please visit www.coopercos.com .
Forward-Looking Statements
This earnings release contains "forward-looking statements" as defined by the
Private Securities Litigation Reform Act of 1995. Statements relating to
guidance, plans, prospects, goals, strategies, future actions, events or
performance and other statements of which are other than statements of
historical fact, including our fiscal year 2026 financial guidance, are forward
looking. In addition, all statements regarding anticipated growth in our
revenues, expected savings from reorganization activities, anticipated effects
of any product recalls, anticipated market conditions, planned product launches,
restructuring or business transition expectations, regulatory plans, and
expected results of operations and integration of any acquisition are forward-
looking. To identify these statements look for words like "believes," "outlook,"
"probable," "expects," "may," "will," "should," "could," "seeks," "intends,"
"plans," "estimates" or "anticipates" and similar words or phrases. Forward-
looking statements necessarily depend on assumptions, data or methods that may
be incorrect or imprecise and are subject to risks and uncertainties.
Among the factors that could cause our actual results and future actions to
differ materially from those described in forward-looking statements are:
adverse changes in the global or regional general business, political and
economic conditions including the impact of continuing uncertainty and
instability of certain countries, man-made or natural disasters and pandemic
conditions, that could adversely affect our global markets, and the potential
adverse economic impact and related uncertainty caused by these items; the
impact of international conflicts, including the ongoing conflict in the Middle
East, and the global response to international conflicts on the global and local
economy, financial markets, energy markets, currency rates and our ability to
supply product to, or through, or around, affected countries; our substantial
and expanding international operations and the challenges of managing an
organization spread throughout multiple countries and complying with a variety
of
legal, compliance and regulatory requirements; the actual imposition or threats
of tariffs, customs duties and fees by the U.S. government and other nations in
response and other retaliatory actions, such as trade protection measures,
import or export licensing requirements, new or different customs duties, trade
embargoes and sanctions and other trade barriers, as well as the impact of the
Company’s efforts to mitigate the effects of such tariffs or similar measures;
foreign currency exchange rate and interest rate fluctuations including the risk
of fluctuations in the value of foreign currencies or interest rates that would
decrease our net sales and earnings; our existing and future variable rate
indebtedness and associated interest expense is impacted by rate increases,
which could adversely affect our financial health or limit our ability to borrow
additional funds; changes in tax laws, examinations by tax authorities, and
changes in our geographic composition of income; acquisition-related adverse
effects including the failure to successfully achieve the anticipated net sales,
margins and earnings benefits of acquisitions, integration delays or costs and
the requirement to record significant adjustments to the preliminary fair value
of assets acquired and liabilities assumed within the measurement period,
required regulatory approvals for an acquisition not being obtained or being
delayed or subject to conditions that are not anticipated, adverse impacts of
changes to accounting controls and reporting procedures, contingent liabilities
or indemnification obligations, increased leverage and lack of access to
available financing (including financing for the acquisition or refinancing of
debt owed by us on a timely basis and on reasonable terms); compliance costs and
potential liability in connection with U.S. and foreign laws and health care
regulations pertaining to privacy and security of personal information such as
the Health Insurance Portability and Accountability Act of 1996 and the
California Consumer Privacy Act in the U.S. and the General Data Protection
Regulation requirements in Europe, including but not limited to those resulting
from data security breaches; a major disruption in the operations of our
manufacturing, accounting and financial reporting, research and development,
distribution facilities or raw material supply chain due to challenges
associated with integration of acquisitions, man-made or natural disasters,
pandemic conditions, cybersecurity incidents or other causes; a major disruption
in the operations of our manufacturing, accounting and financial reporting,
research and development or distribution facilities due to the failure to
perform by third-party vendors, including cloud computing providers or other
technological problems, including any related to our information systems
maintenance, enhancements or new system deployments, integrations or upgrades; a
successful cybersecurity attack which could interrupt or disrupt our information
technology systems, or those of our third-party service providers, or cause the
loss of confidential or protected data; market consolidation of large customers
globally through mergers or acquisitions resulting in a larger proportion or
concentration of our business being derived from fewer customers; disruptions in
supplies of raw materials, particularly components used to manufacture our
silicone hydrogel lenses; new U.S. and foreign government laws and regulations,
and changes in existing laws, regulations and enforcement guidance, which affect
areas of our operations including, but not limited to, those affecting
the health care industry, including the contact lens industry specifically and
the medical device or pharmaceutical industries generally, including but not
limited to the EU Medical Devices Regulation (MDR) and the EU In Vitro
Diagnostic Medical Devices Regulation; legal costs, insurance expenses,
settlement costs and the risk of an adverse decision, prohibitive injunction or
settlement related to product liability, patent infringement, contractual
disputes, or other litigation; limitations on sales following product
introductions due to poor market acceptance; new competitors, product
innovations or technologies, including but not limited to, technological
advances by competitors, new products and patents attained by competitors, and
competitors' expansion through acquisitions; reduced sales, loss of customers,
reputational harm and costs and expenses, including from claims and litigation
related to product recalls and warning letters; failure to receive, or delays in
receiving, regulatory approvals or certifications for products; failure of our
customers and end users to obtain adequate coverage and reimbursement from
third-party payers for our products and services; the requirement to provide for
a significant liability or to write off, or accelerate depreciation on, a
significant asset, including goodwill, other intangible assets and idle
manufacturing facilities and equipment; the success of our research and
development activities and other start-up projects; dilution to earnings per
share from acquisitions or issuing stock; impact and costs incurred from changes
in accounting standards and policies; risks related to environmental laws and
requirements applicable to our facilities, products or manufacturing processes,
including evolving regulations regarding the use of hazardous substances or
chemicals in our products; risks related to environmental, social and corporate
governance issues, including those related to regulatory and disclosure
requirements, climate change and sustainability; and other events described in
our United States Securities and Exchange Commission filings, including the
“Business”, “Risk Factors” and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" sections in the Company’s Annual
Report on Form 10-K for the fiscal year ended October 31, 2025, as such Risk
Factors may be updated in annual and quarterly filings.
We caution investors that forward-looking statements reflect our analysis only
on their stated date. We disclaim any obligation to update or revise them except
as required by law.
Contact:
Kim Duncan
Vice President, Investor Relations and Risk Management
925-460-3663
ir@cooperco.com
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Consolidated Condensed Balance Sheets
(In millions)
(Unaudited)
July 31, 2026 October 31, 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Current assets:
Cash and cash equivalents $ 154.7 $ 110.6
Trade receivables, net 788.9 829.0
Inventories 911.5 846.0
Prepaid expense and other current 426.4 320.8
assets
Total current assets 2,281.5 2,106.4
Property, plant and equipment, 2,144.9 2,082.0
net
Goodwill 3,876.3 3,853.4
Other intangibles, net 1,445.9 1,586.3
Deferred tax assets 2,267.9 2,077.5
Other assets 656.9 689.2
Total assets $ 12,673.4 $ 12,394.8
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Short-term debt $ 628.1 $ 47.8
Accounts payable 251.2 300.4
Employee compensation and 174.6 210.6
benefits
Deferred revenue 129.6 127.9
Accrued litigation liability 316.5 0.7
Other current liabilities 366.6 425.4
Total current liabilities 1,866.6 1,112.8
Long-term debt 1,916.1 2,457.5
Deferred tax liabilities 94.2 93.3
Long-term tax payable 2.4 7.5
Deferred revenue 208.7 201.8
Other liabilities 257.0 282.8
Total liabilities 4,345.0 4,155.7
Stockholders’ equity 8,328.4 8,239.1
Total liabilities and
stockholders' $ 12,673.4 $ 12,394.8
equity
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
Consolidated Condensed Statements of Income
(In millions, except per share amounts)
(Unaudited)
Nine
Three Months
Months Ended
Ended July
2026 July 31, 2025 2026 31, 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 1,066.2 $ 1,060.3 $ 3,171.8 $ 3,027.3
sales
Cost of 354.3 368.3 1,029.3 996.0
sales
Gross 711.9 692.0 2,142.5 2,031.3
profit
Sellin…
general
and 401.3 421.7 1,467.7 1,208.6
admini…
expense
Resear…
and 41.6 44.6 128.4 130.8
develo…
expense
Amorti…
of 47.0 50.0 142.6 149.4
intang…
Operat… 222.0 175.7 403.8 542.5
income
Intere… 21.5 25.4 64.8 75.6
expense
Other
(incom… -1.3 -1.6 -6.6 17.2
expens…
net
Income
before 201.8 151.9 345.6 449.7
income
taxes
Provis…
for -231.0 53.6 -140.1 159.4
income
taxes
Net $ 432.8 $ 98.3 $ 485.7 $ 290.3
income
Earnin…
per $ 2.24 $ 0.49 $ 2.49 $ 1.45
share -
diluted
Number
of
shares
used to
compute 193.4 200.0 195.2 200.6
diluted
earnin…
per
share
EPS, amounts and percentages may not sum or recalculate due to rounding.
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
GAAP to Non-GAAP Reconciliation
Constant Currency Revenue Growth and Organic Revenue Growth
Net Sales
%
(In c… Ac…
mi… y… Cu… C… and
3Q… R… Im… C… Di… O…
──────────────────────────────────────────────────────────────────────────────
C… $ 71… — % — % — % — % — %
C… 34… 2 % — % 2 % 1 % 3 %
T… $ 1,… 1 % — % 1 % — % 1 %