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    COO
    Earnings call· Jan 2026(Q1 FY26)

    COOPER COMPANIES Q1 FY26 earnings call COO

    Mar 5, 2026 Source

    Executive summary

    The Cooper Companies Q1 FY26 — Strong Start with Operational Excellence and Raised Guidance

    The Cooper Companies reported a strong start to fiscal 2026, driven by disciplined execution, significant synergies from last year's reorganization, and robust cash flow. The company raised its full-year EPS and free cash flow guidance, while continuing to prioritize internal investments, share repurchases, and debt reduction. A strategic review is progressing as planned, with management focused on maximizing long-term shareholder value through organic growth and operational efficiency.

    Highlights

    5

    • Consolidated revenues reached $1.024 billion, up 6.2% year-over-year (2.9% organically).

    • Non-GAAP EPS grew 20% to $1.10, exceeding the top end of guidance.

    • Free cash flow was very strong at $159 million, leading to raised full-year guidance of $600 million to $625 million.

    • CooperVision gained market share for an 18th consecutive year in calendar 2025, growing 6% versus the market's 5%.

    • MiSight revenue grew 23% to $28 million, driven by strong launches in EMEA and Japan.

    Concerns

    3

    • CooperVision's Asia Pac segment declined 4%, primarily due to softness in Japan's lower-margin older hydrogel products.

    • Paragard revenue declined 7% against a difficult prior-year comparable.

    • Fertility business growth was partially offset by softness in the Middle East and lower equipment installations.

    Guidance & targets

    11
    CategoryTargetConfidence
    Full-year FY26 Consolidated Revenue
    $4.3B-$4.35B
    high materiality
    High
    Full-year FY26 CooperVision Revenue
    $2.9B-$2.93B
    medium materiality
    High
    Full-year FY26 CooperSurgical Revenue
    $1.4B-$1.41B
    medium materiality
    High
    Full-year FY26 Non-GAAP EPS
    $4.58-$4.66
    high materiality
    High
    Full-year FY26 Tariff Impact
    ~$24M
    low materiality
    High
    Full-year FY26 Interest Expense
    ~$85M
    low materiality
    High
    Full-year FY26 Effective Tax Rate
    15%-16%
    low materiality
    High
    Full-year FY26 Free Cash Flow
    $600M-$625M
    high materiality
    High
    FY26-FY28 Free Cash Flow
    >$2.2B
    high materiality
    High
    CooperVision Asia Pac Growth
    Return to growth
    medium materiality
    Medium
    Paragard Full-year FY26 Performance
    Flat to up a little bit
    low materiality
    Medium

    Segment performance

    8
    SegmentRevenueYoYQoQMargin
    Consolidated
    Strong start to the fiscal year, highlighted by product launches, outstanding profitability, and robust cash flow.
    Organic Growth: 2.9%
    		$1.024B6.2%——
    CooperVision
    Strong performance in Americas and EMEA, but Asia Pac declined due to softness in Japan's older hydrogel products. New product launches and leadership changes are expected to drive recovery.
    Organic Growth: 3.3%Torics and Multifocals Growth: 6%Spheres Growth: 1%Daily Silicone Hydrogel Lenses Growth: 7%MyDay Growth: Double-digitClariti Growth: Slightly upBiofinity and Avaira Combined Growth: 3%MiSight Growth: 23%MiSight Revenue: $28M
    		$695M7.6%——
    CooperVision Americas
    Growth led by strength in daily silicone hydrogel lenses.
    		—6%——
    CooperVision EMEA
    Strengthening #1 market position in the region.
    		—4%——
    CooperVision Asia Pac
    Decline primarily tied to lower-margin older hydrogel products in Japan. Expected to remain down in Q2 FY26, then return to growth in Q3 FY26.
    		—-4%——
    CooperSurgical
    Encouraged by improving trends in fertility business and solid results in office and surgical.
    Organic Growth: 2.2%
    		$329M3.3%——
    CooperSurgical Fertility
    Growth driven by genomics and consumables, partially offset by softness in the Middle East and lower equipment installations. Seeing early signs of recovery in the fertility market.
    Organic Growth: 3%Genomics Performance: Strong globalConsumables Performance: Led by media, ZyMot, Witness
    		$127M———
    CooperSurgical Office and Surgical
    Medical devices grew driven by surgical OB/GYN portfolio and specialty surgical products. Paragard decline was expected against a difficult comp.
    Organic Growth: 2%Medical Devices Growth: 6%Paragard Decline: 7%
    		$202M———

    Operational metrics

    16
    Gross margin
    68.1%
    Q1 FY26

    Exceeded expectations.

    Operating expenses as percentage of sales
    41.2%Declined from 43.6% YoY
    Q1 FY26

    Reflects benefits of reorganization executed in fiscal Q4 of last year.

    Operating income growth
    13.9%
    Q1 FY26

    Resulted in a 26.9% operating margin.

    Interest expense
    $22.4M
    Q1 FY26
    Effective tax rate
    15.1%
    Q1 FY26
    Average shares outstanding
    197M
    Q1 FY26
    Capital expenditure
    $102M
    Q1 FY26
    Shares repurchased
    1.1M
    Q1 FY26

    Reinforcing commitment to consistent share repurchases.

    Net debt
    $2.4B
    Q1 FY26

    Reduced after share repurchases and Cook acquisition payment.

    Term loan extension
    $950M
    February 2026

    Amended and extended a portion of the $1.5B term loan maturing in December 2026.

    CooperVision market growth
    10%vs market 6%
    Calendar Q4

    Company growth compared to overall market growth.

    CooperVision market growth
    6%vs market 5%
    Calendar FY25

    Company growth compared to overall market growth, marking 18th consecutive year of market share gains.

    Middle East sales
    2%
    Q1 FY26

    Represents approximately 2% of consolidated sales, with a lot being distributor-based.

    Private label revenue mix
    Slightly higher than 1/3
    Q1 FY26

    Historically ran about 1/3 of revenues, now slightly higher. Operating margins are similar, but could put slight pressure on gross margins in H2.

    Myopia control R&D spend
    Decent amount of money
    Ongoing

    Investing heavily in R&D for MiSight, including MyDay MiSight toric, MiSight 2, and atropine combinations.

    Japan myopic elementary school children
    77%
    Current

    Estimated percentage of elementary school children in Japan who are myopic, representing a substantial opportunity for MiSight.

    Industry KPIs

    10
    MetricValueDetails
    Tariff impact$24MUSD
    Pricing realized pricePositive
    New product launch ramp—
    Procedure volume growth—
    FCF conversion leverage guidance$159MUSD
    Segment franchise organic growth3.3%%
    Consumables recurring revenue mix—
    Sales force commercial capacity build—
    Indicated addressable patient population77%%
    Pivotal trial clinical evidence milestones—

    Product announcements

    6
    ProductTypeDetails
    MyDay toriclaunch
    MiSightlaunch
    MyDay MiSightlaunch
    MyDay multifocal and MyDay toric expanded rangeexpansion
    Clariti familylaunch
    MyDay Energyslaunch

    Deals & partnerships

    1
    CookFinal payment related to 2023 acquisition$50M

    Made the final $50 million payment related to the 2023 Cook acquisition.

    Risks & headwinds

    3
    CooperVision Asia Pac / Japan legacy hydrogel sales declineQ2 FY26

    Asia Pac declined 4% in Q1 FY26

    Mitigation: Upgraded leadership roles, increased marketing investments, ramping up new regional distribution center, launching new products (MyDay toric, MiSight, Clariti family).

    Middle East conflict impact on fertility businessOngoing

    Middle East is ~2% of consolidated sales; #1 in fertility in the region

    Mitigation: Focus on strong momentum in fertility, but acknowledges product access challenges if situation extends.

    Paragard competitive launchFY26

    Paragard declined 7% in Q1 FY26

    Mitigation: Initial guidance assumed a negative impact from a competitive launch, but the deal has not closed yet, potentially making the initial assumption conservative.

    What to watch in Q2 FY26

    5

    CooperVision Asia Pac Growth

    Q3 FY26
    CurrentDeclined 4% in Q1 FY26
    TargetReturn to growth

    Why it matters

    Asia Pac performance has been a drag on overall CV growth; its recovery is key to achieving full-year targets.

    While we expect Asia Pac to remain down in Q2 due to declining legacy hydrogel sales, we are confident the region will return to growth in fiscal Q3 given all of our launch activity.

    Q&A highlights

    7

    How to reconcile the reported 10% calendar Q4 growth for CVI with the 3.3% organic growth in fiscal Q1, and how is the plan to return to above-market growth progressing?

    The 10% calendar Q4 growth was due to shipment timing, specifically a weak November/December 2024 followed by a strong January 2025. For CVI's market share plan, Americas and EMEA are performing well with strong momentum. Asia Pac, particularly Japan's older hydrogel products, is a challenge, but new leadership, increased marketing, and product launches are expected to return the region to growth by Q3 FY26.

    “It's literally just a matter of months and shipment of product. So we had, had a weak November and December of 2024, and we had a really strong January of 2025. So just when you comped against that, the way that the shipments worked, it resulted in a really strong calendar Q4 for us.”

    asked by Jeffrey Johnson · answered by Albert White

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Priorities and Operational Excellence

    The company emphasized its three key strategic priorities: gaining market share for CooperVision, delivering strong earnings and free cash flow through operational excellence, and maintaining disciplined capital allocation. The reorganization and IT implementations completed last year are generating meaningful synergies, allowing for increased investment in sales and marketing while improving financial performance. AI-enabled tools are increasingly used to streamline operations, contributing to efficiency gains.

    02

    CooperVision Performance and Regional Dynamics

    CooperVision reported strong performance in the Americas (up 6%) and EMEA (up 4%), driven by daily silicone hydrogel lenses and new product launches. Asia Pac, however, saw a 4% decline, primarily due to softness in Japan's older hydrogel products. Management is addressing this with leadership changes, increased marketing, and new product introductions like MyDay toric and MiSight in the region, expecting a return to growth in Q3 FY26.

    03

    CooperSurgical Trends and Fertility Market Recovery

    CooperSurgical's fertility business showed improving trends, with 3% organic growth driven by genomics and consumables like ZyMot and Witness. The company noted early but clear signs of recovery in the broader fertility market, with improving IVF cycles in the U.S. and Europe. The Office & Surgical segment grew 2% organically, with strong performance in surgical OB/GYN products, though Paragard declined 7%.

    04

    Capital Allocation and Debt Management

    The Cooper Companies maintains a disciplined approach to capital allocation, prioritizing internal investments for revenue growth. During Q1 FY26, the company repurchased $92 million in stock, made the final $50 million payment for the 2023 Cook acquisition, and reduced net debt to $2.4 billion. A $950 million portion of its term loan was extended to February 2031, with the remaining $550 million to be repaid by December 2026.

    05

    Product Launches and Myopia Control Momentum

    Key product launches, including MyDay MiSight in EMEA and MiSight in Japan, are receiving enthusiastic responses, reinforcing confidence in MiSight's long-term growth potential. The company is investing heavily in myopia control R&D, with several breakthrough innovations underway, including a MyDay MiSight toric lens and enhanced efficacy solutions. The market is also benefiting from increased awareness driven by competitive product introductions.

    06

    Strategic Review Update

    The strategic review announced in December is progressing as planned with active engagement from the Board and advisors. Management reiterated its focus on maximizing long-term shareholder value through organic growth, strong earnings, and consistent capital allocation, and will communicate outcomes when definitive information is available or the process is complete.

    AI-generated summary of the company’s earnings call. Not investment advice.