The Cooper Companies 2025 Q3 Earnings Mixed Performance Amid Revenue Growth and EPS Decline

The Cooper Companies reported fiscal 2025 Q3 earnings on Aug 27th, 2025. The company delivered a 5.7% year-over-year revenue increase but saw a 6.3% decline in EPS. Despite falling short of revenue expectations due to challenges in Clarity demand and e-commerce, management expressed cautious optimism, citing strong operational metrics and a strategic focus on long-term growth.

Revenue
The Cooper Companies reported total revenue of $1.06 billion for fiscal 2025 Q3, representing a 5.7% increase from $1 billion in the same period of the prior year. CooperVision, the company’s contact lens division, contributed $718.40 million, driven by growth in toric and multifocal lenses. CooperSurgical, which focuses on fertility and women’s healthcare, added $341.90 million to the total. Revenue was tempered by softness in certain geographic markets, particularly in Asia Pacific, where demand faced headwinds from e-commerce challenges and Clarity product performance.

Earnings/Net Income
The company's EPS declined 6.3% year-over-year to $0.49, down from $0.53 in 2024 Q3. Net income also fell to $98.30 million, a 6.1% drop from $104.70 million in the prior year. However, non-GAAP diluted EPS rose 15% to $1.10, reflecting ongoing operational improvements and efficiency gains. The GAAP results were impacted by charges related to product line exits and integration costs from acquisitions such as obp Surgical and Cook Medical.

Price Action
The stock of The Cooper Companies has shown modest gains in recent trading periods, rising 0.43% in the latest day, 0.82% in the past week, and 1.64% month-to-date. However, post-earnings investment strategies have performed poorly, with a CAGR of -9.57% for the buy-and-hold approach 30 days after the earnings release, significantly underperforming the benchmark.

Post Earnings Price Action Review
A buy strategy initiated 30 days post-earnings has underperformed, with a CAGR of -9.57%, maximum drawdown of 0.00%, and a Sharpe ratio of -0.32. This suggests the strategy failed to generate returns and exposed investors to unnecessary risks. In contrast, the benchmark achieved a CAGR of 38.17% despite a maximum drawdown of 29.49%. The underperformance highlights the risks of relying on earnings beats alone for investment decisions, as the company’s post-earnings stock action did not reflect the positive operational results.

CEO Commentary
Al White, President and CEO of The Cooper Companies, acknowledged the Q3 results, emphasizing 5.7% revenue growth and double-digit non-GAAP EPS growth driven by operational excellence. While expressing disappointment over revenue falling short of expectations due to Clarity demand and e-commerce challenges in Asia Pac, he highlighted the company's strong margins and free cash flow. White expressed optimism about the long-term potential of MyDay, citing manufacturing improvements and new contracts, while acknowledging short-term delays from trial lenses. He outlined strategic priorities, including product launches, market expansion, and efficiency initiatives, and reaffirmed confidence in outperforming the contact lens market in fiscal 2026.

Guidance
For Q4, The Cooper Companies expects consolidated revenue in the range of $1.05–$1.07 billion, representing 2–4% organic growth. CooperVision revenue is projected to be $700–$713 million (2–4% organic growth), while CooperSurgical is expected to generate $350–$356 million (2–4% organic growth). Non-GAAP EPS is guided to $1.11–$1.14, with free cash flow estimated at $100 million, bringing the full-year total to approximately $385 million. Looking ahead to fiscal 2026, the company anticipates margin expansion, $2.0 billion in three-year free cash flow, and market outperformance driven by MyDay adoption, product launches, and efficiency gains.

Additional News
The Cooper Companies repurchased $52.1 million of common stock during the third quarter of fiscal 2025, equivalent to approximately 724.3 thousand shares at an average price of $71.97. The company’s share repurchase program remains with $163.6 million in remaining availability, reflecting a commitment to returning value to shareholders. The company also announced updated fiscal 2025 guidance, including total revenue between $4,076–$4,096 million and non-GAAP diluted EPS of $4.08–$4.12. Management also outlined ongoing initiatives to optimize cost structures, including IT infrastructure changes and employee severance programs, aimed at enhancing operational efficiency. The company is preparing for an audio webcast and conference call to discuss Q3 results and current developments, with details available on the CooperCompanies investor relations website.