The Cooper Companies 2025 Q4 Earnings EPS Drops 27.7% Despite Strategic Review and Share Price Surge

The Cooper Companies (COO) reported fiscal 2025 Q4 earnings on Dec 4, 2025, with revenue rising 4.6% to $1.07 billion but earnings declining. The company raised its free cash flow guidance for 2026–2028 and announced a strategic review, driving a 10.33% monthly stock gain despite a 28% net income drop.

Revenue

Revenue increased by 4.6% to $1.07 billion in Q4 2025, with CooperVision (CVI) leading growth at $709.6 million (+4.9% YoY). CooperSurgical (CSI) contributed $355 million (+3.8% YoY), supported by strength in office and surgical segments ($214.6 million, +5.8% YoY). Regional performance diverged: Americas revenue rose 5.4% to $285.1 million, EMEA grew 8% to $277.1 million, while Asia Pacific declined 1.3% to $147.4 million due to China’s weak e-commerce sales.

Earnings/Net Income

Earnings per share (EPS) fell 27.7% to $0.43 in Q4 2025, compared to $0.59 in Q4 2024, while net income dropped 28% to $84.6 million. The decline reflects gross margin pressures from tariffs and product mix, though operating income rose 9% to a 27% margin. The EPS shortfall contrasts with Non-GAAP results, which beat estimates at $1.15 (+11% YoY).

Post-Earnings Price Action Review

The strategy of buying COO shares after its Q4 revenue report and holding for 30 days yielded a 3.02% return over three years, underperforming the 49.57% benchmark gain. The approach exhibited a 0.08 Sharpe ratio and 0.00% maximum drawdown, signaling a conservative yet volatile profile.

CEO Commentary

CEO Albert White highlighted CooperVision’s momentum in MyDay lenses and raised 2026–2028 free cash flow targets to $2.2 billion. Strategic priorities include cost savings ($50M annualized), $2B buyback plan, and market share gains. Challenges persist in Asia Pacific, particularly China, where aggressive pricing in low-margin e-commerce hurt performance.

Guidance

Q1 2026 revenue guidance: $1.019B–$1.03B (3%–4% organic growth). Full-year 2026 revenue targets $4.3B–$4.34B, with non-GAAP EPS of $4.45–$4.60. Free cash flow is expected to reach $575M–$625M, driven by working capital improvements and reorganization savings.

Additional News

The Cooper Companies announced a strategic review to explore partnerships, divestitures, or mergers, including potential separation of CVI and CSI. Share repurchases under a $2B buyback program accelerated, with $300M spent in 2025. Leadership transition plans include Colleen Jay succeeding Robert Weiss as board chair in early 2026.