The Cooper Companies 2025 Q4 Earnings Mixed Results with Revenue Growth and EPS Decline

The Cooper Companies (COO) reported fiscal 2025 Q4 earnings on Dec 4, 2025, delivering revenue growth but a significant drop in earnings. The company exceeded revenue estimates by 0.45% while non-GAAP EPS of $1.15 beat expectations by $0.04. However, GAAP EPS declined 27.7% year-over-year. Guidance for 2026 remains in line with current market conditions.

Revenue

The Cooper Companies’ total revenue rose 4.6% to $1.07 billion in 2025 Q4, driven by strong performance in key segments. CooperVision (CVI) led with $709.6 million in revenue, up 4.9% year-over-year, while CooperSurgical (CSI) reported $355 million, a 3.8% increase. Regional performance varied: Americas revenue grew 5.4% to $285.1 million, EMEA surged 8% to $277.1 million, and Asia Pacific declined slightly by 1.3% to $147.4 million.

Earnings/Net Income

The Cooper Companies’ GAAP EPS fell 27.7% to $0.43 in 2025 Q4, compared to $0.59 in 2024 Q4, while net income dropped 28.0% to $84.60 million. This decline contrasted with a non-GAAP EPS beat of $1.15, which outperformed estimates by $0.04. The earnings shortfall underscores pressure from cost reorganization and lower gross margins.

Post-Earnings Price Action Review

The strategy of buying COO shares after its revenue drop quarter-over-quarter on the financial report release date and holding for 30 days yielded a 3.02% return over the past three years. This underperformed the benchmark’s 49.57% return and showed suboptimal risk-adjusted metrics, with a Sharpe ratio of 0.08 and a maximum drawdown of 0.00%. The approach appears conservative and volatile, suggesting limited alignment with broader market gains.

CEO Commentary

Albert White highlighted CooperVision’s momentum in premium silicone hydrogel lenses and contract wins but noted challenges in China and EMEA. He emphasized $150 million in Q4 free cash flow and a raised 2026–2028 target of >$2.2 billion. Strategic priorities include $2 billion in share repurchases, operational efficiency, and a potential separation of CooperVision and CooperSurgical.

Guidance

For fiscal 2026, The Cooper Companies expects consolidated revenue of $4.3B–$4.34B (4.5%–5.5% organic growth), with CooperVision and CooperSurgical projecting $2.9B–$2.925B and $1.4B–$1.413B, respectively. Non-GAAP EPS is targeted at $4.45–$4.60, supported by margin expansion and $70M in one-time reorg costs. Free cash flow guidance is $575M–$625M, with 2/3 allocated to buybacks.

Additional News

The Cooper Companies announced a strategic review to evaluate long-term value creation, including potential separation of its business units. Leadership transition plans were revealed, with Colleen Jay succeeding Robert Weiss as Chair in early 2026. Additionally, the company expanded its share repurchase program to $2 billion, allocating $200 million in Q4. These moves aim to enhance shareholder returns and operational efficiency.

Key Non-Earnings News (3 Weeks Post-Report):

1. Strategic Review:

   The board initiated a comprehensive review of corporate structure and capital allocation, including partnerships and divestitures.

2. Leadership Transition:

   Colleen Jay will assume Chair role, marking a leadership shift after Weiss’s five-decade tenure.

3. Share Repurchase Expansion:

   A $2 billion buyback program was announced, reflecting confidence in undervalued shares.

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