- Price
- $57.94
- Fair value
- $71.00
- Discount
- 18.4%
- Uncertainty
- High
- LSEG rating
- 2.61
- Moat
- Narrow
- Next earnings
- 2026-12-09
- Next earnings is estimate
- Yes
- Company name
- The Cooper Companies
- Sector
- Contact lenses & women's health
- About
- CooperCompanies has two businesses. CooperVision makes soft contact lenses, including toric and multifocal lenses, and sells them around the world. CooperSurgical sells fertility products and services and office and surgical products for women's health. Revenue was $1.066 billion in Q3 fiscal 2026, which ended on July 31, 2026: $717.0 million from CooperVision and $349.2 million from CooperSurgical. Its fiscal year ends on October 31. Al White is President and CEO.
- Thesis
- The market prices CooperCompanies for slow contact lens growth. CooperVision revenue was flat in Q3 fiscal 2026 because the company reduced U.S. channel inventory, and it expects CooperVision organic growth of minus 2% to 0% in Q4. In September 2026, the board ended a strategic review and kept CooperSurgical, because the offers it received were not in the interest of shareholders. The board said that a new competitor in non-hormonal IUDs and a fertility litigation settlement affected the value. For the gap to close, three things must be true. CooperVision must return to organic growth in fiscal 2027 after the inventory reduction, helped by new products and a larger sales force. Fertility revenue must keep growing, as in Q3 when it grew 5% organically. Free cash flow must meet the target of more than $2.2 billion for fiscal 2026 to 2028 and fund buybacks under the $3 billion program. The Q4 fiscal 2026 report and the fiscal 2027 guidance, estimated for about December 9, 2026, are the next test. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is slower growth in contact lenses, where competition is strong.
- Risks
- CooperVision revenue was flat in Q3 fiscal 2026, and the company expects Q4 organic growth of minus 2% to 0%. If growth does not return after the inventory reduction, earnings and the share price can stay low.
The board said that a new competitor is entering the non-hormonal IUD market, where CooperSurgical competes. More competition can lower CooperSurgical revenue.
A U.K. tribunal decided in March 2026 that the company did not withhold enough payroll taxes on part of the price for the Sauflon acquisition. The company is appealing and estimates a possible loss of 0 to 71.7 million pounds plus interest.
Debt rose to $2.54 billion at July 31, 2026, as the company bought back shares. More buybacks with borrowed money increase leverage.
- Balance sheet
- Cash: $155M
Debt: $2.5B
Net debt: $2.4B
Interest cover: 6.2×
Undrawn credit line: $1.3B, to May 2029
Debt due within 12 months: $628M
CooperCompanies funds itself with bank debt. At July 31, 2026, total debt was $2.54 billion: $966.7 million drawn on the $2.3 billion revolving credit facility that matures on May 1, 2029, term loans of $1.50 billion, of which $550 million is due within a year, and other debt. Cash was $154.7 million. In August 2026, the company paid $306.8 million to settle substantially all embryo culture media claims, and insurance paid $43.8 million of it. Interest cover is operating income divided by interest expense for the first nine months of fiscal 2026, which includes a net litigation charge of $272.0 million. Free cash flow was $273.0 million in Q3 fiscal 2026, and the company bought back $445 million of shares in fiscal 2026 through the Q3 report.
As of 2026-07-31.
- Checkpoints
- Dec 9, 2026 (estimate): Q4 fiscal 2026 earnings and fiscal 2027 guidance. Pending. Watch: Q4 results within guidance and fiscal 2027 guidance for CooperVision organic growth pass; another guidance cut or no return to growth fail.
Mar 2027 (estimate): Q1 fiscal 2027: CooperVision growth. Pending. Watch: Positive CooperVision organic growth after the inventory reduction pass; flat or falling CooperVision revenue fails.
- Recent events
- 2026-09-23: CooperVision opened The Vision Centre, its new global research and development center, as part of a faster program of new product introductions.
2026-09-09: CooperCompanies reported Q3 fiscal 2026 results. Revenue rose 1% to $1.066 billion, and non-GAAP EPS rose 4% to $1.15. CooperVision revenue was flat because of a U.S. channel inventory reduction. Free cash flow rose 66% to $273.0 million, and a $307.2 million tax benefit followed the end of a U.K. tax examination. The company lowered its fiscal 2026 guidance to non-GAAP EPS of $4.51 to $4.55.
2026-09-09: The board completed the strategic review that started in December 2025 and decided to keep CooperSurgical. It raised the share repurchase authorization from $2 billion to $3 billion. The company also said that in August 2026 it paid $306.8 million to settle substantially all claims about recalled embryo culture media, of which insurance paid $43.8 million.
2026-06-04: CooperCompanies reported Q2 fiscal 2026 results. Revenue rose 8% to a record $1.082 billion, and non-GAAP EPS rose 26% to $1.21. A $271.6 million litigation charge for the fertility media recall caused a GAAP operating loss.