The Cooper Companies (COO) Q3 2026 earnings summary

Executive summary

• Q3 2026 net sales were $1.066 billion, nearly flat year-over-year, with CooperVision and CooperSurgical contributing $717 million and $349 million, respectively.

• GAAP diluted EPS surged to $2.24 from $0.49, mainly due to a $307.2 million discrete tax benefit from a favorable U.K. tax examination and insurance recoveries.

• Free cash flow reached a record $273 million, up 66% year-over-year.

• Strategic review concluded with no sale of CooperSurgical; focus remains on organic growth, sales execution, and shareholder value.

• Operating income rose to $222 million, reflecting improved gross margins and lower operating expenses.

Financial highlights

• Gross margin improved to 67% from 65% year-over-year, reflecting prior-year inventory write-offs; non-GAAP gross margin was 67%, down 60 bps due to higher manufacturing costs and FX.

• Operating margin increased to 21% (GAAP) and 26% (non-GAAP), both up year-over-year.

• Non-GAAP EPS rose 4% to $1.15, including $0.03 from tariff refunds.

• Cash flow from operations for the nine months ended July 31, 2026, was $785.4 million, up from $548.2 million in the prior year period.

• Interest expense declined to $21.5 million, reflecting lower rates and average debt.

Outlook and guidance

• Fiscal Q4 2026 revenue expected at $1.057–$1.080 billion (0–2% organic growth); CooperVision at $692–$706 million (-2% to 0% organic); CooperSurgical at $364–$374 million (4–6% organic).

• Fiscal 2026 total revenue guidance: $4.229–$4.252 billion (2–3% organic growth); non-GAAP diluted EPS $4.51–$4.55.

• CooperVision FY26 revenue guidance: $2.828–$2.842 billion (1–2% organic growth); CooperSurgical FY26: $1.401–$1.410 billion (4–5% organic growth).

• Free cash flow for FY26 expected to exceed $2.2 billion.

• Fiscal 2027 tax rate expected to rise to ~17.5% due to GILTI increase.