Cooper Cos Inc (NASDAQ:COO) Reports Q3 2025 Earnings Beat Amid Revenue Miss

Cooper Cos Inc (NASDAQ:COO) reported third-quarter fiscal 2025 results that presented a mixed financial picture, with revenue falling short of analyst expectations while adjusted earnings demonstrated robust growth. The medical device company posted revenue of $1.06 billion, representing a 6% year-over-year increase but coming in below the consensus estimate of $1.07 billion. This revenue miss appears to be driving significant negative market reaction, with after-hours trading showing a decline of approximately 12%.

The earnings performance told a different story, with non-GAAP diluted earnings per share of $1.10 surpassing analyst estimates of $1.079. This represents a 15% increase compared to the same quarter last year. The divergence between GAAP and non-GAAP results was notable, with GAAP EPS declining 6% to $0.49 due to various one-time charges including acquisition-related expenses and costs associated with product line exits.

Key Financial Highlights from Q3 2025:

• Total revenue reached $1.06 billion, up 6% year-over-year but missing estimates • CooperVision revenue grew 6% to $718.4 million, with toric and multifocal products showing particularly strong performance with 10% reported growth • CooperSurgical revenue increased 4% to $341.9 million • Non-GAAP operating margin expanded 60 basis points to 26% • Free cash flow generation remained strong at $164.6 million • Company repurchased $52.1 million of common stock during the quarter

President and CEO Al White commented on the results, noting that while revenues were below expectations, the company delivered "strong margins, double-digit earnings growth, and robust free cash flow." He attributed this performance to operational excellence remaining central to the company's growth strategy. Management expressed confidence in improving revenue trends for the fourth quarter and fiscal 2026, specifically highlighting the MyDay product line as a key growth driver.

The company provided updated guidance for both the fourth quarter and full fiscal year 2025. For Q4, Cooper expects total revenue between $1.049-$1.069 billion with non-GAAP EPS of $1.10-$1.14. Full-year guidance projects revenue of $4.076-$4.096 billion and non-GAAP EPS of $4.08-$4.12. This outlook suggests the company anticipates continued operational performance improvement despite the current quarter's revenue shortfall.

The market's negative reaction appears primarily focused on the revenue miss rather than the earnings beat, possibly reflecting concerns about growth momentum in the face of economic uncertainties. The significant after-hours decline indicates investor disappointment with the top-line performance, particularly given the company's raised earnings guidance.

For more detailed earnings analysis and future estimates, readers can review additional information through the company's earnings portal.

This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.