CooperCompanies (NASDAQ:COO) Surges on Strong Earnings Beat and Upbeat 2026 Guidance

CooperCompanies (NASDAQ:COO) Reports Q4 2025 Results, Issues Upbeat Guidance

Medical device company The Cooper Companies, Inc. (NASDAQ:COO) reported its fiscal fourth quarter and full-year 2025 results, delivering a mixed performance against analyst expectations while providing forward guidance that exceeded consensus estimates. The company's stock saw a significant positive reaction in after-hours trading following the announcement.

Quarterly Performance vs. Estimates

For the quarter ended October 31, 2025, CooperCompanies reported revenue of $1.065 billion. This represented a 5% increase year-over-year on a reported basis and a 3% increase on an organic basis. However, the top-line figure came in slightly below the analyst consensus estimate of approximately $1.072 billion.

The earnings picture was more robust. The company reported non-GAAP diluted earnings per share (EPS) of $1.15 for the quarter, an 11% increase from the prior year. This result surpassed the analyst estimate of $1.13 per share. On a GAAP basis, EPS was $0.43, down 27% year-over-year, primarily due to significant costs related to a major reorganization and integration activity completed during the quarter.

Full-Year Summary and Market Reaction

For the full fiscal year 2025, the company generated revenue of $4.1 billion, up 5% (4% organically). Full-year non-GAAP diluted EPS was $4.13, a 12% increase, while GAAP diluted EPS was $1.87, down 4%.

The market's immediate reaction was decidedly positive, with the stock rising over 12% in after-hours trading. This surge appears to be driven less by the slight revenue miss in Q4 and more by the company's strong forward guidance and strategic updates.

Forward Guidance and Strategic Highlights

Management provided financial guidance for fiscal 2026 that exceeded current analyst expectations, which likely fueled investor optimism.

• Fiscal 2026 Revenue Guidance: The company expects revenue between $4.299 billion and $4.338 billion, representing organic growth of 4.5% to 5.5%. This outlook is above the current analyst sales estimate of $4.37 billion for the year.
• Fiscal 2026 EPS Guidance: Non-GAAP diluted EPS is projected to be in the range of $4.45 to $4.60. This guidance midpoint of $4.53 is above the analyst consensus estimate of $4.37 for the year.
• Q1 2026 Outlook: For the coming quarter, the company expects revenue of $1.019 billion to $1.030 billion and non-GAAP EPS of $1.02 to $1.04. The revenue guidance is slightly above the analyst estimate of $1.013 billion.

President and CEO Al White highlighted "eight consecutive quarters of earnings beats" and outlined clear priorities for 2026: accelerating top-line growth, improving profitability, accelerating cash generation, and continuing share repurchases. He noted strong momentum in the CooperVision business, including a 37% increase in sales of the MiSight myopia management lens in Q4, and optimism for a stronger year in the CooperSurgical fertility business.

Key Operational and Financial Highlights

The earnings release contained several other notable points:

• Reorganization Benefits: The company completed a significant reorganization in Q4, incurring approximately $89 million in charges. It expects these efforts to yield annual pre-tax savings of about $50 million starting in fiscal 2026.
• Strong Cash Flow & Capital Return: Free cash flow for the year was $433.7 million. The company repurchased $197.3 million of its stock in Q4 and expanded its share repurchase authorization by $1 billion, with nearly $1 billion remaining available. A new long-term free cash flow objective of more than $2.2 billion from fiscal 2026 through 2028 was announced.
• Segment Performance:
  • CooperVision (CVI): Q4 revenue of $709.6 million, up 5% (3% organic). Toric and multifocal lenses grew 7% reported.
  • CooperSurgical (CSI): Q4 revenue of $355.6 million, up 4% (4% organic). Office and surgical products grew 6%.

Conclusion

CooperCompanies closed its fiscal year with solid, if not spectacular, quarterly sales growth but impressive bottom-line execution that exceeded expectations. The substantial after-hours stock gain reflects investor approval of the company's strategic reorganization, its commitment to returning capital to shareholders via buybacks, and most importantly, its confident and above-consensus guidance for the year ahead. The focus now shifts to the company's execution on its stated priorities of accelerating growth and improving profitability in fiscal 2026.

For a detailed look at CooperCompanies' historical earnings and future estimates, you can review the data here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, nor does it recommend buying or selling any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.