Cooper Companies Stock Plunges After Weak Guidance Overshadows Q3 Earnings Beat

Cooper Companies reported fiscal third-quarter adjusted earnings per share of $1.15, beating the consensus estimate of $1.12 by $0.03 and rising 4% year over year. Revenue of $1.07 billion came in roughly $30 million below the $1.1 billion estimate, representing just 1% organic growth, as the company reduced U.S. channel inventory at its CooperVision unit, which management said weighed on results and will continue to do so into the fourth quarter.

CooperVision, the larger segment, generated $717 million in revenue, flat year over year, while CooperSurgical posted $349.2 million, up 2%. Gross margin held steady at 67% and operating margin expanded 30 basis points to 26%. Free cash flow surged 66% year over year to $273 million, and the company repurchased $339.1 million in shares during the quarter, leaving roughly $1.5 billion under its remaining buyback authorization. A discrete tax benefit of $307.2 million also boosted the reported bottom line.

The stock fell sharply after hours as full-year and fourth-quarter guidance disappointed. Cooper set its fiscal 2026 EPS outlook at $4.51 to $4.55 against an analyst consensus of $4.63, and revenue guidance of $4.2 billion to $4.3 billion also came in below the $4.31 billion estimate. Q4 EPS guidance of $1.05 to $1.09 represented a significant miss versus the $1.19 consensus, with revenue guided to $1.06 billion to $1.08 billion against expectations of $1.11 billion. Management cited the conclusion of its strategic review and said the company is now focused on profitable growth, strong cash flow generation, and disciplined capital allocation, with a free cash flow objective exceeding $2.2 billion through fiscal 2028.