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Consolidated Revenue: $1.065 billion, up 4.6% year-over-year, 3.4% organically.

Operating Margin: Improved to 27%.

Non-GAAP Earnings: Grew 11% to $1.15 per share.

Free Cash Flow: $150 million in Q4.

Net Debt: $2.4 billion, leverage ratio at 1.76x.

Share Repurchases: $197.3 million in Q4, $300 million for the fiscal year.

CooperVision Revenue: $710 million, up 4.9% year-over-year, 3.2% organically.

CooperSurgical Revenue: $356 million, up 4% year-over-year, 3.9% organically.

Gross Margin: 66.2%, slightly declined due to tariffs and product mix.

Interest Expense: $23.7 million.

Effective Tax Rate: 14.2%.

Fiscal 2026 Revenue Guidance: $4.3 billion to $4.34 billion, 4.5% to 5.5% organic growth.

Fiscal 2026 Non-GAAP EPS Guidance: $4.45 to $4.60.

Fiscal 2026 Free Cash Flow Guidance: $575 million to $625 million.

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Release Date: December 04, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

The Cooper Companies Inc (NASDAQ:COO) reported consolidated revenues of $1.065 billion for Q4, marking a 4.6% year-over-year increase and setting a quarterly record.

The company achieved its eighth consecutive quarter of beating consensus earnings expectations, with non-GAAP earnings growing 11% to $1.15.

Free cash flow was strong at $150 million in Q4, exceeding expectations, and the company raised its fiscal 2026 to 2028 free cash flow target to more than $2.2 billion.

The Cooper Companies Inc (NASDAQ:COO) repurchased nearly $200 million of stock in fiscal Q4, bringing total fiscal year repurchases to almost $300 million, and the Board authorized an increase in the share repurchase plan to $2 billion.

The company is seeing robust momentum in its MyDay premium daily silicone hydrogel lens portfolio, with several new product launches planned to further strengthen its market position.

Gross margin declined marginally to 66.2% in Q4, driven by tariffs and product mix, which is expected to continue impacting margins in fiscal 2026.

The Asia Pacific region was flat, with a significant 28% decline in China due to continued weakness in low-margin e-commerce channels.

The clariti product line experienced a decline of a couple of percent this quarter, and the company is repositioning it in certain markets.

The fertility segment showed only 1% growth, with consumer spending remaining tight, especially in Asia Pacific, and clinics managing spending carefully.

The company's fiscal 2026 guidance indicates a more back-end loaded growth, with expectations of stronger performance in Q3 and Q4, which may pose risks if momentum does not materialize as anticipated.

Q: Can you provide details on the performance of the clariti product line and its impact on margins? A: Albert White, CEO, mentioned that clariti was down a couple of percent this quarter and approached $400 million this year. The company is repositioning clariti in Asia Pac to target the entry-level space. Brian Andrews, CFO, added that while the gross margins for daily silicone hydrogel lenses are below CooperVision's overall margins, the company expects to drive operating margin expansion and earnings growth despite some gross margin pressure.

Q: Could you elaborate on the strategic review and the potential for splitting up CooperVision (CVI) and CooperSurgical (CSI)? A: Albert White, CEO, stated that the strategic review is underway to explore options for driving shareholder value. The company will provide an update on the next earnings call unless something material occurs beforehand. White emphasized that the focus is on long-term shareholder value, and any actions taken will be evaluated based on their benefit to shareholders.

Q: What are the expectations for the contact lens market growth in 2026, and what factors contribute to this outlook? A: Albert White, CEO, expects the contact lens market to grow 4% to 5% in 2026, with global pricing contributing around 1% to growth. He noted that the market grew 5% in calendar Q3, indicating a positive trend, and anticipates similar growth rates next year.

Q: How is the company addressing the challenges in the Asia Pacific region, particularly in China? A: Albert White, CEO, acknowledged struggles in Asia Pac, particularly in the pure-play e-commerce channel in China, which was down 28% in Q4. The company is not chasing aggressive pricing in low-margin channels and expects the impact to be less significant in 2026 as these markets become a smaller percentage of the overall business.

Q: What is driving the improved free cash flow outlook, and are there any reductions in SG&A or R&D investments? A: Albert White, CEO, explained that the improved free cash flow outlook is due to consistent performance and execution, with CooperVision's CapEx expected to decline. The company is not back-end loading free cash flow and expects to generate over $2.2 billion from 2026 to 2028. There are no significant reductions in SG&A or R&D investments planned.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.