COO earnings analysis
What we found in COO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
CooperCompanies delivered $1.0662 billion of revenue and $1.15 of EPS, with EPS ahead of consensus but revenue below expectations. Operating margin recovered to 21% and free cash flow increased to $273.0 million, but the company lowered FY2026 revenue and EPS outlook. Litigation exposure remains substantial, including a $272.0 million net charge for the first nine months and more than 1,500 claimants associated with the LifeGlobal matter.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- EPS beat despite revenue miss
- Revenue was $1.0662 billion, approximately $13.8 million below the $1.0799 billion consensus estimate, while EPS of $1.15 exceeded the $1.12 estimate by $0.03.
- Operating margin rebounded sharply
- Operating margin was 21%, improving from negative 2.9% in the prior quarter and 16.6% in the year-ago quarter, a sequential improvement of 23.9 percentage points.
- Free cash flow reached $273 million
- Free cash flow was $273.0 million, up from $165 million in the year-ago quarter and $96 million in the prior quarter.
- Meaningful share repurchases continued
- The company repurchased 4.9021 million shares during the quarter at an average price of $69.16; $521.7 million remained authorized under the repurchase plan at July 31, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- LifeGlobal litigation remains material
- The LifeGlobal litigation resulted in a $272.0 million net operating expense for the nine months ended July 31, 2026, reflecting a $325.8 million accrued litigation liability partly offset by $53.8 million of insurance recoveries. More than 140 lawsuits and over 1,500 claimants had been identified as of June 5, 2026.
- U.K. tax dispute exposure
- The company faces potential U.K. payroll-tax exposure related to the 2014 Sauflon acquisition, with an estimated loss ranging from £0 to £71.7 million plus accrued interest while the company appeals the U.K. FTT decision.
- Foreign-exchange sensitivity
- A uniform 10% move in foreign-exchange rates versus the U.S. dollar would have changed quarterly operating income by approximately $29.5 million at July 31, 2026, creating material earnings sensitivity.
- FY2026 outlook was lowered
- FY2026 revenue guidance was reduced to $4.229-$4.252 billion from $4.285-$4.321 billion, while non-GAAP EPS guidance declined to $4.51-$4.55 from $4.58-$4.66.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.15
- Operating margin
- 21.0%
What they said about what is next.
FY2026 revenue guidance was lowered to $4.229-$4.252 billion from $4.285-$4.321 billion, and non-GAAP EPS guidance was lowered to $4.51-$4.55 from $4.58-$4.66. Q4 revenue guidance is $1.057-$1.080 billion and EPS guidance is $1.05-$1.09.
The filing reads about the same as the one before it.
What came before.
- 10-Q · June 5, 2026
- CooperCompanies reported strong Q2 2026 earnings, with actual revenue of $1.082 billion surpassing estimates of $1.052 billion and non-GAAP EPS of $1.21 exceeding the forecast of $1.10. However, GAAP EPS declined to…
- 10-Q · March 6, 2026
- Cooper Companies reported Q1 net sales of $1,024.1 million (vs. $964.7 million a year ago) with operating income of $212.8 million and diluted EPS of $0.66 (vs. $0.52). The quarter showed expanded operating margin and…
- 10-Q · May 30, 2025
- Cooper reported quarterly net sales of $1,002.3 million (three months ended April 30, 2025), up $59.7 million (+6.3%) versus $942.6 million a year ago, with operating income rising to $184.8 million from $161.7 million.…
- 10-Q · March 7, 2025
- Cooper delivered a modest top-line beat with net sales of $964.7 million (up $33.1 million vs $931.6 million LY) and margin expansion drove operating income to $182.0 million and diluted EPS of $0.52 (vs $0.41 LY).…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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