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…
Earnings analysis · 10-Q
COO earnings analysis
Filed September 9, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.15
- Operating margin
- 21.0%
What stood out
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.