Cooper Companies Slides 15% on Weak Guidance

Cooper Companies Slides 15% on Weak Guidance

Cooper Companies (NASDAQ:COO) saw its shares plunge 15% in after‑hours trading on Wednesday following the release of its fiscal third‑quarter 2026 results, which missed revenue expectations and provided guidance substantially below analyst estimates.

The company reported adjusted earnings per share of $1.15 for the quarter ended July 31, 2026, surpassing the consensus estimate of $1.12 by $0.03. Revenue for the quarter was $1.07 billion, a 1% year‑over‑year increase but short of the $1.10 billion forecasted by analysts.

Management announced the completion of a strategic review of its CooperSurgical business, deciding to retain the unit because the offers received were not deemed to be in shareholders’ best interest. President and CEO Al White highlighted that the quarter featured earnings that exceeded expectations, record free cash flow, solid fertility growth at CooperSurgical, and a favorable resolution of a significant tax matter, while noting that reduced U.S. channel inventory at CooperVision weighed on results and will continue to affect the fourth quarter.

Guidance for the fourth quarter of fiscal 2026 projects adjusted EPS in the range of $1.05 to $1.09, with a midpoint of $1.07, well below the analyst consensus of $1.19. Fourth‑quarter revenue is expected to fall between $1.057 billion and $1.080 billion, with a midpoint of $1.069 billion, also trailing the consensus estimate of $1.11 billion.

Full‑year fiscal 2026 guidance targets adjusted EPS of $4.51 to $4.55, with a midpoint of $4.53, versus the consensus estimate of $4.63. Revenue for the full year is projected between $4.229 billion and $4.252 billion, with a midpoint of $4.241 billion, below the consensus forecast of $4.31 billion.

Segment performance showed CooperVision revenue of $717.0 million, flat year‑over‑year, while CooperSurgical revenue grew 2% to $349.2 million. The company generated free cash flow of $273.0 million, a 66% increase year‑over‑year, and repurchased $339.1 million of common stock during the quarter. The Board also expanded the share‑repurchase authorization from $2 billion to $3 billion.