CooperCompanies’ fourth quarter was met with a negative market reaction, as investors focused on the company’s slower organic revenue growth and ongoing challenges in the Asia Pacific region. While management cited robust product launches and improved profitability, CEO Albert White acknowledged that legacy hydrogel product softness in Japan was a key factor holding back growth. The company benefited from operational changes and technology-driven efficiencies, with White stating, “The organizational changes and IT implementations we completed last year are generating meaningful synergies, providing us with the opportunity to invest in sales and marketing initiatives while still delivering outstanding financial performance.”
Is now the time to buy COO? Find out in our full research report (it’s free for active Edge members).
CooperCompanies (COO) Q4 CY2025 Highlights:
- Revenue: $1.02 billion vs analyst estimates of $1.02 billion (6.2% year-on-year growth, in line)
- Adjusted EPS: $1.10 vs analyst estimates of $1.03 (6.9% beat)
- Adjusted EBITDA: $334.2 million vs analyst estimates of $317 million (32.6% margin, 5.4% beat)
- The company slightly lifted its revenue guidance for the full year to $4.33 billion at the midpoint from $4.32 billion
- Management raised its full-year Adjusted EPS guidance to $4.62 at the midpoint, a 2.1% increase
- Operating Margin: 20.8%, up from 18.9% in the same quarter last year
- Organic Revenue rose 3% year on year (miss)
- Market Capitalization: $14.39 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From CooperCompanies’s Q4 Earnings Call
- Jeffrey Johnson (Baird) pressed CEO Albert White to reconcile the strong reported calendar Q4 growth with slower trends in prior quarters; White explained shipment timing and noted lingering softness in Japan as the main factor.
- Larry Biegelsen (Wells Fargo) asked about Middle East exposure and the impact of regional conflict on fertility business, to which White clarified the region is only about 2% of sales but remains a risk for fertility revenues.
- Jason Bednar (Piper Sandler) questioned industry pricing dynamics and the sustainability of price increases; White stated current pricing is holding firm due to high-value product launches, with only Asia Pacific remaining highly competitive.
- Jonathan Block (Stifel) sought reasons behind the lower-than-expected organic growth in CooperVision; White cited a sharper-than-anticipated decline in legacy hydrogel sales in Japan during December and January.
- Anthony Petrone (Mizuho Group) inquired about the margin profile of new private label contracts and growth potential of MiSight in Japan; White responded that private label margins are similar at the operating level and expressed optimism for MiSight’s continued strong growth given high myopia rates among Japanese children.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace of recovery in Asia Pacific, especially Japan, as new leadership and product launches aim to reverse recent declines; (2) further traction from MyDay and MiSight rollouts in EMEA and the Americas and their ability to drive above-market growth; and (3) the impact of ongoing operational efficiencies on margin expansion and free cash flow. Updates on the strategic review and competitive developments in the fertility and myopia control markets will also be key markers for execution.
CooperCompanies currently trades at $73.51, down from $80.20 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
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