- First quarter 2026 revenue of
$1.024 billion , up 6%, or up 3% organically, from last year's first quarter. - First quarter 2026 GAAP diluted earnings per share (EPS) of
$0.66 , up$0.14 or 27% from last year's first quarter. - First quarter 2026 Non-GAAP diluted EPS of
$1.10 , up$0.18 or 20% from last year's first quarter. See "Reconciliation of Selected GAAP Results to Non-GAAP Results" below.
"We're pleased to report a strong start to the fiscal year, highlighted by product launches, outstanding profitability, and robust cash flow, all of which gives us the confidence to raise both earnings and free cash flow guidance. Revenue growth benefited from continued strength in our premium MyDay portfolio, and momentum is building from product launches including early traction from MyDay MiSight. Operating margins exceeded expectations, reflecting disciplined execution and the meaningful synergies delivered through last year's reorganization. These improvements are strengthening our foundation--enhancing efficiency, improving our cost structure, and enabling more targeted investment in our highest-return opportunities," said
"Our strong free cash flow also supported ongoing share repurchases, which remain a core element of our capital-allocation strategy. Combined with improved organizational alignment and progress across our key initiatives, we believe we are well positioned to build momentum as the year progresses. Importantly, we remain on track with our long-term outlook for generating more than
First Quarter Operating Results
- Revenue of
$1.024 billion , up 6% from last year’s first quarter, up 3% in constant currency, up 3% organically. - Gross margin of 68% similar to last year’s first quarter. On a non-GAAP basis, gross margin was down 60 basis points from last year to 68%. Excluding the impact of tariffs, gross margin would have been flat year over year.
- Operating margin of 21% compared with 19% in last year’s first quarter driven by operating expense leverage. On a non-GAAP basis, operating margin was up 180 basis points from last year to 27%, reflecting disciplined execution and meaningful synergies delivered through last year's reorganization, and leverage from last year’s IT implementations.
- Interest expense of
$22.4 million compared with$26.0 million in last year's first quarter driven by lower average debt. - Cash provided by operations of
$260.9 million , offset by capital expenditures of$102.2 million resulted in free cash flow of$158.7 million .
First Quarter CooperVision (CVI) Revenue
- Revenue of
$695.1 million , up 8% from last year’s first quarter, up 3% in constant currency, up 3% organically. - Revenue by category:
| % change y/y | |||||||||||||||||||
| (In millions) | Reported | Currency Impact | Constant Currency | Acquisitions and Divestitures | Organic | ||||||||||||||
| 1Q26 | |||||||||||||||||||
| Toric and multifocal | $ | 351.2 | 10 | % | (4 | )% | 6 | % | — | % | 6 | % | |||||||
| Sphere, other | 343.9 | 5 | % | (4 | )% | 1 | % | — | % | 1 | % | ||||||||
| Total | $ | 695.1 | 8 | % | (5 | )% | 3 | % | — | % | 3 | % | |||||||
- Revenue by geography:
| % change y/y | |||||||||||||||||||
| (In millions) | Reported | Currency Impact | Constant Currency | Acquisitions and Divestitures | Organic | ||||||||||||||
| 1Q26 | |||||||||||||||||||
| $ | 289.0 | 7 | % | (1 | )% | 6 | % | — | % | 6 | % | ||||||||
| EMEA | $ | 282.3 | 15 | % | (11 | )% | 4 | % | — | % | 4 | % | |||||||
| $ | 123.8 | (4 | )% | — | % | (4 | )% | — | % | (4 | )% | ||||||||
| Total | $ | 695.1 | 8 | % | (5 | )% | 3 | % | — | % | 3 | % | |||||||
First Quarter CooperSurgical (CSI) Revenue
- Revenue of
$329.0 million , up 3% from last year's first quarter, up 2% in constant currency, up 2% organically. - Revenue by category:
| % change y/y | |||||||||||||||||||
| (In millions) | Reported | Currency Impact | Constant Currency | Acquisitions and Divestitures | Organic | ||||||||||||||
| 1Q26 | |||||||||||||||||||
| Office and surgical | $ | 202.4 | 2 | % | (1 | )% | 1 | % | 1 | % | 2 | % | |||||||
| Fertility | 126.6 | 6 | % | (3 | )% | 3 | % | — | % | 3 | % | ||||||||
| Total | $ | 329.0 | 3 | % | (1 | )% | 2 | % | — | % | 2 | % | |||||||
Other
- During the first quarter, the Company repurchased
$92.5 million of common stock, approximately 1.1 million shares, at an average share price of$82.04 . The program has$873.9 million of remaining availability.
Fiscal Year 2026 Financial Guidance
The Company updated its fiscal year 2026 financial guidance. Details are summarized as follows:
- Fiscal 2026 total revenue of
$4.306 -$4.346 billion (organic growth of 4.5% to 5.5%)- CVI revenue of
$2.906 -$2.932 billion (organic growth of 4.5% to 5.5%) - CSI revenue of
$1.400 -$1.413 billion (organic growth of 4.0% to 5.0%)
- CVI revenue of
- Fiscal 2026 non-GAAP diluted EPS of
$4.58 -$4.66 - Fiscal 2026 free cash flow of
$600 -$625 million
Non-GAAP diluted earnings per share guidance excludes amortization and impairment of intangible assets, and certain income or gains and charges or expenses including acquisition and integration costs which we may incur as part of our continuing operations.
With respect to the Company’s guidance expectations, the Company has not reconciled non-GAAP diluted earnings per share guidance to GAAP diluted earnings per share due to the inherent difficulty in forecasting acquisition-related, integration and restructuring charges and expenses, which are reconciling items between the non-GAAP and GAAP measures. Due to the unknown effect, timing and potential significance of such charges and expenses that impact GAAP diluted earnings per share, the Company is not able to provide such guidance.
Reconciliation of Selected GAAP Results to Non-GAAP Results
To supplement our financial results and guidance presented on a GAAP basis, we provide non-GAAP measures such as non-GAAP gross margin, non-GAAP operating margin, non-GAAP diluted earnings per share, as well as constant currency and organic revenue growth because we believe they are helpful for the investors to understand our consolidated operating results. Management uses supplemental non-GAAP financial measures internally to understand, manage and evaluate our business, to make operating decisions, and to plan and forecast for future periods. The non-GAAP measures exclude costs which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. We provide further details of the non-GAAP adjustments made to arrive at our non-GAAP measures in the GAAP to non-GAAP reconciliations below. Our non-GAAP financial results and guidance are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
To present constant currency revenue growth, current period revenue for entities reporting in currencies other than
We define the non-GAAP measure of free cash flow as cash provided by operating activities less capital expenditures. We believe free cash flow is useful for investors as an additional measure of liquidity because it represents cash that is available to grow the business, make strategic acquisitions, repay debt, or buyback common stock. Management uses free cash flow internally to understand, manage, make operating decisions and evaluate our business. In addition, we use free cash flow to help plan and forecast future periods.
Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP.
| GAAP to Non-GAAP Reconciliation | ||||||||
| Gross Margin, Operating Margin, and EPS | ||||||||
| Three Months Ended | ||||||||
| (In millions) | 2026 | Margin % | 2025 | Margin % | ||||
| GAAP Gross Profit | $ | 695.2 | 68 | % | $ | 660.2 | 68 | % |
| Acquisition and integration-related charges (1) | — | — | % | 1.6 | 1 | % | ||
| Exit of business (2) | 1.8 | — | % | — | — | % | ||
| Medical device regulations (3) | 0.7 | — | % | 0.6 | — | % | ||
| Business optimization charges (4) | — | — | % | — | — | % | ||
| Total | 2.5 | — | % | 2.2 | 1 | % | ||
| Non-GAAP Gross Profit | $ | 697.7 | 68 | % | $ | 662.4 | 69 | % |
| Three Months Ended | ||||||||
| (In millions) | 2026 | Margin % | 2025 | Margin % | ||||
| GAAP Operating Income | $ | 212.8 | 21 | % | $ | 182.0 | 19 | % |
| Amortization of acquired intangibles | 47.9 | 5 | % | 49.6 | 5 | % | ||
| Acquisition and integration-related charges (1) | — | — | % | 4.3 | — | % | ||
| Exit of business (2) | 1.8 | — | % | — | — | % | ||
| Medical device regulations (3) | 4.3 | — | % | 5.4 | 1 | % | ||
| Business optimization charges (4) | 1.9 | — | % | — | — | % | ||
| Other (5) | 6.7 | 1 | % | 0.6 | — | % | ||
| Total | 62.6 | 6 | % | 59.9 | 6 | % | ||
| Non-GAAP Operating Income | $ | 275.4 | 27 | % | $ | 241.9 | 25 | % |
| Three Months Ended | ||||||||||||
| (In millions, except per share amounts) | 2026 | EPS | 2025 | EPS | ||||||||
| GAAP Net Income | $ | 130.8 | $ | 0.66 | $ | 104.3 | $ | 0.52 | ||||
| Amortization of acquired intangibles | 47.9 | 0.24 | 49.6 | 0.25 | ||||||||
| Acquisition and integration-related charges (1) | — | — | 4.3 | 0.02 | ||||||||
| Exit of business (2) | 1.8 | 0.01 | — | — | ||||||||
| Medical device regulations (3) | 4.3 | 0.02 | 5.4 | 0.03 | ||||||||
| Business optimization charges (4) | 1.9 | 0.01 | — | — | ||||||||
| Other (5) | 7.6 | 0.05 | 2.5 | 0.01 | ||||||||
| Tax effects related to the above items | (15.2 | ) | (0.08 | ) | (14.7 | ) | (0.07 | ) | ||||
| Intra-entity asset transfers (6) | 37.9 | 0.19 | 33.0 | 0.16 | ||||||||
| Total | 86.2 | 0.44 | 80.1 | 0.40 | ||||||||
| Non-GAAP Net Income | $ | 217.0 | $ | 1.10 | $ | 184.4 | $ | 0.92 | ||||
| Weighted average diluted shares used | 196.7 | 201.2 | ||||||||||
EPS, amounts and percentages may not sum or recalculate due to rounding.
(1) Charges include the direct effects of acquisition accounting, such as amortization of inventory fair value step-up, professional services fees, regulatory fees, and changes in fair value of contingent considerations, and items related to integrating acquired businesses, such as redundant personnel costs for transitional employees, acquisition-related non-cash cumulative true up adjustments reflecting changes in compensation, other acquired employee related costs, integration-related professional services, long-lived asset write-offs, manufacturing integration costs, legal entity and facility rationalization, and other integration-related activities. The acquisition and integration-related charges in fiscal 2025 were primarily related to the obp Surgical and Cook Medical acquisition and integration expenses.
There were no acquisition and integration-related charges in the three months ended
Charges included
(2) Charges include costs related to product line exits such as inventory write-offs, site closure costs, contract termination costs, employee severance costs, and specifically-identified long-lived asset write-offs.
Charges included
There were no exit of business charges in the three months ended
(3) Charges represent incremental costs of complying with the new
(4) Charges represent the costs associated with initiatives to increase efficiencies across the organization and optimize our overall cost structure, including changes to our IT infrastructure and operations, employee severance costs, redundant personnel costs for transitional employees, legal entity and other business reorganizations, write-offs or impairments of certain long-lived assets, and inventories associated with the business optimization activities.
Charges included
There were no business optimization charges in the three months ended
(5) Charges include certain business disruptions from natural causes, litigation matters, and other items that are not part of ordinary operations. The adjustments to arrive at non-GAAP net income also include gains and losses on minority interest investments and accretion of interest attributable to acquisition installment payables.
Charges included
Charges included
(6) In fiscal 2021, the Company transferred its CooperVision intellectual property and goodwill to its
Audio Webcast and Conference Call
The Company will host an audio webcast today for the public, investors, analysts and news media to discuss its first quarter results and current corporate developments. The audio webcast will be broadcast live on CooperCompanies' website, www.investor.coopercos.com, at approximately
About CooperCompanies
CooperCompanies (Nasdaq: COO) is a leading global medical device company focused on helping people experience life's beautiful moments through its two business units, CooperVision and CooperSurgical. CooperVision is a trusted leader in the contact lens industry, helping to improve the way people see each day. CooperSurgical is a leading fertility and women's healthcare company dedicated to putting time on the side of women, babies, and families at the healthcare moments that matter most. Headquartered in
Forward-Looking Statements
This earnings release contains "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Statements relating to guidance, plans, prospects, goals, strategies, future actions, events or performance and other statements of which are other than statements of historical fact, including our fiscal year 2026 financial guidance, are forward looking. In addition, all statements regarding anticipated growth in our revenues, expected savings from reorganization activities, anticipated effects of any product recalls, anticipated market conditions, planned product launches, restructuring or business transition expectations, regulatory plans, and expected results of operations and integration of any acquisition are forward-looking. To identify these statements look for words like "believes," "outlook," "probable," "expects," "may," "will," "should," "could," "seeks," "intends," "plans," "estimates" or "anticipates" and similar words or phrases. Forward-looking statements necessarily depend on assumptions, data or methods that may be incorrect or imprecise and are subject to risks and uncertainties.
Among the factors that could cause our actual results and future actions to differ materially from those described in forward-looking statements are: adverse changes in the global or regional general business, political and economic conditions including the impact of continuing uncertainty and instability of certain countries, man-made or natural disasters and pandemic conditions, that could adversely affect our global markets, and the potential adverse economic impact and related uncertainty caused by these items; the impact of international conflicts, including the ongoing conflict in the
We caution investors that forward-looking statements reflect our analysis only on their stated date. We disclaim any intent to update them except as required by law.
Contact:
Vice President, Investor Relations and Risk Management
925-460-3663
ir@cooperco.com
| Consolidated Condensed Balance Sheets | |||||
| (In millions) | |||||
| (Unaudited) | |||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ | 124.9 | $ | 110.6 | |
| Trade receivables, net | 807.1 | 829.0 | |||
| Inventories | 876.4 | 846.0 | |||
| Prepaid expense and other current assets | 325.4 | 320.8 | |||
| Total current assets | 2,133.8 | 2,106.4 | |||
| Property, plant and equipment, net | 2,116.7 | 2,082.0 | |||
| 3,905.4 | 3,853.4 | ||||
| Other intangibles, net | 1,541.6 | 1,586.3 | |||
| Deferred tax assets | 2,038.3 | 2,077.5 | |||
| Other assets | 688.4 | 689.2 | |||
| Total assets | $ | 12,424.2 | $ | 12,394.8 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Current liabilities: | |||||
| Short-term debt | $ | 620.7 | $ | 47.8 | |
| Accounts Payable | 225.8 | 300.4 | |||
| Employee compensation and benefits | 209.6 | 210.6 | |||
| Deferred revenue | 129.9 | 127.9 | |||
| Other current liabilities | 409.7 | 426.1 | |||
| Total current liabilities | 1,595.7 | 1,112.8 | |||
| Long-term debt | 1,879.0 | 2,457.5 | |||
| Deferred tax liabilities | 96.3 | 93.3 | |||
| Long-term tax payable | 5.6 | 7.5 | |||
| Deferred revenue | 206.4 | 201.8 | |||
| Other liabilities | 277.2 | 282.8 | |||
| Total liabilities | 4,060.2 | 4,155.7 | |||
| Stockholders’ equity | 8,364.0 | 8,239.1 | |||
| Total liabilities and stockholders' equity | $ | 12,424.2 | $ | 12,394.8 | |
| Consolidated Statements of Income | ||||||
| (In millions, except per share amounts) | ||||||
| (Unaudited) | ||||||
| Three Months Ended | ||||||
| 2026 | 2025 | |||||
| Net sales | $ | 1,024.1 | $ | 964.7 | ||
| Cost of sales | 328.9 | 304.5 | ||||
| Gross profit | 695.2 | 660.2 | ||||
| Selling, general and administrative expense | 390.2 | 387.9 | ||||
| Research and development expense | 44.3 | 40.7 | ||||
| Amortization of intangibles | 47.9 | 49.6 | ||||
| Operating income | 212.8 | 182.0 | ||||
| Interest expense | 22.4 | 26.0 | ||||
| Other expense, net | (1.8 | ) | 2.7 | |||
| Income before income taxes | 192.2 | 153.3 | ||||
| Provision for income taxes | 61.4 | 49.0 | ||||
| Net income | $ | 130.8 | $ | 104.3 | ||
| Earnings per share - diluted | $ | 0.66 | $ | 0.52 | ||
| Number of shares used to compute diluted earnings per share | 196.7 | 201.2 | ||||
EPS, amounts and percentages may not sum or recalculate due to rounding.
| GAAP to Non-GAAP Reconciliation | |||||||||||||||||
| Constant Currency Revenue Growth and Organic Revenue Growth | |||||||||||||||||
| % change y/y | |||||||||||||||||
| (In millions) | Reported | Currency Impact | Constant Currency | Acquisitions and Divestitures | Organic | ||||||||||||
| 1Q26 | |||||||||||||||||
| CooperVision | $ | 695.1 | 8 | % | (5) | % | 3 | % | — | % | 3 | % | |||||
| CooperSurgical | 329.0 | 3 | % | (1) | % | 2 | % | — | % | 2 | % | ||||||
| Total | $ | 1,024.1 | 6 | % | (3) | % | 3 | % | — | % | 3 | % | |||||
