$COO · COOPER COMPANIES, INC.
Cooper Companies filed its 10-Q for the quarter ended July 31, 2026. Revenue was $1.066B, up just 0.6% YoY. GAAP net income of $432.8M ($2.24 diluted EPS) was inflated by a $231M income tax benefit; pre-tax income was $201.8M. CooperSurgical posted a nine-month operating loss of $157.1M, dragged down by a $272M litigation expense. The company aggressively repurchased $342.5M in stock during Q3.
- Q3 revenue $1.066B, up only 0.6% YoY, essentially flat
- Q3 GAAP EPS $2.24 includes a $231M income tax benefit — without it, pre-tax income was $201.8M
- CooperSurgical nine-month operating loss of $157.1M driven by $272M litigation expense, net of insurance recoveries
- Nine-month operating income fell 26% YoY to $403.8M from $542.5M
- Company repurchased $342.5M of stock in Q3 alone, bringing nine-month buybacks to $447.2M
Stock down 6.22% in regular session to $63.48. The market is punishing the flat revenue growth and the CooperSurgical segment's deep operating losses, despite the headline GAAP EPS beat driven by a one-time tax benefit.
The headline EPS "beat" is entirely tax-driven; underlying operations show stagnant revenue and a surgical segment in deep operating loss — a red flag for a $12.4B med-tech company.
CooperVision's flat revenue contrasts with the broader contact lens market's mid-single-digit growth, suggesting share loss. CooperSurgical's fertility and surgical device portfolio is being overshadowed by litigation costs rather than organic performance.
CooperSurgical faces a $316.5M accrued litigation liability (up from $0.7M at fiscal year-end), with the $272M charge materially compressing segment profitability. The litigation outcome and any further claims could pressure cash flows and the balance sheet.
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