Preliminary brief— based on press release only. Full analysis including management tone and Q&A will be added when the transcript is available.

COO · Q4 2025 Earnings

Cooper Companies (The)

Reported December 4, 2025

30-second summary

30-second take: Cooper closed FY25 with Q4 revenue of $1.065B (+5% YoY, +3% organic) at the high end of guidance and non-GAAP EPS of $1.15 above the $1.10–$1.14 guide, then framed FY26 well above where the sell-side was sitting — revenue of $4.299–$4.338B (+5–6%), EPS of $4.45–$4.60 (+7.7–11.4%), and FCF of $575–625M against an FY25 base of $434M. The under-the-radar moves are (1) a formal board-led strategic review explicitly evaluating separation, (2) ~$50M of annual pre-tax cost savings from a Q4 reorganisation underwriting the EPS step-up, and (3) a raised three-year FCF objective of more than $2.2B cumulative — together a clear pivot from "growth story under pressure" to "margin, cash, and structural unlock."

Headline numbers

EPS

Q4 FY2025

$1.15

Revenue

Q4 FY2025

$1.07B

+5.0% YoY

Gross margin

Q4 FY2025

61.0%

Free cash flow

Q4 FY2025

$0.15B

Operating margin

Q4 FY2025

13.0%

Key financials

Q4 FY2025

Metric	Q4 FY2025	YoY	Q3 FY2025	QoQ
Revenue	$1.07B	+5.0%	$1.06B	+0.5%
EPS	$1.15	—	$1.10	+4.5%
Gross margin	61.0%	—	67.0%	-600bps
Operating margin	13.0%	—	26.0%	-1300bps
Free cash flow	$0.15B	—	$0.16B	-9.0%

Guidance

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q4 FY2025	$1,049 - $1,069 million	$1,065.2 million	+$-4.2M below high end, at top of range	Beat
Non-GAAP EPS	Q4 FY2025	$1.10 - $1.14	$1.15	+$0.01 above high end	Beat
CooperVision Revenue	Q4 FY2025	$700 - $713 million (organic growth of 2% to 4%)	$709.6 million	in-line with range	Met
CooperSurgical Revenue	Q4 FY2025	$350 - $356 million (organic growth of 2% to 4%)	$355.6 million	in-line with range	Met

New guidance

Metric	Period	Guide	YoY
Revenue	Q1 FY2026	$1,019 - $1,030 million	—
Non-GAAP EPS	Q1 FY2026	$1.02 - $1.04	—
CooperVision Revenue	Q1 FY2026	$693 - $700 million (organic growth of 3.5% to 4.5%)	—
CooperSurgical Revenue	Q1 FY2026	$327 - $330 million (organic growth of 2% to 3%)	—
Revenue	FY2026	$4,299 - $4,338 million (organic growth of 4.5% to 5.5%)	—
Non-GAAP EPS	FY2026	$4.45 - $4.60	—

Changes to prior guidance

Metric	Period	Prior guide	New guide	Δ	Result
Revenue	FY2025	$4,076 - $4,096 million	$4,092.4 million	within prior range; actuals confirm guidance	Raised
Non-GAAP EPS	FY2025	$4.08 - $4.12	$4.13	+$0.01 above high end	Raised

Segment KPIs

Q4 FY2025

Segment	Q4 FY2025	YoY
CooperVision - Toric and Multifocal	$0.345B	+5.0%
CooperVision - Sphere, other	$0.365B	+2.0%
CooperVision Total	$0.71B	+3.0%
CooperSurgical - Office and Surgical	$0.215B	+6.0%
CooperSurgical - Fertility	$0.141B	+1.0%
CooperSurgical Total	$0.356B	+4.0%

Other KPIs

Q4 FY2025

Segment	Q4 FY2025	YoY
Americas	$0.285B	+5.0%
EMEA	$0.277B	+3.0%
Asia Pacific	$0.147B	—
Non-GAAP Gross Margin	66%	—
Non-GAAP Operating Margin	27%	—
MiSight Growth	+37%	—
Operating Cash Flow	$247.8M	—
Capital Expenditures	$98.0M	—
Share Repurchases (Q4)	$197.3M	—
Organic Revenue Growth (Constant Currency)	3%	—
Expected Annual Pre-Tax Savings from Reorganization	~$50M	—

Management tone

Q1 capacity-constrained → Q2 market growth reset → Q3 demand-conversion uncertainty and pricing capitulation → Q4 strategic review, reorganisation, and capital-return formalisation.

The strategic-review pivot is the single largest tonal shift in three years of Cooper communication. For multiple prior quarters management was emphatic that separation was not on the table; this quarter management volunteered: "Today, we have taken the next step by issuing a press release announcing a formal strategic review to ensure that we explore every opportunity to unlock long-term shareholder value." The move from passive deflection to a board-led, advisor-supported public process is the kind of language a management team uses when the previous answer is no longer tenable — and it reframes Cooper from a margin-and-cash story into an event-driven one.

The Asia-Pacific / China narrative has flipped from persistent headwind to lapped drag. Management's framing this quarter: "These markets like China and the pure play e-commerce and some other markets have become a much smaller percent of our overall business. So we're not going to see the same detriment in 26 that we saw in 25." Asia-Pac Q4 organic revenue landed at 0% — flat, but the inflection point management has been pointing to, with China specifically down 28% in Q4. The 4.5–5.5% FY26 CVI organic guide leans heavily on this no-longer-shrinking-region thesis.

MyDay has migrated from "demand-conversion uncertainty" to active private-label contract wins, including in developed markets. Management says "we won quite a few more contracts in Q4, several of which are in the U.S. and Europe...Momentum is robust." Combined with the back-half-loaded FY26 cadence guidance, this is management asserting that the conversion timing problem is resolving — and putting the FY26 algorithm on it.

Fertility has shifted from "challenged, conservative" to early-inflection language. Management is willing to commit publicly that "fertility by the end of the year will end up growing mid-single digits, and I think we'll grow a little bit faster than that." CSI fertility printed only +1% in Q4 (lapping a 13% comp) — so the bullish framing is forward-looking, not backed by the print. Worth watching whether Q1 confirms the inflection.

Capital allocation went from flexible to formalised. Q4 repurchases were $197.3M (FY25 total ~$290M, roughly two-thirds of FCF), the FY26–FY28 cumulative FCF target was raised to "more than $2.2B," and management committed to allocating "a similar percentage to share repurchases" of FCF going forward, with the remainder to debt paydown. This is the clearest capital-return framework Cooper has ever articulated, and it pairs with the strategic review to suggest management is responding to a specific investor playbook.

Recurring themes management leaned on this quarter:

MyDay private label contract acceleration driving stair-step revenue growthStrategic review formally underway to evaluate separation and unlock shareholder valueEight consecutive quarters of earnings beats with three-year double-digit earnings growth trajectoryFree cash flow acceleration and formalized capital return policyAsia-Pacific normalization post China e-commerce pressureFertility market stabilization with technology upgrade cycle beginning

Risks management surfaced:

Tariff impact on gross margins (multiple mentions of tariff headwinds)Competitive IUD launch potential impact on Paragard (factored into flat-to-low-single-digit guidance)China market continued softness and e-commerce pricing pressureCeleste myopia control competitor launch impact on MySite near-term revenueConsumer spending tightness in fertility, especially Asia-Pac

Answers to last quarter's watch list

Q4 CVI organic landing inside the 2–4% guide. CVI Q4 organic was +3% (within range); reported was +5% on $709.6M, within the $700–713M guide. The print neither validates a clean share-gain acceleration nor confirms structural MyDay cannibalisation — it lands in the murky middle.

Continue monitoring

Whether the FY26 framework names a CVI growth range above 5%. FY26 CVI organic guide is +4.5–5.5%, which barely clears the 5% threshold at the midpoint. The long-run double-digit EPS algorithm now depends on operating leverage and ~$50M of cost savings, not CVI growth acceleration.

Resolved negatively

FCF conversion ramp into FY26 against the "$2B over three years" framework. Management raised the cumulative FY26–FY28 target to more than $2.2B and named an explicit FY26 FCF range of $575–625M, well above the FY25 actual of $434M. This is a genuine commitment to step-up cash conversion.

Resolved positively

Pricing commentary from European and Asia-Pac peers. Management framed global net pricing at roughly +1% for FY26, similar to FY25, but did not provide peer-comparison data.

Continue monitoring

Clarity repositioning evidence in Asia-Pac. Management explicitly stated Clarity is being repositioned into the entry-level space in Asia-Pac, with Clarity down a couple percent in Q4 and approaching $400M annualised. The new 3-add multifocal launch is delivering double-digit growth in the Americas.

Continue monitoring

What to watch into next quarter

Strategic review milestones — formal reviews typically run 6–12 months. Management committed to providing an update on the Q1 earnings call in early March unless something material happens beforehand. Watch for advisor identification, scope confirmation (full separation vs partial divestiture of CSI fertility or Paragard), and any interim board commentary.

Q1 FY26 CVI organic landing inside the +3.5–4.5% guide — management has explicitly framed FY26 as back-half-loaded with strongest performance in Q3 and Q4. A print at or below the low end would put pressure on the +4.5–5.5% FY26 CVI algorithm immediately.

Fertility re-acceleration evidence — management is publicly underwriting mid-single-digit fertility growth by year-end versus the +1% Q4 print. Watch Q1 CSI fertility organic for any sequential lift; if Q1 prints flat or negative, the "stronger year for fertility" framing breaks.

Reorganisation savings phasing — ~$50M annualised, ~$0.19 EPS. Watch for confirmation of the run-rate cadence (front-loaded vs back-loaded) in Q1 disclosure, and any sign that the savings are funding growth investment rather than dropping to EPS.

Capital allocation execution against the new framework — management committed to allocating roughly two-thirds of FCF to repurchases with the rest to debt paydown. With $197.3M of Q4 buybacks already executed and ~$1B remaining under the $2B authorisation, watch the Q1 repurchase pace as the leading indicator of conviction.

Sources

Cooper Companies Q4 FY2025 press release, filed 2025-12-04: https://www.sec.gov/Archives/edgar/data/711404/000162828025055405/cooperq42025pressrelease.htm
Cooper Companies Q4 FY2025 earnings call transcript (prepared remarks and Q&A), 2025-12-04

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