- Revenue Growth: Consolidated revenues reached $1.024 billion, up 6.2% (2.9% organically), driven by CooperVision's $695 million (up 7.6%) and CooperSurgical's $329 million (up 3.3%).
- Non-GAAP Earnings & Cash Flow: Non-GAAP earnings rose 20% to $1.10, while free cash flow hit $159 million, with $92 million in stock repurchases and $2.4 billion net debt reduction.
- Guidance Raises: Revenue guidance increased to $4.3–4.35 billion, with earnings guidance of $4.58–4.66, reflecting stronger performance and disciplined capital allocation.
- Product Launch Impact: MyDay silicone hydrogel and MiSight (myopia control) drove growth, with MiSight expected to grow 20–25% in 2026 and MyDay MiSight launching in multiple regions.
- Regional Performance: Americas and EMEA showed momentum, while Asia Pac faced Japan hydrogel challenges; full-year free cash flow remains above $2.2 billion, with $1 billion in buyback authorization.
Segment Performance
CooperVision drove growth with its premium MyDay daily silicone hydrogel portfolio, while CooperSurgical delivered revenue of $329 million, up 3.3% or 2.2% organically, with growth in fertility and office and surgical sales. The company's product launches, including MiSight in Japan and MyDay MiSight in Europe and Asia, are expected to drive growth over the next year or two.
Guidance and Outlook
The company raised guidance for both earnings and free cash flow, with revenue expectations of $4.3 billion to $4.35 billion, and earnings guidance of $4.58 to $4.66. The company expects to generate more than $2.2 billion of free cash flow from 2026 through 2028, driven by stronger operating performance, better working capital management, and lower CapEx.
Valuation and Metrics
With a P/E Ratio of 37.51 and an EV/EBITDA of 18.06, the company's valuation appears to be pricing in significant growth expectations. The company's ROE of 4.83% and ROIC of 4.13% indicate a relatively stable return profile. Analysts estimate next year's revenue growth at 5.2%, which is slightly higher than the company's current growth rate.
Operational Highlights
The company is focused on delivering consistent market share gains for CooperVision, investing in sales and marketing initiatives, and maintaining a disciplined approach to capital allocation. The company has a low debt leverage ratio and $1 billion in authorization available for share buybacks, which is a high priority given the current stock price.