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 $1.07B (+5% YoY) and non-GAAP EPS of $1.15 — a penny above the high end of guidance and the eighth straight earnings beat. FY26 guidance landed above consensus at $4.299–$4.338B revenue and $4.45–$4.60 EPS (~9–11% growth), and management announced a formal strategic review with explicit willingness to examine separation. After two consecutive quarters of cutting the FY revenue line, this is the cleanest forward-looking print Cooper has delivered in a year.

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	+below high end, above midpoint	Beat
EPS (non-GAAP)	Q4 FY2025	$1.10 - $1.14	$1.15	+$0.01 above high end	Beat
Revenue	FY 2025	$4,076 - $4,096 million	$4,092.4 million	−$3.6M below high end, near midpoint	Beat
EPS (non-GAAP)	FY 2025	$4.08 - $4.12	$4.13	+$0.01 above high end	Beat

New guidance

Metric	Period	Guide	YoY
Revenue	Q1 FY2026	$1,019 - $1,030 million	—
EPS (non-GAAP)	Q1 FY2026	$1.02 - $1.04	—
Revenue	FY 2026	$4,299 - $4,338 million	—
EPS (non-GAAP)	FY 2026	$4.45 - $4.60	—
CVI Revenue	FY 2026	$2,900 - $2,925 million	—
CSI Revenue	FY 2026	$1,399 - $1,413 million	—
Free Cash Flow	FY 2026	$575 - $625 million	—
Cumulative Free Cash Flow	FY 2026-2028	more than $2.2 billion	—

Segment KPIs

Q4 FY2025

Segment	Q4 FY2025	YoY
CooperVision	$0.71B	+5.0%
CooperSurgical	$0.356B	+4.0%
CooperVision - Toric and multifocal	$0.345B	+7.0%
CooperVision - Sphere, other	$0.365B	+3.0%
CooperSurgical - Office and surgical	$0.215B	+6.0%
CooperSurgical - Fertility	$0.141B	+1.0%

Other KPIs

Q4 FY2025

Segment	Q4 FY2025	YoY
CooperVision - Americas	$0.285B	+5.0%
CooperVision - EMEA	$0.277B	+8.0%
CooperVision - Asia Pacific	$0.147B	-1.0%
Non-GAAP Gross Margin	66%	—
Non-GAAP Operating Margin	27%	—
Organic Revenue Growth (Q4)	3%	—
MiSight Growth (Q4)	37%	—
Share Repurchases (Q4)	$197.3M	—
Share Repurchases (Full Year)	$290.1M	—
Expected Annual Pre-Tax Savings from Reorganization	$50M	—
Expected Free Cash Flow (FY2026-FY2028)	>$2.2B	—

Management tone

Q2 market growth reset → Q3 demand-conversion uncertainty and pricing capitulation → Q4 reorganization-funded reacceleration with structural review on the table.

Three quarters ago China e-commerce was a fresh wound; this quarter management says it's no longer big enough to matter. Q2 framed Asia-Pac as a structural drag; Q3 conceded Clarity needed repositioning; this quarter management states "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." That's a quantitative claim — the headwind that broke FY25 guidance twice has been right-sized out of the FY26 algorithm.

The strategic review has been escalated from passive to active in a single quarter. Prior calls treated portfolio optionality as a long-running, exploratory exercise. This quarter management explicitly named separation: "we're taking a serious look at all the different alternatives that are out there… we're rolling up our sleeves. We're working with our advisors." The deliberate naming of advisors and separation alongside a formal review process is the activist-adjacent posture Cooper has historically avoided.

Clarity flipped from problem child back to optionality. Last quarter Clarity was a self-inflicted cannibalisation cost requiring repositioning; this quarter management says "there's a place for that lens and it has the opportunity to be very successful… if the market moves a little bit more towards mass market or is a little bit more price conscious." Reframing a declining product as a price-tier hedge is convenient, but it does mark the end of the "Clarity is a drag we must fix" narrative.

Fertility went from "viewing cautiously" to "we'll grow faster than the market." Q2 cut the fertility market assumption to low single digits; Q3 delivered +3% organic; this quarter the CEO commits on the record: "I happen to believe 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." The FY26 CSI guide of +4–5% organic is the first time in three quarters Cooper has put a number behind that optimism.

MyDay/MiSight rhetoric is at its highest pitch in years. "My Day MySite… is arguably the most innovative thing going on in the contact lens market, probably the most innovative thing by a wide margin." The CEO is not a superlative-prone communicator. Pairing that with a +37% MiSight Q4 print and a "20–25%+" FY26 target gives the FY26 CVI 4.5–5.5% organic guide a believable mix engine.

Recurring themes management leaned on this quarter:

MyDay momentum and private label contract accelerationChina e-commerce headwinds receding as smaller portion of businessFree cash flow acceleration and capital return via repurchasesReorganization savings ($50M annually) driving operating leverage despite gross margin pressureFormal strategic review examining separation and structural alternativesMySite myopia control growth 20-25%+ in FY26 with multiple geographic launches

Risks management surfaced:

Tariffs impacting gross margins in FY26China market weakness continuing in Q1Competitive IUD launch from competitor in first half of calendar 2026Potential short-term negative revenue impact from Celeste launch in myopia controlConsumer spending constraints in Asia-Pac fertility market

Answers to last quarter's watch list

Q4 CVI organic landing inside the 2–4% guide. CVI Q4 came in at +5% reported and within the 2–4% organic guide. Asia-Pac organic was the laggard at -1% reported but Americas (+5%) and EMEA (+8%) compensated, and management framed FY26 with confidence that China detriment is structurally smaller.

Resolved positively

FY26 CVI growth range above 5%. Cooper set FY26 CVI organic at 4.5–5.5% — the high end clears the 5% bar but the low end does not. Pricing is now contributing only ~1% globally, so the algorithm rests on mix (toric/multifocal +7%, MiSight +37%) and contract wins. Status: Resolved positively, marginally

FCF conversion ramp into FY26 against the "$2B over three years" framework. FY25 FCF landed at $433.7M; FY26 guided to $575–$625M (~38% YoY at midpoint); FY26–FY28 cumulative target named at >$2.2B. The framework not only held — it firmed up with explicit dollar guidance and a multi-year envelope.

Resolved positively

Pricing commentary from European and Asia-Pac peers. Management reaffirmed ~1% global pricing as the FY26 assumption with no peer-driven incremental downside. Tariffs were named as the larger gross margin risk into FY26.

Continue monitoring

Clarity repositioning evidence in Asia-Pac. No price reset, channel restructure, or discontinuation announced. Management reframed Clarity as a value-tier optionality play rather than a product requiring active repositioning.

Not resolved

What to watch into next quarter

Q1 FY26 CVI organic landing inside the 3.5–4.5% guide — Q1 has the toughest comp in the year and Asia-Pac is guided weakest, so a print at or below 3.5% would call the FY26 4.5–5.5% range into question early.

Formal updates from the strategic review — management said they are "working with advisors." Watch the Q1 or Q2 release for any named workstream (CooperSurgical separation, fertility carve-out, asset sale) — silence past Q2 would signal the review has lost momentum.

FY26 FCF tracking against $575–$625M — Q1 is seasonally low; the test is whether FY26 H1 FCF runs above FY25 H1 ($114M) by at least 30%, validating the reorganization-driven conversion ramp.

MiSight FY26 growth ≥20% — management committed to "at least 20% to 25%" with conservatism baked in. Below 20% would undercut the CVI mix algorithm; above 25% would force a guide raise.

Gross margin trajectory under tariff pressure — Q4 GM of 66% (FY 66%) is the anchor. Watch whether Q1 GM holds above 65% given the tariff headwind named in commentary.

Fertility re-acceleration — CSI fertility was +1% in Q4. The FY26 CSI organic guide of 4–5% requires fertility to recover toward mid-single digits by H2; Q1 print below +2% would put the segment guide under pressure.

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 commentary (prepared remarks)

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