Cooper Companies (COO) Stock Jumps on Q4 2025 Earnings Beat, Strategic Review and Fresh Analyst Upgrades

Published: December 5, 2025

Cooper Companies, Inc. (NASDAQ: COO), the medical device group behind CooperVision contact lenses and CooperSurgical women’s health products, is back in the spotlight after a busy 24 hours of earnings, strategic moves and analyst reactions.

Following a fiscal Q4 2025 earnings beat, a new long‑term free cash flow target, and the launch of a formal strategic review alongside a board shake‑up, COO shares have swung sharply higher. The stock opened near $90 on Friday and is now trading in the low $80s after being up as much as the mid‑teens in percentage terms earlier in the session, according to intraday data and price‑tracking services. ^[1]

At the same time, Wall Street is rapidly updating its models: several banks raised their price targets into the $95–$100 range, even as some research shops remain cautious on margins and execution risk. ^[2]

Q4 2025: Earnings Beat, Solid Growth and Heavier Restructuring Charges

CooperCompanies reported fiscal fourth‑quarter 2025 (period ended October 31) revenue of $1.065 billion, up about 5% year over year and roughly 3% organically, modestly ahead of consensus estimates around $1.06 billion. ^[3]

• Non‑GAAP EPS came in at $1.15, up 11% year over year and about 3–4% above the Street’s $1.11 forecast.
• GAAP EPS was $0.43, down 27% year over year, mainly due to restructuring, integration and business optimization charges flowing through the income statement. ^[4]

For the full fiscal year 2025, Cooper generated $4.09 billion in revenue (up 5% overall, 4% organically) and non‑GAAP EPS of $4.13, up 12% year over year. ^[5]

Segment performance: CooperVision vs. CooperSurgical

The top‑line beat was driven primarily by CooperVision (CVI), the contact lens division, with CooperSurgical (CSI) also delivering steady but slower growth. ^[6]

CooperVision (CVI) – Contact lenses

• Q4 revenue: $709.6 million, up 5% reported and 3% organically.
• Toric and multifocal lenses grew 7% reported (5% organic), while sphere and “other” lenses grew 3% reported (2% organic).
• By geography, the Americas were up 5%, EMEA up 8% (3% organic), while Asia‑Pacific was roughly flat as weakness in China e‑commerce offset strength elsewhere. ^[7]

Zacks highlights three key volume drivers inside CVI: ^[8]

• MyDay daily silicone hydrogel lenses continue to post strong double‑digit growth, supported by improving global availability and private‑label wins.
• MiSight, the company’s myopia‑control lens, grew a striking 37% year over year in Q4.
• Clariti lenses remain a weak spot as the market shifts toward higher‑priced premium daily lenses such as MyDay.

CooperSurgical (CSI) – Women’s health and fertility

• Q4 revenue: $355.6 million, up 4% reported and organically.
• Office & surgical products grew 6%; fertility revenue grew 1% as stronger genomics and EMEA trends offset softer demand in the United States. ^[9]

Management framed CSI’s performance as “finishing the year strong,” with particular emphasis on:

• A return to growth for Paragard, the hormone‑free IUD, helped by a new single‑hand inserter.
• Double‑digit growth in labor & delivery devices and a 35% jump in the obp Surgical retractors line. ^[10]

Margins: Adjusted profitability improves despite tariff headwinds

On a GAAP basis, gross margin fell sharply to 61% (from 67% a year ago) due to restructuring and other charges. On a non‑GAAP basis, gross margin was 66%, about 70 basis points lower year over year, with tariffs and product mix cited as the main headwinds. ^[11]

Despite that compression, adjusted operating margin expanded to 27%, up 110 basis points, as Cooper’s reorganization and cost actions began to show through in lower operating expenses as a percentage of sales. ^[12]

Cash flow and buybacks: free cash flow ramps, capital returns accelerate

Free cash flow is a central part of the new story. In Q4, Cooper generated roughly $150 million of free cash flow on $247.8 million of operating cash flow and $98 million of capex. For the full year, free cash flow reached $433.7 million. ^[13]

Share repurchases were aggressive:

• Q4 buybacks: $197.3 million, about 2.9 million shares at an average price of $67.48.
• FY 2025 buybacks: $290.1 million, ~4.1 million shares at an average price of $69.30.
• The board expanded the repurchase authorization by $1 billion in September, bringing it to $2 billion, with nearly $1 billion still available. ^[14]

2026 Outlook: Higher Guidance and a New $2.2 Billion Free Cash Flow Target

Alongside Q4 results, CooperCompanies initiated detailed guidance for fiscal 2026 and refreshed its medium‑term cash flow objectives. ^[15]

Key elements of fiscal 2026 guidance:

• Total revenue: $4.299–$4.338 billion, implying 4.5–5.5% organic growth.
  • CVI revenue: $2.90–$2.925 billion (4.5–5.5% organic growth).
  • CSI revenue: $1.399–$1.413 billion (4–5% organic growth).
• Non‑GAAP EPS: $4.45–$4.60, ahead of consensus estimates around $4.38.
• Free cash flow: $575–$625 million for fiscal 2026.

Most notably, Cooper raised its long‑term free cash flow objective to more than $2.2 billion across fiscal 2026–2028, underscoring the focus on cash conversion and capital returns as part of its turnaround plan. ^[16]

Management says these targets are underpinned by:

• A completed reorganization and integration program that should deliver about $50 million in annual pre‑tax savings starting in fiscal 2026.
• A more normalized capex profile after heavy investment in manufacturing and IT.
• Ongoing share repurchases and disciplined M&A. ^[17]

Strategic Review and New Board Chair: Governance Story Meets Earnings Story

Beyond the numbers, the biggest structural headline is Cooper’s formal strategic review and a change at the top of the board.

On December 4, CooperCompanies announced that Colleen Jay will become Chair of the Board effective January 2, 2026, succeeding long‑time chair and former CEO Robert Weiss, who will remain on the board for one final term. ^[18]

The same announcement unveiled a formal strategic review “aimed at identifying opportunities to enhance long‑term shareholder value.” Management said the review will examine ways to:

• Improve performance in core markets.
• Expand market share.
• Enhance operational efficiency.
• Optimize capital deployment, including buybacks and potential portfolio changes. ^[19]

According to Reuters, news of the review sent COO shares up roughly 10% in extended trading on Thursday evening. ^[20]

Activist pressure: Browning West and Jana Partners in the wings

The strategic review does not come out of nowhere. Cooper has been under mounting pressure from two activist investors:

• Jana Partners has built a stake and is reportedly pushing for strategic alternatives, including a potential deal to combine CooperVision (the contact lens unit) with Bausch + Lomb. ^[21]
• Browning West, which says it has invested more than $500 million in Cooper, published a detailed open letter on November 19 arguing that:
  • Cooper’s dual‑segment structure (CVI + CSI) obscures value.
  • Incentives are misaligned and capital allocation has been poor, especially in CooperSurgical.
  • A refocus as a pure‑play vision‑care company and a refreshed board could more than double the stock over time. ^[22]

Browning West explicitly calls for evaluating strategic alternatives for CooperSurgical, overhauling the incentive structure to emphasize free cash flow and ROIC, and adding new directors with deeper med‑tech and vision‑care expertise. ^[23]

The newly announced strategic review and board transition appear designed, at least in part, to respond to these concerns and regain control of the strategic narrative.

How COO Stock Is Trading After the News

After closing around the high‑$70s before the earnings release and strategic review headlines, COO’s move has been dramatic: ^[24]

• Data from price‑tracking platforms show the stock up about 15% at one point today, with trading volume far above normal levels. ^[25]
• As of mid‑afternoon Friday, COO is trading in the low $80s, down from an intraday high near $90 but still significantly above Wednesday’s close.
• Zacks notes that even after today’s surge, the shares remain down roughly mid‑teens percent year‑to‑date, lagging both the medical supplies industry and the S&P 500. ^[26]

The combination of an oversold starting point, activist pressure, upbeat guidance and a cash‑flow‑heavy story is exactly the cocktail that tends to draw in event‑driven and value‑oriented investors.

What Wall Street Is Saying: Upgrades, Targets and a Persistent “Hold” Consensus

Analysts moved quickly on Friday morning to digest the earnings beat, new guidance and governance changes.

Fresh price target hikes

Several investment banks raised their targets for COO: ^[27]

• Baird lifted its target from $85 to $98 and reiterated an Outperform rating.
• Needham raised its target from $94 to $100.
• Mizuho boosted its target from $85 to $100, maintaining an Outperform stance.
• Stifel increased its target from $85 to $95 and remains positive on Cooper’s premium daily lens portfolio.
• KeyBanc kept a Sector Weight (essentially Neutral) rating but said Cooper’s profitability outlook is improving as restructuring benefits and product mix shifts work through the P&L.

These moves cluster the bullish end of the target range around $95–$100.

Consensus targets and ratings

Aggregators show a broadly similar picture: modest upside with a mixed but not outright bearish stance.

• GuruFocus reports that 17 analysts have a 1‑year average target of about $85.8 for COO, with estimates ranging from $64 to $98—roughly 11% upside versus recent prices in the mid‑$70s to low‑$80s. ^[28]
• TipRanks shows a 12‑month average target around $81.2 (high $96, low $64), indicating about 7% upside from its last captured price. ^[29]
• On Public.com, 11 analysts collectively rate the stock Hold, with a 2025 price prediction near $79.3. ^[30]

Meanwhile, Zacks keeps Cooper at a Rank #4 (Sell) despite acknowledging the strong Q4 print and upbeat guidance, citing ongoing margin pressure, tariff headwinds and regional softness (notably in China and select fertility markets). ^[31]

MarketBeat notes that news sentiment around Cooper this week is unusually positive (0.91 on its –2 to +2 scale) and that the company has attracted nearly twice its typical weekly news coverage, reflecting the market’s heightened focus on the name. ^[32]

Valuation Snapshot: Not Cheap on Trailing Earnings, More Reasonable on Forward Numbers

On valuation, Cooper sits in an interesting middle ground—hardly a deep value play, but no longer trading at the rich multiples it commanded a few years ago.

• Trailing P/E (TTM) is around 37–38x based on recent prices and trailing EPS, according to several data providers. ^[33]
• Forward P/E is much lower, roughly 17–19x, reflecting expectations for earnings growth under the 2026 guidance. ^[34]
• An AI‑driven valuation service (Intellectia) estimates a “fair value” range of $108–$137 using historical forward P/E comparisons, implying the stock could be around 25–30% undervalued at recent prices in the high‑$70s. That is one model among many, but it highlights how much multiple compression investors have already priced in. ^[35]

In short, the market is paying a premium relative to the broader healthcare sector on trailing earnings, but only a mid‑teens multiple on forward earnings in exchange for mid‑single‑digit organic growth, improving margins and a sizeable free‑cash‑flow ramp.

Mixed Signals in the Narrative: Growth, Margins and “Contradictions”

Beyond the raw numbers, some analysts and AI‑driven transcript reviewers are pointing out tension in management’s narrative.

An in‑depth review of the Q4 earnings call by AInvest flags what it calls “contradictions” in several areas: ^[36]

• CooperVision growth vs. market growth – management is confident that CVI can sustain solid growth, yet its 2025 performance (roughly 3% organic growth) lags the mid‑single‑digit estimates for the overall contact lens market.
• Contact lens market growth assumptions – commentary in earlier quarters referenced a 7% market growth rate last year, while current guidance frames a steadier 4–5% growth profile.
• MyDay margins – management acknowledges that daily silicone hydrogel lenses (including MyDay) currently carry lower gross margins than CVI’s average, even as they become a larger share of the mix.
• Fertility and Paragard outlook – management balances a cautiously optimistic view on long‑term fertility growth with near‑term caution around competitive IUD launches and more conservative capital spending.

These aren’t necessarily “gotchas,” but they underscore why some investors remain skeptical: Cooper is pushing investors to focus on long‑term cash flow and efficiency gains, while near‑term margin and segment dynamics remain noisy.

Key Upside Drivers for COO Stock

Based on the latest quarter and commentary, the bullish narrative for CooperCompanies rests on several pillars: ^[37]

1. Premium contact lens momentum
   • MyDay and MiSight are positioned in attractive, higher‑growth niches (daily silicone hydrogel and pediatric myopia management).
   • Private‑label wins in the U.S., Europe and Asia‑Pacific should support steady volume gains in 2026 and beyond.
2. Free cash flow and capital returns
   • The new $2.2 billion free cash flow goal (2026–2028) and the expanded $2 billion buyback authorization give management significant flexibility to shrink the share count and offset modest top‑line growth.
3. Strategic review as a value catalyst
   • A separation or partial monetization of CooperSurgical could unlock value if the market is currently applying a “conglomerate discount” to the combined entity.
   • Activist pressure from Jana and Browning West increases the odds that some tangible action will be taken rather than the review simply reaffirming the status quo.
4. Balance sheet and profitability
   • Net leverage is manageable, and profitability metrics such as net margin (~10%) and return on equity (~10%) remain healthy for a med‑tech name, with room to improve if restructuring savings flow through. ^[38]

Key Risks and Bearish Arguments

On the flip side, the bears and cautious “Hold”‑rated analysts raise several concerns: ^[39]

1. Margin pressure and tariffs
   • Non‑GAAP gross margin ticked down despite pricing actions, and daily silicone hydrogel lenses (a growth engine) run below segment‑average gross margin. Tariffs and product mix could keep a lid on gross margin expansion.
2. Fertility and women’s health cyclicality
   • Fertility and women’s health spending can be sensitive to macro conditions and reimbursement trends, and CSI’s growth has already slowed versus management’s earlier ambitions.
3. China and regional softness
   • Contact lens sales in China, especially through low‑margin e‑commerce channels, remain under pressure, and management built some conservatism into 2026 guidance for Asia‑Pacific.
4. Strategic review uncertainty
   • While a breakup or asset sale could unlock value, it also carries execution risk, potential tax leakage and the possibility that no transaction materializes—leaving investors with the same structure but higher expectations.
5. Execution and governance track record
   • Activists have criticized Cooper’s historical capital allocation, missed guidance and board oversight. Even with a new chair and cost plan, some investors may wait to see sustained delivery before assigning a higher multiple.

Outlook: A Re‑Rated Cash‑Flow Story with an Activist Twist

As of December 5, 2025, CooperCompanies sits at a crossroads:

• The earnings and guidance story is improving, with Q4 2025 marking another EPS beat and 2026 targets that modestly top consensus.
• The governance and strategy story is in flux, with a new chair coming in, a formal strategic review underway and two vocal activist shareholders pushing for sharper focus and better capital allocation.
• The stock story has quickly shifted from “left‑behind med‑tech laggard” to “event‑driven turnaround with rising free cash flow,” and the market is repricing it accordingly. ^[40]

Consensus forecasts still frame COO as a mid‑single‑digit grower with improving margins and a mid‑teens forward P/E multiple, while more optimistic models see meaningful upside if Cooper either:

• Executes well on premium lens growth, restructuring and cash generation within its existing structure, or
• Successfully separates or monetizes CooperSurgical in a way that unlocks the perceived hidden value of CooperVision.

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