The Cooper Companies (COO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $1.024 billion, up 6% year-over-year, driven by robust product launches, disciplined execution, and synergies from last year's reorganization.

• Net income increased to $130.8 million, with GAAP diluted EPS up 27% to $0.66 and non-GAAP EPS up 20% to $1.10.

• Operating income rose 17% to $212.8 million, reflecting improved leverage and profitability.

• Market share gains in CooperVision for the 18th consecutive year, with momentum in the Americas and EMEA, and recovery efforts in Asia Pac.

• CooperSurgical showed improving fertility trends and continued innovation investment.

Financial highlights

• Consolidated Q1 revenue was $1.024 billion, up 6.2% year-over-year and 2.9% organically.

• Gross margin held steady at 68% year-over-year; non-GAAP gross margin declined 60 basis points due to tariffs.

• Operating margin improved to 21% (GAAP) and 27% (non-GAAP); operating income increased 13.9%.

• Free cash flow was $158.7 million, with $260.9 million from operations and $102.2 million in capital expenditures.

• Net debt reduced to $2.4 billion; cash and cash equivalents at $124.9 million as of January 31, 2026.

Outlook and guidance

• Fiscal 2026 revenue guidance set at $4.306–$4.346 billion, with 4.5%–5.5% organic growth.

• CooperVision revenue expected at $2.906–$2.932 billion (4.5%–5.5% organic growth); CooperSurgical at $1.400–$1.413 billion (4%–5% organic growth).

• Non-GAAP EPS guidance for FY26 is $4.58–$4.66; free cash flow forecasted at $600–$625 million.

• Long-term outlook targets over $2.2 billion in free cash flow from 2026–2028.

• Guidance excludes FX and certain charges; organic growth rates exclude FX, acquisitions, and discontinuations.