The litigation resolution removes a significant overhang and allows management to proceed with its strategic review of CooperSurgical, which could unlock value. However, the FY2026 revenue guidance cut (organic growth 3.5%-4.5% vs prior 4.5%-5.5%) signals deceleration. Monitor the strategic review outcome and next quarter's organic growth trajectory for signs of stabilization.
Price Chart
Executive Summary
CooperCompanies reported Q2 2026 record revenue of $1.082B (+8% YoY, +5% organic) and Non-GAAP EPS of $1.21 (+26% YoY), beating consensus. However, GAAP EPS was -$0.40 due to a $271.6M net litigation charge to resolve substantially all claims from a 2023 CooperSurgical fertility media recall. FY2026 revenue guidance was lowered to $4.285-$4.321B (organic growth 3.5%-4.5%), down from prior $4.306-$4.346B, while Non-GAAP EPS guidance of $4.58-$4.66 was reaffirmed. The litigation resolution removes a major overhang but the revenue guidance cut tempers the outlook.
Key Financial Metrics
Key Facts
- Q2 2026 revenue of $1.082B, up 8% reported and 5% organically YoY
- Non-GAAP diluted EPS of $1.21, up 26% YoY, beating consensus of $1.10
- GAAP diluted EPS of $(0.40) vs $0.44 YoY, driven by $271.6M net litigation charge
- Recorded $324.1M accrued litigation liability, partially offset by $52.5M expected insurance recoveries
- Settlement agreements cover over 95% of claimants from CooperSurgical fertility media recall
- FY2026 total revenue guidance lowered to $4.285-$4.321B (organic growth 3.5%-4.5%) from prior $4.306-$4.346B
- FY2026 Non-GAAP diluted EPS guidance reaffirmed at $4.58-$4.66
- CooperVision revenue $723.5M (+8% reported, +4% organic); CooperSurgical $358.0M (+8% reported, +6% organic)
- Operating cash flow $182.8M, FCF $96.4M; repurchased $13.1M in stock during Q2
- Long-term FCF objective exceeding $2.2B for FY2026-2028 reaffirmed
Financial Impact
$271.6M net pre-tax litigation charge ($324.1M gross liability less $52.5M insurance recoveries) recorded in Q2 2026 SG&A; FY2026 revenue guidance reduced by ~$21M at midpoint
Risk Factors
- Lowered FY2026 revenue guidance implies slowing organic growth, particularly in CooperVision Asia Pacific (-6% YoY)
- Remaining ~5% of claimants not yet settled could lead to additional costs
- Tariff exposure and FX headwinds continue to pressure margins
- CooperSurgical strategic review outcome uncertain — could result in divestiture or restructuring
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-040823 |
| Document: coo-20260604.htm | 0001628280-26-040823 |
| Document: 0001628280-26-040823-index-headers.html | 0001628280-26-040823 |
| Document: 0001628280-26-040823-index.html | 0001628280-26-040823 |
| Document: 0001628280-26-040823.txt | 0001628280-26-040823 |
| 8-K Data (Synthetic) | 0001628280-26-040823 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 15, 2026 16d ago | Insider Cluster | $54.61 $56.07 | ▲ +2.67% | ▲ +0.11% | $57.28 (+4.89%) |
Sep 14, 2026 18d ago | Press Release | $54.22 $54.12 | ▼ −0.18% | ▼ −0.29% | $57.28 (+5.64%) |
Sep 11, 2026 20d ago | Press Release | $54.22 $54.12 | ▲ +0.18% | ▲ +0.29% | $57.28 (−5.64%) |
Sep 9, 2026 22d ago | Press Release | $54.17 $53.78 | ▼ −0.73% | ▼ −0.23% | $57.28 (+5.74%) |
Jun 4, 2026 17w ago | 8-K | $67.34 $67.88 | ▲ +0.80% | ▲ +0.23% | $57.28 (−14.94%) |
Jun 4, 2026 17w ago | Press Release | $67.34 $67.88 | ▲ +0.80% | ▲ +0.23% | $57.28 (−14.94%) |
Mar 5, 2026 30w ago | 8-K | $76.36 $69.80 | ▼ −8.59% | ▼ −7.06% | $57.28 (−24.99%) |
Mar 5, 2026 30w ago | Press Release | $76.36 $69.80 | ▼ −8.59% | ▼ −7.06% | $57.28 (−24.99%) |
Feb 24, 2026 31w ago | DEFA14A | $83.38 $81.82 | ▼ −1.87% | ▼ −0.77% | $57.28 (−31.31%) |
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