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what it is
Cooper sells contact lenses and women’s health medical devices, then compounds that into slow, durable growth.
how it gets paid
Last year Cooper Cos made $4.1B in revenue.
why it's growing
Revenue grew about 5% last fiscal year. Non-GAAP EPS rose about 12% for the year; quarterly non-GAAP EPS growth was around 11% in the latest report — not 27%.
what just happened
Latest quarter revenue was about $1.07B; non-GAAP EPS was $1.15 versus roughly $1.12 consensus.
At a glance
A balance sheet — strong enough to weather a downturn
60/100 earnings predictability — reasonably predictable
19.6x trailing p/e — priced about right
9.5% return on capital — nothing to write home about
xvary composite: 74/100 — average
What they do
Cooper sells contact lenses and women’s health medical devices, then compounds that into slow, durable growth.
This is a two-engine business, and one engine is doing most of the heavy lifting. CooperVision is 67% of 2025 sales, which means your core exposure is to recurring vision correction, not one-off gadget sales. Operating margin (16.7% operating margin → keeps 16.7 cents of profit from each sales dollar before interest and taxes → the business has room to absorb pressure) gives Cooper more cushion than a fragile medtech story.
How they make money
$4.1B
annual revenue · their business grew +5.1% last year
total revenue
$4.1B
+5.1%
The products that matter
manufactures and sells contact lenses
CooperVision
~$2.8B · 67% of revenue
CooperVision is on the order of $2.8B and roughly two-thirds of sales — still the center of gravity. if this business slows, you feel it in the whole stock.
core engine
women’s health and fertility devices
CooperSurgical
~$1.3B · 33% of revenue
CooperSurgical is roughly one-third of the company. if this segment does not pick up, the full company stays stuck near the recent mid-single-digit revenue pace.
growth lever
Key numbers
$106
18-month target
That is $25.10 above the current $80.90 price, or about 31% upside, which is the cleanest bull case in one number.
16.7%
operating margin
Operating margin → profit after running the business but before interest and taxes → Cooper keeps 16.7 cents from each sales dollar at this stage.
9.5%
return on capital
Return on capital → profit generated from the money tied up in the business → decent, but not elite, efficiency.
$5.0B
2027 revenue
Management's base case points to $5.0B by 2027 from $4.1B today, which implies the growth story still has work left to do.
Financial health
A
strength
- balance sheet grade A — very strong financial position
- risk rank 3 — safer than 50% of stocks
- price stability 70 / 100
- long-term debt $2.5B (13% of capital)
- net profit margin ~9% GAAP — restructuring charges depressed reported net income versus sales
- return on equity 10% — $0.10 profit for every $1 investors have put in
A — among the top-rated companies for balance sheet quality.
Total return vs. market
You invested $10,000 in COO 3 years ago → it's now worth $9,270.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Latest quarter revenue was $1.07B; non-GAAP EPS $1.15 vs. ~$1.12 expected.
Fiscal Q4 2025 revenue was about $1.07B (up about 5% reported). Non-GAAP diluted EPS was $1.15 (up about 11% vs. prior year); GAAP EPS was hit by restructuring charges. Full-year non-GAAP EPS rose about 12% on roughly 5% sales growth.
$1.07B
revenue
$1.15
non-gaap eps
~66%
non-gaap gross margin
the number that mattered
Non-GAAP gross margin near two-thirds matters because it separates the core product economics from one-off GAAP charges in the quarter.
-
cooper companies recently provided an update on its strategic review and boardroom changes.recall that in october, hedge fund manager and investor, jana partners, had urged the medical device maker to consider strategic business options, including splitting the vision unit, among other things, to bolster shareholder returns. so far, cooper is focusing on improving the business, expanding market share, enhancing operational efficiency, and driving returns via disciplined capital deployment. meantime, in december, after some reshuffling in the boardroom, colleen jay was chosen to succeed robert weiss as chairperson until the end of 2026. at that point, new independent board director, walter rosebrough, a medical expert, will be considered as a replacement, per an agreement with browning west, lp. as for operations, the company aims to improve on the decent gains of fiscal 2025. (year ends october 31st.) cooper had a respectable finale. growth came from sales of silicone hydrogels and myopia management products in the coopervision unit, and the office/surgical portfolio in the cooper-surgical segment.
-
despite macro challenges, like tariffs, efficiency gains and cost cuts amid a restructuring provided relief.
-
this sent full-year share earnings up 12%, on a 5% sales increase.the business should gain steam in 2026, on product launches and a fertility business rebound, buoyed by restructuring activity. all told, we expect fiscal 2026 sales and share profit to rise to $4.32 billion and $4.50, in line with guidance.
-
longer-term growth prospects are promising.cooper intends to increase its market share in the fertility and women’s health space, where demand is expected to grow, with a broader product/services portfolio. on the vision side, new products/technology to treat such conditions as digital eyestrain and myopia, ought to help bolster profits, too.
-
improving cash flow should support these endeavors, along with debt reduction and stock buybacks.
source: company earnings report, 2026
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What could go wrong
the top risk is coopervision slowing inside a contact lens business that still drives about two-thirds of revenue.
med
coopervision stops carrying the story
CooperVision is on the order of $2.8B and roughly 67% of sales. if lens growth fades, the rest of the company is not large enough to hide it.
two-thirds revenue exposure to one core category is concentration risk, even inside a good business.
med
the fertility rebound arrives late or comes in light
management is leaning on product launches and better demand in fertility and women’s health. that matters because coopersurgical is still on the order of $1.3B and about a third of the company.
if the rebound disappoints, the company stays trapped near the recent 5% growth pace.
med
margin help from restructuring proves temporary
fiscal 2025 got help from efficiency gains while tariffs were a drag. that protects profit for a while. it does not replace durable volume growth.
a weaker mix or higher costs would matter fast when non-GAAP operating leverage is part of the bull case.
med
debt matters more if growth stays ordinary
$2.5B of long-term debt is manageable at 13% of capital. it feels less comfortable if execution slips and the company needs more flexibility for deals, buybacks, or defense.
between $2.5B of debt and only 5.1% recent sales growth, this story does not have endless room for error.
About two-thirds of revenue in lenses, roughly one-third riding surgical and fertility execution, and $2.5B of debt add up to one clean risk: a good business that stays too slow for the multiple to expand.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
revenue growth versus the 5.1% baseline
that is the first number to watch. above it, the story is improving. below it, you are back to owning a high-quality slow grower.
trend
coopersurgical momentum
this segment is about a third of revenue. if fertility and women’s health products do not accelerate, the mix stays more lens-heavy than bulls want.
calendar
next guidance update
the current frame is $4.32B in fiscal 2026 sales and $4.50 in share profit. revisions will tell you whether management is finding traction or just defending the plan.
risk
operating margin holding near ~17% (full-year context)
quarterly non-GAAP operating margin can print higher when charges roll off — watch the full-year trend, not one spike or one GAAP trough.
Analyst rankings
earnings predictability
60 / 100
in human-speak, the numbers are stable enough to model, but not stable enough to rule out surprises.
balance sheet read
A
this is not a balance-sheet rescue story. the debate is about growth, mix, and whether the business deserves a higher multiple from here.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 286 buyers vs. 335 sellers in 3q2025. total institutional holdings: 0.2B shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$68
$143
$81
current price
$106
target midpoint · +31% from current · 3-5yr high: $145 (+80% · 16% ann'l return)
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