The Cooper Companies (COO) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 2026 revenue of $1.082 billion, up 8% year-over-year, with organic growth of 5%.

• Non-GAAP EPS rose 26% to $1.21, while GAAP EPS was $(0.40) due to a $271.6 million litigation charge.

• Marked the tenth consecutive quarter exceeding consensus earnings expectations.

• CooperVision and CooperSurgical segments both posted sales growth, but CooperSurgical reported an operating loss due to litigation expense.

• Substantially all claims related to the December 2023 CooperSurgical recall were resolved.

Financial highlights

• Q2 2026 revenue: $1.082 billion, up 8% year-over-year; organic growth 5%.

• Gross margin steady at 68% (GAAP and non-GAAP); operating margin at -3% GAAP due to litigation, non-GAAP margin up to 27%.

• Free cash flow for the quarter was $96.4 million; operating cash flow for six months: $443.7 million.

• Net debt reduced to $2.3 billion; $13 million in stock repurchased in Q2; 1.3 million shares repurchased for $105.6 million in six months.

• Litigation charge of $271.6 million excluded from non-GAAP earnings.

Outlook and guidance

• Fiscal 2026 revenue guidance: $4.285–$4.321 billion (organic growth 3.5%–4.5%).

• CooperVision revenue guidance: $2.883–$2.908 billion (organic growth 3.5%–4.5%).

• CooperSurgical revenue guidance: $1.402–$1.414 billion (organic growth 4%–5%).

• Fiscal 2026 non-GAAP EPS guidance: $4.58–$4.66; free cash flow outlook raised to $650 million for FY26, with long-term FCF objective exceeding $2.2 billion.

• Gross margins expected to decline to ~66% in Q3 due to FX, tariffs, and lower production.