The Cooper Companies (COO) Posts Record Revenue and Tenth Straight EPS Beat in Q2 2026
Key Takeaways
- Second quarter 2026 revenue reached a record $1.082 billion, rising 8% year-over-year and 5% organically.
- Non-GAAP diluted EPS of $1.21 exceeded consensus estimates of $1.10, marking the tenth consecutive quarter of outperformance.
- CooperVision revenue grew 8% to $723.5 million; CooperSurgical revenue increased 8% to $358.0 million.
- GAAP EPS of $(0.40) reflected a $271.6 million pre-tax litigation charge tied to a prior product recall.
- Company raised fiscal 2026 revenue and non-GAAP EPS guidance ranges.
- Free cash flow totaled $96.4 million for the quarter.
Putting the Earnings in Context
The Cooper Companies operates in the medical device sector through its CooperVision contact lens and CooperSurgical women's health businesses. Fiscal second quarter results provide investors with an early read on demand trends in vision correction and fertility solutions amid evolving healthcare spending and competitive dynamics. Strong organic growth and consistent earnings beats underscore operational execution following last year's reorganization, while the litigation resolution clears a notable overhang and supports focus on long-term growth initiatives.
Breaking Down the Reported Results
For the fiscal second quarter ended April 30, 2026, The Cooper Companies reported revenue of $1.082 billion, an 8% increase from the prior-year period and 5% organically. CooperVision contributed $723.5 million (up 8%), while CooperSurgical added $358.0 million (up 8%). Non-GAAP diluted earnings per share reached $1.21, up 26% year-over-year and ahead of analyst expectations. GAAP diluted EPS was $(0.40) after a $271.6 million litigation charge related to a December 2023 voluntary recall of embryo culture media. Gross margin held steady at 68% on both GAAP and non-GAAP bases. The company updated fiscal 2026 guidance to revenue of $4.285–$4.321 billion and non-GAAP diluted EPS of $4.58–$4.66. I also checked this using Tickeron’s AI Screener to see how COO compares to others in the industry.
Market Reaction and Investor Sentiment
Shares of The Cooper Companies traded higher following the June 4 release, reflecting investor focus on the revenue record and non-GAAP earnings beat despite the one-time GAAP charge. Analysts highlighted the tenth straight quarter of outperformance and raised guidance as positive signals. Sentiment remains constructive on the company’s ability to deliver consistent growth while resolving legacy issues.
Forward Outlook and Key Factors to Monitor
With updated fiscal 2026 guidance in place, investors will watch for sustained organic revenue momentum in both CooperVision and CooperSurgical segments. Key areas include new product adoption in toric and multifocal lenses, demand trends in fertility solutions, and the impact of tariffs or currency fluctuations on margins.
Operational discipline remains a focus, with benefits expected from prior reorganization efforts. Free cash flow generation will be monitored closely as the company targets cumulative free cash flow exceeding $2.2 billion over fiscal years 2026–2028.
Broader industry dynamics such as healthcare utilization rates and competitive pricing in contact lenses could influence results. Upcoming quarterly updates will provide further visibility into guidance achievement and any strategic developments.
Using AI Tools for Deeper Analysis
One thing that stands out when reviewing results like these is how helpful AI-driven tools can be for putting numbers in perspective. I recently turned to Tickeron’s AI Screener to filter peers in the medical device space based on similar growth profiles and technical patterns. It allowed me to quickly scan thousands of stocks using customizable criteria such as fundamentals, volatility, and performance metrics, helping identify comparable trade ideas more efficiently than manual methods. From what I see, this kind of screening supports a more disciplined approach to monitoring names like COO alongside the broader sector. AI Screener
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COO's RSI Indicator recovers from oversold territory
The RSI Oscillator for COO moved out of oversold territory on September 23, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 35 similar instances when the indicator left oversold territory. In 23 of the 35 cases the stock moved higher. This puts the odds of a move higher at 66%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on September 24, 2026. You may want to consider a long position or call options on COO as a result. In 51 of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 56%.
The Moving Average Convergence Divergence (MACD) for COO just turned positive on September 25, 2026. Looking at past instances where COO's MACD turned positive, the stock continued to rise in 28 of 43 cases over the following month. The odds of a continued upward trend are 65%.
Following a +2.26% 3-day Advance, the price is estimated to grow further. Considering data from situations where COO advanced for three days, in 154 of 272 cases, the price rose further within the following month. The odds of a continued upward trend are 57%.
COO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The 10-day moving average for COO crossed bearishly below the 50-day moving average on September 02, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 12 of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 67%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where COO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 60%.
The Aroon Indicator for COO entered a downward trend on September 21, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 60 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.292) is normal, around the industry mean (5.011). P/E Ratio (19.443) is within average values for comparable stocks, (163.451). Projected Growth (PEG Ratio) (0.532) is also within normal values, averaging (4.456). Dividend Yield (0.000) settles around the average of (0.005) among similar stocks. P/S Ratio (2.526) is also within normal values, averaging (56.074).
The Tickeron Price Growth Rating for this company is 64 (best 1 - 100 worst), indicating fairly steady price growth. COO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 80 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 86 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. COO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 97, placing this stock worse than average.
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a maker of medical devices
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