Medical device company CooperCompanies (NASDAQ: COO) fell short of the market’s revenue expectations in Q2 CY2026, with sales flat year on year at $1.07 billion. The company’s full-year revenue guidance of $4.24 billion at the midpoint came in 1.5% below analysts’ estimates. Its non-GAAP profit of $1.15 per share was 2.7% above analysts’ consensus estimates.
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CooperCompanies (COO) Q2 CY2026 Highlights:
- Revenue: $1.07 billion vs analyst estimates of $1.10 billion (flat year on year, 2.9% miss)
- Adjusted EPS: $1.15 vs analyst estimates of $1.12 (2.7% beat)
- The company dropped its revenue guidance for the full year to $4.24 billion at the midpoint from $4.30 billion, a 1.5% decrease
- Management lowered its full-year Adjusted EPS guidance to $4.53 at the midpoint, a 1.9% decrease
- Operating Margin: 20.8%, up from 16.6% in the same quarter last year
- Organic Revenue rose 1% year on year (miss)
- Market Capitalization: $13.2 billion
"This quarter included a number of notable developments including earnings exceeding expectations, record free cash flow, solid fertility growth at CooperSurgical, and a favorable completion of a significant tax matter. At CooperVision, however, we reduced U.S. channel inventory that weighed on our results and will continue to impact Q4," said Al White, President and CEO of CooperCompanies. "Following the completion of the strategic review, we are focused on profitable growth, strong cash flow generation, disciplined capital allocation, and maximizing long-term shareholder value."
Company Overview
With a history dating back to 1958 and a portfolio spanning two distinct healthcare segments, Cooper Companies (NASDAQ: COO) develops and manufactures medical devices focused on vision care through contact lenses and women's health including fertility products and services.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, CooperCompanies grew its sales at a decent 8.3% compounded annual growth rate. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. CooperCompanies’s recent performance shows its demand has slowed as its annualized revenue growth of 5.5% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
CooperCompanies also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, CooperCompanies’s organic revenue averaged 4.4% year-on-year growth. Because this number aligns with its two-year revenue growth, we can see the company’s core operations (not acquisitions and divestitures) drove most of its results. 
This quarter, CooperCompanies’s $1.07 billion of revenue was flat year on year, falling short of Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 5.3% over the next 12 months, similar to its two-year rate. This projection is above the sector average and suggests its newer products and services will help sustain its recent top-line performance.
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Adjusted Operating Margin
CooperCompanies has been an efficient company over the last five years. It was one of the more profitable businesses in the healthcare sector, boasting an average adjusted operating margin of 24.7%.
Analyzing the trend in its profitability, CooperCompanies’s adjusted operating margin rose by 1.2 percentage points over the last five years, as its sales growth gave it operating leverage.
This quarter, CooperCompanies generated an adjusted operating margin profit margin of 20.8%, down 5.2 percentage points year on year. This contraction shows it was less efficient because its expenses increased relative to its revenue.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions.
CooperCompanies’s solid 7% annual EPS growth over the last five years aligns with its revenue performance. This tells us its incremental sales were profitable.
In Q2, CooperCompanies reported adjusted EPS of $1.15, up from $1.10 in the same quarter last year. This print beat analysts’ estimates by 2.7%. Over the next 12 months, Wall Street expects CooperCompanies’s full-year EPS to grow 5.9% from $4.61 to $4.88.
Key Takeaways from CooperCompanies’s Q2 Results
It was good to see CooperCompanies beat analysts’ EPS expectations this quarter. On the other hand, its revenue missed and its organic revenue fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock traded down 16.8% to $52.91 immediately after reporting.
CooperCompanies may have had a tough quarter, but does that actually create an opportunity to invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
