Cooper Companies (COO) Stock Forecast & Price Target

CooperCompanies has demonstrated significant financial strength, evidenced by a 120 basis point year-over-year increase in operating margin, reaching 27.0%, which exceeded consensus expectations. The company is projecting strong free cash flow growth for FY26, expecting to achieve $575-625 million, a substantial increase of 33-44% year-over-year, reinforcing a robust outlook. Additionally, CooperSurgical's Paragard product showed a notable 16% year-over-year growth, underscoring the demand dynamics and potential for continued revenue increases in both segments of the company.

CooperCompanies is experiencing a downward adjustment in its growth expectations, with projected organic growth declining from +5.3% to +4.9% year-over-year, largely attributed to ongoing pressure from e-commerce competitors in the Asia-Pacific region and a noticeable decline in its CooperVision segment's performance, particularly in China where sales fell by 28%. The company's gross margin also decreased by 80 basis points year-over-year to 66.2%, falling short of expectations, primarily due to tariffs and issues related to product mix, despite some favorable foreign exchange influences. Additionally, the recently reported weak growth in CooperSurgical's fertility sales at +1% year-over-year, significantly below historical performance benchmarks, underscores the challenges faced across both business divisions, further contributing to a negative outlook for the company.