Cooper Companies (COO) Stock Forecast & Price Target

CooperCompanies reported an operating margin of 27.0%, an increase of 120 basis points year-over-year, surpassing consensus expectations, with guidance for FY26 free cash flow projected to rise 33-44% year-over-year. The CooperSurgical segment, particularly through the Paragard product, demonstrated significant growth with a 16% year-over-year increase to $53 million, supported by robust demand and management’s optimistic outlook for FY26 growth. Additionally, CooperVision's performance remained stable with a 5% growth in C3Q25, aligning with market trends, suggesting ongoing revenue strength that could enhance earnings per share growth.

The Cooper Companies faces a negative outlook largely due to a projected decrease in organic growth, with estimates for FY26 being revised down from +5.3% to +4.9% year-over-year, reflecting ongoing competitive pressures from e-commerce vendors in Asia-Pacific. Additionally, the company's gross margin declined by 80 basis points year-over-year to 66.2%, below the consensus estimate, largely driven by tariffs and a less favorable product mix, despite some offset from favorable foreign exchange rates. The bear case scenario suggests low single-digit revenue growth and flat operating margins, further exacerbated by a significant downturn in the CooperVision segment in China and disappointing performance in fertility sales, which ended the year well below historical growth rates.