COO changes
Pick any two versions below to diff them.
- Price
- $62.36 → $62.93(+0.9%)
- Next earnings
- Dec 9, 2026 → Dec 3, 2026
- Next earnings is estimate
- Yes → No
- Thesis
- The market prices CooperCompanies for slow contact lens growth. CooperVision revenue was flat in Q3 fiscal 2026 because the company reduced U.S. channel inventory, and it expects CooperVision organic growth of minus 2% to 0% in Q4. In September 2026, the board ended a strategic review and kept CooperSurgical, because the offers it received were not in the interest of shareholders. The board said that a new competitor in non-hormonal IUDs and a fertility litigation settlement affected the value. On October 27, 2026, CEO Al White stepped down, and the new Executive Chair, Walt Rosebrough, said that recent performance did not meet the board's expectations. A search for a permanent CEO is underway, and three directors will leave the board in 2027. For the gap to close, three things must be true. CooperVision must return to organic growth in fiscal 2027 after the inventory reduction, helped by new products and a larger sales force. Fertility revenue must keep growing, as in Q3 when it grew 5% organically. Free cash flow must meet the target of more than $2.2 billion for fiscal 2026 to 2028 and fund buybacks under the $3 billion program. The Q4 fiscal 2026 report and the fiscal 2027 removed: guidance, estimated for about added: guidance on December removed: 9, added: 3, 2026, are the next test. If these checks pass, the gap can close over the next four to six quarters. The main reason it may not close is slower growth in contact lenses, where competition is strong.
- Checkpoints
- Dec removed: 9, 2026 (estimate): added: 3, 2026: Q4 fiscal 2026 earnings and fiscal 2027 guidance. Pending. Watch: Q4 results within guidance and fiscal 2027 guidance for CooperVision organic growth pass; another guidance cut or no return to growth fail. Mar 2027 (estimate): Q1 fiscal 2027: CooperVision growth. Pending. Watch: Positive CooperVision organic growth after the inventory reduction pass; flat or falling CooperVision revenue fails.