Cooper Companies Set to Announce Q1 Results: Will They Surpass Expectations?

Cooper Companies Set to Announce Q1 Fiscal 2026 Results

Cooper Companies, Inc. (COO) will reveal its financial performance for the first quarter of fiscal 2026 on March 5, following the market close.

Recent Earnings Performance

In the previous quarter, Cooper Companies exceeded the Zacks Consensus Estimate by 3.6%. Over the last four quarters, the company has outperformed expectations three times and matched once, resulting in an average positive surprise of 2.41%.

First Quarter Projections

Analysts anticipate that Cooper Companies will report revenues of $1.03 billion for the quarter, representing a 6.3% year-over-year increase. Earnings per share are projected at $1.03, which would mark a 12% improvement compared to the same period last year.

Key Factors Influencing Q1 Results

The upcoming results are expected to reflect ongoing growth in the contact lens sector, continued challenges from product mix, and a cautious outlook in the fertility market. After a strong fourth quarter—where revenue climbed 4.6% to $1.07 billion and adjusted EPS rose 11% to $1.15—investors are looking for evidence that recent operational changes and product momentum can help counteract short-term headwinds.

Management has forecasted organic growth of 3-4% for the quarter, with operating margins likely to expand despite pressure on gross margins from tariffs and product mix. Notable factors include the ongoing shift toward daily silicone hydrogel (SiHy) lenses, increased costs due to tariffs, and the early impact of a recent reorganization expected to yield approximately $50 million in annual pretax savings.

Gross margins are expected to remain under pressure, as seen in the previous quarter when margins dipped to 66.2% due to tariffs and product mix. Management has signaled that further margin compression is possible, given that high-growth daily SiHy lenses typically have lower gross margins. However, tight control over operating expenses should help support operating margins.

CooperVision: Growth and Challenges

CooperVision, which generated $710 million in fourth-quarter revenue (a 3.2% organic increase), is likely to remain the main driver of growth in the first quarter. Strong sales of MyDay daily SiHy lenses—especially toric and Energys variants—and robust demand for MiSight myopia control lenses are expected to boost performance.

New private label contracts in the U.S. and Europe are anticipated to contribute to revenue growth. However, persistent weakness in the Asia-Pacific region, particularly China (where fourth-quarter revenue dropped 28% due to pricing pressure in low-margin e-commerce channels), may weigh on results.

Sales of clariti lenses declined slightly in the fourth quarter, a trend likely to continue amid ongoing repositioning and competition from premium products. While the growth in daily SiHy lenses may enhance revenue per patient and operating profit, the less favorable product mix could continue to pressure gross margins.

CooperSurgical: Fertility Market Remains Uncertain

CooperSurgical reported $356 million in fourth-quarter revenue, up 3.9% organically. Fertility-related revenue grew just 1%, facing tough comparisons and softer demand in the U.S. and Asia-Pacific, partly offset by gains in EMEA and strong genomics sales. This cautious trend is expected to persist in the first quarter.

Management has issued conservative guidance for the quarter, anticipating only modest improvement in fertility. Early signs of recovery in U.S. cycles and new contract wins are encouraging, but broader economic uncertainty remains a concern.

In the office and surgical segment, PARAGARD experienced a 16% rebound in the fourth quarter, helped by a new single-hand inserter. A similar recovery is anticipated in the first quarter.

Potential for an Earnings Beat

Current indicators suggest that Cooper Companies is positioned to surpass earnings expectations this quarter. The combination of a positive Earnings ESP and a Zacks Rank of #2 (Buy) increases the likelihood of an earnings beat.

• Earnings ESP: The Earnings ESP stands at +0.24%, reflecting the difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Discover top stock picks before earnings are announced with the Earnings ESP Filter.
• Zacks Rank: COO currently holds a Zacks Rank #2. View the full list of today’s Zacks #1 Rank stocks.

Other Medical Stocks to Watch

Several other healthcare companies also have favorable conditions for an earnings beat this reporting cycle:

• Cardinal Health (CAH): Earnings ESP of +0.39% and Zacks Rank #2. The company has exceeded earnings estimates in each of the last four quarters, with an average surprise of 9.3%. Third-quarter fiscal 2026 EPS is projected to rise 19.2% year over year.
• STAAR Surgical (STAA): Earnings ESP of +7.15% and Zacks Rank #3. Fourth-quarter 2025 results are expected on March 3. The company has beaten estimates in three of the last four quarters, with an average negative surprise of 586.27%. The consensus estimate for Q4 EPS suggests a 132% increase year over year.
• McKesson (MCK): Earnings ESP of +1.93% and Zacks Rank #2. McKesson has surpassed earnings expectations in each of the past four quarters, averaging a 3.6% surprise. Fourth-quarter fiscal 2026 EPS is expected to grow 12.3% from the prior year.

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