Overview

• US medical device maker's fiscal Q2 revenue grew 8%, beating analyst expectations

• Adjusted EPS for fiscal Q2 rose 26% yr/yr and beat analyst expectations

• GAAP EPS declined due to litigation charge from CooperSurgical product recall

Outlook

• Cooper Companies sees fiscal 2026 revenue of $4.285-$4.321 bln, organic growth of 3.5%-4.5%

• Company expects fiscal 2026 non-GAAP diluted EPS of $4.58-$4.66

• Cooper Companies reaffirms long-term free cash flow objective exceeding $2.2 bln for 2026-2028

Result Drivers

• NEW PRODUCT LAUNCHES AND DEMAND - Co said revenue growth was driven by new product launches and favorable demand across its businesses

• LITIGATION CHARGE - GAAP results were impacted by a $271.6 mln litigation-related charge linked to a December 2023 CooperSurgical product recall

• OPERATIONAL DISCIPLINE AND SYNERGIES - Non-GAAP operating margin improved due to disciplined execution and synergies from last year's reorganization

Company press release: ID:nGNX5vgBJg

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Beat	$1.08 bln	$1.05 bln (14 Analysts)
Q2 Adjusted EPS	Beat	$1.21	$1.10 (15 Analysts)
Q2 EPS		-$0.40
Q2 Gross Margin		68%

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

• Wall Street's median 12-month price target for Cooper Companies Inc is $87.89, about 45.6% above its June 3 closing price of $60.34

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 18 three months ago

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