The Cooper Companies delivered a solid QQ3 2025 performance with consolidated revenue of $1.0603 billion, up 5.7% year over year and 2% organically, driven by a resilient margin profile and a continued push on new product launches and private-label partnerships. Despite top-line pressure in CooperVision from Clarity softness and Asia Pacific e-commerce headwinds, the company benefited from meaningful operating leverage, a 70 basis point gross-margin expansion to 67.3%, and a robust free cash flow generation of $165 million for the quarter. Management signaled a clear strategy to accelerate growth in fiscal 2026, anchored by MyDay-driven share gains, new product introductions (MyDay Energous, MyDay Toric expansion, MyDay Multifocal rollout), and expanded private-label skin-in-the-game for MyDay with more than 30 active contracts. The company also anchored a longer-term free cash flow ambition of approximately $2 billion over the next three fiscal years, supported by tariff mitigation, cost discipline, and a completed large-capex cycle at CooperVision that frees up cash flow. While near-term headwinds persist—most notably Clarity demand shifts in select markets, Asia Pac e-commerce dynamics, and tariff-related gross-margin pressure—Cooper remains positioned for continued margin expansion and revenue growth outpacing the broader contact-lens market, particularly in 2026 as new launches come online and MyDay capacity continues to scale.
Key drivers include (1) MyDay-led penetration and global rollout capabilities, (2) Acceleration of MiSight with regulatory and promotional momentum in Europe and Japan, (3) a diversified CooperSurgical portfolio with fertility market stabilization, and (4) meaningful capital allocation to de-leverage and buybacks alongside targeted R&D investments. Management emphasized diligent cost control, ongoing IT and efficiency initiatives, and a proactive approach to tariff mitigation as levers to sustain operating margin expansion. The conclusion is a cautious but constructive outlook: sustained low-double-digit margin growth in constant currency complemented by improving free cash flow, with a high likelihood of progressive top-line gains in fiscal 2026 as new products and private-labels contribute to a broader, more profitable growth trajectory.