COO: Earnings beat expectations with record cash flow, strong fertility, and renewed growth focus
Q3 results exceeded expectations with record free cash flow and a major tax benefit. CooperVision was impacted by U.S. inventory reductions, but underlying demand is solid, while CooperSurgical saw continued fertility growth. Strategic review ended with no sale, and focus shifts to organic growth a…
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Cooper Companies (NASDAQ: COO ) reported third-quarter financial results on Wednesday. The transcript from the company's third-quarter earnings call has been provided below. This transcript is brought to you APIs. For real-time access to our entire catalog, please visit for a consultation.
S. channel inventory reductions which impacted revenue. The Board concluded a strategic review, deciding to retain CooperSurgical instead of selling, citing temporary valuation disconnects and a commitment to enhancing shareholder value through organic growth and share repurchases. CooperVision revenue was flat year-over-year at $717 million, with growth in EMEA and Asia Pac offset by inventory reductions in the Americas; strategic investments in sales coverage and marketing are underway to boost future growth.
The MyDay franchise showed strong performance with double-digit growth, while MiSight reported 20% organic growth despite challenges in China; new product launches are planned to expand market presence. CooperSurgical's revenue grew 3% organically, driven by fertility sector strength, despite macro headwinds; the company anticipates continued fertility market growth supported by favorable demographics and government policies. 3%. 15.
08 billion, with a focus on managing channel inventory and investing in organic growth initiatives, particularly in CooperVision. , aiming to align revenue growth more closely with market consumption. Full Transcript Tina, Conference Operator Thank you for standing by. My name is Tina, and I will be your conference operator today.
At this time, I would like to welcome everyone to the Q3 2026 Cooper Companies' earnings conference call. All lines have been placed on mute to prevent any background noise, as after the speakers' remarks there will be a question-and-answer session. To ask a question, simply press star one on your telephone keypad. To withdraw your question, press star one again.
Please limit questions to one and one follow-up. It is now my pleasure to turn the call over to Kim Duncan, Vice President of Investor Relations and Risk Management. Please go ahead. Kim Duncan, Vice President of Investor Relations and Risk Management Good afternoon, and welcome to Cooper Companies' third quarter 2026 earnings conference call.
During today's call we will discuss the results and guidance, the conclusion of the strategic review, and current corporate developments. We will then use the remaining time for questions. Our presenters on today's call are Al White, President and Chief Executive Officer, and Brian Andrews, Chief Financial Officer. Before we begin, I'd like to remind you that this conference call will contain forward-looking statements, including statements relating to revenue, EPS, cash flow, interest, FX and tax rates, tariffs, and other financial guidance and expectations; also strategic and operational initiatives, market conditions and trends, and product launches and demand.
Forward-looking statements depend on assumptions, data, or methods that may be incorrect or imprecise and are subject to risks and uncertainties. com. Also, as a reminder, the non-GAAP financial information we will provide on this call is provided as a supplement to our GAAP information. We encourage you to consider our results under GAAP as well as non-GAAP and refer to the reconciliations provided in our earnings release, which is available on the Investor Relations section of our website under Quarterly Materials.
com, and now I'll turn the call over to Al for his opening remarks. Al White, President and CEO Thank you, Ken, and welcome, everyone, to our Q3 earnings call. This quarter included a number of notable developments including earnings exceeding expectations, record free cash flow, solid fertility growth at CooperSurgical, and the favorable completion of a significant tax matter at CooperVision. S.
channel inventory that weighed on our results and will continue to impact Q4. S. remained healthy throughout the quarter with consumption increasing at a mid-single-digit rate, and we're now positioned to enter fiscal 2027 with a healthier channel and stronger foundation. We're also taking additional steps to strengthen CooperVision revenue performance and I'll speak to these in a moment, but first I want to address the completion of the strategic review which we announced in a separate press release today.
Following a comprehensive evaluation of alternatives, the Board has concluded the strategic review. As part of the process, we conducted a thorough assessment of CooperSurgical, including a potential sale of the business where we received significant interest and engaged with numerous parties. Ultimately, however, the Board unanimously determined that shareholders are better served by continued ownership than by pursuing a transaction at