Second quarter 2026 revenue of $1.082 billion, up 8%, or up 5% organically, from last year's second quarter.
Second quarter 2026 GAAP diluted earnings per share (EPS) of $(0.40), down $0.84 from last year's second quarter driven by a litigation-related charge to resolve outstanding claims associated with a December 2023 voluntary product recall at CooperSurgical.
Second quarter 2026 Non-GAAP diluted EPS of $1.21, up $0.25 or 26% from last year's second quarter. See "Reconciliation of Selected GAAP Results to Non-GAAP Results" below.
"We delivered a strong second quarter, achieving record revenue and non-GAAP earnings per share while marking our tenth consecutive quarter of exceeding consensus earnings expectations," said Al White, CooperCompanies' President and CEO. "Our performance reflects solid execution across our businesses, supported by new product launches, favorable demand drivers, and ongoing focus on operational discipline. In addition, we have reached agreements to resolve substantially all of the claims related to CooperSurgical's fertility media recall, representing an important step in addressing this issue and allowing us to move forward with our strategic review. Moving forward, we are focused on driving sustainable, profitable growth and strong cash flow, while maintaining discipline in a dynamic operating environment."
Second Quarter Operating Results
Revenue of $1.082 billion, up 8% from last year's second quarter, up 5% in constant currency, up 5% organically.
Gross margin of 68% similar to last year's second quarter. On a non-GAAP basis, gross margin was also similar to last year at 68%, with positive FX offsetting higher costs including tariffs.
Operating margin of negative 3% compared with 18% in last year's second quarter, primarily reflecting higher SG&A expenses, due to a $271.6 million litigation-related charge. On a non-GAAP basis, operating margin was up 260 basis points from last year to 27%, reflecting disciplined execution and meaningful synergies from last year's reorganization.
Interest expense of $20.9 million compared with $24.2 million in last year's second quarter driven by lower interest rates and lower average debt. On a non-GAAP basis, interest expense was $20.9 million, down from $23.5 million.
Cash provided by operations of $182.8 million, offset by capital expenditures of $86.4 million resulted in free cash flow of $96.4 million.
Second Quarter CooperVision (CVI) Revenue
Revenue of $723.5 million, up 8% from last year's second quarter, up 4% in constant currency, up 4% organically.
Revenue by category:
% change y/y
(In millions)
Reported
Currency Impact
Constant Currency
Acquisitions and Divestitures
Organic
2Q26
Toric and multifocal
$
364.9
11
%
(4
)%
7
%
—
%
7
%
Sphere, other
358.6
5
%
(4
)%
1
%
—
%
1
%
Total
$
723.5
8
%
(4
)%
4
%
—
%
4
%
Revenue by geography:
% change y/y
(In millions)
Reported
Currency Impact
Constant Currency
Acquisitions and Divestitures
Organic
2Q26
Americas
$
303.2
7
%
—
%
7
%
—
%
7
%
EMEA
289.7
17
%
(11
)%
6
%
—
%
6
%
Asia Pacific
130.6
(6
)%
—
%
(6
)%
—
%
(6
)%
Total
$
723.5
8
%
(4
)%
4
%
—
%
4
%
Second Quarter CooperSurgical (CSI) Revenue
Revenue of $358.0 million, up 8% from last year's second quarter, up 6% in constant currency, up 6% organically.
Revenue by category:
% change y/y
(In millions)
Reported
Currency Impact
Constant Currency
Acquisitions and Divestitures
Organic
2Q26
Office and surgical
$
214.2
4
%
—
%
4
%
—
%
4
%
Fertility
143.8
13
%
(3
)%
10
%
—
%
10
%
Total
$
358.0
8
%
(2
)%
6
%
—
%
6
%
Other
During the second quarter, the Company repurchased $13.1 million of common stock, approximately 174 thousand shares, at an average share price of $75.84. The program has $860.8 million of remaining availability.
Recorded a $271.6 million net pre-tax charge within SG&A related to certain product-related litigation matters associated with a December 2023 voluntary recall of embryo culture media at CooperSurgical, consisting of $324.1 million of accrued litigation liabilities, partially offset by $52.5 million of expected insurance recoveries.
Fiscal Year 2026 Financial Guidance
The Company updated its fiscal year 2026 financial guidance. Details are summarized as follows:
Fiscal 2026 total revenue of $4.285 - $4.321 billion (organic growth of 3.5% to 4.5%)
CVI revenue of $2.883 - $2.908 billion (organic growth of 3.5% to 4.5%)
CSI revenue of $1.402 - $1.414 billion (organic growth of 4% to 5%)
Fiscal 2026 non-GAAP diluted EPS of $4.58 - $4.66
Reaffirm previously communicated long-term free cash flow objective exceeding $2.2 billion for fiscal years 2026 through 2028
Non-GAAP diluted earnings per share guidance excludes amortization and impairment of intangible assets, and certain income or gains and charges or expenses including acquisition and integration costs which we may incur as part of our continuing operations.
With respect to the Company's guidance expectations, the Company has not reconciled non-GAAP diluted earnings per share guidance to GAAP diluted earnings per share due to the inherent difficulty in forecasting acquisition-related, integration and restructuring charges and expenses, which are reconciling items between the non-GAAP and GAAP measures. Due to the unknown effect, timing and potential significance of such charges and expenses that impact GAAP diluted earnings per share, the Company is not able to provide such guidance.
Reconciliation of Selected GAAP Results to Non-GAAP Results
To supplement our financial results and guidance presented on a GAAP basis, we provide non-GAAP measures such as non-GAAP gross margin, non-GAAP operating margin, non-GAAP diluted earnings per share, as well as constant currency and organic revenue growth because we believe they are helpful for the investors to understand our consolidated operating results. Management uses supplemental non-GAAP financial measures internally to understand, manage and evaluate our business, to make operating decisions, and to plan and forecast for future periods. The non-GAAP measures exclude costs which we generally would not have otherwise incurred in the periods presented as a part of our continuing operations. We provide further details of the non-GAAP adjustments made to arrive at our non-GAAP measures in the GAAP to non-GAAP reconciliations below. Our non-GAAP financial results and guidance are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with GAAP.
To present constant currency revenue growth, current period revenue for entities reporting in currencies other than the United States dollar are converted into United States dollars at the average foreign exchange rates for the corresponding period in the prior year. To present organic revenue growth, we excluded the effect of foreign currency fluctuations and the impact of any acquisitions, divestitures and discontinuations that occurred in the comparable period.
We define the non-GAAP measure of free cash flow as cash provided by operating activities less capital expenditures. We believe free cash flow is useful for investors as an additional measure of liquidity because it represents cash that is available to grow the business, make strategic acquisitions, repay debt, or buyback common stock. Management uses free cash flow internally to understand, manage, make operating decisions and evaluate our business. In addition, we use free cash flow to help plan and forecast future periods.
Investors should consider non-GAAP financial measures in addition to, and not as replacements for, or superior to, measures of financial performance prepared in accordance with GAAP.
THE COOPER COMPANIES, INC. AND SUBSIDIARIES
GAAP to Non-GAAP ReconciliationGross Margin, Operating Margin, and EPS
Three Months Ended April 30,
Six Months Ended April 30,
(In millions)
2026
Margin %
2025
Margin %
2026
Margin %
2025
Margin %
GAAP Gross Profit
$
735.4
68
%
$
679.1
68
%
$
1,430.6
68
%
$
1,339.3
68
%
Acquisition and integration-related charges(1)
—
—
%
2.2
—
%
—
—
%
3.8
—
%
Exit of business(2)
—
—
%
—
—
%
1.8
—
%
—
—
%
Medical device regulations(3)
0.7
—
%
0.7
—
%
1.4
—
%
1.3
—
%
Total
0.7
—
%
2.9
—
%
3.2
—
%
5.1
—
%
Non-GAAP Gross Profit
$
736.1
68
%
$
682.0
68
%
$
1,433.8
68
%
$
1,344.4
68
%
Three Months Ended April 30,
Six Months Ended April 30,
(In millions)
2026
Margin %
2025
Margin %
2026
Margin %
2025
Margin %
GAAP Operating Income (Loss)
$
(31.0
)
(3
)%
$
184.8
