Q4 2025 Cooper Companies Inc Earnings Call Transcript
Key Points
- The Cooper Companies Inc (COO) reported consolidated revenues of $1.065 billion for Q4, marking a 4.6% year-over-year increase and setting a quarterly record.
- The company achieved its eighth consecutive quarter of beating consensus earnings expectations, with non-GAAP earnings growing 11% to $1.15.
- Free cash flow was strong at $150 million in Q4, exceeding expectations, and the company raised its fiscal 2026 to 2028 free cash flow target to more than $2.2 billion.
- The Cooper Companies Inc (COO) repurchased nearly $200 million of stock in fiscal Q4, bringing total fiscal year repurchases to almost $300 million, and the Board authorized an increase in the share repurchase plan to $2 billion.
- The company is seeing robust momentum in its MyDay premium daily silicone hydrogel lens portfolio, with several new product launches planned to further strengthen its market position.
- Gross margin declined marginally to 66.2% in Q4, driven by tariffs and product mix, which is expected to continue impacting margins in fiscal 2026.
- The Asia Pacific region was flat, with a significant 28% decline in China due to continued weakness in low-margin e-commerce channels.
- The clariti product line experienced a decline of a couple of percent this quarter, and the company is repositioning it in certain markets.
- The fertility segment showed only 1% growth, with consumer spending remaining tight, especially in Asia Pacific, and clinics managing spending carefully.
- The company's fiscal 2026 guidance indicates a more back-end loaded growth, with expectations of stronger performance in Q3 and Q4, which may pose risks if momentum does not materialize as anticipated.
Ladies and gentlemen, thank you for standing by. At this time, I would like to welcome everyone to the fourth-quarter 2025 Cooper Companies earnings conference call. (Operator Instructions)
I would now like to turn the conference over to Kim Duncan, VP of Investor Relations and Risk Management. You may begin.
Good afternoon, and welcome to Cooper Companies fourth-quarter and full-year 2025 earnings conference call. During today's call, we will discuss the results and guidance included in the earnings release and 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 and Treasurer.
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 flows, interest, FX and tax rates, tariffs and other financial guidance and expectations,
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