The Cooper Companies, Inc. COO has two durable healthcare platforms, but its investment case is being shaped by execution as much as demand.
Premium contact lenses, myopia control and fertility products support growth. Asia-Pacific softness, legacy product exits and cost pressure keep the outlook measured.
Why COO’s Two-Segment Model Matters
CooperVision gives COO scale in contact lenses, a category with recurring demand once patients are fitted and reorder lenses. For fiscal 2025, CooperVision generated $2.74 billion, or 67% of net sales.
CooperSurgical adds fertility, office and surgical products, reducing reliance on one end market. Its fiscal 2025 revenues were $1.35 billion, or 33% of net sales, giving COO a second healthcare growth engine.
Sales are expected to grow by more than 5% in fiscal 2026 as well as in fiscal 2027.
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How CooperVision Drives Premium Mix
The main mix story is the migration from lower-value clariti lenses to MyDay daily silicone hydrogel lenses. MyDay delivered double-digit growth in the second quarter of fiscal 2026, while daily silicone hydrogel lenses grew 8%.
Toric and multifocal revenues rose 7% organically, supported by MyDay Energys, multifocal lenses, trial activity, practitioner engagement and broader parameter availability. Alcon Inc. ALC is a relevant peer because its vision-care portfolio also includes contact lenses and ocular health, keeping competitive focus on product breadth.
Why MiSight Keeps Cooper Relevant
MiSight gives CooperVision a differentiated position in pediatric myopia control, not just another lens extension. The product is the only FDA-approved daily contact lens to slow myopia progression in children.
In the second quarter of fiscal 2026, MiSight revenue grew 24% to $32 million. Japan momentum exceeded expectations, while MyDay MiSight in Europe performed well with eye-care practitioners, reinforcing a premium, clinically driven category.
COO’s Pressure Points
Asia-Pacific remains the clearest near-term drag. CooperVision’s Asia-Pacific revenue declined 6% organically to $130.6 million in the second quarter of fiscal 2026, with weakness tied to China, Japan and Korea.
The hydrogel rationalization program could pressure results into 2027. Gross margin also faces tariffs, freight, foreign exchange and lower production, with management expecting third-quarter gross margin of about 66%.
Despite the gross margin facing macro headwinds, COO’s earnings per share is estimated to improve 12.4% in fiscal 2026.
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How CooperSurgical Broadens the Story
CooperSurgical keeps the total thesis from depending only on vision care. In the second quarter of fiscal 2026, CSI revenue was $358 million, up 6% organically, with fertility revenue of $143.8 million rising 10% organically.
Paragard performed better than expected with flat revenue growth, while office and surgical products added stability. Bausch + Lomb Corporation BLCO offers another eye-health comparison point, but COO’s fertility exposure gives it a different diversification profile.
How COO’s Rating Signals Fit the Story
The bottom line is balanced. COO has attractive category exposure, premium product momentum and cash generation, but regional resets, litigation payouts and margin headwinds keep the investment case measured.
The stock currently carries a Zacks Rank #3 (Hold), which aligns with the Neutral recommendation. That rank points to a more wait-and-see setup rather than a clear near-term earnings revision signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
COO’s Style Scores are more constructive, with a VGM Score of B, Value Score of B and Growth Score of B. These scores support the view that the stock has reasonable valuation and growth characteristics. However, the Momentum Score of D suggests weaker timing support, making execution in Asia-Pacific, margin recovery and cash conversion key watch points.
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This article originally published on Zacks Investment Research (zacks.com).
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