Cooper Companies (The) (COO)

NASDAQHealth CareMedical - Instruments & SuppliesSnapshot 2026-09-04

$69.59-1.49%

Close 2026-09-04 · 1-day change

Standing thesis

The standing, falsifiable read: what has to stay true, and what would break it.

Compounder

Warn: Management is running behind on a stated commitment.

The bull case

Cooper Companies grows sales about 8% a year. Profit margins reached 21% in Q1. Free cash flow is strong, guided at $600-$625 million for 2026. The company is advancing sale talks that could boost cash flow and growth.

The bear case

Profit margins fell to negative 3% in Q2 due to litigation charges. Free cash flow progress is limited with only $96 million in Q2. Revenue growth slowed from prior quarters, and guidance is soft.

What's priced in

The price is about 12% below our fair value near $83. Analysts expect about 5% revenue growth, which is below the company’s recent 8% growth. Our fair value is close to the Street median, reflecting moderate optimism.

What has to stay true

Free cash flow of $600-$625 million in FY 2026Intact
Cash Flowprimary>=$600 million · FY 2026 (guidance)
Breaks if: Free cash flow falls below $500 million in FY 2026
Are they delivering?Mixed this quarter· 1 tracked commitment
- Increase free cash flow to $600-$625M in FY 2026Capital allocation
  Aim to increase free cash flow to $600-$625 million in fiscal year 2026.
  Mixed
  Stated in 3 of last 3 quarters. The company has consistently guided for free cash flow of $600-$625 million in FY 2026. However, free cash flow was only $96.4 million in 2026-Q2, indicating limited progress towards the annual target.

Source: QuarterlyIQ research model· Written 2026-07-08· Health checked 2026-09-04· Version 1· Status: Warn· Reviewed when the evidence changes

This is not a price target or investment advice.

Current Outlook

Week of Sep 5, 2026

A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.

COO maintains a strong long-term thesis despite mixed management execution and sector challenges.

What kind of bet this is

This investment represents a durable compounder with a focus on sustainable growth and cash flow generation. The current thesis state is intact, supported by strong recent financial performance, although management execution has shown mixed results.

What's priced into Cooper Companies (The) (COO)

The market currently prices COO at a premium compared to peers, reflecting justified expectations for its performance. There is a slight expectations gap, indicating that the market may be anticipating some challenges ahead.

What the fundamentals likely do

Fundamentals are likely to remain stable in the near term, with a strong focus on cash flow and margin enhancement. However, recent litigation-related charges have impacted operating margins, and revenue has shown limited growth.

What Cooper Companies (The) (COO) hinges on

The thesis hinges on management's ability to meet guidance and improve cash flow, as well as broader sector performance. Key factors include the potential for guidance cuts and the impact of macroeconomic conditions on the healthcare sector.

What changed in the latest read

What changed

The most important moves since the prior daily snapshot.

Short-term · Daily

No material changes since the prior snapshot.

Yes, our read has strengthened. The latest earnings beat supports this improved outlook. There are no new threats identified that could weaken the thesis.

as of 2026-09-04

See upcoming information that could change the risk

Review the evidence to watch, what would become a concern, and what would make it less concerning.

Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.