Cooper Companies (The) (COO)
NASDAQHealth CareMedical Instruments & SuppliesSnapshot 2026-07-08
$69.61-3.17%
Close 2026-07-08 · 1-day change
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Track COO free→Warn: Management is running behind on a stated commitment.
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.
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.
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.
Breaks if: Free cash flow falls below $500 million in FY 2026
Aim to increase free cash flow to $600-$625 million in fiscal year 2026.
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.
Standing thesis, reviewed periodically — not a price target or advice.
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“Guidance: 'Fiscal 2026 free cash flow of $600 - $625 million.'”
“Priority: 'Increase free cash flow to $600-$625M in FY 2026.'”
“Guidance: 'Fiscal 2026 free cash flow of $575 - $625 million.'”
Breaks if: Operating margin falls below 19% next year
Continue to enhance operating margins through disciplined execution and meaningful synergies from reorganization.
Stated in 2 of last 2 quarters. Operating margin was 21% in 2026-Q1, up from 19% in the previous year, indicating progress in enhancing margins through disciplined execution. However, the margin dropped to negative 3% in 2026-Q2 due to litigation-related charges, showing limited progress.
“CEO: 'Operating margins exceeded expectations, reflecting disciplined execution.'”
“Priority: 'Enhance operating margins through disciplined execution.'”
Breaks if: YoY revenue growth falls below 5% next year
Focus on sustainable, profitable growth and strong cash flow while maintaining discipline in a dynamic operating environment.
Stated in 2 of last 2 quarters. Free cash flow was $96.4 million in 2026-Q2, reflecting the company's focus on cash flow generation. The trajectory shows limited progress in achieving sustainable growth, as revenue decreased from $1.065 billion in 2025-Q4 to $1.024 billion in 2026-Q1.
“CEO: 'We are focused on driving sustainable, profitable growth and strong cash flow.'”
“CEO: 'Our strong free cash flow also supported ongoing share repurchases.'”