The Cooper Companies, Inc. Q1 FY2026 earnings call

• Key strategic priorities: Focused on market share gains for Cooper Vision, continued strong earnings and free cash flow through operational excellence, disciplined capital allocation. - Cooper Vision: Strong performance with product launches, My Day leading daily silicone hydrogel portfolio, My Site growing 23%, Americas and EMEA doing well, Asia-Pac working on recovery. - Cooper Surgical: Fertility showing early recovery, office and surgical with some growth, medical devices doing well. - Organizational changes and IT implementations providing synergies, investing in sales and marketing, repurchasing stock, reducing debt.

Consolidated revenues were $1.024 billion, up 6.2%, or up 2.9% organically. Cooper Vision reported revenue of $695 million, up 7.6%, or up 3.3% organically. Cooper Surgical delivered revenue of $329 million, up 3.3%, or up 2.2% organically. For Cooper Vision, on an organic basis, torques and multifocals grew 6%, spheres grew 1%, daily silicone hydrogel lenses grew 7% led by My Day, clarity was up slightly, Biofinity and Avera grew 3%, My Site grew 23%. Regionally, Americas grew 6%, EMEA grew 4%, Asia-Pac declined 4%. Cooper Surgical's fertility revenues were $127 million, up 3% organically, office and surgical sales were $202 million, up 2% organically.

Consolidated revenues expected to be roughly 4.3 to 4.35 billion, up 4.5 to 5.5% organically for Cooper Vision and 4 to 5% organically for Cooper Surgical. Raising earnings guidance to $4.58 to $4.66. Increasing fiscal 2026 free cash flow outlook to 600 to 625 million, expecting over 2.2 billion of free cash flow from 2026 to 2028. Priorities remain investing in growth, repurchasing shares, reducing debt.

• Asia-Pac face challenges with legacy hydrogel sales in Japan. - Middle East remains a source of uncertainty for Cooper Surgical's fertility business. - Potential impact of tariff changes not yet factored fully in guidance. - Competitive landscape and product launches by peers could impact market share.

Q: Jeff Johnson asked about reconciling 10% calendar 4Q number vs last few quarters for CVI and market growth plan.

A: Al White said it was due to shipment timing, Americas and EMEA doing well, Asia-Pac working on recovery.

Q: Larry Bigglescombe asked about Middle East exposure and margins.

A: Al White said Middle East is 2% of sales, Brian Andrews said margins strong due to synergies and disciplined costs.

Q: Jason Bednar asked about competitive landscape and pricing.

A: Al White said new fit activity good, pricing positive due to innovative products.

Q: John Block asked about CVI number deviation and ad-backs.

A: Al White said Japan legacy products hit, Brian Andrews said ad-backs related to legal matters.

Q: Young Lee asked about supply dynamics and ParaGuard.

A: Al White said supply constraints resolved, no updates on ParaGuard's competitive front.

Q: Matt Mixix asked about market trajectory and private label impact.

A: Al White said market stable improving, private label contracts executing.

Q: Travis State asked about Q2 revenue and strategic review.

A: Al White said Q2 better, no update on strategic review timeline.

Q: Anthony Petrone asked about private label and My Site Japan.

A: Al White said private label trending, My Site Japan with good reception.

Q: DNP asked about My Site and Cooper Surgical IVF cycles.

A: Al White said My Site positive with Stelest, fertility cycles improving.

Q: Stephen Littman asked about Myopia control R&D and free cash flow.

A: Al White said investing in myopia control R&D, Brian Andrews said free cash flow from operating performance and working capital.

Q: Joanne Wushu asked about FX and CSI revenue.

A: Brian Andrews said FX similar to last call, Al White said CSI revenue improving.

Q: Robbie Marcus asked about guidance conservatism and ParaGuard.

A: Al White said guidance similar, initial guidance conservative on ParaGuard.

Q: Brett Fishbin asked about 1Q operating margin and new product launches.

A: Al White and Brian Andrews said AI and execution helped margins, excited about My Day and My Site.

Q: Chris Pasquale asked about China fertility market and capital allocation.

A: Al White said China not improving, prioritizing share buybacks.

Q: Izzy Kirby asked about next gen manufacturing and SiteGlass.

A: Al White and Brian Andrews said next gen manufacturing in progress, SiteGlass performing well in Asia.

Q: David Roman asked about OPEX efficiency and reinvestment.

A: Al White said reinvesting in sales and marketing using G&A savings