The Cooper Companies, Inc.’s (COO Quick QuoteCOO - Free Report) growth is fueled by CooperVision’s premium lens migration and MiSight’s myopia-management leadership, supported by CooperSurgical’s women’s health and fertility portfolio. However, channel volatility, private-label transition risks, Asia-Pacific softness, and tariff/FX pressures weigh on near-term performance. Long-term opportunities remain strong, but execution and regional challenges could impact margin resilience and growth trajectory.

Shares of this Zacks Rank #3 (Hold) company have lost 27.5% so far this year compared with the industry's 2.8% decline. The S&P 500 Index has increased 14.4% in the said time frame.

The Cooper Companies, with a market capitalization of $13.55 billion, is a global specialty medical device company.

COO’s bottom line is estimated to improve 9.3% over the next five years. Its earnings beat estimates in three of the trailing four quarters and met in one, delivering an average surprise of 2.51%.

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What's Driving COO’s Performance?

Premium Product Migration Driving Growth: CooperVision’s growth is driven by shifting wearers from lower-margin clariti lenses to premium silicone hydrogel daily lenses, notably the MyDay family, which is seeing double-digit growth through product launches and parameter expansions. Management supports adoption with private-label contracts, trial lenses, and practitioner engagement, boosting margins and retention. While clariti volumes decline, the strategy focuses on upgrading wearers, especially in underpenetrated markets like Asia and Latin America, positioning COO to sustain pricing power, defend margins, and capture long-term secular growth.

Strong Position in Myopia Management With MiSight: Childhood myopia is rising rapidly, with nearly half the global population projected to be myopic by 2050. CooperVision’s MiSight, the only FDA-approved daily lens to slow myopia progression, offers a multibillion-dollar growth opportunity. With recurring revenues from annual fits, momentum in existing markets, and upcoming launches in Japan, EMEA, and APAC, MiSight expands COO’s reach. Promotional trials and future MyDay-based lenses strengthen adoption. Regulatory exclusivity, clinical validation, and first-mover advantage give COO a durable edge over competitors.

Diversified Growth Through CooperSurgical: CooperSurgical (“CSI”) strengthens COO’s revenue stability by targeting fertility and women’s health, a market growing with later maternal age and rising IVF demand. Its vertically integrated portfolio spans IVF consumables, donor services, cryostorage, and surgical tools, alongside Paragard, a non-hormonal IUD with steady U.S. demand. Acquisitions like OVP Surgical and Cook Medical assets broaden its surgical offerings. Despite APAC softness, rising U.S. and European clinic volumes and global expansion position CSI for sustained mid-single-digit growth and long-term share gains.

What's Weighing on the Stock?

Channel Inventory Volatility and Private-Label Transition Risks: CooperVision’s transition from clariti to MyDay has caused near-term revenue volatility, with clariti orders falling faster than anticipated but MyDay private-label shipments increasing gradually. This pulled down third-quarter organic growth to nearly 2% despite solid demand.

Execution risks include rollout delays, slower fitting-set adoption, and capacity strain, potentially leading to backorders. Competitors may exploit these gaps, while inventory dynamics outside COO’s control add volatility. Though management anticipates recovery, investors should expect uneven revenues and margin pressure during the shift.

Exposure to China and Asia-Pacific Weakness: Asia-Pacific, especially China, is critical for COO’s growth but faces headwinds. E-commerce sales in China fell over 20% amid competition and pricing pressure, with COO avoiding margin-dilutive discounting. This strategy preserves profitability but limits growth. Combined with weaker consumer spending and rising local competition, the softness risks constraining COO’s mid-single-digit growth targets. Long-term success hinges on repositioning its digital strategy without eroding margins, making the APAC region a structural risk for investors.

Tariff and FX Risks Cloud FY26 Outlook: COO expects a $4 million tariff hit to fiscal 2025 COGS and a 3% EPS headwind in fiscal 2026 if tariffs remain unchanged. While mitigations are planned, COO remains exposed to global supply-chain shifts and FX fluctuations, which could pressure future margins.

Estimate Trend

The Zacks Consensus Estimate for fiscal 2025 revenues is pegged at $4.09 billion, implying growth of 5.1% from the year-ago reported figure. The consensus mark for adjusted EPS is pinned at $4.09, indicating an improvement of 10.8% from the previous year’s recorded level.

In the past 60 days, COO’s earnings estimate for fiscal 2025 has moved north 3 cents.

The Cooper Companies, Inc. Price

The Cooper Companies, Inc. price | The Cooper Companies, Inc. Quote

Key Picks

Some better-ranked stocks in the broader medical space are West Pharmaceutical Services, Inc. (WST Quick QuoteWST - Free Report) , Medpace Holdings, Inc. (MEDP Quick QuoteMEDP - Free Report) and Envista (NVST Quick QuoteNVST - Free Report) .

West Pharmaceutical reported second-quarter 2025 adjusted earnings per share (EPS) of $1.84, which beat the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the consensus estimate by 5.4%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

Medpace Holdings, sporting a Zacks Rank of 1, reported second-quarter 2025 EPS of $3.10, which beat the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%.

Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.

Envista reported second-quarter 2025 adjusted EPS of 26 cents, which beat the Zacks Consensus Estimate by 8.3%. Revenues of $682 million surpassed the Zacks Consensus Estimate by 6.3%. It currently carries a Zacks Rank #2 (Buy).

Envista has a long-term estimated growth rate of 16.8%. NVST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.50%.