The Cooper Companies Faces Near-Term Pressure from Slowing Contact Lens Demand
The Cooper Companies (NASDAQ:COO) has cut its fiscal 2026 profit and revenue forecasts due to weaker-than-expected demand for contact lenses, particularly impacting its CooperVision business. The company now expects adjusted earnings of $4.51–$4.55 per share and revenue between $4.23–$4.25 billion—both below previous guidance. Third-quarter results showed a revenue miss but beat EPS expectations at $1.15, though the decline in CooperVision's sales to $717 million was attributed to reduced U.S. channel inventory. The company cited temporary factors like inventory reductions as part of the slowdown and remains optimistic about long-term recovery if demand normalizes. It is investing in product innovation, expanding its sales force, and improving logistics while increasing share repurchase authorization from $2 billion to $3 billion. However, concerns persist that the weakness may be more structural than a short-lived correction. The decision not to sell CooperSurgical also disappointed investors who had expected simplification through divestiture. The revised guidance suggests lower near-term growth expectations and raises questions about how long contact lens demand will remain soft.
Tickers: $COO