Medical device company CooperCompanies (NASDAQ: COO) reported Q1 CY2026 results exceeding the market’s revenue expectations, with sales up 7.9% year on year to $1.08 billion. The company expects the full year’s revenue to be around $4.30 billion, close to analysts’ estimates. Its non-GAAP profit of $1.21 per share was 10.5% above analysts’ consensus estimates.

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"We delivered a strong second quarter, achieving record revenue and non-GAAP earnings per share while marking our tenth consecutive quarter of exceeding consensus earnings expectations," said Al White, CooperCompanies' President and CEO.

Company Overview

With a history dating back to 1958 and a portfolio spanning two distinct healthcare segments, Cooper Companies (NASDAQ: COO) develops and manufactures medical devices focused on vision care through contact lenses and women's health including fertility products and services.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, CooperCompanies grew its sales at a decent 9.7% compounded annual growth rate. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.

Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. CooperCompanies’s recent performance shows its demand has slowed as its annualized revenue growth of 6.5% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs.

CooperCompanies also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don’t accurately reflect its fundamentals. Over the last two years, CooperCompanies’s organic revenue averaged 5.5% year-on-year growth. Because this number aligns with its two-year revenue growth, we can see the company’s core operations (not acquisitions and divestitures) drove most of its results.

This quarter, CooperCompanies reported year-on-year revenue growth of 7.9%, and its $1.08 billion of revenue exceeded Wall Street’s estimates by 2.7%.

Looking ahead, sell-side analysts expect revenue to grow 4.5% over the next 12 months, a slight deceleration versus the last two years. This projection is underwhelming and implies its products and services will face some demand challenges.

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Adjusted Operating Margin

Adjusted operating margin is one of the best measures of profitability because it tells us how much money a company takes home after subtracting all core expenses, like marketing and R&D. It also removes various one-time costs to paint a better picture of normalized profits.

CooperCompanies has been an efficient company over the last five years. It was one of the more profitable businesses in the healthcare sector, boasting an average adjusted operating margin of 23.2%.

Analyzing the trend in its profitability, CooperCompanies’s adjusted operating margin decreased by 6 percentage points over the last five years. The company’s two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 5 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn’t pass those costs onto its customers.

This quarter, CooperCompanies generated an adjusted operating margin profit margin of negative 2.9%, down 27.8 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

CooperCompanies’s solid 8.8% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.

In Q1, CooperCompanies reported adjusted EPS of $1.21, up from $0.96 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects CooperCompanies’s full-year EPS to grow 5.4% from $4.56 to $4.80.

Key Takeaways from CooperCompanies’s Q1 Results

We enjoyed seeing CooperCompanies beat analysts’ revenue expectations this quarter. We were also happy its organic revenue narrowly outperformed Wall Street’s estimates. On the other hand, its full-year revenue guidance was in line. Overall, this print had some key positives. The stock remained flat at $63.37 immediately after reporting.

CooperCompanies may have had a good quarter, but does that mean you should invest right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).