COO Filings — The Cooper Companies, Inc. - FilingSpy
COO
The Cooper Companies, Inc.
A maker of contact lenses and fertility and women's-health products, The Cooper Companies runs two businesses: CooperVision, with brands like Biofinity, MyDay, and clariti 1 day, and CooperSurgical, maker of the Paragard hormone-free IUD and IVF devices. It began in 1958 when a Wall Street lawyer named Parker Montgomery bought a small healthcare firm, later renaming it Cooper Laboratories and then The Cooper Companies. Its MiSight 1 day lens is the only contact lens the FDA has approved to slow nearsightedness in children.
CooperSurgical's $271.6M litigation charge drove Q2 FY2026 net income to $77.9M, down from $130.8M a year earlier
A $271.6M litigation charge at CooperSurgical swung the to a quarterly operating loss. rose 7.9% to $1,081.5M and held at 68.0%, but consolidated fell to $140.4M and dropped to $0.42 from the prior-year $0.66 as the non-cash accrual hit. The company carries the charge as a contingent while revenue growth continues.
Key takeaways
CooperSurgical posted a $225.0M operating loss after a $271.6M net litigation expense for its recalled embryo culture media, recorded in as a $324.1M less $52.5M insurance recoveries.
Consolidated rose 8% to $1,081.5M, with CooperVision up 8% on 11% toric and multifocal lens growth led by Biofinity and MyDay, and CooperSurgical up 8% as fertility sales rose 13% on consumables and genetic testing.
was 68.0%, up 0.2 points , while fell to $140.4M from $212.8M in Q1 FY2026 as the litigation charge offset sales gains.
Section summaries
Management's Discussion and Analysis
CooperVision sales grew 8% while CooperSurgical swung to an operating loss due to a $271.6M litigation charge.
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Consolidated rose 8% to $1,081.5M in Q2 FY2026, driven by 8% growth in both CooperVision and CooperSurgical.
CooperVision's toric and multifocal lens sales grew 11%, led by Biofinity and MyDay, while sphere/other grew 5% on MyDay and MiSight.
rose to $443.7M for the first half of FY2026, aided by the non-cash litigation accrual, and the company repurchased 1.3M shares for $105.6M with $860.8M remaining under authorization.
The UK First-tier Tribunal largely sided with HMRC in a payroll-tax dispute from the 2014 Sauflon Group acquisition; Cooper is appealing with estimated exposure of £0–£71.7M plus interest.
What changed
CooperSurgical : flagged to confirm the 8% Q1 level held — instead it swung to a loss on the $271.6M charge, reversing the Q1 recovery from the 63% FY2025 drop.
Q2 FY2026 : flagged to confirm 67.9% held — it was 68.0%, within range as FX and mix shifted without material move.
Share repurchases: after 1.1M shares for $92.5M in Q1, the company bought 1.3M for $105.6M in H1, leaving $860.8M versus the $163.6M remaining at Q3 FY2025.
UK tax dispute: flagged at Q1 as potential £71.7M plus interest — the FTT ruling largely against Cooper landed this quarter, now under appeal.
fell to $1,859.5M from $2,455.7M at FY2025 year-end, a 26.3% annual decline, while available was $1,383.0M.
What to watch
CooperSurgical in Q3 FY2026 to see if it returns to profit as the litigation charge clears.
Resolution or provisioning of the UK FTT payroll-tax appeal with up to £71.7M plus interest exposure.
Pace of share repurchases against the $860.8M remaining authorization deployed at 1.3M shares for $105.6M in H1.
Q3 FY2026 to confirm the 68.0% holds absent the one-off litigation accrual.
CooperSurgical fertility sales increased 13% on consumables and genetic testing, but the posted a $225.0M .
The stemmed from a $271.6M litigation expense, net of insurance, for CooperSurgical's recalled embryo culture media.
rose to $443.7M in the first half of FY2026, aided by the non-cash litigation accrual, and liquidity remains strong with $1,383.0M available under the .
The company repurchased 1.3M shares for $105.6M in H1 FY2026 and has $860.8M remaining under its authorization.
Quantitative and Qualitative Disclosures About Market Risk
Market risk arises from foreign currency and interest rate exposures; the company uses forwards and swaps to hedge, not to speculate.
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Foreign currency risk stems from worldwide subsidiaries with , , sales, and net investments denominated in non-U.S. dollar currencies, primarily the British pound, Euro, and Japanese yen.
The company uses foreign currency to reduce the short-term impact of exchange rate fluctuations on trade and intercompany balances.
A hypothetical uniform 10% adverse move in foreign exchange rates versus the U.S. dollar would have changed quarterly by approximately $35.5 million.
Most debt remains subject to variable U.S. interest rates tied to the federal funds rate and , net of interest rate swaps.
A hypothetical 100-basis-point change in interest rates would not have a material impact on quarterly , based on average debt outstanding and existing swap contracts.
Cooper records $271.6M net charge for embryo-culture-media litigation; appeals UK payroll-tax ruling with up to £71.7M exposure.
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The UK First-tier Tribunal largely sided with HMRC in a payroll-tax dispute tied to the 2014 Sauflon Group acquisition; Cooper is appealing and estimates possible loss of £0–£71.7M plus interest.
CooperSurgical’s December 2023 voluntary recall of three lots of LifeGlobal global embryo culture media triggered claims alleging embryo loss or reduced viability.
Through mid-March 2026 the Company settled many claims and previously recorded only an immaterial , believing a material loss was not probable.
After procedural acceleration, new claimant data, updated damages analysis, and higher defense costs, management reassessed exposure and concluded a loss was probable and estimable.
The Company recorded a $271.6M net charge ($324.1M liability less $52.5M insurance recoveries) in Selling, General and Administrative expenses for the embryo-media matters.
Over 140 lawsuits are pending, including three uncertified putative class actions, with more than 1,500 claimants proffered.
Our business faces significant risks. These risks include those referenced below and may include additional risks and uncertainties not presently known to us or that we currently deem immaterial. Our business, financial condition and results of operations could be materially adv…
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Our business faces significant risks. These risks include those referenced below and may include additional risks and uncertainties not presently known to us or that we currently deem immaterial. Our business, financial condition and results of operations could be materially adversely affected by any of these risks, and the trading prices of our common stock could decline by virtue of these risks. These risks should be read in conjunction with the other information in this report.
Risk factors describing the major risks to our business can be found under Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended October 31, 2025. There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended October 31, 2025.