The Cooper Companies, Inc. (COO) SEC Filings & Earnings Calls

Litigation liability from product recall

“For the nine months ended July 31, 2026, the net impact to the consolidated statements of operations to resolve outstanding claims was $272.0 million, consisting of $325.8 million accrued litigation liability, partially offset by $53.8 million of insurance recoveries” · word for word

HMRC payroll tax dispute

“Depending on the results of the appeal, the Company could prevail on some or all of the issues in dispute, which could result in an obligation to pay a portion or all of the assessed amounts, with an estimated loss ranging from £0 to £71.7 million, plus accrued interest.” · word for word

CooperVision US channel inventory reduction weighing on results and expected to continue into Q4

“At CooperVision, however, we proactively reduced U.S. channel inventory that weighed on our results and will continue to impact Q4” · word for word

Unfavorable foreign exchange impacting gross margin and operating margin

“non-GAAP gross margin down 60bps driven by higher manufacturing costs and unfavorable foreign exchange; operating margin partially offset by unfavorable foreign exchange”

Higher manufacturing costs pressuring gross margin

“non-GAAP gross margin down 60bps driven by higher manufacturing costs and unfavorable foreign exchange”

Embryo culture media litigation

“The net impact to the consolidated statements of operations to resolve outstanding claims was $271.6 million, consisting of $324.1 million accrued litigation liability, partially offset by $52.5 million of insurance recoveries.” · word for word

HMRC tax dispute

“estimated loss ranging from £0 to £71.7 million, plus accrued interest” · word for word

Tariff and trade barrier risk

“These risks include ... escalating global trade barriers and disruptions, such as the impact of tariffs.”

Asia Pacific revenue softness

“Asia Pacific 130.6 138.6 (6)%” · word for word

Product recall litigation risk largely resolved with >95% claims settled, but $271.6M charge impacts GAAP earnings and cash flow.

“The net impact to the consolidated statements of operations to resolve outstanding claims was $271.6 million... The Company currently expects the majority of the payments to be made during fiscal 2026.” · word for word

UK Tax Dispute

“Estimated loss ranging from £0 to £71.7 million, plus accrued interest, related to HMRC payroll tax dispute.” · word for word

Foreign Exchange Exposure

“A uniform hypothetical 10% increase or decrease in foreign currency exchange rates would result in a corresponding increase or decrease of approximately $34.9 million in operating income.” · word for word

Tariff impact on gross margin; excluding tariffs, gross margin would have been flat YoY.

“Excluding the impact of tariffs, gross margin would have been flat year over year.” · word for word

Restructuring execution risk

“During the fourth quarter of fiscal 2025, the Company completed significant reorganization and integration activity.” · word for word

High capex burden

“capital expenditures of $362.4 million” · word for word

Activist involvement may lead to strategic shifts or pressure for operational changes, but cooperation agreement reduces near-term disruption risk.

“Browning West agreed to standstill restrictions and voting commitments through 2027 annual meeting period.”

Regulatory risk for genetic testing

“Increased regulatory scrutiny of genetic testing may adversely affect our business through increased costs and risks associated with gaining marketing approvals or certifications and potential impact on demand for our genetic testing services.” · word for word

Currency exposure

“Our most significant currency exposures are the British pound, Euro and Japanese yen.” · word for word

Debt covenant risk

“Our credit facilities contain financial and other restrictive covenants that could limit our ability to engage in activities that may be in our long-term best interests.” · word for word

GAAP EPS down 27% due to reorganization costs; gross margin pressure from tariffs and mix.

“GAAP diluted EPS of $0.43, down 27%... Non-GAAP gross margin was down 70 basis points... primarily from tariffs and mix.”