NASDAQHealth CareMedical - Instruments & SuppliesSnapshot 2026-08-31
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Cooper Companies grows sales about 8% a year. Profit margins reached 21% in Q1. Free cash flow is strong, guided at $600-$625 million for 2026. The company is advancing sale talks that could boost cash flow and growth.
Profit margins fell to negative 3% in Q2 due to litigation charges. Free cash flow progress is limited with only $96 million in Q2. Revenue growth slowed from prior quarters, and guidance is soft.
The price is about 12% below our fair value near $83. Analysts expect about 5% revenue growth, which is below the company’s recent 8% growth. Our fair value is close to the Street median, reflecting moderate optimism.
Breaks if: Free cash flow falls below $500 million in FY 2026
Aim to increase free cash flow to $600-$625 million in fiscal year 2026.
Stated in 3 of last 3 quarters. The company has consistently guided for free cash flow of $600-$625 million in FY 2026. However, free cash flow was only $96.4 million in 2026-Q2, indicating limited progress towards the annual target.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment is a durable compounder with a focus on sustainable growth and cash flow. The current thesis state is intact, supported by strong recent financial performance, although management execution has been mixed.
The valuation is considered expensive compared to peers, with the market pricing in a premium. There is a slight expectations gap, indicating that the market may anticipate some challenges ahead.
Fundamentals may show continued strength in earnings quality, but mixed management execution could hinder progress. Recent financial results indicate strong cash flow generation, but revenue has decreased, which may limit growth potential in the near term.
The thesis hinges on external factors such as the overall health of the job market and guidance from sector leaders. If the jobs report weakens or COO cuts guidance, it could negatively impact sentiment. Conversely, strong performance from sector bellwethers could provide a favorable lift.
The most important moves since the prior daily snapshot.
Yes, our read has strengthened. The latest earnings beat supports this improved outlook. There are no current threats to the thesis.
as of 2026-08-31
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“Guidance: 'Fiscal 2026 free cash flow of $600 - $625 million.'”
“Priority: 'Increase free cash flow to $600-$625M in FY 2026.'”
“Guidance: 'Fiscal 2026 free cash flow of $575 - $625 million.'”
Breaks if: Operating margin falls below 19% next year
Continue to enhance operating margins through disciplined execution and meaningful synergies from reorganization.
Stated in 2 of last 2 quarters. Operating margin was 21% in 2026-Q1, up from 19% in the previous year, indicating progress in enhancing margins through disciplined execution. However, the margin dropped to negative 3% in 2026-Q2 due to litigation-related charges, showing limited progress.
“CEO: 'Operating margins exceeded expectations, reflecting disciplined execution.'”
“Priority: 'Enhance operating margins through disciplined execution.'”
Breaks if: YoY revenue growth falls below 5% next year
Focus on sustainable, profitable growth and strong cash flow while maintaining discipline in a dynamic operating environment.
Stated in 2 of last 2 quarters. Free cash flow was $96.4 million in 2026-Q2, reflecting the company's focus on cash flow generation. The trajectory shows limited progress in achieving sustainable growth, as revenue decreased from $1.065 billion in 2025-Q4 to $1.024 billion in 2026-Q1.
“CEO: 'We are focused on driving sustainable, profitable growth and strong cash flow.'”
“CEO: 'Our strong free cash flow also supported ongoing share repurchases.'”
Over the next 1 to 3 years, COO's performance will depend on its ability to navigate sector challenges and execute on management priorities. Not investment advice.
