The Cooper Companies, Inc. (Nasdaq: COO) reported financial results for its fiscal third quarter ended July 31, 2026, in a Form 8-K filed on September 9, 2026. The company announced total revenue of $1.066 billion, representing a 1% year-over-year increase, which included 1% organic growth. This revenue figure was driven by CooperSurgical, which saw revenue rise 2% to $349.2 million, while CooperVision revenue remained flat at $717.0 million.
GAAP diluted earnings per share (EPS) for the quarter were $2.24, a significant increase compared to $0.49 in the prior year's third quarter. The company attributed this substantial rise to a $307.2 million discrete tax benefit resulting from the favorable completion of a U.K. tax examination by HMRC regarding a fiscal 2021 transfer of intellectual property and assets. On a non-GAAP basis, diluted EPS was $1.15, up 4% from the previous year.
Operating metrics for the period showed a gross margin of 67% on a GAAP basis, compared to 65% in the prior year, driven by fiscal 2025 inventory write-offs related to a product line exit at CooperSurgical. Operating margin was 21% on a GAAP basis, compared to 17% in the prior year, also benefiting from lower operating expenses and inventory write-offs. Free cash flow increased 66% to $273.0 million.
In terms of capital allocation, the company repurchased $339.1 million of common stock during the quarter, representing approximately 4.9 million shares at an average price of $69.16. Following a Board approval to expand its share repurchase authorization from $2 billion to $3 billion, approximately $1.5 billion remains available under the program.
The company also updated its fiscal year 2026 financial guidance. For the fiscal fourth quarter, CooperCompanies projects total revenue between $1.057 billion and $1.080 billion, with non-GAAP diluted EPS expected to be between $1.05 and $1.09. For the full fiscal year, the company projects total revenue of $4.229 billion to $4.252 billion and non-GAAP diluted EPS of $4.51 to $4.55.
