Investors reacted sharply negatively, with the stock falling 20%, as CooperVision’s U.S. channel inventory reduction drove essentially flat quarterly revenue and is expected to weigh on Q4. The strategic review also ended without a sale of CooperSurgical, leaving the company to pursue a longer-term value-creation plan amid weaker near-term contact-lens performance.
- CooperVision revenue was **$717 million, essentially flat year over year**; U.S. channel inventory reductions were the primary drag, while EMEA and Asia Pacific were broadly in line with expectations.
- Management said the inventory reduction will **continue to impact Q4**, despite reporting mid-single-digit U.S. consumption growth and positioning the channel for fiscal 2027.
- Product momentum was mixed: the **MyDay franchise delivered double-digit growth** in several categories and regions, while clariti was softer outside EMEA and Biofinity was flat after U.S. inventory actions.
- CooperSurgical remains part of the company after the Board rejected potential sale proposals, citing temporary valuation pressures tied to a non-hormonal IUD competitor and fertility litigation settlement.
- Positives included **record free cash flow**, solid fertility growth at CooperSurgical, and a favorable resolution of a significant tax matter; management also plans increased commercial investment and potential share repurchases.
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