Financial Data and Key Metrics Changes - Consolidated revenues were $1.024 billion, up 6.2% year-over-year and up 2.9% organically [11][22] - Non-GAAP earnings grew 20% to $1.10 per share, with free cash flow at $159 million [11][23] - Operating margins improved significantly, with operating income increasing 13.9% to a 26.9% margin [22] Business Line Data and Key Metrics Changes - CooperVision reported revenue of $695 million, up 7.6% or 3.3% organically, with strong growth in daily silicone hydrogel lenses [11][12] - CooperSurgical delivered revenue of $329 million, up 3.3% or 2.2% organically, driven by strong performance in the fertility segment [11][18] - Daily silicone hydrogel lenses grew 7%, with MyDay leading the growth at double digits [11][14] Market Data and Key Metrics Changes - The Americas grew 6%, while EMEA strengthened with a 4% increase; Asia Pac declined 4% due to softness in Japan [12][18] - The company gained market share for the 18th consecutive year, with CooperVision growing 10% in calendar Q4 compared to a market growth of 6% [17][18] Company Strategy and Development Direction - The company is focused on consistent market share gains, operational excellence, and disciplined capital allocation [7][9] - There is an ongoing strategic review to maximize long-term shareholder value, with updates to be provided when available [10][88] - Investments in sales and marketing initiatives are prioritized to support product launches and strategic initiatives [9][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in Asia Pac by Q3, despite current challenges [36][80] - The fertility market is showing signs of recovery, with improving IVF cycles in the U.S. and Europe [19][104] - The company anticipates steady improvement in free cash flow and operational performance for fiscal 2026 [26][27] Other Important Information - The company repurchased $92 million in stock during the quarter and reduced net debt to $2.4 billion [24][26] - The effective tax rate was reported at 15.1%, with interest expense at $22.4 million [23][24] Q&A Session Summary Question: Can you reconcile the 10% calendar Q4 number versus the last few quarters? - Management explained that the strong Q4 was due to a weak November and December followed by a strong January [31] Question: How is the plan to return to above-market growth progressing? - Management noted good momentum in the Americas and EMEA, but challenges remain in Asia Pac, particularly in Japan [34][36] Question: What is the exposure to the Middle East and potential impacts from the war? - The Middle East accounts for about 2% of sales, with potential impacts on fertility business but overall momentum remains positive [40][41] Question: How should we think about operating margins and tariffs? - Management indicated durable savings from synergies and a disciplined approach to expenses, with tariffs expected to remain at $24 million for the year [42][44] Question: Can you discuss the competitive landscape and new fit activity? - Management reported stable new fit activity, with positive indicators for future growth [50][51] Question: What are the dynamics of the private label contracts? - Private label revenues are slightly above a third of total revenues, with expectations for continued success in winning contracts [94] Question: What is the outlook for MiSight in Japan? - Management expressed optimism about MiSight's reception in Japan, with significant opportunities due to high myopia rates among children [96][97]

Financial Data and Key Metrics Changes - Consolidated revenues were $1.024 billion, up 6.2% year-over-year and up 2.9% organically [9][19] - Non-GAAP earnings grew 20% to $1.10 per share, with free cash flow at $159 million [9][20] - Operating margins improved significantly, with gross margin at 68.1% [19] Business Line Data and Key Metrics Changes - CooperVision reported revenue of $695 million, up 7.6% or 3.3% organically, with strong growth in daily silicone hydrogel lenses [9][10] - CooperSurgical delivered revenue of $329 million, up 3.3% or 2.2% organically, driven by strong performance in fertility and consumables [9][16] Market Data and Key Metrics Changes - Regionally, the Americas grew 6%, while Asia Pac declined 4% due to softness in Japan [10][19] - EMEA showed excellent commercial momentum, contributing to overall growth [4][10] Company Strategy and Development Direction - The company is focused on consistent market share gains, operational excellence, and disciplined capital allocation [4][6] - There is an emphasis on product launches, particularly the MyDay daily silicone hydrogel portfolio, and increasing sales and marketing investments [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in Asia Pac by Q3, despite current challenges [10][33] - The fertility market is showing signs of recovery, with improving IVF cycles in the U.S. and Europe [17][98] Other Important Information - The company is raising guidance for both earnings and free cash flow for the fiscal year 2026 [6][22] - A strategic review is ongoing, with active engagement from the board and advisors [8][84] Q&A Session Summary Question: Reconciliation of calendar Q4 number versus previous quarters - Management explained that the strong calendar Q4 was due to a weak November and December followed by a strong January [26][27] Question: Update on MyDay and Clarity transition - Management noted good traction in the Americas and EMEA, but challenges remain in Asia Pac, particularly Japan [30][31] Question: Impact of the Middle East on business - The Middle East accounts for about 2% of sales, with potential impacts on fertility business due to current conditions [35][36] Question: Future pricing dynamics and list price increases - Management is optimistic about pricing stability and believes the market can absorb more than one price increase per year [48][50] Question: Update on supply dynamics and new contracts - Management confirmed that supply constraints have been resolved, allowing for new contract wins across all regions [62][66] Question: Insights on MiSight and competitive landscape - Management sees increased interest in myopia control, which is beneficial for MiSight, and expects continued growth in the fertility market [96][98]

Summary of The Cooper Companies FY Conference Call Company Overview - **Company**: The Cooper Companies (NasdaqGS: COO) - **Founded**: 1958 - **S&P 500 Inclusion**: Since 2016 - **Business Units**: - **CooperVision**: Leading contact lens company, number one in wearers and number two in revenue - **CooperSurgical**: Focused on fertility and women's healthcare, leading in non-pharma medical devices [1][2] Key Financial Metrics - **Employees**: Over 15,000 globally - **Product Users**: Over 50 million, with 42 million annual contact lens wearers - **Revenue Composition**: CooperVision accounts for about two-thirds of consolidated revenues - **Historical Revenue Growth**: 10-year growth rate of 8.6% [2][3] Growth Insights - **CooperVision Growth**: Primarily organic growth at 6.3%, with the contact lens market growing mid-single digits annually - **CooperSurgical Growth**: Approximately 16%, driven by acquisitions [3][4] - **Market Trends**: - Contact lens market growth projected at 4%-6% annually - Fertility market growth in mid-single digits, with potential for double-digit growth in the past [4][13] Financial Guidance - **Non-GAAP EPS Guidance**: $1.02-$1.04 for Q1 and $4.45-$4.60 for the full year - **Free Cash Flow Guidance**: $5.75-$6.25 billion, with expectations of $2.2 billion in free cash flow over the next fiscal year [5][6] Strategic Priorities - **Focus on Organic Growth**: Transitioning from heavy investment to driving organic growth and operational efficiency - **Cost Management**: Significant reorganization to reduce costs and improve operational efficiency [7][9] - **AI Integration**: Utilizing AI for inventory optimization and management [10] Market Dynamics - **Contact Lens Market**: - 35% of the global population is myopic, projected to reach 50% by 2050 - Major competitors: J&J (36% market share), CooperVision (27%), Alcon (25%) [13][14] - Shift towards daily lenses driving revenue growth, with daily wearers generating 2.5 times more revenue than monthly wearers [15][16] - **Fertility Market**: - Global market valued at approximately $3 billion, with one in six experiencing infertility - Growth driven by delayed childbirth and increasing insurance support for fertility treatments [26][27] Product Innovations - **New Product Launches**: - MiSight: FDA-approved contact lens for myopia management - MyDay MiSight: Daily silicone hydrogel lens with myopia control technology [21][22][24] - **Expansion Plans**: Launching new products in Europe and Asia, including MyDay Energys and MyDay Multifocal [24][25] Capital Allocation Strategy - **Share Repurchase Program**: Increased from $1 billion to $2 billion, with plans to consistently allocate a portion of free cash flow to buybacks [11][33] - **Investment Focus**: Transitioning from acquisitions to leveraging past investments for growth and shareholder value [11][33] Market Outlook - **2026 Guidance**: Expectation of improved performance in both CooperVision and CooperSurgical, with a focus on regaining traditional growth rates in the fertility market [45][46] - **Regional Performance**: Strong consumer behavior in the Americas, with challenges in Asia-Pac but expected improvements [47][48] Strategic Review - **Ongoing Evaluation**: Conducting a strategic review to assess the potential separation of CooperVision and CooperSurgical, considering synergies and market positioning [36][38][39] Conclusion - **Overall Sentiment**: Positive outlook on growth opportunities in both contact lens and fertility markets, with a strong focus on operational efficiency and shareholder value creation [30][33]