Financial Data and Key Metrics Changes - Q3 consolidated revenues increased by 5.7% year over year, reaching $1,060 million, with organic growth of 2% [7][26] - Non-GAAP earnings per share (EPS) grew by 15% to $1.1, with free cash flow reported at $165 million [7][28] - Gross margin improved by 70 basis points to 67.3%, driven by efficiency gains and favorable foreign exchange [26] Business Line Data and Key Metrics Changes - CooperVision reported revenues of $718 million, reflecting a 6.3% increase and 2.4% organic growth, although results were below expectations due to declines in Clarity and e-commerce weakness in Asia Pacific [8][10] - CooperSurgical posted revenues of $342 million, up 4.5% or 2% organically, with fertility revenues growing 6% [20][21] Market Data and Key Metrics Changes - EMEA region grew by 14% or 6% organically, becoming CooperVision's largest revenue region globally [10] - The Americas grew by 2% or 3% organically, while Asia Pacific saw a 1% increase but a 5% organic decline [10] Company Strategy and Development Direction - The company aims to leverage the strong momentum of MyDay and upcoming product launches to outpace the contact lens market and gain market share [24] - Focus on operational excellence and disciplined cost management to support sustainable revenue growth [7][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged headwinds from Clarity and e-commerce challenges in Asia Pacific but expressed confidence in the long-term outlook for both CooperVision and CooperSurgical [20][24] - The company expects to generate approximately $2 billion in free cash flow over the next three fiscal years, with a focus on debt reduction and share repurchases [30][31] Other Important Information - The company is implementing mitigation strategies for tariffs, expecting a $24 million lower impact than previously anticipated [30] - Significant progress has been made in IT upgrades and organizational efficiency initiatives [30][71] Q&A Session Summary Question: How does the core CVI portfolio compare to the market for fiscal 2026? - Management indicated that the core portfolio is expected to be at least in line with the market, with additional growth from MiSight [37][38] Question: Why is MyDay's success impacting Clarity? - Management noted that in some markets, Clarity and MyDay were viewed similarly, leading to a shift in customer preference towards MyDay [41][42] Question: What is the outlook for the contact lens market? - Management acknowledged a slowdown in market growth but remains optimistic about future performance driven by silicone hydrogel lenses and multifocal products [19][50] Question: What are the expectations for the fertility market? - Management expects a rebound in the fertility market as clinics begin investing again, despite near-term pressures [20][110] Question: What is the situation with PARAGARD? - Management reported declining volumes for PARAGARD but offsetting revenue through pricing strategies [114][116]

Financial Data and Key Metrics Changes - Q3 consolidated revenues increased by 5.7% year over year, reaching $1,060 million, with organic growth of 2% [5][25] - Non-GAAP earnings per share (EPS) grew by 15% year over year to $1.1, with free cash flow reported at $165 million [5][28] - Gross margin improved by 70 basis points to 67.3%, driven by efficiency gains and favorable foreign exchange [25] Business Line Data and Key Metrics Changes - CooperVision reported revenues of $718 million, reflecting a 6.3% increase and 2.4% organic growth, although results were below expectations due to declines in Clarity orders [6][9] - CooperSurgical posted revenues of $342 million, up 4.5% year over year, with fertility revenues growing 6% [20][21] - MyDay lenses showed double-digit growth, with MyDay Multifocal growing 20% [11][13] Market Data and Key Metrics Changes - EMEA region grew 14% or 6% organically, becoming CooperVision's largest revenue region globally [9] - The Americas grew 2% or 3% organically, while Asia Pac grew 1% but declined 5% organically due to Clarity pressure [9][10] - The overall contact lens market is expected to continue mid-single-digit growth, driven by a shift towards silicone hydrogel lenses [19] Company Strategy and Development Direction - The company aims to leverage strong MyDay momentum and upcoming product launches to gain market share [23][30] - Focus on operational excellence and disciplined cost management to support sustainable revenue growth [5][28] - Ongoing restructuring efforts to enhance efficiency and leverage IT upgrades [73][74] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the contact lens market, particularly in Asia Pac, but remains optimistic about long-term growth in fertility and contact lenses [20][50] - Guidance for Q4 indicates expected organic growth of 2% to 4% for both CooperVision and CooperSurgical, factoring in potential headwinds [22][23] - Confidence in achieving $2 billion in free cash flow over the next three fiscal years, supported by improved operating margins [30][102] Other Important Information - The company repurchased $52 million worth of stock during the quarter, with approximately $164 million remaining under the repurchase plan [28] - Tariff impacts are expected to be lower than previously anticipated, with mitigation strategies in place [29][30] Q&A Session Summary Question: How does the core CVI portfolio compare to market growth for fiscal 2026? - Management indicated that the core portfolio has lagged the market but expects to be at least in line with market growth, with additional contributions from MySight [36][40] Question: Why is MyDay's success impacting Clarity? - Management noted that in some markets, Clarity and MyDay were viewed similarly, leading to a shift in orders towards MyDay [41][45] Question: What is the outlook for the contact lens market's growth? - Management acknowledged a slowdown in market growth but remains confident in the long-term fundamentals, including pricing and consumer trends [50][52] Question: What are the drivers for expected Q4 rebound in fertility? - Management highlighted improvements in genomics and consumables, along with anticipated investments from fertility clinics [110][114] Question: What is the situation with PARAGARD and market dynamics? - Management confirmed no new competitive launches but acknowledged declining volumes, offset by pricing strategies [117][119]

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...