Cooper Companies (COO) Financials

Cooper Companies (NASDAQ: COO) shows a solid top line and healthy operating profitability in Q1 2026, but leverage, working capital intensity, and large non-cash balance sheet items remain important watch points. Compared with the same quarter last year, revenue rose modestly, margins held up reasonably well, and operating cash flow stayed strong. However, debt is still elevated and the balance sheet carries very large goodwill and intangible assets, which means execution matters.

• Revenue growth returned in Q1 2026. Total revenue increased to $1.024 billion from $964.7 million in Q1 2025, showing steady demand growth.
• Operating income improved year over year. Operating income reached $212.8 million, up from $182.0 million a year earlier, helped by stronger gross profit.
• Gross profit margin remains healthy. Gross profit was $695.2 million on $1.024 billion of revenue, a margin of about 67.9%.
• Operating cash flow was strong. The company generated $260.9 million in operating cash flow in Q1 2026, versus $190.6 million in Q1 2025.
• Net income also increased year over year. Net income attributable to common shareholders rose to $203.3 million from $35.6 million in the prior-year Q1, though the comparison is affected by large adjustment items.
• Free cash flow is likely still positive, but capex is meaningful. Capital spending was $102.2 million in the quarter, which is manageable relative to operating cash flow but still a notable use of cash.
• Seasonal volatility remains visible quarter to quarter. Revenue, margins, and cash flow moved around noticeably across the last four quarters, which is common for a healthcare equipment business.
• Balance sheet equity is large, but heavily supported by intangibles. Total equity was $8.36 billion, yet goodwill was $3.91 billion and intangible assets were $1.54 billion, so much of book value is non-tangible.
• Working capital is asset-heavy. Inventories were $876.4 million and receivables were $807.1 million, which ties up cash and can pressure liquidity if collections slow.
• Debt remains elevated. Total debt was about $2.50 billion at quarter-end, including $620.7 million of short-term debt and $1.88 billion of long-term debt.
• Financing activities were a cash outflow. In Q1 2026, the company repaid $882.2 million of debt and bought back $92.5 million of stock, offset by $875.4 million of new debt issuance.
• Other equity adjustments are large and can make earnings quality harder to read. Q1 2026 included $72.5 million of other adjustments to net income attributable to common shareholders, which complicates a simple read on bottom-line performance.

Bottom line: Cooper Companies looks fundamentally profitable and cash-generative, with improving year-over-year operating results in Q1 2026. The main risks for investors are the sizable debt load, heavy goodwill/intangible asset base, and ongoing cash demands from working capital and capital spending. If the company can keep revenue growing while maintaining margins and reducing leverage over time, the stock should remain on a reasonably constructive footing.