Why Did Cooper Companies Jump 13%? Strong Q4 and Shareholder Review Lift Sentiment

The Cooper Companies (COO) saw its stock surge 13.33% in premarket trading on December 5, 2025, reaching $87.30 at 8:23 AM EST, following the announcement of fourth-quarter fiscal 2025 results and a formal strategic review. The medical device maker, which operates through its CooperVision contact lens and CooperSurgical women’s health divisions, delivered revenue of $1.07 billion in Q4, up 5% year-over-year, and non-GAAP diluted earnings per share of $1.15, beating analyst expectations of $1.11.

However, the primary catalyst for the dramatic stock movement was the company’s announcement that it is initiating a strategic review to identify opportunities to enhance long-term shareholder value, a move that comes after months of pressure from activist investors.

Strategic Review Takes Center Stage After Activist Pressure

The announcement of a formal strategic review represents a significant shift for Cooper Companies, which has faced mounting pressure from activist investors in recent months. In October, JANA Partners built a stake in the company and began pushing for strategic alternatives and improved capital allocation. More recently, in November, investment firm Browning West urged Cooper to add four directors to its board and warned of a potential proxy fight if the company refused.

The strategic review will focus on improving performance in core markets, expanding market share, enhancing operational efficiency, and generating stronger returns through capital deployment initiatives.

Scott Ostfeld, managing partner at JANA Partners, praised the move, stating that “the formal review of strategic alternatives announced today is an important first step towards unlocking Cooper’s value.” The review comes as Cooper Companies has struggled with stock performance, trading down approximately 16% year-to-date and down nearly 27% over the past year, significantly underperforming the S&P 500’s gains.

The company’s market capitalization stood at $15.37 billion as of the close on December 4, 2025, before the premarket surge added over $1.5 billion in value. Alongside the strategic review, Cooper announced that Colleen Jay will become chair of its board of directors effective January 2, 2026, succeeding Robert Weiss, who will remain on the board.

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Q4 Revenue and EPS Beat Drive Upgraded Fiscal 2026 Outlook

Beyond the strategic review announcement, Cooper Companies delivered solid fourth-quarter results that contributed to investor enthusiasm. The company reported Q4 revenue of $1.07 billion, representing 5% reported growth and 3% organic growth, with CooperVision contributing $709.6 million and CooperSurgical adding $355.6 million.

Non-GAAP diluted earnings per share of $1.15 beat consensus estimates and represented an 11% increase year-over-year, marking the company’s eighth consecutive quarter of earnings beats. For the full fiscal year 2025, Cooper generated revenue of $4.09 billion and non-GAAP EPS of $4.13, up 12% from the prior year, while also delivering free cash flow of $433.7 million.

Looking ahead to fiscal 2026, Cooper provided guidance that exceeded Wall Street expectations. The company forecasts full-year revenue between $4.30 billion and $4.34 billion, representing organic growth of 4.5% to 5.5%, and non-GAAP diluted EPS of $4.45 to $4.60, above the analyst consensus of $4.39.

Crucially, Cooper completed a significant reorganization during Q4 that resulted in approximately $89 million in charges but is expected to generate annual pre-tax savings of approximately $50 million beginning in fiscal 2026. The company also updated its long-term free cash flow objective to more than $2.2 billion from fiscal 2026 through 2028, positioning it to fund share repurchases, reduce debt, and pursue strategic investments.

During fiscal 2025, Cooper repurchased $290.1 million of common stock, and nearly $1 billion remained available under its $2 billion authorization as of quarter-end.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.