CooperCompanies Reports Q2 2026 Net Loss After Litigation Charge

CooperCompanies published its financial results for the fiscal second quarter of 2026, detailing an increase in revenue but a shift to a net loss due to a litigation-related expense.

The company announced that revenue for the quarter reached $1.082 billion, reflecting an 8% increase compared to the same period in the previous year and a 5% rise in organic growth. Despite this revenue growth, CooperCompanies reported a GAAP net loss of $77.9 million, a reversal from the $87.7 million net income recorded in the prior year's second quarter.

GAAP diluted earnings per share for the quarter stood at negative $0.40. In contrast, non-GAAP diluted earnings per share increased by 26% year-over-year to $1.21, according to the company's filings. The company attributed the negative GAAP operating margin of 3%, down from 18% a year earlier, primarily to a litigation-related charge linked to a voluntary product recall that occurred in December 2023.

The net litigation charge amounted to $271.6 million, which included $324.1 million in settlement costs, partially offset by $52.5 million in insurance recoveries. Management stated that settlement agreements have been reached with more than 95% of claimants associated with the embryo culture media recall.

What the numbers show

• Q2 2026 revenue: $1.082 billion, up 8% year-over-year
• GAAP net loss: $77.9 million for Q2 2026
• Litigation-related charge: $271.6 million
• Non-GAAP diluted EPS: $1.21, up 26% year-over-year
• Free cash flow: approximately $96 million in Q2 2026

The company reported that free cash flow for the quarter was approximately $96 million. Net debt was reduced to about $2.3 billion, according to the earnings call transcript. CooperCompanies also stated that this quarter marked the tenth consecutive period in which the company exceeded consensus earnings expectations.

The earnings release and related Form 8-K were filed on June 4, 2026. The company anticipated filing its Form 10-Q on June 5, 2026, as part of its regular reporting process.

CooperCompanies indicated that the negative operating margin was mainly a result of the litigation-related charge stemming from the December 2023 product recall. The recall and subsequent settlements have had a direct impact on the company's financial performance for the quarter.

Management confirmed that settlement agreements now cover over 95% of claimants involved in the embryo culture media recall. The net litigation charge was partially offset by insurance recoveries, which helped reduce the overall impact on the company's financial results.

With the majority of recall-related claims settled, CooperCompanies reported ongoing efforts to manage financial obligations and maintain operational performance. The company continues to focus on revenue growth and debt reduction as part of its business strategy.

* This article is based on publicly available information at the time of writing.