The Cooper Companies, Inc. (COO): BCG Matrix [Dec-2025 Updated]

Honestly, looking at The Cooper Companies, Inc. (COO) portfolio as of late 2025, it's a clear split: you've got a vision powerhouse printing cash, anchored by Stars like MiSight myopia control lenses expected to jump 40%, and then you have the women's health segment, which is definitely a Question Mark requiring heavy investment. The core business is generating robust free cash flow, with established lenses acting as reliable Cash Cows projected to bring in around $2.74 billion for FY 2025, but the real strategic question is how much of that cash will successfully fuel the high-potential but underperforming CooperSurgical unit. Dive in to see exactly which products are leading the charge and which ones are dragging down the growth rate.

Background of The Cooper Companies, Inc. (COO)

You're looking at The Cooper Companies, Inc. (COO), a key player in the medical device space, and honestly, understanding its current structure is the first step before we map out its portfolio. The Cooper Companies, Inc. operates primarily through two distinct business segments: CooperVision and CooperSurgical. The core of the business, and where it holds a leading position globally, is contact lenses through CooperVision, which serves about 43 million contact wearers worldwide.

Let's look at the numbers coming out of fiscal year 2025, based on the latest reports through the third quarter. For the full fiscal year 2025, The Cooper Companies, Inc. projects total sales to land between $4,076 million and $4,096 million, which translates to an expected organic growth rate of 4% to 4.5%. This revenue base is split between the two divisions, with CooperVision historically contributing roughly two-thirds of the total revenue.

The CooperVision segment, which handles the contact lens business, has been the stronger growth engine recently. For fiscal year 2025, management guided for organic expansion in this division between 4% and 5%. In the third quarter of 2025, CooperVision's net sales hit $718.4 million, marking a 6% year-over-year increase, driven by products like MyDay and MiSight.

On the other side, you have CooperSurgical (CSI), which focuses on fertility and surgical products. This segment is projected for a slightly slower organic growth rate for FY2025, forecasted between 3% and 3.5%. While CSI's Q3 2025 net sales grew by 4% year-over-year to $341.9 million, the segment faced operational headwinds; its operating income for that quarter was negative at $(4.2) million, largely due to inventory and asset write-offs related to a product-line exit. Still, the company maintains a solid balance sheet, with total assets reported at $12,376.7 million as of July 31, 2025.

To support shareholder returns, The Cooper Companies, Inc. has an active capital allocation strategy, including a recently authorized share repurchase plan allowing the company to buy back up to $2.00 billion in outstanding shares. The company's non-GAAP diluted earnings per share (EPS) guidance for the full fiscal year 2025 was raised to a range of $3.94 to $4.02. That's the lay of the land for The Cooper Companies, Inc. as we head into late 2025. Finance: draft 13-week cash view by Friday.

The Cooper Companies, Inc. (COO) - BCG Matrix: Stars

Stars in the Boston Consulting Group Matrix represent business units or products operating in a high-growth market and maintaining a high relative market share. The Cooper Companies, Inc. (COO) has several key offerings that fit this profile within its CooperVision segment, demanding significant investment to maintain leadership and eventually transition into Cash Cows as market growth matures.

The following products and regions are positioned as Stars based on their high growth trajectory and market presence as of the fiscal third quarter of 2025:

• MiSight myopia control lenses: Expected to grow 40% in fiscal 2025.
• MyDay daily disposable silicone hydrogel lenses: A premium family driving organic expansion with double-digit growth.
• Toric and Multifocal contact lenses: High-share products that led CooperVision growth.
• EMEA region revenue: Demonstrated the strongest regional performance in Q3 2025.

The performance metrics supporting the Star categorization for these key areas are detailed below, primarily reflecting data from the third quarter of fiscal 2025:

The high growth rates, such as the anticipated 40% for MiSight in fiscal 2025, confirm their Star status, indicating they are leaders in rapidly expanding markets like pediatric vision care. The MyDay family's double-digit growth, with the multifocal variant hitting 20% in Q3 2025, shows strong momentum in the premium daily silicone hydrogel space, which is a key driver for CooperVision's organic expansion.

The EMEA region's 14% revenue growth in Q3 2025 significantly outpaced the Americas' 2% growth and Asia Pacific's 1% growth in the same quarter, positioning it as a high-growth market for The Cooper Companies, Inc.. This regional strength, coupled with product success, means these Stars consume substantial cash for promotion and placement to secure their market share leadership. If this success is sustained as the overall contact lens market growth slows to a projected 5% to 7% for fiscal 2025, these products are on track to become Cash Cows.

Key growth drivers supporting the Star positioning include:

• MiSight: Received final regulatory approval for launch in Japan, with commercialization planned for early 2026.
• MyDay: Management expects its momentum, along with new contract wins, to reaccelerate CooperVision growth in fiscal 2026.
• Toric and Multifocal: These categories, including Biofinity Toric Multifocal, are designed for complex vision needs, ensuring continued demand.
• EMEA Performance: This region is where The Cooper Companies, Inc. is 'pretty much operating with our full set of products,' suggesting strong market penetration.

The Cooper Companies, Inc. (COO) - BCG Matrix: Cash Cows

The Cooper Companies, Inc. (COO) positions its core contact lens business, CooperVision (CVI), as a primary Cash Cow, characterized by a dominant market position within a mature, slower-growing segment. This unit is expected to be the financial bedrock for the enterprise in fiscal year 2025.

CooperVision (CVI) Core Contact Lens Business is projected to generate revenue in the range of $2,734 million to $2,747 million for the full fiscal year 2025. This segment commands a significant presence, holding approximately ~25% market share in the soft contact lenses market. The overall contact lens industry growth expectations for fiscal 2025 have been adjusted to a stable range of 4% to 6% organic growth, fitting the mature market profile for a Cash Cow.

The high market share translates directly into strong profitability metrics. For the third quarter of fiscal 2025, The Cooper Companies, Inc. reported a non-GAAP operating margin of 26.1%. This operational efficiency, combined with the high volume of established products, results in robust cash generation. Free cash flow for the third quarter of fiscal 2025 was $165 million, demonstrating the unit's ability to generate more cash than it consumes to maintain its position.

The Biofinity family of monthly lenses, a mature, high-volume product line, exemplifies this Cash Cow status. In the second quarter of fiscal 2025, growth for silicone hydrogel FRP lenses, which includes Biofinity, was reported at 6% organically. To be fair, the established sphere lenses showed slightly lower growth in Q3, with sphere and other lenses growing at 3% organically in that quarter, still contributing reliably to the top line.

You can see the key financial outputs supporting this Cash Cow classification below:

Investments here are focused on efficiency and infrastructure to maximize the cash yield, rather than aggressive market expansion, which is typical for this quadrant. The company is using this cash flow to support other areas of the business.

• Sphere and other lenses organic growth (Q3 2025): 3%.
• Biofinity family (Silicone Hydrogel FRP lenses) organic growth (Q2 2025): 6%.
• Total FY 2025 Revenue Guidance Range (All Segments): $4,076 million to $4,096 million.
• Capital Expenditures (Q3 2025): $96.9 million.

The focus for this segment is maintaining productivity and milking the gains passively. Finance: review Q4 working capital efficiency against the projected $2 billion in free cash flow expected over the next three fiscal years.

The Cooper Companies, Inc. (COO) - BCG Matrix: Dogs

Dogs are business units or products operating in low-growth markets with a low relative market share. For The Cooper Companies, Inc. (COO), this quadrant is populated by specific, struggling product lines that consume management focus without delivering commensurate cash flow, making them prime candidates for divestiture or aggressive cost management.

The scenario for Dogs is clear: avoid and minimize investment, as expensive turn-around plans rarely succeed. The financial data from the third quarter of fiscal 2025 strongly suggests certain areas fit this profile, characterized by recent declines or significant margin erosion due to specific product issues.

Underperforming CooperSurgical (CSI) Product Lines

The CooperSurgical (CSI) segment experienced a severe profitability hit in Q3 2025, directly attributable to specific product-line issues, including inventory and long-lived asset write-offs. This unit, which posted net sales of $341.9 million in Q3 2025, swung to an operating loss of $(4.2) million for the quarter. This is a stark reversal from the $41.3 million in operating income reported in the same quarter last year. This immediate cash drain and loss of profitability exemplify a classic Dog characteristic, where capital is tied up with minimal return.

Here's a quick look at the profitability collapse in CSI for Q3 2025:

The company's overall gross margin compressed to 65% in Q3 2025, down from 66% in Q3 2024, driven primarily by these write-offs at CooperSurgical. The operational expense surge in CSI, with Selling, General, and Administrative (SGA) expenses ballooning by 19% to $150.9 million, completely erased the segment's gross profit. This level of cost pressure on a unit that is now losing money operationally firmly places the associated product lines in the Dog quadrant.

Clariti Contact Lenses Performance

Within the CooperVision (CVI) division, the Clariti contact lenses brand experienced a global sales decline in Q3 2025. This decline occurred while the overall CVI segment revenue grew 6% year-over-year to $718.4 million, with organic growth at only 2%. The global contact lens market value growth for 2025 was estimated at 4%, meaning CVI's organic growth lagged the market, suggesting a loss of relative share.

The weakness in Clariti is further contextualized by the success of other products, indicating a clear shift in preference away from this specific brand:

• Clariti Sales: Declined globally in Q3 2025.
• MyDay Sales: Grew at a double-digit pace in Q3 2025.
• MiSight Sales: Grew 23% in Q3 2025.
• Toric and Multifocal Lenses (Overall): Grew 10% in Q3 2025.

This dynamic-where one product line within a segment declines while others grow-points to the declining product (Clariti) acting as a Dog, being cannibalized by the company's own newer, higher-growth daily disposable portfolio, like MyDay. The low overall CVI organic growth of 2% suggests that the strength of the Stars (like MyDay and MiSight) is barely offsetting the drag from the Dogs.

Older Lens Materials Under Pressure

The issue of older, non-silicone hydrogel lens materials being cannibalized by the daily disposable portfolio is a structural market reality that places those older materials in the Dog quadrant. While specific revenue figures for only non-silicone hydrogel materials aren't broken out, the data confirms the trend:

• The segment comprising Sphere and other lenses saw sales growth of only 3% in Q3 2025.
• This 3% growth is significantly lower than the 10% growth seen in the higher-tier Toric and multifocal category and well below the double-digit growth of MyDay.

This slower growth in the 'Sphere and others' category, which typically houses older technology, confirms that these products are in a low-growth or declining market segment, suffering from internal competition from premium daily disposables. The company's focus is clearly shifting, as evidenced by management expecting improving revenue in Q4 and fiscal 2026 driven by MyDay, not the legacy lines. You need to decide which of these legacy assets to harvest or exit, as the $(4.2) million operating loss from CSI shows the cost of holding onto underperformers.

The Cooper Companies, Inc. (COO) - BCG Matrix: Question Marks

Question Marks represent business units or products operating in high-growth markets but currently holding a low market share. These areas consume significant cash to fuel expansion but have not yet generated substantial returns, making their future uncertain-they must gain share quickly or risk becoming Dogs. For The Cooper Companies, Inc. (COO), the CooperSurgical (CSI) segment contains several such candidates requiring focused investment decisions.

The overall women's health market, where CSI operates, is a high-growth area, projected to expand at a Compound Annual Growth Rate (CAGR) of 5.1% through 2030. However, CSI's internal projection for its own organic growth in fiscal year 2025 is only between 3% and 3.5%. This gap between the market's high growth and the segment's lower projected growth signals the Question Mark status, as it suggests The Cooper Companies, Inc. (COO) is not yet capturing its fair share of the expanding market.

Within CSI, the Fertility Solutions portfolio is a prime example of a Question Mark. The underlying market for fertility supplements is robust, with projections showing a CAGR as high as 9.44% between 2025 and 2034. This high-potential market demands heavy investment, particularly to integrate recent acquisitions and aggressively capture market share from competitors. In the third quarter of fiscal 2025, the fertility revenues reached $137,000,000, showing an organic growth rate of 6% year-over-year, which is strong relative to the overall CSI segment's 2% organic growth in that quarter.

The need for strategic investment is also evident when looking at geographic performance, which impacts the growth trajectory of the entire portfolio. In the third quarter of fiscal 2025, revenue growth in the Asia Pacific (APAC) region for the CooperVision (CVI) segment was only 1%. This low figure in a key future market signals that significant capital deployment is necessary to accelerate adoption and market penetration there, a classic Question Mark scenario demanding a clear investment thesis.

The Office and Surgical Products within CooperSurgical (CSI) represent a larger, established base that still needs to secure dominance. This sub-segment generated revenues of $204,800,000 in the third quarter of fiscal 2025. While this is a substantial revenue stream, its organic growth of 3% in Q3 2025 was lower than the 6% organic growth seen in the Fertility business for the same period. This suggests that while the segment is large, it requires a clear strategy to quickly increase its market share to avoid stagnation.

Here is a summary of the key financial and market data points illustrating the Question Mark positioning:

The core challenge for The Cooper Companies, Inc. (COO) here is resource allocation. You need to decide which of these high-growth, low-share areas-like the Fertility portfolio or the APAC expansion-warrants heavy investment to transition them into Stars, and which might be better candidates for divestiture if a path to rapid market share gain isn't clear.

• Invest heavily in Fertility Solutions to capture market share.
• Accelerate growth in APAC through strategic capital deployment.
• Define a clear path to market dominance for Office and Surgical Products.
• The overall CSI segment's projected growth of 3% to 3.5% lags the market.

Finance: draft 13-week cash view by Friday.