Cooper Companies initiates strategic review; shares jump

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Dec 4 (Reuters) – Cooper Companies said it is initiating a formal strategic review aimed at identifying opportunities to enhance long-term shareholder value, sending shares up 10% in extended trading.

The medical device maker said it is actively focused on improving performance in core markets, expanding market share, enhancing operational efficiency and generating strong returns through capital deployment initiatives as part of the review.

The company, which makes contact lenses and vision-care products through its CooperVision unit and offers women’s health and fertility products via CooperSurgical, has come under activist pressure in recent months to improve its operations.

In November, investment management firm Browning West urged the company to add four directors to its board and warned it was ready to launch a proxy fight if the company refused.

In October, Reuters reported that activist investor JANA Partners built a stake in Cooper Companies and was planning to push for strategic alternatives and improve capital allocation to boost returns for the firm.

“The formal review of strategic alternatives announced today is an important first step towards unlocking Cooper’s value,” said Scott Ostfeld, managing partner at JANA Partners.

Separately, Cooper forecast fiscal 2026 profit above Wall Street expectations, banking on cost savings from a major reorganization and strong demand for its contact lenses.

The San Ramon, California-based company expects annual adjusted earnings per share of $4.45 to $4.60, above analysts’ average expectation of $4.39 apiece, according to data compiled by LSEG.

For fiscal 2026, Cooper sees revenue ranging between $4.30 billion and $4.34 billion. Analysts were expecting annual sales to be $4.32 billion.

The company completed significant reorganization activity during the fourth quarter, resulting in about $89 million in charges, and expects annual pre-tax savings of about $50 million beginning in fiscal 2026.

Cooper also 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.

(Reporting by Christy Santhosh and Kamal Choudhury in Bengaluru; Editing by Alan Barona)