Why Cooper Companies Stock Plunged 14%: Growth Forecast Slashed Amid Market Slowdown

Cooper Companies, a leading contact lens and fertility solutions provider, saw its stock plummet 14% on Friday, marking it as one of the S&P 500's steepest decliners. The sharp drop followed the company's announcement of a reduced fiscal 2025 organic growth forecast, now set at 5-6%, down from the prior 6-8% range.

The revision reflects softening demand in both its contact lens and fertility markets, raising concerns among investors about the company's near-term prospects.

Real-time market data indicates the stock closed at approximately $78.50, down from $91.20 the previous day, with trading volume spiking to over 3 million shares, nearly double the average. This significant sell-off underscores investor unease as the company navigates challenging market dynamics.

Contact Lens Market Faces Headwinds

CooperVision, the company's contact lens division, has been a cornerstone of its portfolio, known for innovative products like MyDay and Clariti 1-Day lenses. These silicone hydrogel lenses offer high oxygen transmissibility and comfort, with the newer Live Daily Disposable lenses leveraging AquaGen technology to enhance moisture retention.

However, recent market trends suggest a slowdown, with global contact lens demand reverting to a historical growth rate of 4-6%. Industry reports highlight cautious spending by distributors and retailers, driven by economic uncertainties and shifting consumer preferences.

CooperVision's revenue growth in Q1 2025 was modest at 4% year-over-year, a stark contrast to the robust performance seen in prior quarters. This deceleration prompted management to temper expectations, contributing to the stock's sharp decline.

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Fertility Division Struggles Despite Market Potential

CooperSurgical, the company's fertility division, also reported lackluster performance, with Q1 2025 revenue growth slowing to just 1% year-over-year (3% in constant currency).

This represents an enormous decline from the 12% growth to $310.1 million reported in Q1 2024, when demand for fertility products like SpermSlow media and the RI Witness system fueled optimism.

Despite the U.S. in vitro fertilization market's projected growth to $7.24 billion by 2030 at a 4.4% CAGR, CooperSurgical faces challenges, particularly in the Asia-Pacific region, where demand has softened.

Recent updates from industry sources note that geopolitical tensions and economic slowdowns in key markets have impacted fertility treatment uptake, further pressuring Cooper's outlook.

Did You Know?
CooperVision's MyDay lenses were the first daily disposable silicone hydrogel contact lenses introduced globally, revolutionizing eye health and comfort for wearers.

JPMorgan Downgrade Amplifies Concerns

Adding to the negative sentiment, JPMorgan analysts downgraded Cooper Companies' stock from Overweight to Neutral on May 30, 2025, cutting their price target from $110 to $76.

The downgrade followed a mixed fiscal Q2 report, where better-than-expected earnings were overshadowed by the lowered growth forecast.

Analysts cited inconsistent execution and skepticism about management's optimistic outlook amid anticipated market challenges through 2026.

The downgrade, coupled with the revised 5-6% organic growth projection, led to a 12-15% stock drop in a single day, as investors recalibrated expectations for a company once viewed as a steady growth performer.