Idexx Laboratories Inc
Q2 2026 Earnings
Market Reaction
Did IDXX Beat Earnings? Q2 2026 Results
IDEXX Laboratories delivered a strong second quarter for fiscal 2026, posting earnings per share of $4.27 and revenue of $1.22 billion, with EPS clearing the $3.96 analyst consensus for the seventh consecutive quarter of beats. The 18% year-over-year EPS gain was powered in meaningful part by the Companion Animal Group, where IDEXX VetLab consumables surged 15% as reported, driven by testing utilization gains, recent product launches, and 11% expansion of the global premium instrument installed base. Revenue grew 10% on a reported basis and 9% organically, while gross margin expanded 140 basis points to 64.0% and operating margin reached 35.0%, reflecting volume gains and operational productivity. Ahead of the print, analysts had flagged whether innovation could sustain growth momentum, and the quarter's broad-based execution offered a clear answer. Looking ahead, IDEXX narrowed its full-year revenue guidance to $4.70 billion to $4.75 billion and raised its full-year EPS outlook to $14.69 to $14.94, representing 12% to 14% reported growth, even after absorbing a $15 million currency headwind.
- Strong volume-driven CAG Diagnostics recurring revenue growth of 11% reported and 10% organic
- IDEXX VetLab consumables grew 15% reported driven by testing utilization gains and net new customer growth
- 11% expansion of IDEXX global premium instrument installed base
- Gross margin expansion of 140 basis points to 64.0% from volume gains, operational productivity, and net price realization
- Operating margin expanded 140 basis points to 35.0%
- Reference laboratory revenue growth of 11% driven by higher testing volumes and net new customer gains
- Water revenue growth of 15% reflecting solid organic growth in U.S. and Europe
“Our second quarter results reflect the strength of our Technology for Life strategy, with continued innovation across our Catalyst, Fecal Dx, and IDEXX inVue Dx platforms supporting deeper customer adoption and higher diagnostic utilization. This is the kind of durable, compounding growth we're building for the long term, helping veterinarians see more and do more for their patients while creating lasting value for our shareholders.”
IDEXX Laboratories CEO, on the earnings call
Forward Guidance & Outlook
IDEXX narrowed 2026 full-year revenue guidance to $4,700M - $4,745M (9.1% - 10.3% reported growth), an increase of $5M at midpoint, net of $15M FX headwind. Organic revenue growth outlook raised to 8.5% - 9.7%. CAG Diagnostics recurring revenue reported growth projected at 10.1% - 11.3% (organic 9.5% - 10.7%). Full-year EPS outlook increased to $14.69 - $14.94, reflecting 12% - 14% reported growth and 13% - 15% comparable growth. Operating margin outlook raised to 32.3% - 32.5%, representing 70 - 90 basis points of expansion. Free cash flow projected at 90% - 100% of net income, with capital expenditures of approximately $180M. Effective tax rate expected at approximately 21.1%. The company plans to advance incremental investments aligned with commercial and innovation priorities.
IDXX YoY Financials
IDXX Revenue by Segment
IDXX Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.