A month has gone by since the last earnings report for Idexx Laboratories (IDXX Quick QuoteIDXX - Free Report) . Shares have lost about 3.2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Idexx due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.

IDEXX Q1 Earnings & Revenues Beat, Margins Rise, '26 View Up

IDEXX Laboratories, Inc. (IDXX Quick QuoteIDXX - Free Report) posted first-quarter 2026 earnings per share (EPS) of $3.47, up 17.2% year over year. The figure surpassed the Zacks Consensus Estimate by 1.5%.

Comparable constant-currency EPS of $3.30 improved 15% year over year.

IDEXX’s Revenues

Quarterly revenues increased 14% year over year (up 11% organically) to $1.14 billion. The reported figure topped the Zacks Consensus Estimate by 2.1%.

IDEXX’s Q1 Revenue Analysis by Segments

IDEXX derives revenues from four operating segments: CAG, Water, Livestock, Poultry and Dairy (“LPD”), and Other.

CAG’s revenues rose 14.6% year over year on a reported basis and 11.6% on an organic basis to $1.05 billion.

CAG revenue growth was led by CAG Diagnostics recurring revenue growth of 14% as reported and 11% organic.  

Veterinary software, services and diagnostic imaging systems revenues grew 12% reportedly and 11% on an organic basis, led by cloud-native software growth and continued installed base expansion, including record diagnostic imaging system installations.

The Water segment’s revenues increased 10.9% year over year reportedly and 7.1% on an organic basis to $50.3 million.

For the first quarter, LPD revenues jumped 13.6% reportedly and 7.2% on an organic basis to $32.5 million.          

Revenues from the Other segment dropped 14% on a reported basis as well as organically to $4 million.

IDEXX’s Margin Performance

Gross profit rose 15.9% to $722.7 million. The gross margin expanded 92 basis points (bps) to 63.4% despite an 11.5% rise in the cost of revenues.

Sales and marketing expenses surged 12.2% to $175.3 million. G&A expenses rose 30.1% to $119.1 million. R&D expenses jumped 11.4% to $65.8 million. The operating profit in the reported quarter rose 14.5% year over year to $362.6 million. The operating margin in the quarter expanded 8 bps to 31.8%.

IDEXX’s Financial Position

IDEXX exited the first quarter of 2026 with cash and cash equivalents of $200.5 million compared with $180.1 million at the end of fourth-quarter 2025.

Cumulative net cash provided by operating activities was $266.3 million compared with $238 million in the prior-year period.

IDEXX’s Upgraded 2026 Guidance

IDEXX upgraded an initial outlook for 2026, forecasting revenues in the range of $4,675-$4,760 million (up from $4,632-$4,720 million). The Zacks Consensus Estimate is currently pegged at $4.67 billion.

Full-year EPS is projected to be in the band of $14.45-$14.90 (up from the previous guidance of $14.29-$14.80), implying growth of 11-14% (up from 9-13%). The Zacks Consensus Estimate is currently pegged at $14.54.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

VGM Scores

At this time, Idexx has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Interestingly, Idexx has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.