A month has gone by since the last earnings report for Idexx Laboratories (IDXX Quick QuoteIDXX - Free Report) . Shares have lost about 7.8% 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? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for IDEXX Laboratories, Inc. before we dive into how investors and analysts have reacted as of late.

IDXX Q2 Earnings & Revenues Beat, '26 EPS View Up 

IDEXX Laboratories reported second-quarter 2026 earnings of $4.27 per share, up 18% year over year. The figure surpassed the Zacks Consensus Estimate by 8.1%. 

Comparable constant-currency EPS of $4.07 improved 15% year over year.

IDXX’s Q2 Revenues 

Revenues rose 10% to $1.22 billion and topped the Zacks Consensus Estimate by 1.3%. Results benefited from volume-driven Companion Animal Group (“CAG”) Diagnostics’ recurring revenues, increased diagnostic utilization and continued adoption of IDEXX’s innovations. CAG Diagnostics’ recurring revenues advanced 11% as reported and 10% organically. 

IDXX's CAG Arm Drives Growth

CAG revenues increased 9.4% year over year to $1.12 billion. Organic growth was 8.7%. International CAG revenues climbed 13.4% as reported and 11.5% organically, while U.S. revenues advanced 7.4%.

IDEXX VetLab consumables revenues increased 14.7% to $430.3 million, with organic growth of 13.6%. Performance was supported by higher testing utilization, recent product launches, net new customer gains and an 11% expansion of the global premium instrument installed base.

Reference laboratory diagnostic and consulting services revenues rose 10.6% to $406.7 million. Organic growth was 10.3%, driven by higher testing volumes and customer additions. Rapid assay product revenues increased 1.3% to $101.6 million.

IDEXX's Water and LPD Segments Post Gains

Water revenues advanced 15% year over year to $58.6 million and 13% organically. This growth reflected solid performances in the United States and Europe. 

Livestock, Poultry and Dairy revenues increased 11% to $35.2 million, with organic growth of 9%. Strength in the Americas supported the improvement. 

IDXX's Margins Expand on Recurring Volume Growth

Gross profit increased 12% to $779.1 million. Gross margin expanded 140 basis points to 64%, supported by recurring revenue volume gains, operational productivity initiatives and net price realization.

Operating expenses rose 10% to $353.5 million as IDEXX invested in commercial capabilities, innovation and information technology. Operating profit climbed 14% to $425.6 million, while operating margin expanded 140 basis points to 35%. 

IDEXX’s Financial Position

IDEXX exited the second quarter of 2026 with cash and cash equivalents of $196.9 million compared with $200.5 million at the end of the first quarter. 

Cumulative net cash provided by operating activities was $613.4 million compared with $423.7 million in the prior-year period.

IDEXX Updates Its 2026 Financial Outlook

IDEXX has updated its 2026 revenue guidance to $4.70-$4.75 billion from $4.68-$4.76 billion. The midpoint increased $5 million despite a projected $15-million headwind from updated foreign exchange assumptions.

The company now expects reported revenue growth of 9.1-10.3% and organic growth of 8.5-9.7%. The Zacks Consensus Estimate is currently pegged at $4.72 billion, indicating 9.6% year-over-year growth.

IDEXX raised its 2026 earnings outlook to $14.69-$14.94 per share from $14.45-$14.90. The Zacks Consensus Estimate is currently pegged at $14.81.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in fresh estimates.

VGM Scores

At this time, Idexx has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a grade 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 indicates a downward shift. Notably, Idexx has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Idexx is part of the Zacks Medical - Instruments industry. Over the past month, Glaukos (GKOS Quick QuoteGKOS - Free Report) , a stock from the same industry, has gained 5%. The company reported its results for the quarter ended June 2026 more than a month ago.

Glaukos reported revenues of $185.61 million in the last reported quarter, representing a year-over-year change of +49.5%. EPS of -$0.14 for the same period compares with -$0.24 a year ago.

Glaukos is expected to post a loss of $0.12 per share for the current quarter, representing a year-over-year change of +25%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.8%.

Glaukos has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.