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IDXX Q3 Earnings & Revenues Surpass Estimates, Stock Up in Pre-Market
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Key Takeaways
IDEXX reported Q3 EPS of $4.01, up 18% year over year, while revenues rose 10% to $1.21 billion.
IDEXX benefited from recurring CAG Diagnostics revenues, higher testing utilization and new customer gains.
IDEXX raised 2026 revenue guidance to $4.74-$4.77 billion and EPS guidance to $14.96-$15.16.
IDEXX Laboratories (IDXX - Free Report) reported third-quarter 2026 earnings per share (EPS) of $4.01, which improved 18% year over year. Comparable EPS of $3.96 increased 22% year over year, excluding the impact of foreign currency fluctuations, share-based compensation tax benefits and non-recurring or unusual items. The Zacks Consensus Estimate for third-quarter EPS was $3.71.
Revenues rose 10% year over year to $1.21 billion and surpassed the Zacks Consensus Estimate by 2.21%. Results were supported by strong Companion Animal Group (“CAG”) Diagnostics recurring revenues, higher testing utilization and continued adoption of IDEXX's innovations.
Following the earnings announcement, IDXX shares gained 5.2% in pre-market trading today.
IDXX's CAG Arm Drives Revenue Growth
CAG revenues increased 10.2% year over year to $1.12 billion, with organic growth of 10.4%. International CAG revenues climbed 13.4% as reported and 14% organically, while U.S. revenues advanced 8.6%.
IDEXX VetLab consumables revenues increased 14.3% to $443.25 million, with organic growth of 14.6%. Performance benefited from net new customer additions, higher diagnostic utilization, recent product launches and an 11% expansion of the global premium instrument installed base.
IDEXX Laboratories, Inc. Price, Consensus and EPS Surprise
Reference laboratory diagnostic and consulting services revenues rose 10% to $399.08 million. Organic growth was 10.2%, supported by increased testing volumes, net customer gains and price realization. Rapid assay product revenues increased 0.6% to $89.14 million, as pricing benefits offset lower testing volumes.
IDXX's Water and LPD Businesses Post Gains
Water revenues advanced 8.4% year over year to $58.84 million, with organic growth of 7.8%. Performance was driven by growth in North America. U.S. revenues increased 11.5%, while international revenues rose 5%.
Livestock, Poultry and Dairy (“LPD”) revenues jumped 2.6% to $34.83 million, reflecting organic growth of 3%. Growth in the Americas supported the segment, with U.S. revenues advancing 11.5%.
IDEXX's Margins Expand Despite Higher Expenses
Gross profit increased 12% to $764.3 million. Gross margin expanded 110 basis points (bps) to 62.9%, supported by recurring revenue volume gains, operational productivity initiatives and net price realization. Comparable gross margin expanded 90 bps to 62.7%.
Operating expenses rose 10% to $361.95 million as IDEXX invested in commercial capabilities and innovation while absorbing acquisition-related expenses, including transaction costs. Operating profit climbed 13% to $402.35 million, while operating margin rose 100 bps to 33.1%. Comparable operating margin increased 60 bps, reflecting profitability improvements despite continued investments.
IDEXX’s Financial Position
IDEXX exited the third quarter of 2026 with cash and cash equivalents of $197.5 million compared with $196.9 million at the end of the second quarter.
Cumulative net cash provided by operating activities was $1.06 billion at the quarter end compared with $826 million in the prior-year period.
IDEXX Raises Its 2026 Financial Outlook
IDEXX raised its 2026 revenue guidance to $4.74-$4.77 billion from $4.70-$4.75 billion. The midpoint increased by $32 million, including a $5-million contribution from the CoVet acquisition.
The company now expects reported revenue growth of 10.1-10.8% and organic growth of 9.3-10%. The Zacks Consensus Estimate for 2026 revenues is currently pegged at $4.72 billion, reflecting a 9.7% growth over 2025.
IDEXX raised its 2026 earnings outlook to $14.96-$15.16 per share from $14.69-$14.94, implying a $0.25 increase at the midpoint. The Zacks Consensus Estimate for the metric stands at $14.81.
Our Take on IDXX
IDEXX delivered strong third-quarter 2026 results, with both earnings and revenues surpassing respective estimates. Performance reflects continued momentum in CAG Diagnostics recurring revenues, aided by higher testing utilization, net new customer gains and expansion of the premium instrument installed base. Innovations such as IDEXX inVue Dx and IDEXX Cancer Dx are supporting deeper customer adoption and diagnostic utilization.
The company's raised 2026 revenue and earnings guidance is encouraging, reflecting confidence in its underlying business performance. The expansion of gross and operating margins highlights improving operational efficiency despite higher expenses related to commercial investments, innovation and acquisitions.
IDXX’s Zacks Rank & Other Key Picks
IDEXX Laboratories currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Medpace (MEDP - Free Report) and GE HealthCare Technologies (GEHC - Free Report) .
Intuitive Surgical,carrying a Zacks Rank #2 at present, posted third-quarter 2026 adjusted EPS of $3.00, exceeding the Zacks Consensus Estimate by 14.94%. Revenues of $3.05 billion topped the Zacks Consensus Estimate by 5.84%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ISRG has an earnings yield of 2.5% against the industry’s negative 2.1% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 15.12%.
Medpace, carrying a Zacks Rank #2, reported third-quarter 2026 adjusted EPS of $4.84, which surpassed the Zacks Consensus Estimate by 8.76%. Revenues of $716 million beat the Zacks Consensus Estimate by 1.02%.
MEDP has an estimated long-term earnings growth rate of 14.3% compared with the industry’s 13.2% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 9.77%.
GE HealthCare, carrying a Zacks Rank #2, reported third-quarter 2026 adjusted EPS of $1.34, which topped the Zacks Consensus Estimate by 10.74%. Revenues of $5.51 billion beat the Zacks Consensus Estimate by 2.87%.
GEHC has an earnings yield of 6.5% compared with the industry’s 2.8%. The company beat earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.15%.
View the Zacks #1 Rank List
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IDXX Q3 Earnings & Revenues Surpass Estimates, Stock Up in Pre-Market
Key Takeaways
IDEXX Laboratories (IDXX - Free Report) reported third-quarter 2026 earnings per share (EPS) of $4.01, which improved 18% year over year. Comparable EPS of $3.96 increased 22% year over year, excluding the impact of foreign currency fluctuations, share-based compensation tax benefits and non-recurring or unusual items. The Zacks Consensus Estimate for third-quarter EPS was $3.71.
Revenues rose 10% year over year to $1.21 billion and surpassed the Zacks Consensus Estimate by 2.21%. Results were supported by strong Companion Animal Group (“CAG”) Diagnostics recurring revenues, higher testing utilization and continued adoption of IDEXX's innovations.
Following the earnings announcement, IDXX shares gained 5.2% in pre-market trading today.
IDXX's CAG Arm Drives Revenue Growth
CAG revenues increased 10.2% year over year to $1.12 billion, with organic growth of 10.4%. International CAG revenues climbed 13.4% as reported and 14% organically, while U.S. revenues advanced 8.6%.
IDEXX VetLab consumables revenues increased 14.3% to $443.25 million, with organic growth of 14.6%. Performance benefited from net new customer additions, higher diagnostic utilization, recent product launches and an 11% expansion of the global premium instrument installed base.
IDEXX Laboratories, Inc. Price, Consensus and EPS Surprise
IDEXX Laboratories, Inc. price-consensus-eps-surprise-chart | IDEXX Laboratories, Inc. Quote
Reference laboratory diagnostic and consulting services revenues rose 10% to $399.08 million. Organic growth was 10.2%, supported by increased testing volumes, net customer gains and price realization. Rapid assay product revenues increased 0.6% to $89.14 million, as pricing benefits offset lower testing volumes.
IDXX's Water and LPD Businesses Post Gains
Water revenues advanced 8.4% year over year to $58.84 million, with organic growth of 7.8%. Performance was driven by growth in North America. U.S. revenues increased 11.5%, while international revenues rose 5%.
Livestock, Poultry and Dairy (“LPD”) revenues jumped 2.6% to $34.83 million, reflecting organic growth of 3%. Growth in the Americas supported the segment, with U.S. revenues advancing 11.5%.
IDEXX's Margins Expand Despite Higher Expenses
Gross profit increased 12% to $764.3 million. Gross margin expanded 110 basis points (bps) to 62.9%, supported by recurring revenue volume gains, operational productivity initiatives and net price realization. Comparable gross margin expanded 90 bps to 62.7%.
Operating expenses rose 10% to $361.95 million as IDEXX invested in commercial capabilities and innovation while absorbing acquisition-related expenses, including transaction costs. Operating profit climbed 13% to $402.35 million, while operating margin rose 100 bps to 33.1%. Comparable operating margin increased 60 bps, reflecting profitability improvements despite continued investments.
IDEXX’s Financial Position
IDEXX exited the third quarter of 2026 with cash and cash equivalents of $197.5 million compared with $196.9 million at the end of the second quarter.
Cumulative net cash provided by operating activities was $1.06 billion at the quarter end compared with $826 million in the prior-year period.
IDEXX Raises Its 2026 Financial Outlook
IDEXX raised its 2026 revenue guidance to $4.74-$4.77 billion from $4.70-$4.75 billion. The midpoint increased by $32 million, including a $5-million contribution from the CoVet acquisition.
The company now expects reported revenue growth of 10.1-10.8% and organic growth of 9.3-10%. The Zacks Consensus Estimate for 2026 revenues is currently pegged at $4.72 billion, reflecting a 9.7% growth over 2025.
IDEXX raised its 2026 earnings outlook to $14.96-$15.16 per share from $14.69-$14.94, implying a $0.25 increase at the midpoint. The Zacks Consensus Estimate for the metric stands at $14.81.
Our Take on IDXX
IDEXX delivered strong third-quarter 2026 results, with both earnings and revenues surpassing respective estimates. Performance reflects continued momentum in CAG Diagnostics recurring revenues, aided by higher testing utilization, net new customer gains and expansion of the premium instrument installed base. Innovations such as IDEXX inVue Dx and IDEXX Cancer Dx are supporting deeper customer adoption and diagnostic utilization.
The company's raised 2026 revenue and earnings guidance is encouraging, reflecting confidence in its underlying business performance. The expansion of gross and operating margins highlights improving operational efficiency despite higher expenses related to commercial investments, innovation and acquisitions.
IDXX’s Zacks Rank & Other Key Picks
IDEXX Laboratories currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Medpace (MEDP - Free Report) and GE HealthCare Technologies (GEHC - Free Report) .
Intuitive Surgical,carrying a Zacks Rank #2 at present, posted third-quarter 2026 adjusted EPS of $3.00, exceeding the Zacks Consensus Estimate by 14.94%. Revenues of $3.05 billion topped the Zacks Consensus Estimate by 5.84%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ISRG has an earnings yield of 2.5% against the industry’s negative 2.1% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 15.12%.
Medpace, carrying a Zacks Rank #2, reported third-quarter 2026 adjusted EPS of $4.84, which surpassed the Zacks Consensus Estimate by 8.76%. Revenues of $716 million beat the Zacks Consensus Estimate by 1.02%.
MEDP has an estimated long-term earnings growth rate of 14.3% compared with the industry’s 13.2% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 9.77%.
GE HealthCare, carrying a Zacks Rank #2, reported third-quarter 2026 adjusted EPS of $1.34, which topped the Zacks Consensus Estimate by 10.74%. Revenues of $5.51 billion beat the Zacks Consensus Estimate by 2.87%.
GEHC has an earnings yield of 6.5% compared with the industry’s 2.8%. The company beat earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.15%.