IDEXX Laboratories Inc.
08/04/2026 | Press release | Distributed by Public on 08/04/2026 04:33
▪ Achieves second quarter revenue growth of 10% as reported and 9% organic, and CAG Diagnostics recurring revenue growth of 11% as reported and 10% organic (Form 8-K)
| ▪ | Achieves second quarter revenue growth of 10% as reported and 9% organic, and CAG Diagnostics recurring revenue growth of 11% as reported and 10% organic. |
| ▪ | Strong volume-driven CAG Diagnostics recurring revenue growth including benefits from IDEXX's innovations and expansion of diagnostics utilization. |
| ▪ | IDEXX inVue Dx™ installed base surpasses 9,000 instruments, supported by over 1,600 placements during the quarter. |
| ▪ | Drives EPS of $4.27, an increase of 18% as reported and 15% on a comparable basis, with operating margin up 140 basis points as reported and 110 basis points on a comparable basis. |
| ▪ | Narrows 2026 revenue guidance to $4,700 million - $4,745 million, up $5 million at midpoint, reflecting benefit of CAG Diagnostics recurring revenue performance, and net of $15 million headwind from updated foreign exchange estimates. |
| ▪ | Raises midpoint for 2026 reported revenue growth outlook to 9.7%, reflecting a range of 9.1% - 10.3%, and CAG Diagnostics recurring revenue reported growth of 10.1% - 11.3%, with projected 2026 organic revenue growth of 8.5% - 9.7% and CAG Diagnostics recurring revenue organic growth of 9.5% - 10.7%. |
| ▪ | Increases 2026 EPS outlook to $14.69 - $14.94, reflecting an increase of $0.14 compared to prior guidance midpoint, supported by a raised revenue outlook at midpoint while advancing incremental investments aligned with commercial and innovation priorities. |
WESTBROOK, Maine, August 4, 2026- IDEXX Laboratories, Inc. (NASDAQ: IDXX), a global leader in pet healthcare innovation, today announced second quarter results.
Second Quarter Results
The Company reports revenues of $1,217 million for the second quarter of 2026, an increase of 10% as reported and 9% organic, driven by Companion Animal Group ("CAG") growth of 9% as reported and organic, Water revenue growth of 15% as reported and 13% organic, and LPD revenue growth of 11% as reported and 9% organic.
Second quarter earnings per diluted share ("EPS") were $4.27, an increase of 18% as reported and 15% on a comparable basis. Second quarter EPS included $0.14 per share in tax benefits from share-based compensation and $0.06 per share benefit from year-over-year currency changes.
IDEXX Announces Second Quarter Results
August 4, 2026
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"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," said Mike Erickson, President and Chief Executive Officer. "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."
Second Quarter Performance Highlights
Companion Animal Group ("CAG")
CAG revenue growth was led by CAG Diagnostics recurring revenue growth of 11% as reported and 10% organic, including 14% reported and 12% organic gains in International regions, and 10% reported and organic growth in the U.S., outpacing sector growth levels.
Additional U.S. companion animal practice key metrics are available in the Q2 2026 Earnings Snapshot accessible on the IDEXX website, www.idexx.com/investors.
Exceptional commercial execution - including strong volume gains, net customer expansion, benefits from IDEXX innovation, and growth of the premium instrument installed base - drove double-digit CAG Diagnostics recurring revenue growth.
| ▪ | IDEXX VetLab™ consumables generated 15% reported and 14% organic revenue growth, supported by testing utilization gains, including benefits from recent product launches and net new customer growth with 11% expansion of the IDEXX global premium instrument installed base and net price gains. |
| ▪ | Reference laboratory diagnostic and consulting services generated 11% reported and 10% organic revenue growth, driven by higher testing volumes and net new customer gains. |
| ▪ | Rapid assay products revenues increased 1% as reported and on an organic basis, driven by net price benefits and an easing of the volume impacts from adoption of the Catalyst™ Pancreatic Lipase Test, which has shifted some testing across modalities. |
CAG Diagnostics capital instrument revenues decreased 19% as reported and 20% on an organic basis, lapping the Q2 2025 broad availability of IDEXX inVue Dx, with current-year period revenue benefiting from over 1,600 IDEXX inVue Dx placements.
Veterinary software, services and diagnostic imaging systems revenues grew 12% on a reported and organic basis for the quarter, with benefits from cloud-native software growth and installed base expansion. Diagnostic imaging systems delivered another record quarter of installations, led by ImageVue™ DR50 Plus.
IDEXX Announces Second Quarter Results
August 4, 2026
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Water
Water revenues grew 15% as reported and 13% organic for the quarter, reflecting solid organic growth in the U.S. and Europe.
Livestock, Poultry and Dairy ("LPD")
LPD revenues increased 11% as reported and 9% organic for the quarter, led by strong growth in the Americas.
Gross Profit and Operating Profit
Gross profit increased 12% as reported and 11% on a comparable basis. Gross margin of 64.0% increased 140 basis points as reported and 120 basis points on a comparable basis, supported by strong recurring revenue volume gains, operational productivity initiatives, and net price realization.
Operating margin was 35.0% for the quarter, higher than the prior year period by 140 basis points as reported and by 110 basis points on a comparable basis. Operating margin results reflect a 10% operating expense increase as reported and 9% growth on a comparable basis. Operating expense growth supported expansion of commercial capabilities, advancement of the Company's innovation agenda, and enabling information technology investments.
2026Growth and Financial Performance Outlook
The Company is updating its full year revenue growth guidance range to $4,700 million - $4,745 million, or reported growth of 9.1% - 10.3%, an increase of $5 million at midpoint, net of a $15 million reduction to projected revenues from a stronger U.S. dollar. The Company is increasing its outlook for organic revenue growth to 8.5% - 9.7%, an increase of 0.4% at midpoint, reflecting operational performance.
The Company increased its full year reported operating margin outlook to 32.3% - 32.5%, bringing the projected full year operating profit margin expansion to 70 - 90 basis points as reported and on a comparable basis. This outlook benefits from strong second quarter operating performance, while advancing strategic investment priorities.
The Company updated its EPS outlook range to $14.69 - $14.94, reflecting increased reported growth of 12% - 14% and 13% - 15% comparable growth. At midpoint this reflects benefits of $0.14 per share from operational performance; $0.05 from higher share-based compensation benefits and a $0.05 headwind from updated estimates for foreign exchange impacts.
IDEXX Announces Second Quarter Results
August 4, 2026
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The following table provides the Company's updated outlook for annual key financial metrics in 2026 with a comparison to the prior outlook:
Amounts in millions except per share data and percentages
| 2026 Growth and Financial Performance Outlook | ||||||||
| Updated | Prior | |||||||
| Revenue | $4,700 | - | $4,745 | $4,675 | - | $4,760 | ||
| Reported growth | 9.1% | - | 10.3% | 8.6% | - | 10.6% | ||
| Organic growth | 8.5% | - | 9.7% | 7.7% | - | 9.7% | ||
| CAG Diagnostics Recurring Revenue Growth | ||||||||
| Reported growth | 10.1% | - | 11.3% | 9.6% | - | 11.6% | ||
| Organic growth | 9.5% | - | 10.7% | 8.7% | - | 10.7% | ||
| Operating Margin | 32.3% | - | 32.5% | 32.1% | - | 32.5% | ||
| Operating margin expansion | 70 bps | - | 90 bps | 50 bps | - | 90 bps | ||
| Comparable margin expansion | 70 bps | - | 90 bps | 50 bps | - | 90 bps | ||
| EPS | $14.69 | - | $14.94 | $14.45 | - | $14.90 | ||
| Reported growth | 12% | - | 14% | 11% | - | 14% | ||
| Comparable growth | 13% | - | 15% | 11% | - | 15% | ||
| Other Key Metrics | ||||||||
| Net interest expense | ~ $35 | ~ $34 | ||||||
| Share-based compensation tax benefit | ~ $19 | ~ $15 | ||||||
| Share-based compensation tax rate benefit | ~ 1.3% | ~ 1.0% | ||||||
| Effective tax rate | ~ 21.1% | ~ 21.4% | ||||||
| Share-based compensation EPS impact | ~ $0.24 | ~ $0.19 | ||||||
| Reduction in average shares outstanding | 1.5% | - | 2% | 1% | - | 2% | ||
| Operating Cash Flow (% of Net Income) | 110% | - | 120% | 105% | - | 115% | ||
| Free Cash Flow (% of Net Income) | 90% | - | 100% | 85% | - | 95% | ||
| Capital Expenditures | ~ $180 | ~ $180 | ||||||
IDEXX Announces Second Quarter Results
August 4, 2026
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The following table outlines estimates of foreign currency exchange rate impacts, net of foreign currency hedging transactions, and foreign currency exchange rate assumptions reflected in the above financial performance outlook for 2026.
| Estimated Foreign Currency Exchange Rate Impacts | 2026 | |||
| Revenue growth rate impact | ~0.6% | |||
| CAG Diagnostics recurring revenue growth rate impact | ~0.6% | |||
| Operating margin growth impact | ~ 30 bps | |||
| EPS impact | ~ $0.22 | |||
| EPS growth impact | ~ 2% | |||
| Go-Forward Foreign Currency Exchange Rate Assumptions | 2026 | |||
| In U.S. dollars | ||||
| euro | $1.14 | |||
| British pound | $1.32 | |||
| Canadian dollar | $0.70 | |||
| Australian dollar | $0.69 | |||
| Relative to the U.S. dollar | ||||
| Japanese yen | ¥162 | |||
| Chinese renminbi | ¥6.80 | |||
| Brazilian real | R$5.20 | |||
Conference Call and Webcast Information
IDEXX Laboratories, Inc. will host a conference call today at 8:30 a.m. (ET) to discuss its second quarter 2026 results and management's outlook. Individuals can access a live webcast of the conference call through a link on the IDEXX website, www.idexx.com/investors. An archived edition of the webcast will be available after 1:00 p.m. (ET) via the same link and will remain available for one year. The live call also will be accessible by telephone. To listen to the live conference call, please dial 1-800-330-6730 or 1-213-279-1575 and reference passcode 922025.
2026 Investor Day
IDEXX Laboratories, Inc. will host its 2026 Investor Day on Thursday, August 13, 2026 from 8:00 am to approximately 12:00 pm (ET). A live webcast and accompanying slide presentations will be available at www.idexx.com/investors. An archived webcast replay of the event will be available approximately one hour following the event at www.idexx.com/investors. For additional information, contact [email protected].
IDEXX Announces Second Quarter Results
August 4, 2026
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About IDEXX Laboratories, Inc.
IDEXX is a global leader in pet healthcare innovation. Our diagnostic and software products and services create clarity in the complex, constantly evolving world of veterinary medicine. We support longer, fuller lives for pets by delivering insights and solutions that help the veterinary community around the world make confident decisions-to advance medical care, improve efficiency, and build thriving practices. Our innovations also help measure the safety of milk and water across the world and maintain the health and well-being of people and livestock. IDEXX Laboratories, Inc. is a member of the S&P 500™ Index. Headquartered in Maine, IDEXX employs approximately 11,000 people and offers solutions and products to customers in more than 175 countries and territories. For more information about IDEXX, visit www.idexx.com.
IDEXX Laboratories Inc. published this content on August 04, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on August 04, 2026 at 10:39 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]