10-Q · August 4, 2026
IDEXX delivered Q2 revenue of $1.216585 billion, up 9.7% year over year, with diluted EPS of $4.27 and expansion in gross margin to 64.0% and operating margin to 35.0%. Growth was broad-based across CAG, Water, and LPD,…
Earnings analysis · 10-Q
IDXX earnings analysis
Filed November 2, 2026 · Our reading of the company's report
The latest report
IDEXX delivered a strong third quarter, with $1,214.237 million of revenue and diluted EPS of $4.01, including 11.0% organic growth in CAG Diagnostics recurring revenue. Management raised full-year revenue and EPS…
Read full summary
IDEXX delivered a strong third quarter, with $1,214.237 million of revenue and diluted EPS of $4.01, including 11.0% organic growth in CAG Diagnostics recurring revenue. Management raised full-year revenue and EPS guidance, but lowered the operating margin outlook to 32.1%-32.3% from 32.3%-32.5%, making the outlook mixed. Foreign-exchange sensitivity, inflationary costs, and $474.0 million of Credit Facility borrowings remain notable risks, although the $250.0 million Term Loan is effectively fixed at 3.4% plus spread through November 12, 2028.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.01
- Segment
- CAG Diagnostics recurring revenue: 11.0% organic growth; segment dollar revenue was not provided in the supplied filing text.
What stood out
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Revenue and EPS beat consensus
Third-quarter revenue was $1,214.237 million and diluted EPS was $4.01. Revenue exceeded the supplied consensus estimate of $1,191.9 million, while EPS exceeded the $3.71 estimate.
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CAG Diagnostics led growth
CAG Diagnostics recurring revenue grew 11.0% organically, making it the primary reported growth driver in the quarter.
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Currency expected to aid profit
Management expects foreign exchange to reduce remaining-2026 revenue by approximately $8 million while increasing operating profit by approximately $1 million and diluted EPS by $0.01.
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Interest-rate exposure partly hedged
The company had $474.0 million outstanding under its Credit Facility at September 30, 2026. Its $250.0 million Term Loan was effectively fixed at 3.4% plus the applicable credit spread through November 12, 2028.
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Share repurchases continued
IDEXX repurchased 198,600 shares under its announced program during the quarter, with 2,353,970 shares remaining available at September 30, 2026.
What to watch
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Foreign-exchange sensitivity
Approximately 24% of consolidated revenue in the quarter was derived from products manufactured or sourced in U.S. dollars and sold internationally in local currencies. The filing estimates that a 1% strengthening of the U.S. dollar would reduce revenue by approximately $4 million and operating income by approximately $2 million, net of hedges.
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Debt and interest exposure
The company reported $474.0 million of Credit Facility borrowings and a $250.0 million Term Loan. Although the Term Loan was effectively fixed at 3.4% plus the applicable credit spread through November 12, 2028, debt and variable-rate exposure remain relevant to liquidity and interest expense.
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Inflation and pricing pressure
Management states that higher costs for labor, commodities, energy, and transportation, together with increased supplier prices, may not be offset by productivity initiatives and price increases. The filing warns that pricing actions could cause declines in sales volume or loss of business.
Management's outlook
Management raised 2026 revenue guidance to $4.741 billion-$4.767 billion from $4.700 billion-$4.745 billion and EPS guidance to $14.96-$15.16 from $14.69-$14.94. However, the operating margin outlook was lowered to 32.1%-32.3% from 32.3%-32.5%.
Earlier filings 4
10-Q · May 5, 2026
IDEXX Laboratories reported strong Q1 2026 performance with revenues of $1.14 billion, exceeding estimates of $1.11 billion, and an EPS of $3.47, surpassing the expected $3.41. The results were mainly driven by a robust…
10-K · February 20, 2026
IDEXX emphasizes a consumables- and software-driven recurring-revenue strategy anchored in its Companion Animal Group (CAG), with recurring diagnostics accounting for a large share of sales. Fiscal 2025 showed top-line…
10-Q · May 1, 2024
IDEXX reported Q1 revenue of $964,095,000 (up $63,900,000 vs Q1 2023) and diluted EPS of $2.81 (up $0.26 vs Q1 2023). Gross profit was $593,070,000 (gross margin 61.5%) and operating income was $298,958,000 (operating…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.