IDEXX Revenue Reaches $1.214 Billion, Up 10% Organically in Third Quarter
Key Facts
IDEXX Laboratories reported revenue of $1.214 billion in the third quarter of 2026, up 9.9% on a reported basis and 10.0% organically from the year-earlier period, according to the company’s results. Diluted earnings per share were $4.01, up 18% as reported and 22% on a comparable basis. The company raised its full-year revenue and earnings-per-share outlook, while lowering its forecast for reported operating margin. Results were supported by growth in recurring diagnostic revenue, which accelerated in international markets compared with the United States. Chief Executive Mike Erickson said the company’s innovations are helping clinics detect disease earlier and operate more efficiently.
Recurring revenue in the CAG Diagnostics segment grew 11% organically during the quarter. Organic growth was 14% in international markets, compared with 10% in the United States, according to the company’s statement. IDEXX attributed the performance to higher test volume at existing clinics, benefits from innovation, net customer acquisition and expansion of its premium instrument base. These drivers combine increased use of diagnostic services within clinics with a broader customer and instrument base that supports recurring demand. Erickson noted that innovations such as inVue Dx with FNA and the conversion of Cancer Dx to a multi-cancer panel help clinics detect diseases earlier and improve efficiency.
In instrument-related products, the company installed more than 1,900 inVue Dx instruments during the quarter, while CAG capital instrument revenue remained stable on both a reported and organic basis. IDEXX said VetLab consumables revenue rose 14% as reported and 15% organically. The company linked consumables growth to net acquisition of new customers, alongside an 11% expansion in its global premium instrument base. The divergence shows that growth in recurring revenue was not accompanied by an increase in capital instrument sales during the period. It also reflects the role of a broader instrument base in supporting sales of consumables and services used by clinics.
Revenue from diagnostic and consulting reference laboratory services grew 10% on both a reported and organic basis. The company said growth came from higher test volume, new customer acquisition and realized pricing. Water segment revenue also rose 8% on both a reported and organic basis, driven by growth in North America. These results add sources of growth beyond the core recurring diagnostics business, with laboratory services continuing to benefit from testing, customers and pricing. Water growth came amid the specific geographic performance cited by the company in its statement.
Operating margin was 33.1% in the third quarter, up 100 basis points from the year-earlier period as reported and 60 basis points on a comparable basis. However, the company lowered its forecast for reported operating margin to a range of 32.1%–32.3% for 2026. The revised outlook still includes expected annual margin expansion of between 50 and 70 basis points. The guidance update therefore combined higher revenue and earnings-per-share forecasts with a lower full-year reported margin range. The adjustment follows the quarterly margin increase reported by the company in its results.
IDEXX was scheduled to hold a call with analysts on November 2, 2026, at 8:30 a.m. Eastern Time to discuss its third-quarter results. The company’s shares closed at $551.21 on October 30, ahead of the scheduled announcement and call. The quarterly results showed total revenue growth of 10.0% organically, while recurring diagnostic revenue grew 11% organically. The gap between markets stood out, with international growth of 14% compared with 10% in the United States. Results also included an increase in reported earnings per share and a quarterly improvement in operating margin, alongside a revision to the annual margin outlook.