IDEXX Revenue Rises 10% to $1.214 Billion in Third Quarter
Key Facts
IDEXX Laboratories reported revenue of $1.214 billion in the third quarter of 2026, up 10% year over year, while diluted EPS rose 18% to $4.01, according to the company's results. The company raised its 2026 revenue and EPS outlook ranges, citing strength in recurring revenue at CAG Diagnostics. That revenue grew 11% during the quarter, outpacing overall revenue growth. Organic growth was 14% in international markets and 10% in the United States. The company said growth came from higher test volume at existing clinics, along with innovation, customer acquisition and expansion of the premium installed base.
IDEXX attributed growth in recurring CAG Diagnostics revenue to several operating factors during the quarter. These included strong same-clinic test volume growth, benefits from innovation, net customer acquisition and a broader premium installed base. The company said these factors drove recurring diagnostic revenue growth into the double digits. The figures show a regional gap, with organic growth of 14% internationally versus 10% in the United States. The company also recorded overall revenue growth of 10% year over year, putting recurring diagnostics performance above the pace of total sales.
IDEXX's operating margin was 33.1% in the third quarter, up 100 basis points from the same period a year earlier, the company said. The company placed more than 1,900 inVue Dx instruments during the quarter. Those additions brought the installed base to nearly 11,000 instruments by period-end. The base expansion was among the factors the company said supported recurring diagnostic revenue, alongside test volume growth, innovation and customer acquisition. Diluted EPS also rose to $4.01, up 18% year over year, alongside 10% revenue growth.
In the hotel sector, Choice Hotels raised its 2026 RevPAR and Adjusted EBITDA outlook, but lowered its forecasts for net income and core EPS, according to a correction to the results information. This reflects a more positive operating outlook that does not extend to all earnings measures. In the second quarter, the company had reported Adjusted EBITDA of about $175 million, up 6% year over year, while U.S. RevPAR rose 1.3%. Choice had then raised some of its full-year outlook ranges, according to its earlier results. The new update follows that earlier increase, with the operating outlook diverging from estimates for net income and core EPS.
The available results for the two companies reflect different paths in updating their full-year outlooks. IDEXX widened its revenue and EPS outlook ranges after revenue and earnings growth in the third quarter, while Choice's revision combined higher operating-metric forecasts with lower estimates for net income and core EPS. At IDEXX, recurring CAG Diagnostics activity grew 11%, with faster organic growth in international markets than in the United States. Operating margin also rose, and the inVue Dx installed base expanded during the period. At Choice, second-quarter growth in Adjusted EBITDA and RevPAR was the basis for raising some of its earlier outlook ranges, before the latest revision.
Choice Hotels shares closed at $111.16, and IDEXX shares at $551.21 on October 30, 2026, according to EL7 data. Both closing prices preceded the results announcement published on November 2 and therefore do not reflect market moves after its release. IDEXX was scheduled to hold a call with analysts at 8:30 a.m. Eastern Time on November 2 to discuss the results. The company offered a live webcast of the call, a recording and third-quarter results summary materials on its website. The call was part of the company's program for discussing period results with analysts on the day of the announcement.