IDEXX Revenue Rises 10% in Third Quarter to $1.214 Billion
Key Facts
IDEXX Laboratories reported revenue of $1.214 billion in the third quarter on Nov. 2, 2026, up 10% on both a reported and organic basis from the same period a year earlier, according to the company’s official filing. Net income attributable to shareholders was $317.145 million, compared with $274.610 million in the third quarter of 2025. The company attributed double-digit organic revenue growth to strong expansion in testing volumes, supported by innovation and commercial execution. Chief Executive Mike Erickson said the results reflect “strong commercial execution and momentum in our innovation-driven growth strategy.” The results put recurring demand for pet diagnostics at the center of the company’s performance, with recurring revenue growing faster than total revenue.
Recurring pet diagnostics revenue increased 11% on both a reported and organic basis during the quarter. In the United States, this revenue grew 10% on both measures, while growth in international markets was 13% reported and 14% organic. The company said testing volume was a key performance driver, alongside its innovation and commercial execution. The regional differences show faster organic growth internationally than in the U.S. market, while reported growth overseas remained below organic growth. This reflects variation in regional expansion rates within the recurring diagnostics business, according to the measures reported by the company.
By product and service, VetLab consumables revenue rose 14% reported and 15% organic, while reference laboratory and diagnostic consulting services revenue increased 10% on both bases. Rapid assay product revenue, by contrast, rose just 1%, both reported and organic. The company also installed more than 1,900 inVue Dx instruments during the quarter, bringing its installed base to nearly 11,000 instruments. The expansion of the installed base gives the company a broader presence at testing sites, alongside increased sales of consumables and services tied to diagnostics. But rapid assay growth was clearly slower than the performance of consumables and reference laboratories.
Diluted earnings per share were $4.01 in the third quarter, up 18% on a reported basis and 22% on a comparable basis from the same period in 2025. The company said the figure included $0.03 per share from a non-operating gain on an equity investment, $0.01 from tax benefits related to share-based compensation, and $0.04 from year-over-year currency movements. Operating margin was 33.1%, up 100 basis points reported and 60 basis points on a comparable basis. The gap between reported and comparable earnings growth points to the importance of the items detailed by the company when assessing the per-share result. The quarter’s margin improvement also shows that operating profitability expanded from the year-earlier period, though by less on an adjusted comparable basis.
IDEXX raised its 2026 revenue range to $4.741–$4.767 billion, an increase of $32 million at the midpoint from its previous forecast. It also increased its organic revenue growth outlook to 9.3%–10.0%, up 0.6 percentage points at the midpoint. The company raised its annual earnings-per-share range to $14.96–$15.16, an increase of $0.25 at the midpoint, with reported growth expected between 14% and 16%. The revisions reflect improved revenue and earnings expectations for the year following the third-quarter performance. The company thus maintains specific ranges for annual growth rather than issuing a single forecast figure.
But the outlook update did not move all metrics in the same direction: the company lowered its expected reported operating margin range for 2026 to 32.1%–32.3%, from 32.3%–32.5% previously. It now expects annual margin expansion of between 50 and 70 basis points. The lower annual range comes despite the third-quarter operating margin rising to 33.1%, highlighting the different time horizons represented by quarterly performance and the full-year outlook. The company said expected earnings-per-share growth is 15% reported and 16% on a comparable basis, while the revised margin range points to a narrower outlook for operating profitability. Markets are expected to follow the company’s results and subsequent regular updates, while the filing did not specify a date for the next one.