IDEXX Revenue Rises 10% to $1.214 Billion in Third Quarter of 2026
Key Facts
IDEXX Laboratories reported revenue of $1.214 billion in the third quarter of 2026, up 10% on both a reported and organic basis, while diluted earnings per share reached $4.01, up 18% as reported and 22% on a comparable basis. Results showed growth in recurring diagnostic activity, the company’s core business driver, alongside improved quarterly margins. In its filing, the company said double-digit organic revenue growth was driven by strong volume expansion, with contributions from its innovations and commercial execution. It also raised its fiscal 2026 revenue and earnings per share estimates. The outlook update came with a lower expected annual operating margin range, highlighting the balance between sales growth and investment costs.
In the companion animal diagnostics group, recurring revenue grew 11% on both a reported and organic basis during the quarter. The results provide a geographic breakdown of that growth: international revenue rose 13% as reported and 14% organically, compared with 10% growth in the United States on both bases. VetLab instrument consumables grew 14% as reported and 15% organically, while the global installed base of premium instruments expanded 11%. Revenue from reference laboratory diagnostic and consulting services grew 10% on both a reported and organic basis. These figures put recurring activity—from consumables and services to instruments used in clinics—at the center of the group’s performance.
Growth also extended to other company businesses, though at varying rates. Revenue from veterinary software, services and imaging systems grew 11% as reported and 10% organically, while the water business rose 8% on both bases. The livestock, poultry and dairy business grew 3% as reported and organically. The company said volume expansion, innovation benefits and commercial execution supported double-digit organic sales growth. Chief Executive Mike Erickson said the results reflected "strong commercial execution and momentum from an innovation-led growth strategy."
Quarterly profitability improved alongside revenue growth. Gross margin was 62.9%, up 110 basis points as reported and 90 basis points on a comparable basis from the third quarter of 2025. IDEXX attributed the improvement to growth in recurring revenue volumes, operational productivity initiatives and pricing realization. Operating margin was 33.1%, up 100 basis points as reported and 60 basis points on a comparable basis from the year-earlier period. Meanwhile, operating expenses rose 10% as reported, funding commercial expansion and innovation and absorbing acquisition costs. The comparison shows quarterly margins improved as the company increased operating spending.
The company raised its 2026 revenue range to $4,741–$4,767 million, from a previous range of $4,700–$4,745 million, and increased its organic growth outlook to 9.3%–10.0% from 8.5%–9.7%. It raised its earnings per share outlook to $14.96–$15.16, an increase of $0.25 from the midpoint of its previous guidance; the company said this reflected expected growth of 15% as reported and 16% on a comparable basis. But the annual operating margin range fell to 32.1%–32.3% from 32.3%–32.5%, and the margin expansion estimate declined to 50–70 basis points from 70–90 basis points. The company included $5 million related to the CoVet acquisition in the $32 million increase at the midpoint of its revenue outlook. It said the acquisition adds an AI clinical assistant to support veterinary team productivity and diagnostic utilization, and that the higher revenue outlook was partly in response to recurring diagnostic revenue performance in the companion animal group.
On product development, IDEXX said it placed more than 1,900 inVue Dx instruments during the quarter, bringing the installed base to nearly 11,000 at quarter-end. The company linked its innovations, including inVue Dx and Cancer Dx, to helping clinics detect disease earlier and work more efficiently. The company’s latest available closing share price, according to EL7 data, was $551.21 on October 30, 2026, before the results announcement; this does not represent the stock’s movement after the disclosure. The company scheduled a call to discuss its third-quarter results and outlook for November 2, 2026, at 8:30 a.m. Eastern Time. It also announced an investor and analyst session at the VMX conference in Orlando on January 18, 2027, at 1:00 p.m. Eastern Time, which will highlight its upcoming MultiCue Dx instrument, with a live webcast and slides available through its investor relations website.