IDEXX raises 2026 revenue outlook to $4.767 billion after 10% quarterly growth
Key Facts
IDEXX raised its fiscal 2026 revenue outlook after third-quarter revenue reached $1.214 billion, up 10% on both a reported and organic basis, according to the company. It set a new annual revenue range of $4.741 billion to $4.767 billion, an increase of $32 million at the midpoint versus its prior guidance. It also raised its organic revenue growth outlook to 9.3%–10.0%, an increase of 0.6 percentage points at the midpoint. The company said diluted earnings per share were $4.01, up 18% on a reported basis and 22% on a comparable basis. The 22% figure refers to earnings-per-share growth, while Investing.com reported that the stock rose to $646 in premarket trading on November 2, not a 22% price gain.
Quarterly revenue exceeded analysts’ estimate of $1.19 billion, according to Investing.com, which reported adjusted earnings per share of $3.96, versus consensus of $3.72. That represents a $0.24-per-share beat against the adjusted measure cited in the report. The company’s official statement reported diluted earnings per share of $4.01, a different figure from the adjusted earnings measure in the news report. Revenue in the year-earlier period was $1.105 billion, according to the statement, while the coverage cited $1.11 billion. The stock closed at $551.21 on October 30, according to EL7 data, before the reaction reported in premarket trading on November 2.
Recurring diagnostics for the companion animal group drove a major part of business growth, with revenue up 11% on both a reported and organic basis in the quarter. International regions posted reported growth of 13% and organic growth of 14%, while the United States recorded reported and organic growth of 10%. The company said same-clinic testing volumes, innovation, customer acquisition and expansion of its premium instrument installed base supported recurring diagnostics growth. It placed more than 1,900 inVue Dx instruments during the quarter, bringing the total installed base close to 11,000. VetLab consumables revenue also rose 14% on a reported basis and 15% organically, while reference laboratory and consulting services revenue grew 10% on both bases.
Growth extended to other activities, with revenue from software and services and diagnostic imaging systems rising 11% on a reported basis and 10% organically. Water revenue increased 8%, while revenue from livestock, poultry and dairy activities rose 3%, according to the company. In the quarter, gross margin was 62.9%, up 110 basis points on a reported basis and 90 basis points on a comparable basis. Operating margin reached 33.1%, up 100 basis points on a reported basis and 60 basis points on a comparable basis. Chief Executive Mike Erickson said the results reflected strong commercial execution and momentum from an innovation-led growth strategy, adding that the company’s innovations help clinics detect disease earlier and operate more efficiently.
The company also raised its 2026 earnings-per-share outlook to $14.96–$15.16, an increase of $0.25 at the midpoint versus its prior guidance. When it reported second-quarter results, it had set a prior revenue range of $4.700 billion to $4.745 billion and an earnings-per-share range of $14.69 to $14.94. In contrast, IDEXX lowered its projected reported operating margin range for the year to 32.1%–32.3%, with estimated annual expansion of 50 to 70 basis points. A call to discuss third-quarter results and management’s outlook was scheduled for November 2 at 8:30 a.m. Eastern time. The company said an archived recording of the call would be available after 1 p.m. Eastern time.