IDEXX Raises 2026 Revenue Guidance After CAG Recurring Growth

The Tip Desk · November 2, 2026 · 3 min read

Third-quarter revenue was $1,214 million, up 10% as reported and organic, and the company lifted its 2026 revenue midpoint $32 million to $4,741 million–$4,767 million.

IDEXX Laboratories (IDXX), a global leader in pet healthcare innovation, reported third-quarter revenue of $1,214 million, up 10% as reported and organic, and raised its 2026 revenue outlook by $32 million at the midpoint to $4,741 million–$4,767 million, citing strong Companion Animal Group Diagnostics recurring revenue.

The pet-healthcare company said the higher full-year range now implies reported growth of 10.1%–10.8% and organic growth of 9.3%–10.0%, up from 9.1%–10.3% and 8.5%–9.7%. The update includes $5 million related to the recent CoVet acquisition.

Third-quarter earnings were $4.01 a share, an increase of 18% as reported and 22% on a comparable basis. The company said EPS included a $0.03 a share benefit from a non-operating gain on an equity investment, $0.01 a share in tax benefits from share-based compensation, and $0.04 a share from year-over-year currency changes, while absorbing acquisition impacts.

CAG Diagnostics recurring revenue grew 11% as reported and organic, matching the second quarter’s 11% reported rate. International regions contributed 13% reported and 14% organic growth; the U.S. grew 10% as reported and organic. The company said strong same-store volume, innovation benefits, net customer gains and premium-instrument installed-base expansion drove the double-digit recurring result.

IDEXX VetLab consumables revenue grew 14% reported and 15% organic, with an 11% expansion of the global premium instrument installed base, utilization gains from recent launches and net price gains. Reference laboratory diagnostic and consulting services grew 10% as reported and organic. Rapid assay products rose 1% as reported and organic, with net price benefits offsetting lower testing volumes. CAG Diagnostics capital instrument revenues were flat as reported and organic after a 19% reported and 20% organic decline in the second quarter, with benefits from more than 1,900 IDEXX inVue Dx placements that lifted the installed base to nearly 11,000 instruments.

Water revenue grew 8% as reported and organic, and Livestock, Poultry and Dairy revenue increased 3% as reported and organic. Veterinary software, services and diagnostic imaging systems grew 11% reported and 10% organic, with a strong quarter of imaging installations led by ImageVue DR50 Plus.

Gross margin was 62.9%, up 110 basis points as reported and 90 basis points on a comparable basis, which the company attributed to recurring revenue volume gains, operational productivity and net price realization. Operating margin was 33.1%, higher than the year-ago period by 100 basis points as reported and 60 basis points on a comparable basis, versus a 140 basis point reported and 110 basis point comparable year-over-year increase in the second quarter. Operating expenses rose 10% as reported and 11% on a comparable basis, which the company said supported commercial expansion and the innovation agenda while absorbing acquisition impacts, including transaction-related costs.

The company raised its 2026 EPS outlook to $14.96–$15.16, a $0.25 increase at the midpoint from the prior $14.69–$14.94 range, reflecting a raised revenue outlook while supporting acquisition impacts. It lowered its full-year reported operating margin outlook to 32.1%–32.3% from 32.3%–32.5%, bringing projected full-year operating margin expansion to 50–70 basis points as reported and on a comparable basis, from 70–90 basis points.

President and Chief Executive Officer Mike Erickson said IDEXX delivered exceptional third-quarter results reflecting commercial execution and momentum from an innovation-driven growth strategy, citing IDEXX inVue Dx with FNA, IDEXX Cancer Dx becoming a multi-cancer panel, and the CoVet acquisition of an AI clinical assistant.