Key Highlights

  • IDXX third-quarter 2026 Revenue came in at $1.214 billion, a 9.9% increase from $1.105 billion a year before.
  • Diluted EPS landed at $4.01, compared with $3.40 in the year-earlier quarter, with Net Income of $317.1 million supporting it.
  • The Operating Margin expanded to 33.1% from 32.1%, while gross margin reached 62.9%.
  • Free Cash Flow totaled $421 million for the quarter and $978 million across the first nine months.
  • Full-year 2026 revenue expectations moved up to $4.741 billion through $4.767 billion, a $32 million lift at the midpoint.

Companion Animal Testing Fuels Growth While Clinic Visits Soften

On Nov 2, 2026, IDEXX Laboratories (NASDAQ:IDXX) disclosed third-quarter results covering the three months to Sep 30, 2026. Sales came to $1.214 billion, a 9.9% rise over $1.105 billion, or roughly 10% on an organic basis. Its companion animal unit is the largest segment across diagnostics, software and water testing.

Recurring revenue from CAG Diagnostics climbed 11% on an organic basis to $967.4 million, including close to 14% international growth and roughly 9.6% in the United States. Leadership described the growth as mainly volume-led, including about 4% from net pricing. VetLab consumables brought in $443.2 million, a 15% organic increase, and reference laboratory services generated $399.1 million, up 10% organically.

Estimated same-store clinical visits in the U.S. dropped 1.8%, and management described the distance between that and domestic diagnostics recurring growth as roughly 1,100 basis points. Water sales reached $58.8 million, an 8% organic gain, and livestock, poultry and dairy expanded 3%.

Diluted Earnings Reach $4.01 on a Wider Operating Margin and a Smaller Share Count

Gross profit amounted to $764.3 million, equal to 62.9% of sales against 61.8% a year before. Operating Income increased 13.4%, reaching $402.3 million, which is a 33.1% margin compared with 32.1%. Net income landed at $317.1 million, up from $274.6 million.

Diluted EPS reached $4.01 versus $3.40, roughly 18% higher. That included a $0.03 boost from a $3.5 million non-operating gain on an Equity holding. The weighted diluted count dropped to 79.0 million from 80.7 million.

Through nine months, sales hit $3.572 billion, net income $934.0 million and diluted EPS $11.75, against $9.99 a year earlier.

Instrument Placements and the CoVetAI Purchase Extend Product Reach

Roughly 5,780 premium instruments went out during the quarter, among them over 1,900 InVue Dx analyzers, lifting that installed base to close to 11,000. Fine needle aspirate testing opened to every North American InVue Dx customer as the fourth quarter began. In late September, the CancerDx panel gained detection of canine mast cell tumors at no added charge.

IDEXX completed its purchase of CoVetAI on Sep 15, 2026. The target sells AI-native ambient listening and workflow software for veterinary clinics. The price was about $250 million, with an estimated $20 million tied to contingent payment terms. Management placed the annualized sales pace near $20 million.

In the quarter, free cash flow hit $421 million. The company paid down $75 million of senior notes, ended with $197.5 million of cash on hand, and had $474.0 million outstanding under its Credit facility.

Full-Year 2026 Targets Rise, With the EPS Band Adjusted for CoVet Dilution

For 2026, the company now projects revenue between $4.741 billion and $4.767 billion, a $32 million increase at the center, and diluted EPS between $14.96 and $15.16, which is $0.25 higher at the midpoint. That EPS band absorbs about $0.13 of CoVet dilution, while reported operating margin is forecast at 32.1% to 32.3%. Q4 reported operating margin is expected at 28.4% to 29.3%.