IDXX Q2 Earnings & Revenues Beat, '26 EPS View Up, Stock Up in Pre-Market

IDEXX Laboratories, Inc. IDXX reported second-quarter 2026 earnings of $4.27 per share, up 18% year over year. The figure surpassed the Zacks Consensus Estimate by 8.1%. 

Comparable constant-currency EPS of $4.07 improved 15% year over year.

IDXX’s Q2 Revenues 

Revenues rose 10% to $1.22 billion and topped the Zacks Consensus Estimate by 1.3%. Results benefited from volume-driven Companion Animal Group (“CAG”) Diagnostics recurring revenues, increased diagnostic utilization and continued adoption of IDEXX’s innovations. CAG Diagnostics recurring revenues advanced 11% as reported and 10% organically. 

Following the earnings announcement, IDXX shares gained 3.5% in the pre-market trading today.

IDXX's CAG Arm Drives Growth

CAG revenues increased 9.4% year over year to $1.12 billion. Organic growth was 8.7%. International CAG revenues climbed 13.4% as reported and 11.5% organically, while U.S. revenues advanced 7.4%.

IDEXX VetLab consumables revenues increased 14.7% to $430.3 million, with organic growth of 13.6%. Performance was supported by higher testing utilization, recent product launches, net new customer gains and an 11% expansion of the global premium instrument installed base.

Reference laboratory diagnostic and consulting services revenues rose 10.6% to $406.7 million. Organic growth was 10.3%, driven by higher testing volumes and customer additions. Rapid assay product revenues increased 1.3% to $101.6 million.

IDEXX's Water and LPD Segments Post Gains

Water revenues advanced 15% year over year to $58.6 million and increased 13% organically. This growth reflected solid performances in the United States and Europe. 

Livestock, Poultry and Dairy revenues increased 11% to $35.2 million, with organic growth of 9%. Strength in the Americas supported the improvement. 

IDXX's Margins Expand on Recurring Volume Growth

Gross profit increased 12% to $779.1 million. Gross margin expanded 140 basis points to 64%, supported by recurring revenue volume gains, operational productivity initiatives and net price realization.

Operating expenses rose 10% to $353.5 million as IDEXX invested in commercial capabilities, innovation and information technology. Operating profit climbed 14% to $425.6 million, while operating margin expanded 140 basis points to 35%. 

IDEXX’s Financial Position

IDEXX exited the second quarter of 2026 with cash and cash equivalents of $196.9 million compared with $200.5 million at the end of first quarter. 

Cumulative net cash provided by operating activities was $613.4 million compared with $423.7 million in the prior-year period.

IDEXX Laboratories, Inc. Price, Consensus and EPS Surprise

IDEXX Laboratories, Inc. price-consensus-eps-surprise-chart | IDEXX Laboratories, Inc. Quote

IDEXX Updates Its 2026 Financial Outlook

IDEXX has updated its 2026 revenue guidance to $4.70-$4.75 billion from $4.68-$4.76 billion. The midpoint increased by $5 million despite a projected $15-million headwind from updated foreign exchange assumptions.

The company now expects reported revenue growth of 9.1-10.3% and organic growth of 8.5-9.7%. The Zacks Consensus Estimate is currently pegged at $4.72 billion, indicating 9.6% year-over-year growth.

IDEXX raised its 2026 earnings outlook to $14.69-$14.94 per share from $14.45-$14.90. The Zacks Consensus Estimate is currently pegged at $14.68.

Our View on IDEXX

IDEXX exited the second quarter of 2026 with both revenues and earnings beating estimates. The second-quarter results reflect the strength of the company’s Technology for Life strategy, with continued innovation across its Catalyst, Fecal Dx and IDEXX inVue Dx platforms supporting deeper customer adoption and higher diagnostic utilization. Given the encouraging results, the company raised its 2026 EPS guidance. 

Also, the expansion of both margins in the quarter is encouraging.

IDEXX’s Zacks Rank & Key Picks

IDXX currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Quest Diagnostics DGX and Medpace MEDP.

Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.80, which surpassed the Zacks Consensus Estimate by 12.9%. Revenues of $2.89 billion beat the Zacks Consensus Estimate by 3.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ISRG has an earnings yield of 3.1% compared to the industry’s negative 3% yield. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 16.53%.

Quest Diagnostics, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $3.12, exceeding the Zacks Consensus Estimate by 11%. Revenues of $3.04 billion topped the Zacks Consensus Estimate by 2.1%.

DGX has an earnings yield of 4.7%, almost in line with the industry’s yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.77%.

Medpace, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $4.25, exceeding the Zacks Consensus Estimate by 4.17%. Revenues of $707.3 million outperformed the consensus mark by 1.12%.

MEDP has a historical five-year earnings growth rate of 30.5% compared with the industry’s 5.6% growth. In the trailing four quarters, the company delivered an average earnings beat of 10.16%.

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