IDEXX Laboratories, Inc. reported financial results for the quarter ended September 30, 2026, and announced updated guidance for the full year. The company reported third-quarter revenue of $1.214 billion, representing a 10% increase as reported and on an organic basis. This growth was driven by the Companion Animal Group (CAG), which saw 10% reported and organic revenue growth.
For the third quarter, earnings per diluted share (EPS) were $4.01, an increase of 18% as reported and 22% on a comparable basis. The EPS growth was supported by a non-operating gain on an equity investment of $0.03 per share, tax benefits from share-based compensation of $0.01 per share, and favorable year-over-year currency changes of $0.04 per share, partially offset by acquisition impacts.
On the operational front, gross margin for the quarter was 62.9%, an increase of 110 basis points as reported and 90 basis points on a comparable basis. Operating margin was 33.1%, higher than the prior year period by 100 basis points as reported and 60 basis points on a comparable basis.
IDEXX has updated its full-year 2026 revenue guidance to $4.741 billion - $4.767 million, or reported growth of 10.1% - 10.8%. This range is an increase of $32 million at the midpoint compared to the previous outlook. The company also raised its organic revenue growth outlook to 9.3% - 10.0%. The EPS outlook for 2026 has been increased to $14.96 - $15.16, a $0.25 increase compared to the prior guidance midpoint, reflecting the raised revenue outlook.
Regarding specific business segments, CAG Diagnostics recurring revenue growth is projected to be 11.0% - 11.7% as reported and 10.3% - 11.0% organically. The company also noted the placement of over 1,900 IDEXX inVue Dx analyzers during the quarter, bringing the installed base to nearly 11,000 instruments.
