IDEXX shares rise 4.9% premarket as Q3 profit tops estimates

IDEXX (IDXX) said on Nov. 2 that adjusted third-quarter earnings were $3.96 per share, topping the $3.81 consensus estimate compiled by Finnhub, while revenue of $1.21 billion was in line with the $1.21 billion consensus estimate compiled by Finnhub.

Shares rose 4.9% premarket as of 7:33 a.m. ET, from a previous regular-session close of $551.21.

The results were for the quarter ended Sept. 30. Revenue rose 10% from a year earlier, both as reported and on an organic basis, the company said in its press release.

GAAP diluted earnings per share were $4.01, up 18% from $3.40 a year earlier. Comparable EPS, which excludes items the company adjusts for, rose 22% to $3.96 from $3.24.

Here's how the company did:

• Revenue: $1.21 billion vs. $1.11 billion a year earlier, in line with the $1.21 billion consensus estimate compiled by Finnhub
• Adjusted EPS: $3.96 vs. $3.24 a year earlier, topping the $3.81 consensus estimate compiled by Finnhub
• GAAP diluted EPS: $4.01 vs. $3.40 a year earlier
• Gross margin: 62.9%, up 110 basis points
• Operating margin: 33.1%, up 100 basis points from 32.1%

President and Chief Executive Officer Mike Erickson said the quarter reflected “exceptional third quarter results, reflecting strong commercial execution and momentum from our innovation-driven growth strategy.”

Erickson pointed to the IDEXX inVue Dx analyzer with FNA and to IDEXX Cancer Dx, which has become a multi-cancer panel. He said the company also advanced its software capabilities with the acquisition of CoVet, an AI clinical assistant that supports veterinary team productivity and diagnostics utilization.

Segment results

The Companion Animal Group, the company’s largest unit by revenue, had net revenue of $1.12 billion, up 10.2% as reported. Within that group, CAG Diagnostics recurring revenue rose 11% as reported and organically, to $967 million.

IDEXX VetLab consumables revenue grew 14% as reported and 15% organically. Reference laboratory diagnostic and consulting services grew 10%. Rapid assay product revenue rose 1%.

CAG Diagnostics capital instrument revenue was flat, although the company said it placed more than 1,900 IDEXX inVue Dx analyzers during the quarter. The installed base of analyzers reached nearly 11,000 instruments.

Water revenue grew 8% as reported and organically, driven by North America. Livestock, Poultry and Dairy revenue rose 3%.

2026 guidance

IDEXX raised its 2026 revenue forecast to $4.74 billion to $4.77 billion, from the $4.70 billion to $4.75 billion range it gave on Aug. 4. The company said the increase reflects strong CAG Diagnostics recurring revenue performance.

Reported revenue growth is now expected at 10.1% to 10.8%, up from 9.1% to 10.3%. Organic growth is projected at 9.3% to 10.0%, up from 8.5% to 9.7%.

The company raised its 2026 EPS outlook to $14.96 to $15.16, from $14.69 to $14.94 in its August guidance. The company said the new range reflects a $0.25 increase compared with the prior midpoint.

IDEXX lowered its 2026 operating margin outlook to 32.1% to 32.3%, from 32.3% to 32.5%. It expects a full-year operating margin expansion of 50 to 70 basis points.

Costs and cash

Operating expenses rose 10% as reported, and the company said that increase supported its commercial capabilities and innovation agenda. Expenses also absorbed acquisition impacts, including transaction-related costs.

Quarterly free cash flow was $421 million, compared with $371 million a year earlier. For the first nine months, the company repurchased $810 million of common stock.

The company will host a conference call on Nov. 2 at 8:30 a.m. ET to discuss the results and its outlook.