10-Q · May 5, 2026
IDEXX Laboratories reported strong Q1 2026 performance with revenues of $1.14 billion, exceeding estimates of $1.11 billion, and an EPS of $3.47, surpassing the expected $3.41. The results were mainly driven by a robust…
Earnings analysis · 10-Q
IDXX earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
IDEXX delivered Q2 revenue of $1.216585 billion, up 9.7% year over year, with diluted EPS of $4.27 and expansion in gross margin to 64.0% and operating margin to 35.0%. Growth was broad-based across CAG, Water, and LPD,…
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IDEXX delivered Q2 revenue of $1.216585 billion, up 9.7% year over year, with diluted EPS of $4.27 and expansion in gross margin to 64.0% and operating margin to 35.0%. Growth was broad-based across CAG, Water, and LPD, led by $96.718 million of CAG Diagnostics recurring-revenue growth, while six-month operating cash flow increased to $613.410 million. The principal offsets are a 19.5% decline in CAG instrument revenue, higher revolver borrowings of $519.0 million, and an expected approximately $13 million FX revenue headwind for the balance of 2026.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.27
What stood out
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Revenue growth accelerated to $1.217 billion
Q2 revenue rose $107.128 million, or 9.7%, year over year to $1.216585 billion. This also represents a sequential increase from $1.14 billion in Q1 2026.
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Margins and EPS improved materially
Gross margin expanded 140 basis points year over year to 64.0%, while operating margin increased 140 basis points to 35.0%. Diluted EPS was $4.27, up from $3.63 in Q2 2025 and $3.47 in Q1 2026.
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Recurring CAG diagnostics led growth
CAG revenue increased $95.793 million, or 9.4%, to $1.118236 billion, driven by CAG Diagnostics recurring revenue growth of $96.718 million, or 11.0%. VetLab consumables grew 14.7% to $430.337 million and reference-lab services grew 10.6% to $406.729 million.
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Water and LPD posted strong profit gains
Water revenue increased 14.8% to $58.564 million and segment operating income increased 22.9% to $30.274 million. LPD revenue grew 10.8% to $35.181 million and moved from a $0.505 million operating loss to $2.411 million of operating income.
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Operating cash flow strengthened
Six-month operating cash flow increased $189.705 million year over year to $613.410 million. Net investing cash outflow was $59.040 million, and management estimates total 2026 capital expenditures of approximately $180.0 million for facilities, operations, and customer-facing software.
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Liquidity remains ample despite borrowing
Cash and equivalents rose to $196.933 million from $180.070 million at year-end, while net debt was $772.067 million and net debt-to-Adjusted EBITDA was 0.46x at June 30, 2026.
What to watch
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CAG instrument revenue declined sharply
CAG Diagnostics capital-instrument revenue fell $11.426 million, or 19.5%, to $47.174 million in Q2, primarily because IDEXX inVue Dx Analyzer placements were lower than during the broad commercial availability in Q2 2025.
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Borrowings increased and working capital fell
Working capital declined to $221.8 million from $265.0 million at December 31, 2025, primarily reflecting higher Credit Facility borrowings. Outstanding Credit Facility borrowings rose to $519.0 million from $398.0 million at year-end.
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Foreign exchange remains a revenue headwind
Management expects FX at current assumptions to reduce revenue by approximately $13 million for the remainder of 2026. It also estimates that a 1% strengthening of the U.S. dollar would reduce revenue by approximately $8 million and operating income by approximately $3 million, net of hedges.
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Near-term debt maturities require funding
The company must repay $75.0 million of 2026 Senior Notes on September 4, 2026 and $75.0 million of 2027 Series B Notes on February 12, 2027; management may use cash, revolver borrowings, new notes, or a combination to fund these repayments.
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No material risk-factor updates disclosed
Item 1A states there were no material changes to risk factors from the 2025 Annual Report. Separately, management expects higher labor, commodity, energy, transportation, and supplier costs, which may not be fully offset through pricing or productivity.
Management's outlook
The 10-Q does not provide a company-wide revenue or EPS guidance range. Its quantitative outlook is limited to foreign exchange: at current assumptions, FX is expected to decrease revenue by approximately $13 million for the remainder of 2026 but increase operating profit by approximately $2 million and diluted EPS by $0.02; hedging is expected to add approximately $7 million of operating profit and $0.07 of EPS.
Earlier filings 4
10-K · February 20, 2026
IDEXX emphasizes a consumables- and software-driven recurring-revenue strategy anchored in its Companion Animal Group (CAG), with recurring diagnostics accounting for a large share of sales. Fiscal 2025 showed top-line…
10-Q · May 1, 2024
IDEXX reported Q1 revenue of $964,095,000 (up $63,900,000 vs Q1 2023) and diluted EPS of $2.81 (up $0.26 vs Q1 2023). Gross profit was $593,070,000 (gross margin 61.5%) and operating income was $298,958,000 (operating…
10-Q · May 2, 2023
IDEXX reported Q1 revenue of $900,195,000, up $63,646,000 (from $836,549,000) versus the prior-year quarter, with diluted EPS rising to $2.55 from $2.27. Gross profit increased to $542,971,000 and income from operations…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.