IDEXX Laboratories NASDAQ: IDXX reported second-quarter 2026 revenue growth of approximately 10% on a reported basis and 9% organically, driven by companion animal diagnostics, water and livestock, poultry and dairy businesses. The company raised its full-year revenue and earnings outlook, citing strong recurring diagnostics revenue, product-cost benefits and continued momentum from new product introductions.
Chief Financial Officer Andrew Emerson said second-quarter revenue growth was supported by more than 10% organic growth in companion animal group, or CAG, Diagnostics recurring revenue. The company generated earnings per share of $4.27, up 18% as reported and 15% on a comparable basis.
Diagnostics Growth Outpaces Clinical Visits
CAG Diagnostics recurring revenue rose 10.3% organically in the second quarter, including roughly 4% global net price improvement and a 50-basis-point negative impact from equivalent days. U.S. CAG Diagnostics recurring revenue increased nearly 10%, while international recurring revenue grew nearly 12% organically.
The growth came despite an estimated 1.3% decline in U.S. same-store clinical visits. Emerson said IDEXX achieved an approximately 1,100-basis-point growth premium in U.S. CAG Diagnostics recurring revenue relative to clinical visits.
The company said pressure on wellness visits remained the primary factor constraining overall clinical visits, while non-wellness visits posted modest growth. CEO Mike Erickson said pets ages five and older continued to contribute positive growth in both wellness and non-wellness visits, a trend the company has observed for multiple quarters.
IDEXX emphasized that diagnostic utilization per visit remains a key opportunity. Erickson said only about one in 10 U.S. wellness visits includes blood work, while wellness-testing penetration is lower in most markets outside the U.S.
- IDEXX VetLab consumable revenue increased 14% organically.
- Global Reference Laboratory revenue rose more than 10% organically, led by volume growth, net customer gains and broader test-menu adoption.
- Rapid Assay revenue increased about 1% organically, returning to growth as the impact of customers shifting pancreatic lipase testing to Catalyst instruments eased.
- Veterinary software and diagnostic imaging revenue rose about 12% organically.
inVue Dx and Product Pipeline
IDEXX placed 5,265 premium diagnostic instruments during the quarter, including 1,602 inVue Dx analyzers. The company placed 2,700 inVue Dx instruments during the first half and said it remains on track to meet its full-year target of 5,500 placements. Its premium instrument installed base grew 11% year over year, according to Erickson.
The company said inVue Dx consumable revenue remains within its previously discussed range of approximately $3,500 to $5,500 per instrument. Erickson said the controlled launch of fine needle aspirate, or FNA, testing is progressing as expected, with a broader customer rollout underway in the third quarter and planned broad availability by year-end.
FNA testing on inVue Dx is intended to help veterinarians evaluate masses, including for mast cell tumors, during a patient visit. Erickson said IDEXX is seeing early indications that the platform’s slide-free workflow, real-time results and pricing are associated with more masses being evaluated.
IDEXX Cancer Dx surpassed 10,000 global clinics ordering the test since launch and is now available in North America, Europe and Australia. About 70% of Cancer Dx tests are run as part of broader blood-work panels, while more than 20% of orders globally come from practices using a competing laboratory, the company said.
In late September, IDEXX plans to expand Cancer Dx into a panel with mast cell tumor detection at no increase in customer pricing. The company said the expanded panel will remain approximately $15 when performed as part of a laboratory profile.
Other additions included the integration of IDEXX SDMA into common Catalyst chemistry profiles for North American customers and the addition of Taeniid tapeworm detection to the Fecal Dx antigen platform for U.S. and Canadian customers.
Margins, Cash Flow and Capital Allocation
Reported operating margin was 35% in the second quarter. Comparable operating profit increased 12%, while comparable operating margin expanded 110 basis points. Gross margin was 64%, up approximately 120 basis points on a comparable basis, supported by recurring-revenue growth, operational productivity, business mix and favorable product costs.
Emerson said pricing benefits offset inflationary pressures, which eased more than the company expected during the quarter. IDEXX plans to continue increasing operating expenses through the rest of the year to support commercial expansion, research and development, information technology and other growth initiatives.
Free cash flow totaled $323 million in the quarter and $557 million for the first half. IDEXX repurchased $332 million of shares during the quarter and $693 million year to date, contributing to an approximately 2% year-over-year reduction in diluted shares outstanding during the second quarter.
Raised 2026 Outlook
IDEXX raised its 2026 revenue outlook to $4.70 billion to $4.745 billion. The midpoint reflects a $20 million operational improvement from its prior outlook, partly offset by a $15 million foreign-exchange headwind.
The company now expects overall organic revenue growth of 8.5% to 9.7% and CAG Diagnostics recurring revenue growth of 9.5% to 10.7%. It expects global net price realization to contribute approximately 4% to CAG Diagnostics recurring revenue growth for the year and anticipates U.S. clinical visits will decline about 1.5% in the second half.
IDEXX increased its full-year EPS outlook to $14.69 to $14.94, representing comparable EPS growth of 13% to 15%. It also raised its free-cash-flow conversion expectation to 90% to 100% of net income, with capital spending expected to remain around $180 million.
For the third quarter, the company expects organic revenue growth in line with its implied second-half range, reported operating margin of 32.5% to 32.8%, and comparable operating-margin expansion of 20 to 50 basis points.
About IDEXX Laboratories (NASDAQ:IDXX)
IDEXX Laboratories, Inc NASDAQ: IDXX is a global developer, manufacturer and provider of diagnostic products and services primarily for the animal health, water testing and food safety markets. Headquartered in Westbrook, Maine, the company supplies in-clinic diagnostic instruments, consumables, reference laboratory testing and practice-management tools that support veterinarians, livestock and dairy producers, and utilities and food producers worldwide.
IDEXX's product portfolio includes point-of-care tests and immunoassays designed for rapid diagnosis in veterinary clinics, in-clinic chemistry and hematology analyzers, automated urinalysis systems, and digital diagnostic solutions.
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