IDEXX Laboratories (NASDAQ:IDXX) reported third-quarter 2026 results marked by organic revenue growth, higher diagnostic utilization and expanded placement of its premium instruments, while raising its full-year revenue and earnings outlook.
Chief Financial Officer Andrew Emerson said organic revenue increased 10% in the quarter, led by 11% organic growth in companion animal group, or CAG, Diagnostics recurring revenue. International CAG Diagnostics recurring revenue rose 14% organically, while U.S. recurring revenue increased 9.6%.
Third-quarter earnings per share were $4.01, up 18% as reported and 22% on a comparable basis. Reported operating margin was 33.1%, an increase of 100 basis points from a year earlier, while comparable operating margin expanded by about 60 basis points, including costs related to the company’s acquisition of CoVet.
Diagnostics growth outpaces clinic visits
IDEXX said CAG Diagnostics growth was driven by volume, innovation and commercial execution, including approximately 4% global net price improvement. In the U.S., same-store clinical visits declined an estimated 1.8% during the quarter, but IDEXX generated an approximately 1,100-basis-point growth premium over visits in CAG Diagnostics recurring revenue.
Emerson said the company has now produced four consecutive quarters in which its U.S. diagnostics growth premium exceeded 1,000 basis points. He said growth was supported by more frequent and intensive testing per visit, as clinics adopt the company’s broader diagnostic menu.
President and Chief Executive Officer Mike Erickson said the company’s results were not dependent on positive visit growth. He cited diagnostic innovation, sales execution and the aging pet population as factors supporting demand. Emerson added that pets age five and older continue to contribute to clinical visit growth, while puppy and kitten adoption trends have remained more muted.
“The aging pet population is continuing to perform well,” Emerson said, noting that the trend is particularly evident in non-wellness care.
Instrument placements and testing menu expansion
IDEXX placed nearly 5,800 premium instruments in the third quarter, including 1,904 inVue Dx analyzers. The company said it is on track to exceed its annual placement goal of 5,500 inVue Dx instruments and its five-year target of 20,000 placements.
Nearly half of quarterly inVue Dx placements were international, according to Erickson. The company said its installed base of inVue Dx instruments was nearing 11,000 globally. InVue Dx recurring revenue remained within IDEXX’s previously cited annual range of $3,500 to $5,500 per analyzer.
IDEXX expanded the platform’s blood morphology capabilities during the quarter by adding nucleated red blood cells and eccentrocytes. At the start of the fourth quarter, it made fine-needle aspirate, or FNA, testing available to all North American inVue Dx customers. Erickson said early customers using FNA are evaluating roughly twice as many masses.
The company also placed nearly 1,200 Catalyst instruments in competitive and greenfield locations globally, including more than 300 in the U.S. IDEXX VetLab consumable revenue rose 15% organically, supported by the larger premium instrument base and broader menu usage. Catalyst Pancreatic Lipase, Catalyst Cortisol and SDMA testing contributed to utilization growth.
Earlier in October, IDEXX launched Catalyst proBNP in North America, which Erickson described as the first and only dual-species quantitative cardiac test at the point of care. The company also said it will provide more details on its upcoming MultiCue Dx platform at an investor event scheduled for Jan. 18 in Orlando.
Reference lab and cancer testing momentum
Global reference laboratory revenue increased 10% organically in the quarter, driven by net new customers, competitive laboratory wins in the U.S. and increased use of the company’s broader testing menu. Erickson said the company’s reference lab growth reflected long-term investments in laboratory networks, technology and diagnostic offerings.
IDEXX Cancer Dx continued to expand, with more than 14,000 customers having ordered the test since launch. Nearly one-quarter of third-quarter Cancer Dx customers were not primary IDEXX reference laboratory accounts, according to Emerson. The company said 70% of Cancer Dx runs are ordered with a broader blood-work panel.
In late September, IDEXX added canine mast cell tumor detection to Cancer Dx in North America, expanding the offering into a multi-cancer panel without increasing the price. Erickson said hemangiosarcoma detection is expected to be added by year-end, with broad North American customer availability planned for the first quarter. With that addition, Cancer Dx is expected to address approximately 40% of canine cancers, according to the company.
CoVet acquisition and updated outlook
IDEXX acquired CoVet in September, adding an AI-native ambient listening and clinical workflow software provider for veterinary practices. Emerson said CoVet has an annualized revenue run rate of about $20 million and is growing at strong double-digit rates.
The acquisition contributed approximately $5 million to IDEXX’s updated 2026 revenue outlook. CoVet-related costs, integration expenses and amortization are expected to reduce full-year operating margin by about 30 basis points. However, Emerson said IDEXX still expects to expand operating margin over the next 12 months in line with its longer-term objective of 50 to 100 basis points of annual improvement.
IDEXX raised its full-year revenue outlook to $4.741 billion to $4.767 billion, representing a $32 million increase at the midpoint. The company now expects overall organic revenue growth of 9.3% to 10% and CAG Diagnostics recurring revenue growth of 10.3% to 11%.
The company increased its full-year EPS outlook to $14.96 to $15.16, up $0.25 at the midpoint. The forecast includes expected comparable EPS growth of 15% to 16%, while absorbing approximately $0.13 per share of dilution related to CoVet.
Free cash flow was $421 million in the third quarter and $978 million year to date. IDEXX repaid $75 million of senior notes during the quarter and deployed approximately $335 million toward the CoVet acquisition and share repurchases. Year-to-date share repurchases reached $805 million, contributing to a 2% year-over-year reduction in diluted shares outstanding.
About IDEXX Laboratories (NASDAQ:IDXX)
IDEXX Laboratories, Inc (NASDAQ: IDXX) develops and provides diagnostic, information technology, and related products and services for the animal health and water testing markets. The company primarily serves veterinary practices, helping them diagnose and monitor diseases through laboratory tests, in-clinic analyzers, software, and digital practice-management solutions.
IDEXX’s companion animal offerings include hematology, chemistry, urinalysis, immunodiagnostics, and imaging-related products, along with reference laboratory services and veterinary software.
