IDEXX Q3 revenue climbs 10% to $1.214 billion as EPS hits $4.01

IDEXX Laboratories (NASDAQ:IDXX) posted third-quarter 2026 revenue of $1.214 billion, up 10% year over year, with diluted EPS at $4.01 — an 18% gain as reported and 22% on a comparable basis. Stronger veterinary diagnostics demand drove both the earnings beat and a raised full-year forecast.

The numbers that matter to practices landed in the Companion Animal Group. CAG revenue rose 10%, and recurring CAG Diagnostics revenue — the reference lab and in-clinic testing that clinics run weekly — grew 11%. The company attributed the growth to higher testing volumes, customer growth, product innovation and increased diagnostic utilization at the point of care.

What changed in the P&L?

Margins moved on three levers: recurring revenue growth, productivity improvements and pricing gains. Gross margin climbed to 62.9%. Operating margin expanded 100 basis points to 33.1%.

Diluted EPS reached $4.01, up 18% as reported. On a comparable basis, which strips out items affecting comparability, EPS rose 22%.

The company then rebalanced its 2026 outlook. It raised its revenue forecast to $4.741 billion–$4.767 billion and lifted adjusted EPS guidance to $14.96–$15.16. It lowered its operating margin outlook to 32.1%–32.3%.

What does the quarter mean at the exam table?

Two operational figures stand out for practitioners. First, IDEXX placed more than 1,900 inVue Dx analyzers during the quarter, pushing the installed base close to 11,000 instruments. That placement pace signals continued uptake of in-clinic cellular diagnostics — and, for clinics, a wider base of peers already running the platform.

Second, the veterinary software business recorded 11% reported revenue growth and now includes the CoVet acquisition. IDEXX acquired CoVetAI, a provider of AI-powered ambient listening and clinical workflow software for veterinary practices worldwide, folding it into the software arm that connects practice management systems with diagnostics.

How the pieces fit together

IDEXX runs four businesses: companion animal diagnostics, veterinary software, water testing, and livestock, poultry and dairy. The recurring diagnostics business forms the major share of revenue, which is why the 11% CAG Diagnostics figure carries more weight than the headline 10% group revenue number. Testing that repeats — CBCs, chemistry panels, fecal antigen screens — compounds in a way one-time instrument sales do not.

The quarter extends a pattern. IDEXX had already raised its 2026 projections after a first quarter marked by robust pet healthcare demand and significant margin expansion in its core diagnostic segments, and its prior fourth quarter beat analyst expectations on double-digit companion animal growth.

The product pipeline also kept moving internationally. On Wednesday, April 1, 2026, IDEXX launched the IDEXX Cancer Dx™ Panel in the United Kingdom, extending canine cancer detection beyond its original market. The company also expanded its Faecal Dx™ antigen testing platform in the UK to detect taeniid tapeworms, including Taenia and Echinococcus species — a parasite group with direct zoonotic relevance, since Echinococcus infection in dogs links to human hydatid disease risk in endemic regions.

Public-health and food-animal angle

The business spans more than companion animals. Water testing and the livestock, poultry and dairy segments round out the portfolio, and the UK Faecal Dx expansion touches a recognized public-health parasite. For food-animal practitioners, IDEXX remains a diagnostics supplier in those channels, though this quarter's growth story centered on companion animal testing.

Market reaction

The market read the results as bullish. The stock triggered a 2 UP signal, trading at a two-month high.

What to watch next

The raised revenue and EPS guidance now sets the bar for the fourth quarter, while the trimmed operating margin outlook of 32.1%–32.3% suggests IDEXX expects some cost pressure even as demand holds. Watch whether analyzer placements above 1,900 per quarter become the norm and whether the CoVet AI workflow tools start showing up in the software segment's growth rate.