IDEXX Laboratories Inc. (NASDAQ:IDXX) shares rose nearly 4% in pre-market trading after the veterinary diagnostics company reported second-quarter 2026 results that exceeded Wall Street expectations and increased its full-year earnings guidance.
The company delivered stronger-than-expected profit and revenue growth, while also lifting its outlook for adjusted earnings per share for the remainder of the year.
Earnings and Revenue Top Market Forecasts
IDEXX reported adjusted earnings of $4.27 per share for the second quarter, outperforming the analyst consensus estimate of $3.96 by $0.31.
Revenue reached $1.22 billion, ahead of market expectations of approximately $1.20 billion and representing a 10% increase from $1.11 billion in the same quarter last year.
Following the results, the company’s shares gained 3.73% in pre-market trading.
Company Raises Full-Year EPS Guidance
Management increased its full-year 2026 adjusted earnings per share forecast to a range of $14.69 to $14.94.
The midpoint of the updated guidance, $14.82 per share, is above the current analyst consensus estimate of $14.66, reflecting confidence in the company’s continued operating performance.
IDEXX also narrowed its full-year revenue guidance to between $4.70 billion and $4.75 billion. The midpoint of $4.73 billion is slightly ahead of analysts’ expectations of approximately $4.71 billion.
Innovation Continues to Drive Growth
President and Chief Executive Officer Mike Erickson said the company’s technology strategy continued to support customer adoption and stronger diagnostic demand.
“Our second quarter results reflect the strength of our Technology for Life strategy, with continued innovation across our Catalyst, Fecal Dx, and IDEXX inVue Dx platforms supporting deeper customer adoption and higher diagnostic utilization,” he said.
Companion Animal Business Delivers Strong Performance
Recurring revenue from the Companion Animal Group Diagnostics business increased 11% on a reported basis and 10% organically, supported by higher testing volumes and continued expansion of the company’s premium diagnostic instrument installed base.
The installed base of IDEXX inVue Dx systems exceeded 9,000 units after more than 1,600 new placements during the quarter.
Operating margin improved by 140 basis points to 35.0%, while comparable operating margin increased by 110 basis points, highlighting continued operational efficiency.
Outlook Remains Positive
Looking ahead, IDEXX expects Companion Animal Group Diagnostics recurring revenue to grow between 10.1% and 11.3% on a reported basis during 2026, with organic growth projected at between 8.5% and 9.7%.
The updated guidance and continued momentum across its diagnostics business reinforced investor confidence in the company’s long-term growth prospects.
IDEXX Laboratories stock price
