IDEXX Laboratories (IDXX) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $1.141 billion, up 14% year-over-year (14.3% in some reports), with 11% organic growth, driven by strong execution in companion animal diagnostics, premium instrument placements, and innovation adoption.

• EPS rose to $3.47, up 17% as reported and 15% on a comparable basis, with operating margin expansion and positive currency impacts.

• CAG Diagnostics recurring revenues grew 14% reported and 11% organically, with robust gains in both U.S. (11%) and international markets (up to 21%).

• Premium instrument placements rose 28% organically, with notable growth in Catalyst and Premium Hematology systems and a 12% increase in the premium instrument install base.

• Customer retention remains in the high nineties, reflecting strong loyalty and integration of diagnostics into care protocols.

Financial highlights

• Gross profit rose 16% as reported to $722.7 million, with gross margin at 63.4%, up 90–100 basis points year-over-year.

• Operating profit grew 15% on a comparable basis to $362.6 million, with operating margin at 31.8%–32%.

• Free cash flow was $234 million in Q1, with a 99% net income to free cash flow conversion rate on a trailing 12-month basis.

• Diluted shares outstanding reduced by 2.1% year-over-year through share repurchases, with $351–$361 million allocated in Q1.

• Effective tax rate was approximately 21.4%–21.7%.

Outlook and guidance

• Full-year 2026 revenue outlook raised to $4.675–$4.76 billion, reflecting 8.6%–10.6% reported growth and 7.7%–9.7% organic growth.

• Full-year EPS guidance increased to $14.45–$14.90, up $0.13 at midpoint, reflecting 11%–15% comparable EPS growth.

• Operating margin outlook updated to 32.1%–32.5% for 2026, with 50–90 basis points improvement.

• CAG Diagnostics recurring revenue organic growth expected at 8.7%–10.7%.

• Capital expenditures for 2026 are estimated at $180 million.