IDEXX Laboratories (IDXX) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $1.22 billion, up 10% as reported and 9% organic, driven by strong CAG Diagnostics recurring revenue growth and robust international and water/LPD business performance.

• Diluted EPS was $4.27, up 18% year-over-year, with net income of $338.4 million and operating margin up 140 basis points to 35%.

• Premium instrument placements reached over 1,600 inVue Dx analyzers in Q2, with the installed base surpassing 9,000 units.

• Continued innovation and product launches, including expanded Catalyst menu, Fecal Dx, and Cancer Dx panel, drove utilization and customer adoption.

• Gross margin improved to 64.0%, reflecting favorable product mix and operational efficiencies.

Financial highlights

• CAG Diagnostics recurring revenue grew 11% as reported and 10% organic; VetLab consumables up 14% organic; Reference Lab revenues up over 10%.

• Water segment revenue increased 15% as reported and 13% organic; LPD revenue rose 11% as reported and 9% organic.

• Free cash flow for Q2 was $323 million, with $557 million for the first half and a conversion rate of 90%+ of net income.

• Operating profit grew 14% year-over-year; operating margin was 35%.

• Diluted shares outstanding reduced by 2% year-over-year due to share repurchases.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $4.7–$4.745 billion, with reported growth of 9.1%–10.3% and organic growth of 8.5%–9.7%.

• EPS outlook increased to $14.69–$14.94, up $0.14 at midpoint, with 12%–15% comparable EPS growth.

• Operating margin outlook for 2026 raised to 32.3%–32.5%, with 70–90 bps expansion.

• Free cash flow conversion outlook raised to 90%–100% of net income for the year.

• Capital expenditures for 2026 estimated at $180 million.