IDEXX Laboratories (IDXX) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $1,214.2M, up 9.9% reported and 10.0% organically; CAG Diagnostics recurring revenue grew 11% organically.

• Diluted EPS was $4.01, up 18% reported and 22% comparable; operating margin was 33.1%.

• FY2026 revenue and EPS guidance increased, while CoVet added software and AI capabilities alongside near-term acquisition costs and dilution.

Financial highlights

• Operating income rose 13.4% to $402.3M; net income increased to $317.1M from $274.6M.

• Gross profit increased 11.8% to $764.3M; gross margin was 62.9%, up 110 bps reported and 90 bps comparable.

• Q3 free cash flow was $421M; nine-month operating cash flow was $1,063M and free cash flow was $978M.

• Nine-month revenue increased 11.2% to $3.572B; operating income rose 14.0% to $1.191B.

Outlook and guidance

• FY2026 revenue guidance increased to $4,741M–$4,767M, with 10.1%–10.8% reported and 9.3%–10.0% organic growth; midpoint rose $32M.

• CAG Diagnostics recurring revenue growth is projected at 11.0%–11.7% reported and 10.3%–11.0% organic.

• EPS guidance increased to $14.96–$15.16, reflecting 15%–16% comparable growth and including ~$0.13/share CoVet dilution.

• Operating margin guidance is 32.1%–32.3%, with 50–70 bps expansion; CoVet is expected to reduce FY margin by ~30 bps.

• Free-cash-flow conversion is expected at 95%–100% of net income; capital spending is ~$160M.