IDXX · IDEXX Laboratories, Inc.

IDEXX delivered robust first quarter 2026 results, with $1,141 million in revenue (+14% reported, +11% organic) and $3.47 in diluted EPS (+17% reported), driven primarily by Companion Animal Group (CAG) Diagnostics recurring revenue growth of 14% reported and 11% organic. This performance reflects sustained commercial execution—including net customer gains, volume growth, premium instrument installed base expansion (12% global growth), and innovation adoption—particularly IDEXX VetLab™ consumables (+20% reported) and reference lab services (+12% reported). CAG Diagnostics capital instrument revenue surged 33% reported, aided by 1,100 IDEXX inVue Dx placements. Gross margin expanded 90 bps to 63.4%, supported by recurring revenue volume gains and pricing, partially offset by inflation; operating margin rose 10 bps to 31.8%, though this included a $5 million loss on an equity investment and lapped a prior-year $9 million litigation-related benefit. Management raised full-year 2026 guidance across key metrics: revenue to $4,675–$4,760 million (midpoint +$42 million), EPS to $14.45–$14.90 (+$0.13 midpoint), and operating margin to 32.1%–32.5%, citing strong CAG Diagnostics recurring revenue momentum and modestly improving U.S. clinical visit trends. The guidance update also incorporates refined foreign exchange assumptions, estimating a ~0.9% positive revenue impact and $0.27 EPS benefit. CEO Jay Mazelsky highlighted continued traction for IDEXX Cancer Dx™ and the controlled launch of IDEXX inVue Dx FNA as strategic growth catalysts, while noting his transition from the CEO role—underscoring leadership continuity with incoming CEO Mike Erickson. These results and upward revisions signal durable demand, pricing power, and effective capital allocation within IDEXX’s core diagnostics franchise.