IDEXX Laboratories, Inc.

What they do

IDEXX develops, manufactures, and distributes diagnostic products and services for companion animal veterinary, livestock/poultry/dairy, and water testing industries, plus human medical point-of-care diagnostics. It sells point-of-care analyzers (Catalyst, ProCyte, SediVue, IDEXX inVue Dx), consumables, SNAP rapid assays, reference laboratory services, and veterinary software and diagnostic imaging. It operates three reportable segments: Companion Animal Group, Water quality products, and Livestock, Poultry and Dairy, with human medical products in Other.

Revenue drivers

• CAG Diagnostics recurring revenue — The core of the company: point-of-care consumables, reference laboratory diagnostic and consulting services, and rapid assays. Grew 11% reported / 10% organic in Q2 2026, with VetLab consumables up 15% reported and reference lab services up 11% reported.
• CAG capital instrument placements — Sales of IDEXX VetLab analyzers that seed the recurring consumable base. Capital instrument revenues fell 19% reported / 20% organic in Q2 2026 versus a strong prior-year comparison, partly offset by over 1,600 inVue Dx placements.
• Veterinary software and diagnostic imaging — Practice management software, cloud-native services and diagnostic imaging systems; grew 12% reported and organic in Q2 2026, with a record imaging installation quarter led by ImageVue DR50 Plus.
• Water and Livestock, Poultry and Dairy — Smaller non-CAG segments. In Q2 2026 Water revenue grew 15% reported / 13% organic and LPD grew 11% reported / 9% organic.

Recent performance

Second quarter 2026 revenue was $1,217 million, up 10% reported and 9% organic, driven by CAG growth of 9%, Water of 15%, and LPD of 11%. EPS was $4.27, up 18% as reported and 15% on a comparable basis, including $0.14 per share of share-based compensation tax benefits and a $0.06 currency benefit. CAG Diagnostics recurring revenue grew 11% reported and 10% organic, with International up 14% reported and 12% organic and the U.S. up 10% reported and organic. The IDEXX inVue Dx installed base surpassed 9,000 instruments after more than 1,600 placements in the quarter. Full-year 2025 revenue was $4.30B with net income of $1.06B and diluted EPS of $13.08.

Strategy

Management attributes results to its "Technology for Life" strategy, emphasizing innovation across the Catalyst, Fecal Dx, and IDEXX inVue Dx platforms to deepen customer adoption and raise diagnostic utilization. The company is investing in commercial execution, net customer expansion, and growth of its premium instrument installed base to drive recurring consumable and reference lab revenue. It also cites cloud-native software growth and diagnostic imaging installations as expansion areas. Incremental investments are being aligned with commercial and innovation priorities even as full-year guidance was raised.

Risks

• Intense competition in companion animal healthcare — IDEXX describes its industry as highly competitive with anticipated new sector entrants, requiring continued innovation in analyzers, tests, and software to defend growth rates and profitability.
• Declining capital instrument revenue — CAG Diagnostics capital instrument revenues fell 19% as reported and 20% organic in Q2 2026, lapping the prior-year broad availability of IDEXX inVue Dx.
• Foreign exchange exposure — Updated foreign exchange estimates created a $15 million headwind to 2026 revenue guidance and currency changes added $0.06 per share to Q2 2026 EPS.
• Macroeconomic and policy uncertainty — The 10-K cites risks from geopolitical instability, general economic uncertainty, changes in tariff and trade policies, severe weather, and supply chain challenges.

Outlook

For 2026, management narrowed revenue guidance to $4,700 million - $4,745 million, raising the midpoint by $5 million but net of a $15 million foreign exchange headwind, implying reported revenue growth of 9.1% - 10.3%. It projects 2026 organic revenue growth of 8.5% - 9.7% and CAG Diagnostics recurring revenue growth of 10.1% - 11.3% reported / 9.5% - 10.7% organic. EPS guidance was raised to $14.69 - $14.94, up $0.14 at the midpoint versus prior guidance, supported by higher revenue at midpoint partly offset by incremental investments.