IDEXX Laboratories Q2 2026 Earnings Call Transcript

IDEXX Laboratories (NASDAQ: IDXX ) reported second-quarter financial results on Tuesday.

The transcript from the company's second-quarter earnings call has been provided below.

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View the webcast at Summary IDEXX Laboratories reported a 10% increase in revenue for Q2 2026, with 9% organic growth, driven by strong performance in CAG Diagnostics and double-digit growth in Water and LPD businesses.

The company raised its full-year revenue outlook to $4.7 billion to $4.745 billion, reflecting a $20 million operational improvement despite a $15 million foreign exchange headwind.

IDEXX increased its full-year EPS outlook to $14.69 to $14.94 per share, citing strong operational performance and ongoing investments in innovation and global commercial capabilities.

Operational highlights included reaching over 5,200 premium instrument placements, led by the IDEXX InVue Dx analyzers, and achieving a 15% EPS growth on a comparable basis.

Management emphasized the ongoing success of the InVue Dx platform, strong international growth, and continued expansion of its diagnostic menu, including the addition of new capabilities to Cancer Dx and Fecal Dx testing platforms.

Full Transcript John Ravis, Vice President, Investor Relations Good morning and welcome to the IDEXX Laboratories second quarter 2026 earnings conference call.

As a reminder, today's conference is being recorded.

Participating in the call this morning are Mike Erickson, President and Chief Executive Officer; Andrew Emerson, Chief Financial Officer; and John Ravis, Vice President, Investor Relations.

IDEXX would like to preface the discussion today with a caution regarding forward-looking statements.

Listeners are reminded that our discussion during the call will include forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those discussed today.

Additional information regarding these risks and uncertainties is available under the Forward-Looking Statements notice in our press release issued this morning, as well as in our periodic filings with the Securities and Exchange Commission, which can be obtained from the SEC or by visiting the Investor Relations section of our website, idexx.com.

During this call we will be discussing certain financial measures not prepared in accordance with Generally Accepted Accounting Principles, or GAAP.

A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures is provided in our earnings release, which may also be found by visiting the Investor Relations section of our website.

In reviewing our second quarter 2026 results and updated 2026 guidance, please note all references to growth, organic growth, and comparable growth refer to growth compared to the equivalent prior year period unless otherwise noted.

To allow broad participation in the Q&A, we ask that each participant limit their questions to one with one follow-up as necessary.

We appreciate you may have additional questions, so please feel free to get back into the queue and, if time permits, we'll take your additional questions.

Today's prepared remarks will be posted to the Investor Relations section of our website after the earnings conference call concludes.

I would now like to turn the call over to Andrew Emerson.

Andrew Emerson, EVP, Chief Financial Officer Good morning.

I'm pleased to take you through our second quarter results and provide an updated outlook for our full-year 2026 financial expectations.

During the second quarter, IDEXX Laboratories delivered excellent financial results, building on strong execution and expansion of IDEXX innovations in our Companion Animal business.

Revenue increased approximately 10% as reported and 9% organically, supported by over 10% organic growth in CAG Diagnostics recurring revenues, with double-digit gains in both the U.S. and international regions and strong global growth in our Water and LPD businesses.

CAG Diagnostics recurring revenue growth was led by expanded volumes, while U.S. same-store clinical visits declined an estimated 1.3% in the quarter.

Premium instrument placements reached over 5,200 units in the quarter, including approximately 1,600 IDEXX InVue Dx analyzers, on pace for our full-year InVue Dx placement goal of 5,500 units.

IDEXX Laboratories' operating performance was excellent, with comparable operating margin gains of 110 basis points supported by gross margin expansion, with benefits from strong recurring revenue growth and favorable product costs in the quarter.

Operating profit gains enabled earnings per share of $4.27 in the quarter, resulting in EPS growth of 15% on a comparable basis.

Strong second quarter performance supports an increase to our full-year outlook while advancing incremental growth.

We're updating our full-year revenue range to $4,700,000,000 to $4,745,000,000, an increase of $5,000,000 at midpoint, net of a $20,000,000 increase in operational performance offset by a $15,000,000 headwind from updated foreign currency effects.

Our updated full-year overall organic revenue growth outlook is 8.5% to 9.7%, with organic CAG Diagnostics recurring revenue growth of 9.5% to 10.7%.

These organic growth ranges represent an increase of approximately 40 basis points at midpoint to our previous guidance, aided by global momentum in our CAG Diagnostics recurring revenues.

We're also increasing our full-year EPS outlook to $14.69 to $14.94 per share, an increase of $0.14 per share at midpoint, reflecting a 13% to 15% comparable EPS growth range.

We'll provide further details on our updated 2026 financial expectations later in my comments.