IDEXX Laboratories, Inc. (NASDAQ:IDXX) stock rose Tuesday after the veterinary diagnostics company reported second-quarter results that topped Wall Street estimates and raised its full-year earnings outlook.
Companion Animal Diagnostics Fuel Growth
The company reported second-quarter earnings of $4.27 per share, beating the analyst consensus estimate of $3.96.
Revenue increased 10% year over year to $1.217 billion, or 9% on an organic basis, exceeding the Street estimate of $1.201 billion.
Companion Animal Group revenue rose 9% to $1.118 billion, driven by an 11% increase in recurring diagnostics revenue, or 10% on an organic basis.
Water segment revenue climbed 15% to $59 million, supported by strong demand in the United States and Europe. Livestock, Poultry and Dairy revenue increased 11% to $35 million, led by growth across the Americas.
“Our second quarter results reflect the strength of our Technology for Life strategy, with continued innovation across our Catalyst, Fecal Dx, and IDEXX inVue Dx platforms supporting deeper customer adoption and higher diagnostic utilization,” President and CEO Mike Erickson said.
Company Raises 2026 Profit Outlook
IDEXX raised its fiscal 2026 earnings guidance to a range of $14.69 to $14.94 per share from its prior forecast of $14.45 to $14.90. The new outlook is above the Wall Street consensus estimate of $14.67.
The company also narrowed its 2026 revenue guidance to a range of $4.70 billion to $4.745 billion, from its previous forecast of $4.675 billion to $4.76 billion. The updated range compares with analysts’ estimate of $4.711 billion.
Management said the revised outlook reflects continued strength in recurring Companion Animal Diagnostics revenue, improved commercial execution and expectations for higher operating margin expansion and earnings growth.
Analysts Remain Constructive Despite Soft Vet Visits
IDEXX placed more than 5,200 premium diagnostic instruments during the quarter, including about 1,600 InVue Dx analyzers, keeping the company on pace to meet its full-year placement target of 5,500 units.
U.S. same-store clinical visits declined 1.3% during the quarter. On the earnings call, management said pressure on wellness visits remained the primary headwind, while non-wellness visits posted modest growth.
William Blair analyst Ryan Daniels said second-quarter results were in line with expectations despite continued weakness in veterinary visits and soft consumer sentiment.
He added that, although an industrywide recovery in patient volumes has yet to emerge, the company’s 2026 organic growth outlook appears achievable, with several potential growth catalysts in the second half of the year, including expanded Cancer Dx offerings, additional capabilities for the inVue Dx platform and growing demand for non-wellness care from an aging U.S. pet population.
Daniels also said IDEXX maintains a strong competitive position, citing industry-leading customer satisfaction and the potential for another product launch.
IDXX Price Action: IDEXX Laboratories shares were up 3.34% at $586.79 at the time of publication on Tuesday, according to Benzinga Pro data.
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