IDEXX Laboratories, Inc. (NASDAQ:IDXX) stock rose Monday after the company reported better-than-expected third-quarter results and raised 2026 guidance, driven by expansion of diagnostic utilization, growth in global instrument and customer base.
• IDEXX Laboratories stock is charging ahead with explosive momentum. What’s fueling IDXX momentum?
Third-Quarter Earnings and Revenue Outperform Estimates
The veterinary diagnostics company reported third-quarter earnings of $4.01 per share, beating the analyst consensus estimate of $3.71.
Revenue increased 10% year over year to $1.214 billion, or 9% on an organic basis, beating the Street estimate of $1.191 billion.
IDEXX raised its fiscal 2026 earnings guidance to $14.96-$15.16 per share from its prior forecast of $14.69-$14.94. The new outlook is above the Wall Street consensus estimate of $14.82.
The company also raised its 2026 revenue guidance from $4.70 billion-$4.745 billion to $4.741 billion-$4.767 billion compared to the consensus of $4.723 billion.
Strong Global Placements for Premium Instruments and inVue Dx
Premium instrument placements reached 5,780 units in the quarter, and placement quality remained strong globally. The company placed 1,904 inVue Dx instruments with strong international demand and nearly 1,200 competitive and greenfield Catalyst placements globally, with over 300 in the U.S.
Testing Frequency and Diagnostic Intensity Offset U.S. Visit Declines
U.S. organic CAG Diagnostics recurring revenue grew 9.6%, with solid volume gains and net price realization aligned with full-year expectations.
CFO Andrew Emerson said U.S. growth continues to be supported by greater testing frequency and intensity per visit as customers adopt our expanded menu. U.S. same-store clinical visits declined an estimated 1.8% in the quarter.
In an earnings call, Emerson told investors, “Underlying patient dynamics continue to support long-term demand for diagnostics. In the quarter, pets aged five-plus years, where diagnostic frequency rises, contributed to clinical visit growth, with a substantial majority of wellness visits still not including blood work.”
“We’re also encouraged by the quality of growth reflected by the strong momentum in net new customers and same-store sales gains,” Emerson said on Tuesday.
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Software Modality Expansion with CoVet Acquisition
The CoVet (acquired in September) revenue run rate is approximately $20 million annualized and growing at strong double-digit rates, creating another revenue growth driver for the software modality and opportunity for further supporting diagnostic utilization.
IDXX Price Action: IDEXX Laboratories shares were up 19.25% at $657.34 at the time of publication on Monday, according to Benzinga Pro data.
Photo courtesy: rafapress / Shutterstock.com
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