IDEXX Laboratories, Inc. Q2 2026 Earnings Recap

IDEXX outpaced expectations with solid revenue growth and margin expansion, driving a 3.0% stock gain despite headwinds in U.S. clinical visits and a decline in CAG Diagnostics instrument revenues.

Key Takeaways

• Q2 organic revenue grew 9%, led by 10.3% organic increase in CAG Diagnostics recurring revenues and 13% growth in Water business.
• Operating margin expanded 110 basis points, supported by gross margin gains and favorable product costs.
• EPS rose 15% on a comparable basis to $4.27, with updated full-year EPS guidance raised to $14.69–$14.94.
• U.S. same-store clinical visits declined 1.3%, primarily due to softness in wellness visits, though non-wellness visits showed modest growth.
• CAG Diagnostics instrument revenues dropped 20% organically as the company lapped prior-year launches, but instrument placements remained high quality with over 5,200 units placed.