AI Takeaway
IDEXX Laboratories delivered strong Q1 FY2026 results with revenue of $1.14B (+14.3% YoY) and net income of $278.4M (+14.7% YoY), driven by expanding gross margins and solid operating cash flow generation.
Revenue
$1.14B
++14.26% YoY
EPS (Basic)
$3.50
++17.45% YoY
Gross Margin
63.4%
++0.92% YoY
Operating Income
$362.59M
++14.55% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue grew 14.3% YoY to $1.14B in Q1 FY2026 from $998.4M in the prior-year period, reflecting robust demand across IDEXX's diagnostics and veterinary software segments.
Source: Source: 10-Q Income Statement
Gross margin improved approximately 91 basis points YoY to 63.35% from 62.44%, indicating favorable product mix and operational leverage as revenue growth outpaced cost of revenue growth of 11.5%.
Source: Source: 10-Q Income Statement & Key Ratios
Operating income rose 14.5% YoY to $362.6M, with operating margin holding nearly flat at 31.78% vs. 31.70% prior year, demonstrating cost discipline even as R&D spending increased 11.4% YoY to $65.8M.
Source: Source: 10-Q Income Statement
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Upgrade to unlockIDEXX's current ratio stands at approximately 1.12, meaning current assets only modestly exceed current liabilities of $1.30B. Current liabilities grew 14.4% YoY, faster than current assets (+10.4%), suggesting potential near-term liquidity pressure if business conditions deteriorate.
Source: Source: 10-Q Balance Sheet & Key Ratios
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Upgrade to unlockReported EPS of $3.47 versus the $3.47 analyst consensus — a +0.1% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.14B | $998.43M | +14.26% |
Cost of Revenue | $418.08M | $375.05M | +11.47% |
Gross Profit | $722.74M | $623.38M | +15.94% |
Operating Income | $362.59M | $316.53M | +14.55% |
Net Income | $278.45M | $242.68M | +14.74% |
EPS (Basic) | $3.50 | $2.98 | +17.45% |
EPS (Diluted) | $3.47 | $2.96 | +17.23% |
R&D Expense | $65.79M | $59.06M | +11.39% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $3.39B | $3.21B | +5.35% |
Current Assets | $1.45B | $1.32B | +10.36% |
Total Liabilities | $1.83B | $1.77B | +3.61% |
Current Liabilities | $1.3B | $1.14B | +14.40% |
Stockholders' Equity | $1.56B | $1.45B | +7.46% |
Cash & Equivalents | $200.53M | $163.97M | +22.30% |
Long-Term Debt | $299.85M | $449.8M | -33.34% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $266.25M | $237.96M | +11.89% |
Investing Cash Flow | $-33.54M | $-29.61M | -13.29% |
Financing Cash Flow | $-211.43M | $-330.32M | +35.99% |
Share Buybacks | $351.04M | $400.89M | -12.44% |
D&A | $37.68M | $34.06M | +10.63% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 63.4% | 62.4% | +0.92% |
Operating Margin | 31.8% | 31.7% | +0.08% |
Net Margin | 24.4% | — | — |
ROE | 17.9% | — | — |
ROA | 8.2% | — | — |
Current Ratio | $1.119 | — | — |
Debt to Equity | $1.176 | — | — |
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IDEXX delivered strong Q1 FY2026 results with revenue of $1.14B, up 14.3% YoY, and net income of $278.4M, up 14.7% YoY. Diluted EPS came in at $3.47, a 17.2% increase from $2.96 in the prior-year period.
IDEXX's revenue growth of 14.3% YoY to $1.14B was driven by strong demand for its veterinary diagnostic products and services, with gross profit growing even faster at 15.9% YoY to $722.7M, indicating favorable product mix. Cost of revenue grew at a slower pace of 11.5%, contributing to gross margin expansion to 63.35%.
IDEXX's balance sheet shows total assets of $3.39B and stockholders' equity of $1.56B, with long-term debt reduced 33.3% YoY to $299.9M. The current ratio of 1.12 indicates adequate near-term liquidity, though current liabilities grew faster than current assets in the period.
IDEXX repurchased $351.0M in shares during Q1 FY2026, down 12.4% from $400.9M in the prior-year period. This buyback activity contributed to diluted EPS growth of 17.2%, which outpaced net income growth of 14.7%.
Key risks include IDEXX's heavy concentration in the companion animal veterinary diagnostics market, which exposes it to shifts in pet healthcare spending. Additionally, the current ratio of 1.12 and a debt-to-equity ratio of 1.18 suggest moderate financial leverage, and share buybacks of $351.0M exceeded operating cash flow of $266.2M, which could pressure liquidity if sustained.