Organic Revenue Growth
Total company organic revenue growth, which excludes currency and acquisition effects, was 9.0% in Q2 FY2026, with CAG organic growth at 8.7% and Water at 13.0%.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
IDEXX Laboratories' Q2 FY2026 results were defined by sustained momentum in Companion Animal Group (CAG) diagnostics recurring revenue, where higher testing volumes and realized prices drove double-digit organic growth. Management attributed margin expansion to favorable business mix—particularly the shift toward higher-margin consumables and reference lab services—along with operational productivity gains, while instrument placements declined as the IDEXX inVue Dx Analyzer lapped its broad prior-year launch. The Water segment stood out with a 480-basis-point gross margin improvement on lower product costs and favorable mix, though CAG instrument revenue contraction and rising operating expenses created a modest tension. Overall, the quarter reflected solid profit generation, with operating income rising 14% and diluted earnings per share up 18% year-over-year.
Revenue
$1.22B
+9.66% YoY
EPS (Diluted)
$4.27
+17.63% YoY
Gross Margin
64.0%
+1.4 pts YoY
Operating Income
$425.57M
+14.08% YoY
Source: SEC XBRL
Idexx Laboratories (IDXX) reported Q2 FY2026 revenue of $1.22B, up 9.7% year over year. Operating margin was 35.0%, up 1.4 points from 33.6% a year earlier. IDXX's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 4.27 | 4.02 | Beat +6.1% |
| Mar 2026 | 3.47 | 3.47 | Beat +0.1% |
| Dec 2025 | 3.08 | 2.99 | Beat +3.1% |
| Sep 2025 | 3.40 | 3.19 | Beat +6.5% |
Reported EPS of $4.27 versus the $4.02 analyst consensus — a +6.1% beat for Jun 2026.
3 reported segments · SEC XBRL
Segment revenue totals $1.21B; with $4.6M of reconciling items (corporate, unallocated and eliminations) it ties to the $1.22B of consolidated revenue on the income statement. The profit column adds up to the consolidated figure as well.
Profit above is reported as gross profit, the measure IDXX itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
Total company organic revenue growth, which excludes currency and acquisition effects, was 9.0% in Q2 FY2026, with CAG organic growth at 8.7% and Water at 13.0%.
Source: 10-Q Item 2 MD&A
CAG instrument revenue fell 19.5% reported, primarily due to lower placements of the IDEXX inVue Dx Analyzer compared to its broad commercial availability in the second quarter of 2025.
Source: 10-Q Item 2 MD&A
The 140-basis-point increase in consolidated gross margin to 64.0% reflected higher-margin consumable and lab volume growth, lower premium instrument mix, operational productivity, and net price realization.
Source: 10-Q Item 2 MD&A
The effective tax rate was stable at 18.9% in Q2, but management projects future tax rates will increase due to an expected reduction in share-based compensation tax benefits.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 2 of this filing · 0 high, 5 medium, 0 low
Global conflicts, inflationary pressures, and economic downturns could reduce pet owner spending on veterinary services and products, while also raising operating costs for IDEXX.
Source: 10-Q Item 2 MD&A
With approximately 36% of revenue from international markets, adverse currency movements could negatively impact reported revenue and margins, though hedging mitigates some exposure.
Source: 10-Q Item 2 MD&A
Disruptions in transportation networks or shortages of raw materials could impair production and distribution of diagnostic tests and instruments, affecting revenue and cost of goods sold.
Source: 10-Q Item 2 MD&A
Changes in U.S. and other countries’ tariff policies may increase costs for materials and finished goods, and could affect the competitiveness of IDEXX products in international markets.
Source: 10-Q Item 2 MD&A
Success depends on continued customer adoption of key products like the IDEXX inVue Dx Analyzer and new test menu expansions; failure to innovate or competitive pressures could harm future growth.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 1.22 $B | 1.11 $B | +9.66% |
Cost of Revenue $M | 437.50 $M | 414.73 $M | +5.49% |
Gross Profit $M | 779.09 $M | 694.73 $M | +12.14% |
Operating Income $M | 425.57 $M | 373.05 $M | +14.08% |
Net Income $M | 338.41 $M | 293.99 $M | +15.11% |
EPS (Basic) $ | 4.29 $ | 3.66 $ | +17.21% |
EPS (Diluted) $ | 4.27 $ | 3.63 $ | +17.63% |
R&D Expense $M | 65.43 $M | 61.90 $M | +5.70% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
IDEXX Laboratories delivered strong FY2025 results with revenue growing 10.4% to $4.30B, operating income surging 20.5% to $1.36B, and net income rising 19.3% to $1.06B, driven by expanding margins and robust cash generation that funded $1.22B in share buybacks.
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