$IDXX · IDEXX LABORATORIES INC /DE
IDEXX Laboratories filed its Q3 FY2026 10-Q, reporting revenue of $1.214B (+9.9% YoY), net income of $317.1M, and diluted EPS of $4.01. CAG Diagnostics recurring revenue of $967.4M (+10.8% YoY) anchored results, with organic revenue growth of 10.0%. Gross margin reached 62.9% and operating margin hit 33.1%. The company deployed $223.4M on an acquisition, lifting goodwill to $640.5M.
- Q3 revenue $1.214B, +9.9% YoY; organic revenue growth 10.0%
- Diluted EPS $4.01 vs $3.40 in Q3 FY2025, +17.9% YoY
- CAG Diagnostics recurring revenue $967.4M, +10.8% YoY, driven by higher volumes and realized prices
- Gross margin 62.9%, operating margin 33.1%, both expanded YoY
- Nine-month net cash from operations $1.06B, up from $826M in prior-year period
Stock surged +21.85% in regular session to $671.64. Extended-hours flat at $671.64. The magnitude suggests the market priced in a significant beat versus consensus expectations, particularly on the CAG Diagnostics recurring revenue line.
IDEXX's 10% organic growth and expanding margins confirm the animal-health diagnostics franchise is accelerating, with the core CAG recurring revenue stream compounding at double digits.
IDEXX's 10% organic growth and 62.9% gross margin reinforce its dominant animal-health diagnostics moat. The CAG Diagnostics recurring revenue engine — consumables, reference labs, rapid assays — continues to compound at double-digit rates, outpacing most peers in the veterinary space.
Goodwill jumped to $640.5M from $414.0M at year-end 2025, reflecting a $223.4M acquisition during the quarter — integration risk and potential impairment if acquired assets underperform. Credit facility borrowings rose to $474M from $398M at year-end.