IDXX — Q2 2026 Financial Report Analysis
Q2 · Fiscal year 2026 · Published by Pham Hop · AI-drafted from the SEC filing
IDEXX grew Q2 2026 revenue 9.7% to $1.22 billion and diluted EPS 17.6% to $4.27 as recurring diagnostics grew 10.3% organically while instrument sales fell 19.5% against a launch-heavy prior year; 2026 EPS guidance was raised to $14.69–$14.94.
- Revenue
- $1.2B
- +9.7% YoY
- Net income
- $338M
- +15.1% YoY
- Diluted EPS
- $4.27
- +17.6% YoY
- Operating margin
- 35.0%
Overview
IDEXX sells diagnostic tests to veterinarians: in-clinic analyzers, the test cartridges and slides those analyzers use, and reference-lab testing where clinics send samples away. In the second quarter of 2026 (April–June), revenue rose 9.7% to $1,216.6 million and diluted earnings per share rose 17.6% to $4.27. Nearly all of the growth came from the repeat-purchase side of the business: CAG Diagnostics recurring revenue — the tests, consumables and lab services vets buy again and again, as opposed to one-off instrument sales — grew 11.0% (10.3% organic). "Organic" growth strips out currency moves and acquisitions; here currency added 0.7 points and there were no acquisitions.
The quarter's clearest tension: instrument revenue fell 19.5% while in-clinic consumables revenue rose 14.7%. That is not a sign of weakening demand. The prior-year quarter was when the new IDEXX inVue Dx analyzer became broadly available, so it carried a burst of launch placements; this year the company placed over 1,600 inVue Dx units (per the earnings release), taking that installed base past 9,000. Lower instrument revenue also helped margins, because the 10-Q cites "the business mix impact associated with lower premium instrument revenue" as one reason gross margin widened.
Key metrics
| Metric | Q2 2026 | Q2 2025 | YoY Change |
|---|---|---|---|
| Revenue | $1,216.6M | $1,109.5M | +9.7% (+9.0% organic) |
| CAG Diagnostics recurring revenue | $974.7M | $878.0M | +11.0% (+10.3% organic) |
| Gross margin |
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