IDEXX Q2 FY26: revenue up 9.7%, EPS $4.27, guidance midpoint nudged higher
IDEXX delivered a genuinely strong quarter: revenue of $1.22 billion rose 9.7% as reported and 9.0% organic, gross margin reached 64.0%, and operating margin hit 35.0%. The $4.27 EPS beat the $4.0205 consensus, but $0.14 of it came from a share-based-compensation tax benefit, so the quality is lower than the headline suggests. Our read is Bullish, with cash conversion and the guidance mix as the details to watch.
1 · Expected vs. Actual
Free preview belowDiluted EPS of $4.27 rose 18% year over year and beat the $4.0205 consensus, but comparable EPS was $4.07 — a beat of roughly $0.05. The gap is $0.14 per share of share-based-compensation tax benefits plus a $0.06 currency tailwind. Strip those out and this is a solid, not spectacular, quarter.
Revenue of $1.22 billion rose 9.7% as reported and 9.0% organic from $1.11 billion a year ago, with Companion Animal Group up 9.4% reported and Water up 14.8%. The recurring core — CAG Diagnostics recurring revenue — grew 11.0% reported, and IDEXX VetLab consumables grew 14.7%. The blemish is capital instruments, down 19.5% as last year's launch comparison rolls off.
Full-year revenue guidance narrowed to $4,700 million-$4,745 million, up $5 million at the midpoint, and EPS guidance rose $0.14 at the midpoint to $14.69-$14.94. The revenue midpoint rose despite a $15 million currency headwind, reflecting better CAG Diagnostics recurring revenue. Note the shape: the low end rose and the high end came down.
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Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-09-17
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