10-QPeriod: Q1 FY2026

IDEXX LABORATORIES INC /DE Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 5, 2026For Securities:IDXX

Summary

IDEXX Laboratories, Inc. reported robust financial performance for the first quarter of 2026, demonstrating significant revenue growth and improved profitability. Total revenue increased by 14.3% year-over-year to $1.14 billion, driven by strong demand across all operating segments, particularly within the Companion Animal Group (CAG). The company achieved a 15.9% increase in gross profit, expanding the gross profit margin by 100 basis points due to recurring revenue growth, operational efficiencies, and effective price realization, despite inflationary pressures. Net income saw a substantial rise of 14.8% to $278.4 million, translating to diluted earnings per share of $3.47, up from $2.96 in the prior year. The company's balance sheet remains solid with $200.5 million in cash and cash equivalents and $718.2 million in available borrowing capacity under its credit facility. Significant stock repurchase activity continued, reflecting a commitment to returning value to shareholders. The company provided a positive outlook, anticipating favorable currency impacts for the remainder of the year.

Financial Highlights

52 data points
Beta

Revenue

$1.14B

63.4% Gross Margin

Net Income

$278.45M

24.4% Net Margin

EPS (Diluted)

$3.47

Total Assets

$3.39B

Cash & Equivalents

$200.53M

Free Cash Flow

$234.26M

Financial Statements
Beta
Revenue$1.14B
Cost of Revenue$418.08M
Gross Profit$722.74M
R&D Expenses$65.79M
Operating Expenses$360.15M
Operating Income$362.59M
Net Income$278.45M
EPS (Basic)$3.50
EPS (Diluted)$3.47
Shares Outstanding (Basic)79.65M
Shares Outstanding (Diluted)80.16M

Key Highlights

  • 1Total revenue increased by 14.3% to $1.14 billion, driven by broad-based growth across segments, especially CAG.
  • 2Gross profit grew by 15.9% to $722.7 million, with a gross profit margin expansion of 100 basis points to 63.4%.
  • 3Net income rose 14.8% to $278.4 million, with diluted EPS improving to $3.47 from $2.96 year-over-year.
  • 4Strong performance in CAG Diagnostics recurring revenue, including VetLab consumables and reference laboratory services, with organic growth of 11.0% and 11.6% respectively.
  • 5Cash flows from operations improved by $28.3 million to $266.2 million, demonstrating healthy operational cash generation.
  • 6The company maintained a strong liquidity position with $200.5 million in cash and cash equivalents and significant availability under its credit facility.
  • 7Continued aggressive share repurchase program, with $360.8 million spent on open market repurchases during the quarter.

Frequently Asked Questions

Revenue growth was primarily driven by strong demand in the Companion Animal Group (CAG), particularly in CAG Diagnostics recurring revenue streams like IDEXX VetLab consumables and reference laboratory services. Higher volumes and realized prices across all segments, along with new business gains and customer retention, were key contributors.

IDEXX expanded its gross profit margin by 100 basis points to 63.4%. This was achieved through benefits from recurring revenue growth, operational productivity improvements, and net price realization. While inflationary costs and investments presented challenges, these were effectively managed to allow for margin expansion.

IDEXX anticipates favorable year-over-year currency impacts for the remainder of 2026, projecting an increase in revenues, operating profit, and diluted earnings per share. This outlook includes expected net year-over-year impacts from foreign currency hedging activity.

IDEXX has sufficient resources to meet its upcoming debt obligations, including the $75 million in Senior Notes due September 4, 2026, and the $75 million in 2027 Series B Notes due February 12, 2027. They anticipate funding these repayments with available cash on hand, borrowings under their Credit Facility, or proceeds from new note issuances.