IDEXX raises outlook as high pet healthcare demand drives revenue surge

IDEXX Laboratories (NASDAQ:IDXX) increased its financial projections for 2026 following a first quarter marked by robust demand for pet healthcare services and significant margin expansion within its core diagnostic segments.

The Westbrook, Maine-based leader in veterinary diagnostics reported first-quarter revenue of $1.141 billion, a 14% increase as reported and 11% on an organic basis.

The growth was spearheaded by the Companion Animal Group (CAG), which saw revenue climb 15%.

Critically, CAG Diagnostics recurring revenue—the company’s primary growth engine—rose 11% organically, reflecting strong clinical volume and the successful adoption of new diagnostic innovations.

Profitability outperformed expectations, with earnings per diluted share (EPS) rising 17% to $3.47.

The results included a 100-basis-point expansion in comparable operating margins, driven by higher volumes and disciplined execution.

The quarterly EPS figure was aided by a $0.14 per share benefit from favorable currency movements and $0.09 from tax benefits related to share-based compensation, partially offset by a minor loss on an equity investment.

Reflecting this momentum, IDEXX raised its full-year 2026 revenue guidance to a range of $4.675 billion to $4.760 billion, a midpoint increase of approximately $42 million.

The company now expects organic revenue growth between 7.7% and 9.7% for the year.

The company also lifted its 2026 EPS outlook to a range of $14.45 to $14.90, an increase of $0.13 from the previous midpoint.