Key Takeaways
- IDEXX Laboratories shares jumped 20% after a third-quarter beat and a raised 2026 outlook.
- New inVue Dx analyzers are driving recurring test revenue, with in-clinic consumables up 15% organically.
- The news also reaches diagnostics rival Zoetis and parasite-treatment seller Elanco.
- IDEXX trimmed its 2026 margin outlook to absorb its CoVet acquisition.
IDEXX Laboratories (IDXX) soared 20% today after beating third-quarter estimates and raising its 2026 outlook.
That’s news for Zoetis (ZTS), IDEXX’s rival for in-clinic analyzers, and Elanco Animal Health (ELAN), which sells parasite treatments through the same vet clinics.
The new analyzers are paying off
Revenue rose 10% to $1.21 billion, ahead of the $1.19 billion consensus, and EPS of $4.01 beat the $3.71 analysts expected.
IDEXX placed more than 1,900 inVue Dx analyzers in the quarter. The tests those analyzers run grew fast:
- VetLab consumables revenue: up 15% organically
- CAG Diagnostics recurring revenue: up 11% organically
- Rapid assay revenue: up 1%, on price, as testing volumes fell
CEO Mike Erickson said on the third-quarter call: “We’re in the early innings of a broad-based innovation cycle.”
A raise, with a small catch
IDEXX raised its 2026 revenue guidance to $4.74 billion-$4.77 billion and its EPS guidance to $14.96-$15.16, up $0.25 at the midpoint. But it cut its operating margin outlook to 32.1%-32.3%, from 32.3%-32.5%, to absorb CoVet, an AI clinical assistant it just bought. Two-tenths of a point is a fair price.
Going into the report, analysts expected $14.88 of normalized EPS this year, with steady growth after that.
With 2026 now guided above that, I’d expect 2027’s $16.73 to move up too.
TIKR tracks 14 analysts on IDEXX Laboratories. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on IDEXX Laboratories, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See IDEXX Laboratories’ Analyst Ratings
Good news for clinics, a question for rivals
Zoetis CEO Kristin Peck blamed a flat second quarter on “lower clinic visits and pet owner price sensitivity.” IDEXX, by contrast, credited strong same-store volume growth. Zoetis called diagnostics a strength, but 1,900 new IDEXX analyzers take up a lot of clinic counter space. Can Zoetis’s diagnostics keep growing?
Elanco’s pet health revenue grew 11% organically in its second quarter, helped by its Credelio Quattro parasite treatment. IDEXX’s softer rapid assay volumes (its heartworm and tick-borne disease tests) raise a question: will Elanco’s parasite sales feel it?
Still cheaper than usual
IDEXX traded at 35x forward earnings at Friday’s close, against a five-year average of 45x.
Even after today’s jump, it’s below that average. For mid-teens EPS growth and a new analyzer on deck, I think that’s a reasonable price. The next test is Jan. 18, when IDEXX shows investors its MultiCue Dx analyzer.
So what is IDEXX stock actually worth?
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