Shares of IDEXX Laboratories (IDXX) surged 20% on Monday, Nov. 2, after the veterinary diagnostics company reported better-than-expected third-quarter earnings and raised its full-year outlook.
The stock climbed to around $664 in afternoon trading as investors welcomed stronger sales and improving demand for the company’s animal health products and services.
IDEXX reported third-quarter revenue of $1.21 billion, up 10% from a year earlier and ahead of Wall Street’s estimate of $1.19 billion.
Earnings came in at $4.01 per share, beating analysts’ expectations of $3.71. The results included a 3-cent benefit from an equity investment gain, a 1-cent tax benefit related to share-based compensation, and a 4-cent benefit from foreign currency movements.
Growth was mainly driven by the company’s Companion Animal Group, which supplies diagnostic instruments, laboratory tests and software to veterinary clinics.
IDEXX raises 2026 earnings and revenue forecasts
Alongside its earnings beat, IDEXX raised its full-year guidance.
The company now expects 2026 earnings of $14.96 to $15.16 per share, up from its previous forecast of $14.69 to $14.94.
Wall Street had been expecting earnings of $14.88 per share, meaning the new guidance range is above analysts’ consensus.
Also read: Meta stock falls despite Wall Street analysts raising price targets
IDEXX also lifted its annual revenue forecast to between $4.74 billion and $4.77 billion, compared with its previous range of $4.70 billion to $4.75 billion.
The updated forecast implies reported revenue growth of 10.1% to 10.8% for the year. The midpoint increased by $32 million and stands above analysts’ consensus estimate of $4.72 billion.
The company also raised its organic revenue growth outlook to 9.3% to 10%, an increase of 0.6 percentage points at the midpoint, citing stronger operational performance.
Organic growth excludes the effects of acquisitions and currency fluctuations, making it a useful measure of demand for the company’s existing products and services.
However, IDEXX lowered its operating-margin outlook, suggesting that higher expenses could offset some of the benefits of stronger sales.
“IDEXX delivered exceptional third-quarter results, reflecting strong commercial execution and momentum from our innovation-driven growth strategy,” said CEO Mike Erickson in a statement.
“Innovations like IDEXX inVue Dx with FNA, and IDEXX Cancer Dx becoming a multi-cancer panel, are helping practices detect disease earlier and work more efficiently.”
The company is also turning to artificial intelligence to help streamline its daily operations and improve efficiency.
“In software, we advanced our capabilities with the acquisition of CoVet, an AI clinical assistant that supports veterinary team productivity and diagnostics utilization, creating more value for our customers and shareholders,” Erickson said.
What is IDEXX Laboratories?
Founded in 1983 and headquartered in Westbrook, Maine, IDEXX Laboratories is one of the major players in the global veterinary diagnostics industry.
The company develops and sells diagnostic tests, laboratory equipment and software that help veterinarians detect diseases and monitor animal health.
Also read: Intel stock plunges 20% as chipmaker warns of tough year ahead
IDEXX serves customers in more than 175 countries and had approximately 11,000 full-time and part-time employees as of 2025.
Its business benefits from the growing role of pets in household spending, as owners increasingly seek preventive care, early disease detection and more advanced treatments for their animals.
That business model makes the number of tests performed at veterinary clinics an important driver of future growth.
But even after the 20% surge, IDEXX stock is down 1.4% year to date.
