IDEXX Sales Rise 10% as Margin Outlook Slips: Rapid Earnings Reaction

IDEXX Laboratories reported Q3 2026 revenue growth of 10% to $1.21 billion, driven by 11% growth in recurring diagnostics sales. While the company raised its 2026 earnings forecast and shares surged 16%, the profit increase stems from tax benefits, lower interest costs, and buybacks rather than testing demand. Notably, IDEXX trimmed its operating margin outlook, with Q4 expected to show minimal margin improvement as the company absorbs costs from its CoVet software acquisition.