A maker of diagnostic tests and software for veterinarians, from point-of-care analyzers like Catalyst One and SNAP rapid tests to practice software such as ezyVet and Cornerstone. It also sells water-testing kits like Colilert, used by labs and utilities to spot E. coli, plus tests for livestock diseases and antibiotic residues in milk. Founded in 1983 in Maine as AgriTech Systems, it later renamed itself IDEXX after "Idx," clinical shorthand for immunochemical diagnostics.
Q2 2026 gross margin reached 64.0%, the highest in the reported quarterly series, as revenue rose 9.7% to $1.22B.
reached 64.0%, the highest in the reported quarterly series. rose 9.7% to $1,216.6M and rose 17.6% to $4.27 as CAG Diagnostics grew 10.3% organically on higher consumable and lab volumes plus price realization. The business is compounding margin and earnings gains while paying down .
Key takeaways
expanded 1.4 points to 64.0%, the highest in the reported quarterly series, from proportionally higher consumable and lab volume growth, lower premium instrument mix, and operational productivity.
rose 9.7% to $1,216.6M with 9.0% , led by CAG Diagnostics up 10.3% organically from IDEXX VetLab consumable and reference lab volume gains and price realization.
CAG instrument declined 19.5% organically as IDEXX inVue Dx Analyzer placements fell against the broad Q2 2025 commercial launch.
Section summaries
Management's Discussion and Analysis
IDEXX Q2 FY2026 revenue grew 9.7% driven by CAG Diagnostics recurring revenue, with gross margin expanding 140 bps on favorable mix and productivity.
⌄
Total company organic grew 9.0%, led by 10.3% in CAG Diagnostics from higher IDEXX VetLab consumable and reference lab volumes and price realization.
rose 14.1% to $425.6M and rose 17.6% to $4.27; general and administrative expense rose 18.4% on personnel costs and from technology investments.
for the half was $613.4M, up $189.7M , helped by the absence of the prior-year $80M litigation settlement payment.
fell 33.3% to $299.9M from a year earlier; the company plans to repay $75M of 2026 Senior Notes in September 2026.
What changed
Q2 2026 CAG instrument fell 19.5% organically, reversing the 66.0% reported rise in Q2 2025 as inVue Dx placements lapped their launch.
at 64.0% extended the climb from 62.6% in Q2 2025 and 61.8% in FY2025, continuing the upward trajectory flagged across prior filings.
Q1 2026 flagged the $5M equity investment and $9M litigation accrual reduction in G&A; Q2 G&A rose 18.4% from personnel and , with no restatement of those one-off items.
LPD was not broken out in this filing, leaving the Asia Pacific testing question from Q1 2026 and FY2025 unanswered.
Share repurchases used $351.0M in Q1 2026; this filing does not state Q2 repurchases, against the $1.16B full-year 2025 pace.
FX added $20.3M to for the half versus prior year, versus the Q1 2026 figure of $17.3M for the quarter, a continued but smaller than Q1.
What to watch
Q3 2026 CAG Diagnostics growth against the 10.3% Q2 organic rate as prior-year comparisons tighten.
Q3 2026 CAG instrument to see if the 19.5% organic decline stabilizes or deepens after the inVue Dx launch lap.
Next filing for any LPD breakout to see if Asia Pacific testing weakness reverses.
September 2026 repayment of $75M 2026 Senior Notes and its effect on cash and borrowings.
CAG instrument declined 19.5% organically due to lower IDEXX inVue Dx Analyzer placements compared to the broad commercial launch in Q2 2025.
expanded 140 to 64.0%, benefiting from proportionally higher consumable and lab volume growth, lower premium instrument mix, and operational productivity.
General and administrative expense rose 18.4% due to higher personnel costs and increased from technology and infrastructure investments.
Net was $613.4 million for the first half, up $189.7 million , helped by a prior-year $80 million litigation settlement payment.
The company plans to repay $75 million of 2026 Senior Notes in September 2026 and $75 million of 2027 Series B Notes in February 2027 using cash, borrowings, or new note proceeds.
Due to the nature of our activities, we are at times subject to pending and threatened legal actions that arise out of the ordinary course of business. In the opinion of management, based in part upon advice of legal counsel, the disposition of any such currently pending or thre…
⌄
Due to the nature of our activities, we are at times subject to pending and threatened legal actions that arise out of the ordinary course of business. In the opinion of management, based in part upon advice of legal counsel, the disposition of any such currently pending or threatened matters is not expected to have a material effect on our results of operations, financial condition, or cash flows. However, the results of legal actions cannot be predicted with certainty. Therefore, it is possible that our results of operations, financial condition, or cash flows could be materially adversely affected in any particular period by the unfavorable resolution of one or more legal actions.
In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors discussed in “Part I. Item 1A. Risk Factors” in our 2025 Annual Report, which could materially affect our business, financial condition, or future…
⌄
In addition to the other information set forth in this Quarterly Report on Form 10-Q, you should carefully consider the risk factors discussed in “Part I. Item 1A. Risk Factors” in our 2025 Annual Report, which could materially affect our business, financial condition, or future results. There have been no material changes from the risk factors previously disclosed in the 2025 Annual Report. The risks described in our 2025 Annual Report are not the only risks facing our Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, or future results.