IDEXX Laboratories, Inc.

IDEXX Laboratories (Nasdaq: IDXX) supplies veterinary practices with diagnostic instruments, test supplies, laboratory services and software. It also provides water and livestock testing products. Recurring sales come from supplies and services used after instruments are installed.

September-quarter performance

Amounts are USD millions except EPS, for the three months ended September 30.

Recurring companion-animal diagnostics revenue grew 11%, supported by testing volume, customers and the installed instrument base. Rapid-assay sales grew 1%, with price increases offsetting lower volumes. Capital-instrument revenue was flat.

Higher earnings target, lower margin target

The November 2 revenue forecast is $4.741 billion to $4.767 billion, up from August’s $4.700 billion to $4.745 billion. EPS guidance rose to $14.96 to $15.16 from $14.69 to $14.94.

The operating margin target fell to 32.1% to 32.3% from 32.3% to 32.5%, including acquisition-related effects. The new range still implies a higher margin than in 2025. The forecast also assumes lower net interest expense, a 20.5% tax rate rather than 21.1%, and about a 2% reduction in average shares.

CoVet is now part of IDEXX

The acquisition closed September 15, 2026. Approximate consideration of $250 million includes estimated contingent payments and holdbacks. CoVet’s veterinary clinical software is expected to add about $5 million to annual revenue in the new outlook.

Cash, borrowing and buybacks

At September 30, cash was $197.5 million. Borrowing comprised $474 million under bank facilities and $374.9 million of senior notes at carrying value, totaling $848.9 million.

Operating cash flow for the first nine months rose to $1.063 billion from $826.0 million. The improvement included higher earnings and more favorable working capital movements. Cash spent on share repurchases was $810.0 million, including net excise tax settlements.