What are the components of the double-digit reference lab growth, and how does IDEXX view sustained pressure in vet visits given external narratives?

Reference lab growth is driven by broad execution, new offerings like Fecal Dx and Cancer Dx (20% of Cancer Dx volume from competitive labs), strong commercial execution, and volume. U.S. same-store clinical visits declined 1.3% due to economic pressure and muted puppy impact, but the overall pet population foundation remains positive. More details on the long-term growth algorithm will be provided at Investor Day. “we're seeing 20% of the volume with Cancer Dx coming from practices that have been using a competitive lab.”

Are there differences in visit trends across corporate/independent practices or urban/suburban locations, and what will it take to get wellness visits back to growth?

No significant differences are observed across practice types or geographies. The focus is on 'visit quality' (diagnostic frequency and utilization within visits). There is massive headroom for wellness testing growth, as only about 1 in 10 U.S. wellness visits include blood work, and even less internationally. Innovation and commercial execution are key to driving this growth. “only around 1 out of 10 wellness visits are getting blood work today. And outside the U.S., it's much less, around 1/3 or even less than that in most countries.”

Why are new commercial investments being made now, particularly internationally, and do they relate to future innovation?

International markets offer significant headroom for placements, utilization, and sector development, especially for wellness diagnostics. Investments in expanding field presence have a reliable return, leading to higher adoption and stronger customer relationships. These investments also support the rollout of innovations like inVue Dx internationally and localized solutions. “we've been consistently making investments really across the board internationally to support that. This includes investing into expanding our field presence.”

IDXX

IDEXX (IDXX) Q2 FY26 earnings call: guidance and Q&A

Q: How is the FNA rollout progressing, is it fueling inVue placements, and what is the expected impact on consumables flow-through, especially with broad launch?

FNA rollout is on track with controlled launch, expanding meaningfully into Q3 for broad availability by year-end. It's a 'platform within a platform' addressing workflow challenges, and early results show more masses being evaluated. This is expected to drive upside in consumables over time. “F&A is a whole new application. So it's like a platform within the platform of inVue Dx. And so we're taking the time to train customers as we roll this out to make sure that they get the very best experience.”

Earnings call· Jun 2026 (Q2 FY26)· Health Care· Aug 4, 2026

Source: earnings call transcript

Executive summary

IDEXX Q2 FY26 — Strong Diagnostics Growth and Raised Full-Year Outlook

IDEXX delivered strong Q2 FY26 results, driven by robust diagnostic utilization and innovation, despite continued declines in U.S. clinical visits. The company raised its full-year outlook, reflecting momentum in CAG Diagnostics recurring revenues and strategic investments in R&D and commercial capabilities. Management emphasized the long-term growth potential from an aging pet population and expanding diagnostic offerings.

Highlights

Revenue increased 10% as reported and 9% organically in Q2 FY26.
CAG Diagnostics recurring revenues grew over 10% organically, with double-digit gains in both U.S. and international regions.
Comparable operating margin gained 110 basis points, supported by gross margin expansion.
Comparable EPS grew 15% to $4.27 in Q2 FY26.
Free cash flow conversion on a trailing 12-month basis was 110%.

Concerns

U.S. same-store clinical visits declined an estimated 1.3% in Q2 FY26.
Wellness visits declined below 3% in the U.S. during Q2 FY26.
CAG Diagnostic instrument revenues declined 20% organically in Q2 FY26 due to lapping the broad commercial availability of inVue Dx in the prior year period.

Guidance & targets

Category	Target	Timeline	Confidence
Full year revenue	$4.7 billion to $4.745 billion high materiality	FY26	High
Full year overall organic revenue growth	8.5% to 9.7% high materiality	FY26	High
Full year organic CAG Diagnostics recurring revenue growth	9.5% to 10.7% high materiality	FY26	High
Full year EPS	$14.69 to $14.94 per share high materiality	FY26	High
Full year free cash flow conversion	90% to 100% medium materiality	FY26	High
Full year capital spending	approximately $180 million medium materiality	FY26	High
Full year reported operating margin	32.3% to 32.5% high materiality	FY26	High
Second half U.S. clinical visit declines	approximately 1.5% medium materiality	H2 FY26	Medium
Q3 organic revenue growth	in line with the implied second half growth range medium materiality	Q3 · FY26	Medium
Q3 comparable operating margin expansion	20 to 50 basis points medium materiality	Q3 · FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
CAG Diagnostics Strong recurring revenue growth driven by volume and net price realization, despite U.S. same-store clinical visits decline. Instrument placements declined YoY due to lapping inVue Dx launch. recurring revenues grew 10.3% organicallyU.S. organic CAG Diagnostics recurring revenues grew nearly 10%International CAG Diagnostics recurring revenues grew nearly 12% organicallyCAG premium instrument placements reached 5,265 units1,602 IDEXX inVue Dx instruments placedover 1,000 new and competitive catalyst instruments globallycustomer retention globally remains in the high 90sinstalled base grew 11% year-over-year	—	nearly 9%	—	—
Water Strong double-digit growth in both U.S. and international regions, benefiting from order recovery in the Middle East.	—	13% organically	—	—
Livestock, Poultry and Dairy (LPD) Solid gains across regions.	—	9% organically	—	—
IDEXX VetLab Consumables Growth from net new customer gains, premium instrument installed base, and expanded testing utilization, supported by Catalyst menu and inVue Dx recurring revenue. double-digit growth in both the U.S. and international regions	—	14% on an organic basis	—	—
IDEXX Global Reference Lab Led by volume gains, driven by net customer gains and increased same-store utilization, including IDEXX Cancer Dx. Higher correlation to wellness visits. U.S. wellness visits declined 3.4%	—	over 10% organically	—	—
Global Rapid Assay Returned to growth as impact from customer shifting pancreatic lipase testing to Catalyst platform eases.	—	approximately 1% organically	—	—
Veterinary software and diagnostic imaging Driven by recurring revenue growth and strong placements of DR 50+ platform. recurring revenue growth of approximately 10%cloud-native PIMS installed base grew double digitssixth straight record quarter of digital radiography system placements	—	approximately 12%	—	—

IDXX operating KPIs by quarter

IDXX operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Change vs prior quarter
Premium instrument placements	4,625 In the fourth quarter, we placed 4,625 premium instruments, down 12% from high prior year levels. Source: earnings call transcript	4,163 During Q1, we placed 4,163 CAG premium instruments, a decline of 13% against high prior-year levels. Source: earnings call transcript	6,070 Total premium placements reached 6,070 units, an increase of 23% year-over-year. Source: earnings call transcript	5,665 Total premium placements reached 5,665 units, an increase of 37% year-over-year. Source: earnings call transcript	6,567 In the fourth quarter, we placed 6,567 premium instruments, up 42% from the prior year. Source: earnings call transcript	4,650 CAG premium instrument placements reached 4,650 units during the first quarter, an increase of 12% year-over-year and the quality of placements remains superb reflected in over 1,000 global new and competitive catalyst placements, including nearly 320 in North America. Source: earnings call transcript	5,265 CAG premium instrument placements reached 5,265 units during the second quarter resulting in an expected year-over-year decline as we lap the broad commercial availability of inVue Dx in the prior year. Source: earnings call transcript	+13.2%
Employees	<11K I extend my deepest gratitude to our nearly 11,000 employees whose dedication and hard work have made these accomplishments possible. Source: earnings call transcript	—	11K As I conclude our prepared remarks, I want to express my deep appreciation for our 11,000 IDEXX employees worldwide. Source: earnings call transcript	11K As we conclude, I want to extend my deep gratitude to our 11,000 IDEXX employees worldwide. Source: earnings call transcript	11K I want to close by thanking our 11,000 employees around the world. Source: earnings call transcript	~11K Our approximately 11,000 IDEXX employees around the world are purpose-driven and our talent fuels the company's growth. Source: earnings call transcript	—	—
IDEXX InVue Dx instrument placements	—	—	—	1,753 Globally, we placed 1,753 IDEXX InVue Dx instruments as we continue to meet customer demand for this highly innovative analyzer. Source: earnings call transcript	1,900+ We achieved record premium instrument placements in Q4, with strong gains across our major platforms, including over 1,900 IDEXX inVue Dx placements, supporting a 69% organic year-over-year expansion of our CAG Diagnostic instrument revenues. Source: earnings call transcript	1,100 Strong premium instrument placements in the quarter resulted in 28% organic growth of CAG instrument revenues and included 1,100 IDEXX inVue Dx analyzers. Source: earnings call transcript	1,602 Globally, we placed 1,602 IDEXX inVue Dx instruments in Q2 and over 1,000 new and competitive catalyst instruments globally with nearly 300 in the US IDEXX global reference lab revenues increased over 10% organically in Q2, led by volume gains. Source: earnings call transcript	+45.6%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline
inVue Dx	update	Q2 FY26
inVue Dx FNA (Fine Needle Aspirate)	expansion	Broad availability by end of year (FY26)
IDEXX Cancer Dx	expansion	Late Q3 FY26
Catalyst chemistry profiles (CLIPS)	update	June FY26
Fecal Dx antigen testing platform	expansion	Late June FY26
DR 50+ platform	launch	January FY26 (launched)

Risks & headwinds

Decline in U.S. same-store clinical visits Q2 FY26 and H2 FY26

1.3% decline in Q2 FY26; approximately 1.5% expected in H2 FY26

Mitigation:Focus on 'visit quality' (diagnostic frequency and utilization), innovation (Cancer Dx, inVue Dx), commercial execution, and leveraging aging pet population trend.

Pressure on wellness visits Q2 FY26

declined 3.4% in Q2 FY26

Mitigation:Focus on increasing diagnostic intensity within wellness visits (e.g., bloodwork inclusion, Cancer Dx panel), leveraging innovation.

Foreign currency effects Full year FY26, Q3 FY26

$15 million headwind to full year revenue outlook; $0.05 headwind to full year EPS outlook; 70 basis point headwind to Q3 reported revenues

Mitigation:None explicitly stated other than acknowledging the impact.

Muted puppy impact Ongoing

Not quantified

Mitigation:Focus on aging pet population, which drives demand for diagnostics.

Economic pressure on consumers Ongoing

Not quantified

Mitigation:Focus on essential nature of diagnostics, value proposition of innovations.

What to watch in Q3 FY26

inVue Dx FNA broad availability

By the end of the year (FY26)

Current Progressing through controlled launch, meaningfully expanded customer base in Q3.

Target Broad availability

Why it matters

This expansion is expected to significantly increase the evaluation of lumps and bumps, driving future consumables revenue and expanding the inVue Dx platform's utility.

Given the platform within a platform nature of F&A, we're providing clinical practice team training as part of the rollout process with planned broad availability by the end of the year.

Find out whether IDXX delivers this. Inve re-checks your case every morning.

Q&A highlights

How is the FNA rollout progressing, is it fueling inVue placements, and what is the expected impact on consumables flow-through, especially with broad launch?

FNA rollout is on track with controlled launch, expanding meaningfully into Q3 for broad availability by year-end. It's a 'platform within a platform' addressing workflow challenges, and early results show more masses being evaluated. This is expected to drive upside in consumables over time.

“F&A is a whole new application. So it's like a platform within the platform of inVue Dx. And so we're taking the time to train customers as we roll this out to make sure that they get the very best experience.”

asked by Erin Wilson Wright · answered by Michael Erickson

2 min read 5 chapters

Detailed narrative

Innovation and Product Momentum

IDEXX continues to drive growth through innovation, with inVue Dx placements on track for the full-year goal and positive customer feedback on its slide-free workflow and AI-powered results. The expansion of inVue Dx to include fine needle aspirate (FNA) for lump and bump evaluation, with planned broad availability by year-end, is expected to increase evaluated masses due to reduced cost and complexity.

The company also enhanced Catalyst chemistry profiles to include SDMA for North American customers, streamlining workflow and improving kidney function detection.

Cancer Dx Expansion and Impact

IDEXX Cancer Dx has surpassed 10,000 global clinics, addressing a critical need for early cancer detection and monitoring. The upcoming expansion to a multi-cancer panel in late Q3 FY26, including mast cell tumor detection at no additional price increase, is anticipated to be a significant catalyst for broader adoption and market share gains.

Notably, over 20% of Cancer Dx orders already originate from competitive labs, indicating strong clinical demand.

Diagnostic Utilization and Pet Demographics

Despite a 1.3% decline in U.S. same-store clinical visits, IDEXX's CAG Diagnostics recurring revenue grew significantly, driven by increased diagnostic frequency and utilization within visits. The aging pet population, particularly pets aged 5 years and older, is a key tailwind, contributing positive growth to both well and non-well visits, as older pets inherently require more diagnostic care.

Management emphasizes improving 'visit quality' through enhanced diagnostic protocols.

Commercial Strategy and International Growth

IDEXX is expanding its field presence in four international countries and making targeted U.S. additions, building on a proven playbook that links closer customer engagement with higher adoption and utilization of innovations. This strategy, combined with investments in lab networks and software (e.g., VetConnect), is driving strong international CAG Diagnostics recurring revenue growth of nearly 12% organically, reflecting significant headroom for sector development abroad.

Strategic Capital Allocation

The company maintains a strong balance sheet with gross leverage of 0.6x and net leverage of 0.5x. IDEXX deployed $332 million in share repurchases in Q2 FY26 and $693 million year-to-date, contributing to a 2% reduction in diluted shares outstanding. Management continuously assesses M&A opportunities, particularly in diagnostics and software, while prioritizing organic growth investments and leveraging strong free cash flow conversion.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.