IDEXX Laboratories lifts 2026 revenue and EPS targets after a profit-led third-quarter beat

The company raised both ranges but lowered its full-year operating margin outlook to 32.1%-32.3% from 32.3%-32.5%.

IDEXX Laboratories earned $3.96 a share in the third quarter on a comparable basis, $0.15 more than expected, on revenue of $1.21bn that only matched forecasts. The surprise came from profit rather than sales.

The raised outlook matters more than the quarter. IDEXX lifted its 2026 revenue forecast to $4,741m-$4,767m from $4,700m-$4,745m, and its earnings forecast to $14.96-$15.16 a share from $14.69-$14.94. Both ranges moved up at both ends, which suggests management expects the profit strength to last the year rather than treating it as a one-quarter gain.

The margin guidance cuts the other way. The company lowered its full-year operating margin outlook to 32.1%-32.3% from 32.3%-32.5%, a cut of 0.2 percentage points at each end. The higher targets therefore come with a slightly smaller share of sales kept as operating profit.

Chief executive Mike Erickson credited strong commercial execution and momentum from the company's innovation-driven growth strategy, pointing to new diagnostics launches and the CoVet acquisition. Those are the areas where growth has to keep pace with the lower margin outlook.