IDXX US S&P 500NASDAQ-100Russell 1000 Earnings call · transcribed from the recording
Idexx Laboratories (IDXX) · Q3 2026 results and valuation
Share price: $702.59 · 2026-11-11
Results Q3 2026 vs Q2 2026 · previous quarter · published 2 Nov 2026 and 4 Aug 2026
Net income down 6.3% on the previous quarter, guidance raised. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−6.3%
Net income vs Q2 2026
Guidance raised
Net income 317.1M vs 338.4M
Revenue −0.2%
2 · How management spoke
Upbeat
More upbeat than 89% of company calls
Answers to analysts: upbeat, in line with the script.
Last call it was different: the answers were less upbeat than the script.
3 · What stood out
Figure
CAG Diagnostics instrument revenues declined 20% organically as Idexx Laboratories laps the broad commercial availability of inVue Dx in the prior…
Valuation
Is Idexx Laboratories undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 8.5% growth a year (3-year revenue growth), the model's fair value is $281.64 a share — the stock trades 149% above it. Today's price assumes 20.9% growth a year.
Current price
$702.59
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+20.9% for 10 yrs
Fair value / share
$281.64
Buy below
$211.23
Price vs fair value
Overvalued 149%
Price vs buy-below price
Overvalued >200%
Management expects
EPS +15.5% · from the Q3 2026 report: “We also increased our full-year EPS outlook to $14.96 to $15.16 per share, an increase of $0.25 per share at midpoint, reflecting 15% to 16% comparable EPS…”
A guidance figure for eps, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Key theme
Then commercially, Idexx Laboratories' teams are executing extremely well.
Source quote
“And then commercially, our teams are executing extremely well. This was a record Q3 in terms of instrument placements, and we're... We just launched ProBMP on Catalyst, but even Pancreatic Lipase, which we launched over two years ago, is continuing to drive incremental growth in our business. This was a record Q3 in terms of instrument placements, and we're seeing really strong new customer growth in the labs.”
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Guidance ↑
Idexx Laboratories also increased its full-year EPS outlook to $14.96 to $15.16 per share, an increase of $0.25 per share at midpoint, reflecting 15% to 16% comparable EPS growth...
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Guidance ↑
Turning to its full-year 2026 outlook, as noted, Idexx Laboratories is increasing its outlook for overall revenue to $4,741,000,000 to $4,767,000, an increase of $32,000,000 at midpoint.
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Fading
Revenue increased approximately 10% as reported and 9% organically, supported by over 10% organic growth in CAG Diagnostics recurring revenues…
Source quote
“Revenue increased approximately 10% as reported and 9% organically, supported by over 10% organic growth in CAG Diagnostics recurring revenues... ...Companion Animal business. and international regions, and strong global growth in our Water and LPD businesses.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“The reoccurring growth really supported by innovation, you know, global expansion, and just strong momentum, you know, given the demand that we see for diagnostics at the clinic.”
“Demand for IDEX diagnostic solutions remains high, and we've realized benefits from net new customer gains, expansion of our premium instrument install base, and increased utilization of IDEX innovations.”
“During the third quarter, IDEX delivered outstanding financial results driven by strong global execution, the expanding impact of IDEX innovations, and continued progress in increasing the medically relevant use of...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.21B | 1.22B | −0.2% | 1.11B | +9.9% |
| Gross profit | 764.3M | 779.1M | −1.9% | 683.4M | +11.8% |
| Operating income | 402.3M | 425.6M | −5.5% | 354.8M | +13.4% |
| Net income | 317.1M | 338.4M | −6.3% | 274.6M | +15.5% |
| EPS | 4.01 | 4.27 | −6.1% | 3.40 | +17.9% |
| P/E today 45.6 | 35.2 | 37.0 | −1.8 | 50.7 | −15.5 |
Topics
Most discussed now
- Idexx Laboratories added to the blood morphology menu with nucleated RBCs and eccentricites and a fine needle aspirate, it knows, is...
- New Idexx Laboratories loves what that's doing, not just in terms of addressing a real need in the area of fine needle...
- Strong operating profit gains enabled earnings per share of $4.01 in the quarter, an increase of 18% as reported and...
- Operating performance was excellent, with comparable operating margin gains of approximately 60 basis points year-over-year, led by…
- Idexx Laboratories is raising its full year revenue range to $4,741,000,000 to $4,767,000,000, an increase of $32 million at midpoint…
Faded since Q2 2026
- Fading IDEXX's operating performance was excellent with comparable operating margin gains of 110 basis points, supported by gross margin expansion…
- Fading In parallel, fine needle aspirate, or FNA, is progressing as expected through the controlled launch process and Idexx Laboratories has…
- Dropped Idexx Laboratories has invested into innovation specific to the needs around the world with SNAP 4Dx Leishmania, for example, or ProCyte…
- Fading IDEXX delivered an exceptional second quarter with execution across all key growth drivers: expansion of diagnostic utilization, growth in…
Latest announcements
Official filings, newest first.
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Articles or bylaws amended; Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Director or officer change · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change; Regulation FD disclosure · SEC 8-K