IDEXX Laboratories (IDXX) stock jumped 21.9% Monday, November 2, after the pet diagnostics company beat third-quarter estimates and raised its 2026 outlook. Shares opened near $641 and, at the time of this writing, had eclipsed $671, a sharp reversal for a stock that had fallen more than 23% over the past year.
For investors who held through the slide, the earnings report answered the main worry: demand for veterinary testing is holding up. Quarterly revenue came in at $1.21 billion against $1.19 billion expected, and management lifted its full-year profit forecast.
U.S. growth continues to be supported by greater testing frequency and intensity per visit as customers adopt our expanded menu,” said CFO Andrew Emerson on the earnings conference call.
Pet owners continue to spend money on their cats and dogs
IDEXX makes the diagnostic instruments, tests and software that veterinary clinics use to check on dogs and cats, from blood work to rapid disease tests.
It earns recurring revenue because clinics keep buying the consumables for its machines. That model made it a Wall Street favorite for years, but the stock slid after a stretch of softer vet-visit volumes.
It closed Oct. 30 at $551.21, with a 52-week range of $500.61 to $769.98. Recent headlines include its purchase of AI veterinary software firm CoVet and new coverage from Goldman Sachs (Buy, $740 target) and KeyBanc (Sector Weight).
In a note shared with me, Goldman Sachs correctly called out IDEXX’s strength, writing on October 15 that it is a “High-quality compounder with proven execution track record, multiple company-specific growth drivers, and an early innovation cycle that we believe can sustain double-digit EPS growth through instrument placements, increasing diagnostics utilization, software adoption, international expansion, margin expansion, and share repurchases.”
IDEXX’s third-quarter GAAP diluted EPS was $4.01, up 18% from a year earlier. Adjusted EPS was $3.96 against the $3.71 consensus. Revenue of $1.21 billion beat the $1.19 billion estimate and was up 10% from last year.
Companion Animal Group revenue grew 10%, and CAG Diagnostics recurring revenue grew 11%. Operating margin rose 100 basis points to 33.1%.
The guidance is what moved the stock.
IDEXX raised 2026 EPS guidance to $14.96–$15.16 from $14.69–$14.94, a $0.25 lift at the midpoint. Revenue guidance rose to $4.74–$4.77 billion, above the $4.72 billion consensus, and organic growth guidance moved to 9.3%–10.0% from 8.5%–9.7%.
Management said on the earnings call that results were strong across its recurring diagnostics business.
“With a substantial majority of wellness visits still not including blood work, increased diagnostic inclusion remains a long-duration growth lever that does not depend on visit growth,” said Emerson.
Wall Street likely to reset Idexx stock price targets
Shares were up about 6% in the pre-open before the rally widened after the bell rang. The consensus rating is Buy with a mean target near $705.
Over the coming days, watch analyst target resets and whether the stock holds above the $640 area. Next, track whether vet-visit trends and pricing continue to support the raised $15-a-share profit outlook. IDEXX typically reports fourth-quarter results in early February, which is the next test.
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