IDEXX Laboratories forecasts robust growth despite US veterinary market pressures

IDEXX Laboratories reports a strong second quarter with increased revenue and updated guidance for 2026, driven by expanding diagnostics platforms amid challenging US veterinary visit trends.

IDEXX Laboratories has reported another strong quarter, with second-quarter revenue rising 10 per cent as measured and 9 per cent organically, helped by more than 10 per cent organic growth in recurring companion-animal diagnostics. The company also lifted its full-year 2026 revenue and earnings guidance, signalling confidence in demand despite a weak veterinary visit backdrop.

According to the earnings materials and management commentary, the inVue Dx platform continues to be a major growth driver, with 2,700 placements in the first half and progress towards a 5,500-unit target for the year. Chief executive Mike Erickson said the FNA launch is broadening in the third quarter, while the expansion of Cancer Dx, including mast cell tumour detection, is intended to deepen usage across wellness and sick-pet cases.

Operating margin improved by 110 basis points in the quarter, supported by a better product mix and strong recurring revenue. International CAG diagnostics growth remained in double digits, underlining the value of recent commercial investment.

The main constraint remains the US veterinary market. Same-store clinical visits fell 1.3 per cent in the quarter, with wellness visits under pressure. Chief financial officer Andrew Emerson said the second half should still deliver modest margin expansion, even as the company steps up spending on commercial activity, research and technology.