If you've been to the vet lately, you're not alone — and that's good news for Idexx Laboratories (IDXX). The pet diagnostics company reported first-quarter results Tuesday that had investors wagging their tails, sending shares up more than 3% in premarket trading.
Revenue came in at $1.14 billion, slightly ahead of the $1.109 billion analysts were looking for, representing 14% growth year-over-year. Earnings per share of $3.47 beat the consensus estimate of $3.41 by a comfortable margin. The company's companion animal group (CAG) diagnostics revenue — the core of its business — grew 14% as reported and 11% on an organic basis.
What's driving the growth? A combination of more pets visiting clinics and vets running more tests. "Excellent commercial execution delivered exceptional first quarter results and positions IDEXX for continued strength through 2026," said CEO Jay Mazelsky in the earnings release.
The U.S. diagnostics business grew 11% organically, outpacing the broader veterinary market. International was even stronger, with reported growth of 21% and organic growth of 12%. The company noted that a "modest easing of clinical visit pressures" and increased diagnostic frequency helped fuel the U.S. performance.
Margins and Innovation
Operating margins expanded by 100 basis points, helped by gross margin gains and strong recurring revenue. Management highlighted several strategic initiatives on the conference call, including the launch of fine-needle aspiration (FNA) technology and expansion of the Cancer DX platform. Both are seeing positive customer feedback and increased adoption.
The company also talked up the role of artificial intelligence in veterinary diagnostics, suggesting AI could enhance innovation and increase the utilization of diagnostic tools. It's a reminder that even in the pet healthcare world, tech is becoming a bigger part of the story.
Guidance Gets a Boost
Idexx raised its full-year 2026 earnings guidance from a range of $14.29-$14.80 to $14.45-$14.90, compared to the consensus of $14.53. Sales guidance was also lifted, from $4.63 billion-$4.72 billion to $4.675 billion-$4.76 billion, versus the consensus of $4.678 billion. The new ranges suggest management sees the momentum continuing through the rest of the year.
Technical Picture
Despite the positive news, the stock has some technical ground to recover. At $564.00, Idexx shares are trading 2.6% below their 20-day simple moving average of $572.90 and 5.1% below the 50-day SMA of $588.05. The relative strength index sits at 45.20, indicating neutral momentum — not overbought, not oversold.
Traders are watching two key levels: resistance at $594.50, where rallies have stalled before, and support at $548.50, where buyers have previously stepped in. With the stock at $582 in premarket trading, it's already pushing toward the upper end of that range.
For now, the story is about a company benefiting from a simple trend: people love their pets, and they're willing to spend on keeping them healthy. As long as that holds, Idexx looks well-positioned.
