Oct 28, 2026 earnings call — Raised 2026 outlook after strong Q3
Company raised 2026 organic growth to 6.5% to 6.8% and adjusted EPS to $8.91 to $8.96.
Revenue $1.0B (est $0.9B) · EPS $2.33 (est $2.24)
Key quotes
"As discussed on previous calls, data centers, semiconductor, space and defense, and water continue to lead the way for growth at IDEXX."
"In HST, organic orders grew 21% to $468 million, a third quarter record organic sales grew 13%."
"Our ability to tune our solutions laterally and quickly to faster growing verticals is a distinct competitive advantage that is unique to IDEXX."
Analyst Q&A 7
Where new growth is coming from
Q (Michael Halloran · Baird): He asked which indicators show growth is broadening, where that broadening is happening, and whether areas still down are improving or just bottoming.
A: Management said they see modest step ups in small-volume daily order rates across several months, often from distributors, which signal a driver behind broader growth. They called out three weak areas—chemicals, ag, and energy—and said ag and energy show modest signs of improvement (preseason ordering, terminal automation), while chemicals remain very fatigued due to high input prices.
"Well, you know, we have seen we have seen nice little step ups in the in the broader kind of small volume order rates." — Eric D. Ashleman (CEO)
When HST revenue could recover
Q (Bryan Blair · Oppenheimer): He asked whether HST revenue could reach the trailing order average by early 2027 given current visibility, and he also asked about Intelligent Water trends and the iDx product.
A: Management said most orders have short lead times, but the data center part of HST brings unpredictable large tranches; they have backlog and are focused on quarter-to-quarter requirements while growing HST toward their high-single-digit target. On Intelligent Water, they said municipal and high-purity (semi) work are growing and that iDx combines multiple data feeds into one software platform to give simple diagnostics for cities.
"I think for us moving up sequentially, continue to grow the business, continue to supply against that backlog is the key." — Eric D. Ashleman (CEO)
Does tuning raise addressable market?
Q (Vertical): He asked whether tuning the portfolio is uncovering new adjacencies and effectively increasing the company’s addressable market, and whether there is product-cycle visibility in life sciences for 2027–2028.
A: Management said the tuning work mines intersections of capabilities and markets and does elevate the potential TAM, with examples that would not have been considered 3–5 years ago. They also said life sciences shows healthy innovation across major customers and labs, though no single product was pointed to as a clear driver.
"What this tuning ability gives us is it does absolutely elevate the potential TAM of things to do there." — Eric D. Ashleman (CEO)
AI effects and HST growth mix
Q (Joseph Giordano · TD Cowen): He asked how AI and similar big themes connect to what management sees on the ground now, and whether the composition of HST growth (data center, semi, space/defense) is changing.
A: Management said AI mainly speeds analysis, decision making, and regulatory work, which accelerates innovation and time to market, and that the industry feels more optimistic as pandemic-era pressures ease. They added HST growth is driven by data center, semiconductor, and space/defense (now over a third of the portfolio), that these areas grew about 50% year to date, and that trends and backlog provide durable visibility though year-over-year comps will get tougher.
"And in that world in particular, speed of analysis, speed of decision making, speed of regulatory, all of those things have been big inputs into the current pacing and the historic pacing." — Eric D. Ashleman (CEO)
Other HST parts and margins
Q (Nathan Jones · Stifel): He asked which HST areas are not contributing to growth now and when they might, and whether higher growth should raise incremental margins.
A: Management said life sciences is the biggest non-advantaged piece (about a third of HST) and should return to being additive next year; the remaining parts are more industrial and should track overall activity. On margins, they said Q3 showed strong flow-through and that company-level flow-through remains in the high thirties to 40% range, with HST in the high thirties, FMT around 40%, and FSDP between those levels, though corporate costs create a year-over-year headwind.
"Because you started to see volume growth in the FMT and FST portions of the business as well, you know, in flow through there was quite strong in the quarter." — Sean Gillen (CFO)
Pricing impact and possible risks
Q (Vladimir Bystricky · Citi): He asked how much pricing helped the top line in 2026 and how that may evolve in 2027, and whether any emerging negatives could offset momentum into 2027.
A: Management said pricing was about 2% of overall top line in 2026 (Q3 basis), heavier in established markets and lighter in higher-growth HST, and they expect to keep pricing in excess of cost to protect margins. On risks, they see no immediate major issues but are watching aggregate capacity in data centers and some input-price and macro items as potential governors on growth.
"pricing, for 2026 is around 2% of overall top line." — Sean Gillen (CFO)
Top surprises and visibility gains
Q (Daniel DiCicco · Bank of Montreal): He asked which business or end market exceeded expectations most this year and where visibility has improved most for 2027.
A: Management said Material Science Solutions has been especially impressive, with recent acquisitions and teams (Muon, Mott) moving quickly on new applications. They also said advantaged markets are leading the way and the broadening into industrial markets gives more growth opportunity and leverage for the company.
"you know, I think our teams within Material Science Solutions would probably say the work that they are doing there has been particularly impressive." — Eric D. Ashleman (CEO)