IDXX

ResMed RMD is scheduled to release its first-quarter fiscal 2027 results on Oct. 29, after the closing bell. The renowned sleep health device maker posted adjusted earnings per share (EPS) of $2.95 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 1.72%. The company topped earnings estimates in each of the trailing four quarters, the average surprise being 2.78%. For the first quarter of fiscal 2027, the Zacks Consensus Estimate for ResMed's revenues is pegged at $1.39 billion, indicating an increase of 4% from the year-ago reported figure. The Zacks Consensus Estimate for fiscal first-quarter EPS suggests a 4.7% rise to $2.67. The estimate has dropped 0.7% in the past 30 days. Here's a brief review of the company's performance leading up to this announcement. Within this segment, ResMed's device revenues may have benefited from continued solid demand for sleep devices across the Americas and Rest of World. However, life support devices, including ventilators such as Astral, are likely to have seen lower unit sales. The ongoing expansion of the AirSense 11 platform into global sleep health markets is expected to have supported revenues in the first quarter of fiscal 2027. Growth is likely to have remained strong in the United States and Europe, while penetration in China may have continued to build following its recent launch. During the fourth quarter of fiscal 2026, ResMed reached an important milestone with the U.S. introduction of the AirCurve 11 ST and AirCurve 11 ST-A platforms. The company also launched the AirCurve 11 platform in Hong Kong, Singapore, Australia and New Zealand. Masks and other is also expected to have contributed. ResMed is likely to have continued the global rollout of its fabric technology masks, including AirTouch N30i and AirTouch F30i, in the first quarter of fiscal 2027. The AirFit F40, its smallest tube-down full-face mask, may also have generated strong demand. These developments are expected to have supported the segment's top line in the quarter. ResMed Inc. price-eps-surprise | ResMed Inc. Quote ResMed may have continued integrating Noctrix Health, LLC, which it acquired in June 2026. Noctrix's flagship product, Nidra, addresses restless legs syndrome (RLS), a prevalent sleep disorder worldwide after sleep apnea and insomnia. The acquisition expands ResMed's clinical sleep health portfolio into an adjacent area of unmet need. Greater clinician awareness is also likely to act as a tailwind for ResMed's results in the fiscal first quarter. The company's continuing medical education (CME) programs cover sleep physician society-approved guidelines and the benefits of continuous positive airway pressure (CPAP), automatic positive airway pressure (APAP) and bilevel positive airway pressure (PAP) therapy as frontline treatments for sleep apnea. More than 55,000 clinicians have completed its sleep apnea courses, with total course completions exceeding 95,000. ResMed has already observed increases in home sleep apnea test referrals and prescriptions for PAP therapy following training. The Zacks Consensus Estimate implies Sleep and Breathing Health revenues will increase 6.4% in the fiscal first quarter. Over the last few quarters, ResMed has continued to reshape its Residential Care Software portfolio, directing higher investments in high-growth, higher-margin businesses while reducing exposure to lower-growth, lower-margin areas, including services businesses. The strategy is aimed at returning the business to sustainable high-single-digit revenue growth and achieving double-digit operating profit growth in fiscal 2027. In line with these efforts, ResMed completed the sale of its MatrixCare business to the private equity firm Frazier Healthcare Partners on Sept. 1, marking the culmination of its portfolio management initiatives. MatrixCare represented approximately $220 million of revenues and approximately $28 million of operating profit in fiscal 2026. The divestiture is expected to have reduced the company's revenues in the fiscal first quarter. Following the transaction, the Residential Care Software portfolio comprises Brightree and MEDIFOX DAN offerings, which are likely to have made a solid contribution to revenues in the to-be-reported quarter. The Zacks Consensus Estimate projects Residential Care Software revenues to decrease 12.7% in the first quarter of fiscal 2027. Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here, as you can see below. Earnings ESP: ResMed has an Earnings ESP of -0.60%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here. Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time: Phibro Animal Health PAHC has an Earnings ESP of +2.10% and a Zacks Rank #1. The company is expected to release first-quarter fiscal 2027 results soon. PAHC's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.4%. The Zacks Consensus Estimate for the company's first-quarter EPS indicates an increase of 8.2% from the year-ago quarter's figure. Becton, Dickinson and Company BDX, or BD, has an Earnings ESP of +0.21% and a Zacks Rank #1. The company will release its fourth-quarter fiscal 2026 results on Nov. 5. BD's earnings outpaced estimates in each of the trailing four quarters, the average surprise being 2.94%. The Zacks Consensus Estimate for the company's fourth-quarter EPS calls for a rise of 2.5% from the year-ago quarter's figure. IDEXX Laboratories IDXX has an Earnings ESP of +0.59% and a Zacks Rank #2. The company is slated to release third-quarter 2026 results on Nov. 2. IDXX's earnings beat estimates in each of the trailing four quarters, the average surprise being 5.7%. The Zacks Consensus Estimate for the company's third-quarter EPS implies a jump of 9.1% from the year-ago quarter's figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ResMed Inc. (RMD) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

IDEXX Laboratories, Inc. IDXX is set to release third-quarter 2026 results on Nov. 2, before the opening bell. In the last reported quarter, the company posted adjusted earnings per share (EPS) of $4.27, which surpassed the Zacks Consensus Estimate by 8.10%. IDEXX's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 5.74%. The Zacks Consensus Estimate for revenues is pegged at $1.19 billion, indicating an increase of 7.5% from the year-ago figure. The Zacks Consensus Estimate for EPS is pinned at $3.71, implying a rise of 9.1% from the year-ago figure. Estimates for third-quarter earnings have remained unchanged in the past 60 days. Here's a brief snapshot of the pet healthcare innovator's performance leading up to the announcement. The business is likely to have sustained its momentum in the third quarter of 2026, supported by continued volume growth. CAG Diagnostics' recurring revenues are expected to have been a key driver of this performance, with robust gains across both the U.S. and international regions. IDEXX VetLab consumables might have benefited from volume expansion driven by net new customer gains in the premium instrument installed base and expanded testing utilization. Global Reference Lab revenues are likely to have benefited from an expanding customer base and increased same-store utilization, as existing customers adopted a broader testing menu, such as IDEXX Cancer Dx. Global Rapid Assay revenues are expected to have improved as the impact of customers transitioning pancreatic lipase testing to the Catalyst instrument platform gradually subsides. Within Veterinary Software, Services and Diagnostic Imaging Systems, recurring revenue growth was likely supported by expanding cloud-based PIMS recurring revenues and increased adoption of the newly launched DR50 Plus platform. Additionally, the September acquisition of CoVetAI Inc. is expected to strengthen IDEXX's global software presence through integration with IDEXX VetConnect PLUS while addressing the needs of veterinary practice teams in markets not currently served by its practice management systems. On the flip side, continued pressure on wellness visits might have remained a key constraint on clinical visit growth during the third quarter. The Zacks Consensus Estimate for CAG's third-quarter business revenues implies an increase of 7.9%. The segment's revenues are expected to have benefited from both the United States and international regions, including benefits from order recovery in the Middle East. The Zacks Consensus Estimate for Water's revenues implies 6.4% year-over-year growth. IDEXX Laboratories, Inc. price-eps-surprise | IDEXX Laboratories, Inc. Quote Revenues in this division might have gained from an increase in test volumes across all regions. The Zacks Consensus Estimate for LPD revenues indicates a 3.5% year-over-year increase. Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is exactly the case here, as you can see below: Earnings ESP: IDEXX Laboratories has an Earnings ESP of +0.59%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here. Here are some other medical stocks worth considering, as these too have the right combination of elements to post an earnings beat this time around: TG Therapeutics TGTX has an Earnings ESP of +71.43% and a Zacks Rank #1 at present. The company is expected to release third-quarter 2026 results soon. TGTX's earnings beat estimates in one of the trailing four quarters and missed in the other three, the average surprise being 184.65%. The Zacks Consensus Estimate for third-quarter EPS implies a decrease of 84.8% from the year-ago quarter's figure. Revvity RVTY has an Earnings ESP of +1.03% and a Zacks Rank #2 at present. The company is slated to release third-quarter 2026 results on Nov. 3. RVTY's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 6.59%. The Zacks Consensus Estimate for third-quarter EPS indicates an increase of 9.3% from the year-ago quarter's figure. Acadia Healthcare ACHC has an Earnings ESP of +4.84% and a Zacks Rank #3 at present. The company is slated to release third-quarter results on Nov. 4. ACHC's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 47.02%. The Zacks Consensus Estimate for third-quarter EPS calls for a decrease of 36.1% from the year-ago quarter's figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report Acadia Healthcare Company, Inc. (ACHC) : Free Stock Analysis Report TG Therapeutics, Inc. (TGTX) : Free Stock Analysis Report Revvity Inc. (RVTY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Is IDXX a good stock to buy? We came across a bullish thesis on IDEXX Laboratories, Inc. on Astute Optics - US's Substack. In this article, we will summarize the bulls' thesis on IDXX. IDEXX Laboratories, Inc.'s share was trading at $553.48 as of October 21st 2026. IDXX's trailing and forward P/E were 36.65 and 31.45 respectively according to Yahoo Finance. This isn't the first time we see an animal health company pitched as a great investment. Unfortunately, IDXX shares lost 13.33% of their value over the last 12 months. Comparable stock like Zoetis lost 45.61% during the same period. Spending on pets' health can attract investors, but it hasn't protected these stocks from falling share prices. Does IDXX's recent recovery signal a buying opportunity, or is there more reason for caution? werzk-luuu-tDlo2ZPlQlU-unsplash In May, we published an article about the 10 Best Cancer Stocks to Buy for the Long Term and IDXX ranked #4 in that article. IDXX has gained modestly since then. Btw, the #1 stock in that list returned 31.41% over the same period. So, hedge funds were right about their #1 pick. This article explains why hedge funds were bullish on IDXX. Before getting into our analysis, let's take a look at the business and why some investors like the stock so much. IDEXX Laboratories, Inc. (NASDAQ:IDXX) develops and sells diagnostic products, software, and services mainly for veterinarians. Its Companion Animal Group is the heart of the business, and the steady, repeat revenue from instruments, consumables, testing, software, and reference laboratories is key to understanding the stock. Each diagnostic instrument placed in a clinic can keep generating testing and consumables revenue for years, which helps IDEXX Laboratories, Inc. earn strong margins. Read More: 15 AI Stocks That Are Quietly Making Investors Rich Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential Over the past twelve months, revenue reached about $4.6 billion, up 12.8% from a year earlier, and roughly a quarter of that revenue ended up as net profit. That strength is already reflected in the price, as the stock trades at about 35.5 times trailing earnings versus a peer median of about 31.0 times. The gap suggests that investors aren't paying only for current performance, they're betting that IDEXX Laboratories, Inc. can keep compounding earnings at a premium rate. The bullish case rests on the idea that spending on animal health and the use of diagnostics will keep rising over time. IDEXX Laboratories, Inc. can grow in two ways at once: by placing more instruments in veterinary clinics and by earning more recurring revenue from each system already installed. The results so far support this view, with operating margin above 32% and return on equity of about 66%, showing that the company turns its installed base into strong profits. You can check out why IDEXX is betting an AI scribe can sell more pet diagnostics here. Management raised its full-year 2026 revenue guidance to between $4.70 billion and $4.75 billion after second-quarter revenue of about $1.11 billion beat the roughly $1.07 billion analysts expected, while quarterly earnings grew 17.6% from a year earlier. IDEXX Laboratories, Inc. is also widening its product range by adding a kidney health marker to its Catalyst CLIPs, canine mast cell tumor detection to its Cancer Dx Panel, more cell-testing capabilities to the inVue Dx Cellular Analyzer, and a new digital imaging system called the ImageVue DR50 Plus. If more clinics adopt these products and tests, bulls expect extra recurring revenue from the customers the company already has. On top of this, the company generated about $1.0 billion of free cash flow in fiscal 2025, which gives it room to fund research, expand its platforms, and buy back shares. Analysts are also supportive, with a consensus twelve-month price target of about $698.92, which implies roughly 38% upside from the referenced share price of $504.70. The median target is close by at $700. Reaching the consensus target at a 34 times forward multiple would require earnings per share of about $20.56, which is far above the trailing $14.23 and the current consensus forward estimate of $14.83. In simple terms, the targets assume earnings will grow much faster than analysts currently expect, so investors should watch whether earnings growth stays strong enough to justify both the targets and the premium valuation. However, slower veterinary demand or weaker adoption of the newer diagnostic platforms could be a key risk. A stock with a premium valuation is expected to keep growing faster and earning higher margins than its peers, and so far IDEXX Laboratories, Inc. does. Its revenue is growing more than twice as fast as the peer median of roughly 5.7%, its operating margin is well above the peer median of 23.5%, and its gross margin improved to about 64.0% from 62.6% a year earlier. Still, the stock trades at 8.7 times sales versus a peer median of about 5.6 times, even after falling roughly 21% over the past twelve months. The company also carries about $772 million of net debt, since its $968.9 million of debt is well above its $196.9 million of cash. Combined with a premium valuation, this leaves little room for slower growth, pricing pressure, or shrinking margins. Hedge fund positioning shows a mixed signal. As per our database, 63 hedge fund portfolios held IDEXX Laboratories, Inc. at the end of the second quarter, up slightly from 62 in the previous quarter. This small increase suggests institutional investors remain broadly positive on the company's veterinary diagnostics business and long-term earnings potential despite valuation concerns. By comparison, Zoetis Inc. (NYSE:ZTS) was held by 64 hedge funds, up from 57, Neogen Corporation (NASDAQ:NEOG) was held by 27 hedge funds, up from 26, and Thermo Fisher Scientific Inc. (NYSE:TMO) was held by 118 hedge funds, up from 115. The divergence suggests institutional investors showed the strongest increase in conviction toward Zoetis Inc., while IDEXX Laboratories, Inc. saw only a modest increase in interest, Neogen Corporation recorded a similarly small gain, and Thermo Fisher Scientific Inc. attracted steadier investor attention as funds adjusted their healthcare and diagnostics exposure based on growth expectations and valuation differences. Valuation Analysis IDXX's forward P/E is 31.45x. Zoetis Inc. and Thermo Fisher Scientific Inc. trade at forward P/Es of 11.99x and 24.15x, respectively, while Neogen Corporation's forward P/E is unavailable. IDXX's own forward P/E was 47.39x on December 31, 2025, meaning its multiple has fallen approximately 34% since then. We believe the current valuation reflects confidence in its recurring diagnostic revenue, balanced against concerns about veterinary demand and whether new products can sustain earnings growth. However, the stock still trades approximately 30% above Thermo Fisher and more than twice Zoetis's multiple, suggesting that its stronger growth prospects are already partly priced in. IDEXX's 2026 EPS guidance of $14.69–$14.94 implies 12%–14% reported growth, which supports a premium but offers limited protection against further valuation compression: a 10% decline in its multiple would absorb most of one year's earnings growth at that pace. We believe IDXX can justify its current valuation if double-digit earnings growth persists for several years, supported by recurring testing revenue and stable margins. If IDEXX delivers that growth, it could be a good long-term investment, although a lower entry price would offer a more attractive margin of safety. Previously, we covered a bullish thesis on IDEXX Laboratories, Inc. (IDXX) by Hidden Market Gems in March 2025, which highlighted recurring veterinary diagnostics revenue, strong margins, innovation, and long-term growth opportunities. IDXX's stock price has appreciated by approximately 29.71% since our coverage. We believe IDXX could be a good long-term investment at a lower price, as its premium valuation could offset returns from continued double-digit earnings growth if its multiple falls. IDEXX Laboratories, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. While IDXX could benefit from recurring veterinary testing revenue and adoption of new diagnostic products, we believe some AI stocks offer stronger long-term potential at more attractive valuations, with a high probability of delivering superior returns on a much shorter timeline. If you are looking for an AI stock that is more promising than IDXX and that has 10,000% upside potential, check out our report about this cheapest AI stock. Disclosure: None.

Illumina, Inc. ILMN is set to release third-quarter 2026 results on Oct. 29, after the closing bell. The company posted adjusted earnings per share (EPS) of $1.31 in the last reported quarter, which surpassed the Zacks Consensus Estimate by 6.5%. Illumina beat earnings in each of the trailing four quarters, the average surprise being 9.67%. The Zacks Consensus Estimate for the company's third-quarter revenues is pegged at $1.14 billion, which suggests 5% growth from the year-ago reported figure. The Zacks Consensus Estimate for earnings is pinned at $1.38 per share, which implies a 3% rise from the year-ago actuals. The estimate has remained constant in the past 60 days. Here's a brief overview of the company's performance leading up to this announcement. Illumina currently has one reportable segment, Core Illumina, following the separation of GRAIL into an independent, publicly traded company in June 2024. The company is likely to have extended its solid first-half 2026 momentum into the third quarter, driven by growing demand for its technologies. In the second quarter, Rest-of-World organic revenues exceeded the high end of management's previous guidance. Demand for the NovaSeq X platform also remained strong, with more than 95 systems placed during the quarter, more than three years after its launch. These drivers, along with disciplined expense management, may have helped Illumina deliver stronger profitability and bottom-line performance in the third quarter. Illumina, Inc. price-eps-surprise | Illumina, Inc. Quote Continued demand from clinical markets may have remained a key growth driver. Clinical growth across Rest-of-World markets may have benefited from broad-based strength across regions and applications, particularly in the United States and Canada. Strong instrument placements in recent quarters are expanding customers' sequencing capacity, which may have driven consumables growth in the to-be-reported quarter. However, research and academic markets may have remained under pressure as customers continued to exercise caution amid funding uncertainty. Although some improvement was seen in the second quarter, management noted that it was too early to call a recovery. The transition to NovaSeq X may have progressed further in the third quarter. By the end of the second quarter, approximately 83% of sequencing volumes and 59% of revenues had transitioned to the platform. Despite the ongoing shift, Illumina's sequencing consumables business may have continued to perform well. Strong demand for NovaSeq X and MiSeq i100 is also expected to have supported Sequencing instruments revenues. Within Sequencing service and other, the company is likely to have continued to gain traction in its Billion Cell Atlas program, resulting in higher data revenues from biopharma customers. In July, the Billion Cell Atlas alliance added three new member companies, including AI-native drug developer Formation Bio. Illumina's recent innovations may have supported revenue growth in the third quarter. The company launched a whole-genome MRD research workflow, a tool that runs on NovaSeq systems, designed to help customers shorten assay development timelines and lower development costs. Illumina broadened its capabilities in spatial biology with the StrataMap Spatial sequencing-based workflow. It is also seeing sustained proteomics momentum following the close of the SomaLogic acquisition. Illumina's SomaScan and SomaSeq offerings are generating strong interest and helping customers connect proteomics and genomic insights. Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates, which is exactly the case here, as you can see below: Earnings ESP: Illumina has an Earnings ESP of +9.16%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here. Here are some other medical stocks worth considering, as these also have the right combination of elements to post an earnings beat this time: Phibro Animal Health PAHC has an Earnings ESP of +2.10% and a Zacks Rank #1. The company is expected to release first-quarter fiscal 2027 results soon. PAHC's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.4%. The Zacks Consensus Estimate for the company's first-quarter EPS indicates an increase of 8.2% from the year-ago quarter's figure. IDEXX Laboratories IDXX has an Earnings ESP of +0.59% and a Zacks Rank #2. The company is slated to release third-quarter 2026 results on Nov. 2. IDXX's earnings beat estimates in each of the trailing four quarters, the average surprise being 5.7%. The Zacks Consensus Estimate for the company's third-quarter EPS implies a jump of 9.1% from the year-ago quarter's figure. Becton, Dickinson and Company BDX, or BD, has an Earnings ESP of +3.28% and a Zacks Rank #2. The company will release its fourth-quarter fiscal 2026 results on Nov. 5. BD's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.94%. The Zacks Consensus Estimate for the company's fourth-quarter EPS calls for a rise of 2.5% from the year-ago quarter's figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Illumina, Inc. (ILMN) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Boston Scientific Corporation BSX is slated to report third-quarter 2026 results on Oct. 28, before the market opens. The renowned medical device manufacturer posted earnings per share (EPS) of 86 cents in the last reported quarter, which surpassed the Zacks Consensus Estimate by 3.61%. The company topped earnings estimates in three of the trailing four quarters and broke even once, the average surprise being 2.95%. For the third quarter of 2026, the Zacks Consensus Estimate for Boston Scientific's revenues is pegged at $5.17 billion, indicating an increase of 2.1% from the year-ago reported figure. The Zacks Consensus Estimate for the company's third-quarter EPS suggests a 1.3% rise to 76 cents. The estimate has dropped 5% in the past 30 days. Let's briefly review the company's performance leading up to this announcement. In the third quarter of 2026, the segment may have contributed due to continued strength in Endoscopy and Neuromodulation. Endoscopy sales are likely to have gained from the biliary franchise, led by the AXIOS Stent and Delivery System, and the core gastrointestinal (GI) franchise. Boston Scientific also secured FDA clearance for RIVOS, a first-of-its-kind single device designed to consolidate multiple exchanges, allowing physicians to streamline procedural steps while performing endoscopic ultrasound biliary drainage. Initial cases had received positive feedback. Neuromodulation is likely to have benefited from the strength of its comprehensive pain portfolio, led by the Intracept Intraosseous Nerve Ablation System. The acquired Nalu Medical may have provided another quarter of solid sales contribution, with integration efforts continuing. In the brain franchise, Boston Scientific's global growth may have been favorably supported by the continued adoption of the Cartesia X leads and accelerating uptake of the Illumina 3D programming algorithm in the United States. Boston Scientific Corporation price-eps-surprise | Boston Scientific Corporation Quote Meanwhile, similar to the previous quarter, Urology may have faced continued headwinds from weakness in the stone franchise due to volume-based procurement in China and commercial disruption in sacral neuromodulation. The Zacks Consensus Estimate projects MedSurg revenues to increase 1.6% year over year in the third quarter. In the third quarter of 2026, Boston Scientific may have faced continued weakness in two historically strong Cardiovascular businesses. During the July earnings call, management lowered its full-year organic revenue and profitability outlook, citing a more challenging second half of 2026 than previously expected. WATCHMAN sales were hurt by an unexpected slowdown in the U.S. market, as compounding clinical evidence impacted referral patterns. In Electrophysiology ("EP"), the level of competitive share movement in the U.S. market was greater than anticipated. The Cardiac Rhythm Management ("CRM") business may remain a drag on the quarter's results, reflecting continued competitive pressures and gaps within the product portfolio. Weakness across its low-voltage and high-voltage businesses is likely to have persisted. On a positive note, strength across the company's broad diagnostic portfolio may have helped offset some of the pressures. Boston Scientific is also expected to have seen sustained momentum in its Interventional Cardiology business, driven by continued strength in DCB, imaging and complex PCI. Vascular Therapies results may benefit from broader adoption of Varithena and the drug-eluting portfolio. Following strong reception of the SEISMIQ IVL device for its clinical differentiation, the company is likely to have continued to ramp up its supply. Interventional Oncology and Embolization is also expected to have delivered strong global growth, aided by demand for its broad range of technologies. According to the Zacks Consensus Estimate, Cardiovascular revenues are expected to see a 0.7% decline from the prior-year period. Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has a higher chance of beating estimates, which is not the case here, as you can see. Earnings ESP: Boston Scientific has an Earnings ESP of -3.63%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Zacks Rank: The company currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank stocks here. Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time: Phibro Animal Health PAHC has an Earnings ESP of +2.10% and a Zacks Rank #1. The company is expected to release first-quarter fiscal 2027 results soon. PAHC's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.4%. The Zacks Consensus Estimate for the company's first-quarter EPS indicates an increase of 8.2% from the year-ago quarter's figure. IDEXX Laboratories IDXX has an Earnings ESP of +0.59% and a Zacks Rank #2. The company is slated to release third-quarter 2026 results on Nov. 2. IDXX's earnings beat estimates in each of the trailing four quarters, the average surprise being 5.7%. The Zacks Consensus Estimate for the company's third-quarter EPS implies a jump of 9.1% from the year-ago quarter's figure. Becton, Dickinson and Company BDX, or BD, has an Earnings ESP of +3.28% and a Zacks Rank #2. The company will release its fourth-quarter fiscal 2026 results on Nov. 5. BD's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.94%. The Zacks Consensus Estimate for the company's fourth-quarter EPS calls for a rise of 2.5% from the year-ago quarter's figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Ecolab ECL is scheduled to release third-quarter 2026 results on Oct. 27, before the opening bell. In the last reported quarter, the company delivered earnings that surpassed the estimates by 0.48%. ECL's earnings beat estimates in three of the trailing four quarters and met once, delivering an average surprise of 0.49%. Currently, the Zacks Consensus Estimate for revenues is pegged at $4.67 billion, indicating growth of 12.2% year over year. The consensus mark for earnings is pinned at $2.18 per share, indicating an improvement of 5.3%. Ecolab is expected to have sustained its growth momentum in the third quarter of 2026, supported by stronger pricing, resilient demand across core businesses and continued strength in its high-growth platforms. Global High-Tech, Life Sciences, Ecolab Digital and Pest Elimination are likely to have remained key growth drivers, benefiting from AI infrastructure investments, market share gains in bioprocessing, rising adoption of connected solutions and continued customer demand for productivity-enhancing technologies. However, elevated commodity costs, ongoing geopolitical disruptions and continued investments in growth businesses are likely to have influenced the company's margin and earnings performance. Within the Global Industrial segment, Global High-Tech is expected to have remained a key contributor to growth, supported by strong demand for semiconductor manufacturing solutions and data center cooling technologies. In the second quarter, the business delivered 29% growth, reflecting the rapid expansion of AI infrastructure. The acquisition of CoolIT Systems, which closed in July, is expected to have further strengthened Ecolab's exposure to direct-to-chip liquid cooling and expanded its ability to provide integrated water, energy and cooling solutions. Life Sciences is also likely to have remained a strong performer, following 15% growth in the second quarter, driven by market share gains in bioprocessing, pharmaceuticals and personal care, as well as improved purification performance. Investments in manufacturing capacity and innovation are expected to support further growth, although continued spending to expand the business could influence reported margins. Meanwhile, Food & Beverage is likely to have benefited from the One Ecolab strategy and cross-selling opportunities, while Paper and Heavy Water could have continued their gradual recovery following signs of stabilization in the preceding quarter. The Global Institutional & Specialty segment is expected to have maintained steady growth, supported by market share gains, value pricing and demand from restaurant, hotel, quick-service restaurant and specialty customers. In the second quarter, the segment delivered 4% organic growth despite softer U.S. restaurant traffic, highlighting the resilience of Ecolab's customer relationships and its ability to outperform underlying markets. Continued cross-selling under the One Ecolab initiative and demand for solutions that improve productivity while reducing water and energy consumption are likely to have supported performance. Pest Elimination is also expected to have benefited from the expansion of its Pest Intelligence platform and connected-device offerings, while Ecolab Digital is likely to have continued to capitalize on growing adoption of software and subscription-based solutions. Pricing realization and commodity inflation are expected to remain key factors influencing Ecolab's third-quarter performance. In the second quarter, pricing strengthened to 4%, and management expected pricing to reach 5% to 6% in the second half of 2026 as energy surcharges were fully realized. The company also anticipated high-single-digit commodity cost inflation for the remainder of the year. Although pricing actions are expected to help offset higher input costs, the timing of recovery and the impact of acquisition-related expenses could influence reported earnings and margins. Management's second-half outlook called for organic sales growth of 6% to 7% and an adjusted operating income margin of 19%, while the full-year 2026 adjusted EPS outlook was raised to $8.05-$8.25, representing growth of 7% to 10% year over year. Investors will look for evidence that pricing is keeping pace with inflation, volumes remain resilient and productivity initiatives continue to support profitability. Investors will also monitor the contribution from CoolIT and the pace of integration across Ecolab's Global High-Tech platform. Management expects the combined Global High-Tech business, including Ovivo and CoolIT, to grow more than 25% annually and reach $4 billion in sales by 2030, with an operating income margin of 25%. However, management indicated that it was too early to revise CoolIT's near-term growth expectations following the acquisition, despite its strong pre-acquisition sales momentum. Commentary on demand across AI infrastructure, Life Sciences growth, the recovery in traditional industrial businesses and the trajectory of pricing and margins will be important as Ecolab works toward its long-term targets of 5% to 7% organic sales growth, a 20% operating income margin in 2027 and adjusted EPS growth of 12% to 15% beyond 2026. Ecolab Inc. price-eps-surprise | Ecolab Inc. Quote Our proven model does not predict an earnings beat for ECL this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here. Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +0.22%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. Zacks Rank: The company has a Zacks Rank #4 (Sell) at present. You can see the complete list of today's Zacks #1 Rank stocks here. Here are some medical stocks worth considering, as these have the right combination of elements to post an earnings beat this time: Phibro Animal Health PAHC has an Earnings ESP of +2.10% and a Zacks Rank #1. The company is expected to release first-quarter fiscal 2027 results soon. PAHC's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 18.4%. The Zacks Consensus Estimate for the company's first-quarter EPS indicates an increase of 8.2% from the year-ago quarter's figure. IDEXX Laboratories IDXX has an Earnings ESP of +0.59% and a Zacks Rank #2. The company is slated to release third-quarter 2026 results on Nov. 2. IDXX's earnings beat estimates in each of the trailing four quarters, the average surprise being 5.7%. The Zacks Consensus Estimate for the company's third-quarter EPS implies an increase of 9.1% from the year-ago quarter's figure. Becton, Dickinson and Company BDX or BD has an Earnings ESP of +3.28% and a Zacks Rank #2. The company is due to release fourth-quarter fiscal 2026 results on Nov. 5. BD's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 2.94%. The Zacks Consensus Estimate for the company's fourth-quarter EPS calls for a rise of 2.5% from the year-ago quarter's figure. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Ecolab Inc. (ECL) : Free Stock Analysis Report Becton, Dickinson and Company (BDX) : Free Stock Analysis Report IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Idexx Laboratories (IDXX), which belongs to the Zacks Medical - Instruments industry, could be a great candidate to consider. This Animal diagnostic and health care company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 4.78%. For the last reported quarter, Idexx came out with earnings of $4.27 per share versus the Zacks Consensus Estimate of $3.95 per share, representing a surprise of 8.10%. For the previous quarter, the company was expected to post earnings of $3.42 per share and it actually produced earnings of $3.47 per share, delivering a surprise of 1.46%. With this earnings history in mind, recent estimates have been moving higher for Idexx. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Idexx has an Earnings ESP of +0.59% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on November 2, 2026. Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric. Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Based in Westbrook, Maine, IDEXX Laboratories, Inc. (IDXX) is a global healthcare company specializing in diagnostic products and software for veterinary practices. It provides testing solutions for pets, livestock, poultry, dairy, and horses, alongside water quality testing and diagnostic systems for human medicine. The company has a market capitalization of $41 billion. IDXX is scheduled to report its Q3 earnings on Monday, November 2, 2026, before the market opens. Ahead of the release, analysts expect diluted EPS of $3.70, up 8.8% from $3.40 in the year-ago quarter. IDXX has also exceeded Wall Street's EPS estimates in each of the past four quarters, highlighting its consistent earnings performance. - Dear Intel Fans, Mark Your Calendars for October 29 - Bill Gates Says Despite Elon Musk Being Mean to Him, He's Still 'In Awe' of His Work — 'He's Brilliant, He's Rich, He's Influential' - At 97, Charlie Munger Borrowed $37 Million to Go All-In on Alibaba — 2 Years Later He Called It One of the 'Worst Mistakes' of His Life - Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! For fiscal 2026, analysts expect IDXX to report EPS of $14.80, up 13.2% from $13.08 in fiscal 2025. EPS is projected to increase by another 12.2% to $16.61 in fiscal 2027. IDXX shares have surged 16.9% over the past 52 weeks, slightly outperforming the S&P 500 Index ($SPX), which rose 16.2%, but trailing the State Street Health Care Select Sector SPDR ETF (XLV), which gained 22.2% over the same period. On September 16, IDEXX Laboratories announced its acquisition of CoVetAI, strengthening its veterinary software and AI capabilities. The deal could support long-term growth by improving clinical workflow efficiency, increasing diagnostic utilization, and helping veterinary practices make better clinical decisions and serve more patients. Following the announcement, IDEXX shares moved marginally up. Analysts remain somewhat bullish on IDXX, with the stock carrying a consensus "Moderate Buy" rating. Of the 15 analysts covering the stock, eight recommend a "Strong Buy," one suggests a "Moderate Buy," and six rate it a "Hold." The average analyst price target of $717.92 represents a 35.7% premium to the current share price. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

A month has gone by since the last earnings report for Idexx Laboratories (IDXX). Shares have lost about 7.8% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Idexx due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for IDEXX Laboratories, Inc. before we dive into how investors and analysts have reacted as of late. IDEXX Laboratories reported second-quarter 2026 earnings of $4.27 per share, up 18% year over year. The figure surpassed the Zacks Consensus Estimate by 8.1%. Comparable constant-currency EPS of $4.07 improved 15% year over year. Revenues rose 10% to $1.22 billion and topped the Zacks Consensus Estimate by 1.3%. Results benefited from volume-driven Companion Animal Group (“CAG”) Diagnostics’ recurring revenues, increased diagnostic utilization and continued adoption of IDEXX’s innovations. CAG Diagnostics’ recurring revenues advanced 11% as reported and 10% organically. CAG revenues increased 9.4% year over year to $1.12 billion. Organic growth was 8.7%. International CAG revenues climbed 13.4% as reported and 11.5% organically, while U.S. revenues advanced 7.4%. IDEXX VetLab consumables revenues increased 14.7% to $430.3 million, with organic growth of 13.6%. Performance was supported by higher testing utilization, recent product launches, net new customer gains and an 11% expansion of the global premium instrument installed base. Reference laboratory diagnostic and consulting services revenues rose 10.6% to $406.7 million. Organic growth was 10.3%, driven by higher testing volumes and customer additions. Rapid assay product revenues increased 1.3% to $101.6 million. Water revenues advanced 15% year over year to $58.6 million and 13% organically. This growth reflected solid performances in the United States and Europe. Livestock, Poultry and Dairy revenues increased 11% to $35.2 million, with organic growth of 9%. Strength in the Americas supported the improvement. Gross profit increased 12% to $779.1 million. Gross margin expanded 140 basis points to 64%, supported by recurring revenue volume gains, operational productivity initiatives and net price realization. Operating expenses rose 10% to $353.5 million as IDEXX invested in commercial capabilities, innovation and information technology. Operating profit climbed 14% to $425.6 million, while operating margin expanded 140 basis points to 35%. IDEXX exited the second quarter of 2026 with cash and cash equivalents of $196.9 million compared with $200.5 million at the end of the first quarter. Cumulative net cash provided by operating activities was $613.4 million compared with $423.7 million in the prior-year period. IDEXX has updated its 2026 revenue guidance to $4.70-$4.75 billion from $4.68-$4.76 billion. The midpoint increased $5 million despite a projected $15-million headwind from updated foreign exchange assumptions. The company now expects reported revenue growth of 9.1-10.3% and organic growth of 8.5-9.7%. The Zacks Consensus Estimate is currently pegged at $4.72 billion, indicating 9.6% year-over-year growth. IDEXX raised its 2026 earnings outlook to $14.69-$14.94 per share from $14.45-$14.90. The Zacks Consensus Estimate is currently pegged at $14.81. In the past month, investors have witnessed a downward trend in fresh estimates. At this time, Idexx has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Idexx has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Idexx is part of the Zacks Medical - Instruments industry. Over the past month, Glaukos (GKOS), a stock from the same industry, has gained 5%. The company reported its results for the quarter ended June 2026 more than a month ago. Glaukos reported revenues of $185.61 million in the last reported quarter, representing a year-over-year change of +49.5%. EPS of -$0.14 for the same period compares with -$0.24 a year ago. Glaukos is expected to post a loss of $0.12 per share for the current quarter, representing a year-over-year change of +25%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.8%. Glaukos has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report IDEXX Laboratories, Inc. (IDXX) : Free Stock Analysis Report Glaukos Corporation (GKOS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

IDEXX Laboratories recently reported past second-quarter 2026 results showing higher revenue and earnings, and slightly raised its full-year 2026 guidance for revenue, operating margin and EPS. The company also introduced the Catalyst proBNP Test, the first dual-species, in-clinic NT-proBNP cardiac test, expanding its connected veterinary diagnostics portfolio and tapping into an underassessed companion-animal heart disease market. We’ll now examine how the new Catalyst proBNP Test and raised 2026 guidance may reshape IDEXX’s broader investment narrative. Capitalize on the AI infrastructure supercycle with our selection of the 56 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. To own IDEXX, you need to believe in a long runway for companion-animal diagnostics, driven by higher testing per visit and a sticky installed base. The near term catalyst is continued growth in high-margin recurring diagnostics, while the main risk is pressure on U.S. vet visit volumes and pricing. The Catalyst proBNP launch and slightly higher 2026 guidance modestly support the recurring-revenue story but do not fundamentally change these core drivers or risks. The most relevant announcement is IDEXX’s raised 2026 outlook, now calling for revenue of US$4,700 million to US$4,745 million and EPS of US$14.69 to US$14.94. This tighter, higher range reinforces the idea that product innovation like Catalyst proBNP, layered onto a large installed base and growing test menu, can help offset softer U.S. visit trends and competitive pressure by lifting test utilization and supporting margins in the near term. Yet for all the optimism around new tests and higher guidance, investors should still be mindful of how persistent U.S. visit softness could... Read the full narrative on IDEXX Laboratories (it's free!) IDEXX Laboratories' narrative projects $5.7 billion revenue and $1.5 billion earnings by 2029. This requires 8.7% yearly revenue growth and about a $0.4 billion earnings increase from $1.1 billion today. Uncover how IDEXX Laboratories' forecasts yield a $709.14 fair value, a 24% upside to its current price. Some of the most optimistic analysts already expected IDEXX to reach about US$5.9 billion of revenue and US$1.6 billion of earnings by 2029, and they see launches like Catalyst proBNP as supporting a much larger recurring diagnostics opportunity than consensus, even as others worry that cost conscious care models could still limit how far this upside really goes. Explore 4 other fair value estimates on IDEXX Laboratories - why the stock might be worth just $595.98! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your IDEXX Laboratories research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision. Our free IDEXX Laboratories research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate IDEXX Laboratories' overall financial health at a glance. The market won't wait. These fast-moving stocks are hot now. Grab the list before they run: Uncover the next big thing with 19 elite penny stocks that balance risk and reward. Invest in the nuclear renaissance through our list of 90 elite nuclear energy infrastructure plays powering the global AI revolution. Find 49 companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include IDXX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 8:30 a.m. ET President and Chief Executive Officer - Mike Erickson Chief Financial Officer - Andrew Emerson Vice President, Investor Relations - John Ravis Operator: Good morning, and welcome to the IDEXX Laboratories Second Quarter 2026 Earnings Conference Call. As a reminder, today's conference is being recorded. Participating in the call this morning are Mike Erickson, President and Chief Executive Officer; Andrew Emerson, Chief Financial Officer; and John Ravis, Vice President, Investor Relations. IDEXX would like to preface the discussion today with a caution regarding forward-looking statements. Listeners are reminded that our discussion during the call will include forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those discussed today. Additional information regarding these risks and uncertainties is available under the forward-looking statements notice in our press release issued this morning as well as in our periodic filings with the Securities and Exchange Commission, which can be obtained from the SEC or by visiting the Investor Relations section of our website, idexx.com. During this call, we will be discussing certain financial measures not prepared in accordance with Generally Accepted Accounting Principles or GAAP. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures is provided in our earnings release, which may also be found by visiting the Investor Relations section of our website. In reviewing our second quarter 2026 results and updated 2026 guidance, please note all references to growth, organic growth and comparable growth refer to growth compared to the equivalent prior year period unless otherwise noted. [Operator Instructions] Today's prepared remarks will be posted to the Investor Relations section of our website after the earnings conference call concludes. I would now like to turn the call over to Andrew Emerson. Andrew Emerson: Good morning. I'm pleased to take you through our second quarter results and provide an updated outlook for our full year 2026 financial expectations. During the second quarter, IDEXX delivered excellent financial results, building on strong execution and expansion of IDEXX innovations in our Companion Animal business. Revenue increased approximately 10% as reported and 9% organically, supported by over 10% organic growth in CAG Diagnostics recurring revenues, with double-digit gains in both the U.S. and international regions, and strong global growth in our Water and LPD businesses. CAG Diagnostics recurring revenue growth was led by expanded volumes, while U.S. same-store clinical visits declined an estimated 1.3% in the quarter. Premium instrument placements reached over 5,200 units in the quarter, including approximately 1,600 IDEXX inVue Dx analyzers, on pace for our full year inVue Dx placement goal of 5,500 units. IDEXX's operating performance was excellent with comparable operating margin gains of 110 basis points, supported by gross margin expansion with benefits from strong recurring revenue growth and favorable product costs in the quarter. Operating profit gains enabled earnings per share of $4.27 in the quarter, resulting in EPS growth of 15% on a comparable basis. Strong second quarter performance supports an increase to our full year outlook while advancing incremental growth investments. We're updating our full year revenue range to $4,700 million to $4,745 million, an increase of $5 million at midpoint, net of a $20 million increase in operational performance, offset by a $15 million headwind from updated foreign currency effects. Our updated full year overall organic revenue growth outlook is 8.5% to 9.7%, and with organic CAG Diagnostics recurring revenue growth of 9.5% to 10.7%. These organic growth ranges represent an increase of approximately 40 basis points at midpoint to our previous guidance, aided by global momentum in our CAG Diagnostics recurring revenues. We're also increasing our full year EPS outlook to $14.69 to $14.94 per share, an increase of $0.14 per share at midpoint, reflecting a 13% to 15% comparable EPS growth range. We'll provide further details on our updated 2026 financial expectations later in my comments. Let's begin with a review of the second quarter results. Second quarter organic revenue growth of 9% was driven by nearly 9% CAG revenue gains, 13% growth in our Water business, and 9% growth in LPD. Strong CAG results were supported by CAG Diagnostics recurring revenue growth of 10.3% organically, net of a 50 basis point negative impact related to equivalent days and average global net price improvement of approximately 4%. As expected, CAG Diagnostics instrument revenues declined 20% organically as we lap the broad commercial availability of inVue Dx in the prior year period. U.S. organic CAG Diagnostics recurring revenues grew nearly 10% in Q2, including strong volume gains and net price realization aligned with our full year expectations. U.S. same-store clinical visits declined 1.3% in the quarter, reflecting an IDEXX U.S. CAG Diagnostics recurring revenue growth premium to U.S. clinical visits of approximately 1,100 basis points. Pressure on wellness visits remains the primary constraint to clinical visits, with non-wellness visits showing modest growth. We continue to see growth in pets 5 years and older across both categories. IDEXX benefits from quality of clinical visits with an increasing number, including diagnostics and broader use of diagnostic testing menu. With a substantial majority of wellness visits today not including bloodwork, we see inclusion as a long-duration volume lever that does not depend on visit recovery. International CAG Diagnostics recurring revenues grew nearly 12% organically in Q2, sustaining double-digit gains, led by volume growth. International performance continues to be driven by IDEXX execution with volume gains from net new customers, supported by expansion of our premium instrument installed base and same-store utilization, including benefits from IDEXX innovations. IDEXX continued to deliver strong organic revenue gains across our major global testing modalities in the second quarter. IDEXX VetLab consumable revenues increased 14% on an organic basis, reflecting double-digit growth in both the U.S. and international regions. Consumable revenue growth included benefits from net new customer gains in our premium instrument installed base and expanded testing utilization. IDEXX innovations, including our expanded Catalyst menu and growing benefits from inVue Dx recurring revenue continue to support utilization gains across our customer base. CAG premium instrument placements reached 5,265 units during the second quarter, resulting in an expected year-over-year decline as we lapped the broad commercial availability of inVue Dx in the prior year. Instrument placements remained high quality. Globally, we placed 1,602 IDEXX inVue Dx instruments in Q2 and over 1,000 new and competitive Catalyst instruments globally, with nearly 300 in the U.S. IDEXX Global Reference Lab revenues increased over 10% organically in Q2, led by volume gains. Reference Lab carries a higher index to wellness visits, which declined 3.4% in the U.S. during the period. Performance was driven by net customer gains and increased same-store utilization, as existing customers adopted broader testing menu, including IDEXX Cancer Dx. Global Rapid Assay revenues increased approximately 1% organically in Q2, returning to growth as the impact from customer shifting of pancreatic lipase testing to our Catalyst instrument platform eases. Veterinary software and diagnostic imaging organic revenues increased approximately 12%, driven by recurring revenue growth of approximately 10% during the quarter and continued strong placements of the DR50 Plus platform. Our cloud-native PIMS installed base grew double digits, creating an expanded customer footprint to improve workflow and enhance diagnostic protocols in the clinic. Water revenues increased 13% organically in Q2, with strong double-digit growth in both the U.S. and international regions, including benefits from order recovery in the Middle East. Livestock, Poultry and Dairy revenues increased 9% organically in the quarter, with solid gains across our regions. Turning to the P&L. Strong recurring revenue growth and favorable product costs enabled 12% comparable operating profit gains in the quarter, with reported operating margins achieving 35%. Gross profit increased 12% in the quarter as reported and 11% on a comparable basis. Gross margins were 64%, up approximately 120 basis points on a comparable basis. These gains reflect benefits from strong recurring revenue growth in IDEXX VetLab consumables and Reference Lab volumes, operational productivity, and favorable business mix, including strong margin gains in our Water and LPD businesses. Pricing benefits offset inflationary cost pressures, which eased in the quarter compared to our expectations. On a reported basis, operating expenses increased 10% year-over-year and 9% on a comparable basis. We expect to maintain growth in operating expenses through the remainder of the year as we advance investments in our innovation agenda and global commercial capabilities given strong revenue performance. Q2 EPS was $4.27 per share, an increase of 18% as reported and 15% on a comparable basis. EPS in the quarter included a $0.14 per share benefit related to share-based compensation activity, compared to a $0.10 benefit in the prior year period, and foreign exchange added $6 million to operating profit and $0.06 to EPS in Q2, net of hedge effects. Free cash flow was $323 million in Q2 and $557 million for the first half of 2026. On a trailing 12-month basis, our net income to free cash flow conversion rate was 110%. For the full year, we're increasing our outlook for free cash flow conversion to 90% to 100% of net income, including full year capital spending consistent at approximately $180 million. Our balance sheet remains strong, finishing the period with leverage ratios of 0.6x gross and 0.5x net of cash. We maintained deployment of excess capital towards share repurchases, allocating $332 million during the second quarter and $693 million year-to-date. Capital allocated to share repurchases supported approximately a 2% year-over-year reduction in diluted shares outstanding in Q2. Turning to our full year 2026 outlook. As noted, we're increasing our outlook for overall revenue to $4,700 million to $4,745 million. At midpoint, this reflects a $20 million operational improvement from our prior guidance, building on strong second quarter performance, including CAG Diagnostics recurring revenue expansion. Our updated reported revenue outlook includes a $15 million headwind related to foreign currency changes compared to our prior estimates. This reflects a reported revenue growth of 9.1% to 10.3%, including approximately a 60 basis point benefit to full year growth from foreign exchange at the rates outlined in our press release. As a sensitivity, a 1% strengthening of the U.S. dollar would reduce revenue by approximately $8 million and EPS by $0.03 per share for the remainder of the year. Our updated overall organic revenue growth outlook of 8.5% to 9.7% includes organic growth range of 9.5% to 10.7% for CAG Diagnostics recurring revenue, including approximately a 4% benefit for global net price realization. At midpoint, we're anticipating second half U.S. clinical visit declines of approximately 1.5%, reflecting similar Q2 trends. Business momentum combined with recent and upcoming product launches support our outlook for the second half and the full year. In terms of key financial metrics, we're updating our reported operating margin outlook to 32.3% to 32.5% for 2026, reflecting an increased expectation of 70 to 90 basis points for full year comparable operating margin improvement, supported by gross margin gains from strong recurring revenue growth. We're advancing incremental investments in commercial and R&D during the second half, supporting our long-term growth agenda. Our updated full year EPS outlook is $14.69 to $14.94 per share, an increase of $0.14 per share at midpoint, driven by operational performance compared to our prior guide. EPS also includes an increase of $0.05 per share related to share-based compensation benefits, offset by a $0.05 headwind from updated foreign exchange rates. For the third quarter, we're planning for organic revenue growth in line with the implied second half growth range, and foreign currency impacts creating a 70 basis point headwind to reported revenues at rates outlined in the press release. In the quarter, we're planning for modest comparable operating margin expansion of 20 to 50 basis points, with reported operating margins expected to be 32.5% to 32.8%. That concludes our financial review. I'll now turn the call over to Mike for his comments. Michael Erickson: Thank you, Andrew, and good morning. IDEXX delivered an exceptional second quarter with execution across all key growth drivers: expansion of diagnostic utilization, growth in our instrument and customer base, and continued advancement of our broad-based innovation pipeline. The structural importance of diagnostics in the veterinary practice supported increased diagnostic frequency and utilization, even as overall clinical visit growth remained a modest headwind. We continue to see tailwinds from the aging pet population, with pets aged 5 and older contributing positive growth across both well and non-well visits. Pets are living longer, and we know that pets, like humans, require more care, including diagnostics as they age. Turning to commercial execution. Instrument placements in both competitive conversions and greenfield accounts remain strong, and our installed base grew 11% year-over-year. Each new placement is a long-term platform investment, and with every menu expansion, the recurring value of that installed base grows. Customer retention globally remains in the high 90s for our CAG Diagnostics business. This is a metric that we work hard to earn every day, as it is a key part of our growth algorithm reflecting the trust veterinarians place in IDEXX and the durable value of our integrated diagnostics and software solutions. We know from experience that diagnostics is a performance category. Practices on our platform, point of care, reference labs, software and imaging, see materially higher growth in both their diagnostics and overall practice revenue. We are also advancing investments in our global commercial capabilities. During the remainder of the year, we will expand our field presence across 4 international countries, as well as targeted additions in the U.S. This builds upon last year's international and domestic expansions and is a statement of our confidence in these geographies, our innovative diagnostic portfolio, and the opportunity to grow testing utilization. We have a well-proven operating playbook for these expansions. When we work closely with customers in the practice, helping them integrate innovations into their everyday protocols, we see higher adoption, higher utilization and stronger long-term relationships. Turning to innovation. inVue Dx momentum continues to be strong. We placed 2,700 instruments through the first half and are on pace to achieve our full year placement goal. We're seeing a steady ramp internationally as our commercial teams support integration of inVue Dx into practice workflows and awareness builds across regions. Customer feedback is positive and consistent across geographies, with veterinarians highlighting the integrated slide-free workflow, the diagnostic confidence of objective AI-powered results, and the productivity gains of having cytology answers while the patient is in the clinic. We've also continued expanding the clinical value of inVue Dx through menu additions. In the second quarter, we added new pathologic red blood cell morphologies associated with underlying diseases of the liver, spleen and kidneys. These updates push automatically to every connected inVue Dx instrument worldwide, with no action required by the practice. As blood and ear cytology capabilities expand, customers find more reasons to run samples on inVue Dx, and utilization grows. In parallel, fine needle aspirate, or FNA, is progressing as expected through the controlled launch process and we've meaningfully expanded the base of customers entering Q3. With inVue Dx FNA, veterinarians can evaluate lumps and bumps for mast cell tumors during the patient visit with optional expert pathologist review available in a single click. Today, fewer than 10% of lumps and bumps ever get evaluated, largely due to the cost and workflow complexity of glass slides. We're seeing early indications that the slide-free workflow, real-time results and affordable pricing of inVue Dx FNA are associated with an increased number of masses evaluated. Given the platform within a platform nature of FNA, we're providing clinical practice team training as part of the rollout process with planned broad availability by the end of the year. IDEXX Cancer Dx reached another milestone, surpassing 10,000 global clinics ordering since launch, a reflection of how this test is addressing the critical need for early cancer detection and becoming part of routine veterinary care. Cancer Dx is now available in North America, Europe and Australia. Momentum in both screening and monitoring applications continues to build. Approximately 70% of Cancer Dx tests are run as part of a broader bloodwork panel, reflecting integration of cancer testing into everyday clinical protocols. Globally, over 20% of Cancer Dx orders come from practices using a competitive lab, an indication that clinicians are putting their patients first and breaking from their typical workflow to access this innovative test from IDEXX. As customers adopt Cancer Dx, they experience the broader value of our IDEXX Reference Lab ecosystem, contributing to strong new customer growth in the quarter. Cancer Dx will expand from a test to a panel in late Q3 with the addition of mast cell tumor detection. That means veterinarians will soon be able to screen at-risk dogs for 1/3 of all canine cancer types during a single routine wellness visit. Mast cell tumors are among the most common cancers in dogs, but also among the most frequently missed, as they can resemble benign lesions and go undetected, particularly in dogs with long coats. Importantly, this expansion comes at no increase in price to our customers. The full Cancer Dx panel, including mast cell tumor detection, will remain approximately $15 when run as part of a profile in our lab. We're committed to doing our part to support broadly available, affordable cancer screening that also inspires wellness bloodwork. Our Technology for Life strategy continues to create broad-based value for customers and for IDEXX, and Q2 delivered 2 meaningful expansions to our platform capabilities. In June, we enhanced our most common Catalyst chemistry profiles, known as CLIPs, to include IDEXX SDMA for all customers in North America. This built-in integration expands access to SDMA at the point of care, helping veterinarians identify kidney function loss earlier and detect up to 1/3 more renal dysfunction in sick pets, all within a more streamlined workflow. Since introducing IDEXX SDMA in 2015, customers have run nearly 120 million patient tests globally, a reflection of its widely recognized clinical importance. Early response to the new Catalyst CLIPs is positive, with strong adoptions and favorable feedback on workflow and inventory management. Catalyst menu additions, such as these SDMA CLIPs, Pancreatic Lipase, and Cortisol, expand the value of our nearly 80,000 Catalysts around the world. We also expanded our Reference Laboratory Fecal Dx antigen testing platform, adding taeniid tapeworm detection in late June for U.S. and Canadian customers at no additional cost. This is our third Fecal Dx menu expansion in 4 years, and the platform now covers 7 of the most clinically relevant intestinal parasite groups. Each expansion reinforces the clinical value of running this panel as part of every routine wellness visit, enabling detection of 2x more infections than fecal flotations. Our software and imaging business delivered strong results in Q2. Independent practices and corporate groups choose IDEXX software to drive productivity through workflow efficiency, deep diagnostic integrations, and the ability to centrally manage operations across a large-scale network. Vello, our pet owner engagement platform, continues to expand, with double-digit sequential growth in active users. Vello brings personalized outreach, diagnostic-driven campaigns, and forward booking capabilities that improve practice efficiency. Practices on ezyVet with Vello show higher wellness bloodwork inclusion rates than practices on competitive on-premise PIMS, a direct measurable impact from the convergence of software and diagnostics in support of expanded care. In diagnostic imaging, we saw our sixth straight record quarter of digital radiography system placements. These results reflect strong commercial execution and customer demand for the DR50 Plus launched in January, which combines AI-powered imaging quality with up to 60% lower radiation dose than premium competitors. Radiation safety leadership is an important area of focus for us, given that 75% of veterinary technicians working in practices are women of child-bearing age. As I reflect on IDEXX and the veterinary care industry we have the privilege to serve, I'm energized by the opportunity ahead. The long-term drivers of animal health remain sound. The bond between people and their pets continues to deepen. Pet owners remain committed to high-quality care and to being lifelong pet parents. The aging pet population supports durable, increasing demand for diagnostics across dogs and cats. And expectations for quality care continue to rise, with high-performing diagnostics at the center of clinical decision-making. We're in the early stages of an innovation cycle that is broad-based and building: inVue Dx, Cancer Dx, Catalyst menu, Fecal Dx expansions, DR50 Plus, software and AI. Our innovation support higher standards of care, increased diagnostic intensity, and expanded access to diagnostic insights for more pets globally. We look forward to sharing more on all of this at our Investor Day on August 13 at our headquarters in Maine and live-streamed for those unable to attend in person. Lastly, in my first few months as CEO, I've had the privilege of connecting with many IDEXXers around the world. Those conversations reinforce what I've long understood about the strength of our talent and our growth mindset culture. I want to thank our employees for their steadfast commitment to our customers and to advancing innovations that empower clinical teams to see more and do more in their practices. That singular focus, turning diagnostic, software, and AI innovations into everyday clinical value is, what will keep compounding into long-term durable growth for our customers and IDEXX. With that, I'll open the line for Q&A. Thank you. Operator: [Operator Instructions] We will take our first question from Erin Wright with Morgan Stanley. Erin Wilson Wright: Great. So can you speak a little bit about the rollout of FNA and how that's progressing relative to your expectations? Is that helping to fuel some of the inVue placements in the quarter? And can you remind us of just how the consumables flow-through is tracking relative to your expectations for inVue, and the overall consumables number was solid in the quarter. Just can you remind us of, I guess, in terms of potential upside even to the consumables targets that you have, especially as you kind of broadly launch FNA? Michael Erickson: Erin, thanks for the question. Yes. So the overall consumable revenue performance on inVue Dx is comfortably within the range that we've discussed around $3,500 to $5,500 per instrument. And so we're really happy with what we're seeing. And just overall, the launch and progression of inVue Dx has been just outstanding, really one of the most successful product rollouts that we've had at the company. As you heard, 2,700 placements in the first half of the year, 9,000 overall. You asked about the progression of FNA. It's going well. It's on track with our controlled launch process that we've talked about in the past. This is the process that we follow to make sure that we really get all the details of the customer experience nailed. That's what our customers expect from us. And it makes sense to do that because we know that these things have very long tails. So we want to make sure we get the flywheel running well. So we broadened the rollout, the controlled rollout of FNA as we headed into Q2. And based on the great feedback that we're getting from customers, we're broadening that again meaningfully as we go into Q3 with planned full availability by the end of the year. And I think it's just worth mentioning, each of these applications on inVue Dx is really a platform within a platform. When we rolled it out, we started with 2 large areas of testing with ear cytology and blood morphology, and we continue to add menu to those. And when we do that, we can just push that out to our customers. FNA is a whole new application. So it's like a platform within the platform of inVue Dx. And so we're taking the time to train customers as we roll this out to make sure that they get the very best experience. And as you heard me share in the comments, we're really excited to see that in the early results with FNA, we're seeing even more masses getting looked at, which just reflects the fact that we're addressing the real challenge in the practice around the cost and complexity of glass slides with this new application. So very excited. And as this continues to roll out, we do see upside in that consumable number over time. Erin Wilson Wright: Okay. That's great. And you hit double-digit growth in the Reference Lab for the first time since the beginning of 2023, if I have my numbers right. And I guess, can you break down the components of that growth and the sustained market share gains that you're seeing there? And we always seem to find that segment to be more correlated to vet office visits. And just on that front, there is this swirly narrative out there as well as some supportive analysis from the former CEO and Chairman of IDEXX calling out some sustained pressure in vet visits over the next several years. I guess, how do you think about that in the context of the data that you are seeing and the pushes and pulls you see there from an underlying demand standpoint, given some of the metrics you shared in terms of aging pet population and other metrics as well? How does that fit into your long-term growth algo? Michael Erickson: Great, Erin. So I'll talk a little bit about the Reference Lab and then Andrew can talk more about visit trends. So we're really happy with the growth in the lab. It really reflects a broad set of just execution and performance across the team, where we've added, obviously, to the lab offering with what I shared around Fecal Dx, adding taeniid tapeworm and then Cancer Dx has just really hit the mark this critical need for early cancer screening, monitoring and diagnosis. And as I shared, we're seeing 20% of the volume with Cancer Dx coming from practices that have been using a competitive lab. And so that means that they're putting their patients first, prioritizing their patients' needs over whatever existing workflows they have, and that's associated with record lab conversions. And we're seeing that worldwide. And so the growth in the lab really reflects the investments that we're making in innovation, very strong commercial execution, customer conversions and really, overall, the strong volume growth. Again, we're seeing that internationally, which we're very pleased to see. Andrew Emerson: Yes. And Erin, just on the sector, certainly, I think we've continued to see declines in U.S. same-store clinical visits, 1.3% within the quarter, largely on track with our expectations from our previous guidance. We are continuing to see pressure more on the discretionary areas, wellness visits being down below 3% compared to the prior year. And we're seeing some positive benefits on the non-well side. Certainly, I think the economic pressure that consumers are facing just on broad inflationary dynamics and challenges with things like gas prices and housing prices put pressure on those discretionary categories. But there's also certainly been a more muted puppy impact here just given the pace of adoptions that we have seen. I think we've called that out in the past during these times of economic pressure, we typically see consumers are slower to add or replace pets within their household, and I think that's playing out to some degree. But I think the foundation of the overall pet population continues to be positive. And I think we're paying close attention to that. Ultimately, we'll continue to provide updates for our longer-term growth algorithm at our Investor Day event here coming next week. So we're excited to provide more details at that point. Operator: We will take our next question from Chris Schott with JPMorgan. Christopher Schott: Just wanted to come back to vet visits and just a little bit more color on the trends you're seeing. I guess any big differences as you look at the trends that you're seeing from corporate versus independent practices or urban versus suburban locations? And maybe just a secondary question on that same topic. What do you think it's going to take to get wellness visits back to growth given the continued erosion there? It seems like the non-wellness trend is going the right way, but that wellness piece of the business, just any directional outlook of how to think about that going forward? Michael Erickson: Chris, we don't see differences looking across different parts of the country or across corporates or independents. And in fact, what we hear from, in particular, talking to CEOs at some of our large corporate partners, they're seeing exactly what Andrew talked about this wave of older pets coming through COVID pets. And by the way, that's driving growth not just in non-well, but in well and non-well within that particular age cohort. I think the key is and what we really focus on is, visit quality. Andrew talked a little bit about that. That's the diagnostic frequency and utilization within the visit. So we're focused on developing the sector to keep enhancing that quality, and that's what we're seeing happen. And that's a combination of innovations that provide new opportunities, new episodes of testing things like Cancer Dx, for example, and then also just commercial execution, working with our customers on education and really honing and optimizing their diagnostic protocols, including their well testing protocols. And there's massive headroom to keep growing this. I mean we know, for example, in the U.S., only around 1 out of 10 wellness visits are getting bloodwork today. And outside the U.S., it's much less, around 1/3 or even less than that in most countries. And so there's substantial headroom through innovation and commercial execution to continue to drive this kind of growth in wellness testing. So that's really where we're focused is driving that quality of visit. Operator: We will take our next question from Jonathan Block with Stifel. Jonathan Block: Mike, maybe you could talk a little bit more about these commercial investments that you called out. They've certainly yielded good returns in the past. But why now for the next tranche? I think you just did a recent tranche over the past 4 quarters or so. Are these different international markets? And then maybe most importantly, does it mean anything from an innovation standpoint? In other words, beefing up the sales force in certain areas as maybe that innovation bucket could continue to grow when we look forward? Michael Erickson: Jon, thanks for the question. We're just really excited about the opportunity internationally. We know that there's a lot of headroom to grow placements, utilization to develop the sector for diagnostics, particularly around wellness, for example, where that it's just a little less developed than in the U.S. And so we've been consistently making investments really across the board internationally to support that. This includes investing into expanding our field presence. And that ties to a playbook that we have, and we've seen a really reliable return on that. I mean the bottom line is when we're working more closely with customers, when we get our territory sizing dialed in right, then we can help them adopt these new innovations into their protocols. We see higher adoption. We see higher flow-through, stronger relationships, all the sort of positive things that really drive the flywheel for customers and for us. But it's not just innovation on that front. We've also invested significantly to expand our lab network around the world and to make sure our service levels are outstanding. We've invested in the software, for example, with VetConnect PLUS tuned for local geographies. We've invested into innovation specific to the needs around the world with SNAP 4Dx Leishmania, for example, or ProCyte One, which is successful globally, but really was developed in part to address specific kind of performance cost needs in different parts of the world. And then we're seeing things like inVue Dx also really pick up internationally with 40% of our placements coming abroad. So as we step back and look at the international opportunity, we just see a lot of opportunity, and we see a very reliable return on these investments. And so we're going to continue to make these investments to continue to develop the sector and help more pets globally. Jonathan Block: Fair enough. And I'll pivot for the second question. Andrew, a recurring theme here. The 2H '26 2-year stacks would not have had to accelerate further if you did not raise the guidance, but once again, you did. So I guess, I got to ask you the silly question that almost penalizes you for raising that guidance. When I look forward, it seems like visits are expected to be more of the same in the back part of the year as the first half; price at 4% is pretty much the same in 2H versus 1H. So like what aids that premium on that stack basis, if the question is making sense? Maybe I'll ask a question and maybe answer it. I mean, do we think those customer wins, which have been solid, they're growing recurring from inVue, Cancer Dx broadening? I'm just looking for maybe some color on the drivers behind that really solid stack 2-year CAG Dx recurring in 2H? Andrew Emerson: Yes. Jon, so as you highlighted, we are planning for continued strong CAG Diagnostics recurring revenue growth over the balance of the year. We did raise our expectations from our prior guidance. Some of that was certainly the strong Q2 that we had. And we're really continuing to build momentum here within the business, both in the U.S. and on the international region basis. As Mike highlighted, we continue to make investments in reaching our customers being able to translate the value of these innovations to our customers and help them leverage the different diagnostic capabilities and software capabilities in their clinic to support overall pet health. I think when we think about the guidance, certainly, it's a range that we've put out there. There is an increase at midpoint and reflects the strong first half performance that we had. But we also are really excited by some of the recent and upcoming product launches. Mike highlighted a few of them on the call here, both the new menu on SDMA within the CLIP, really simplifies some of the workflow in the clinic and helps with inventory management. We've also added to our Fecal Dx panel, which I think will be beneficial to our customers. We continue to broaden the rollout of FNA on inVue Dx, and we'll be adding mast cell tumor detection to Cancer Dx here. So we have a number of continued innovations that I think will support the back half and we maintain high customer loyalty levels in the high 90s really across our modalities. So the combination of factors here builds a strong case for the second half, and we feel good about the guidance that we have set. Operator: We will take our next question from Ryan Daniels with William Blair. Ryan Daniels: Sorry about that, guys. Can you hear me now? Andrew Emerson: We can. Michael Erickson: Yes, we got you, Ryan. Ryan Daniels: Great. A quick question for you regarding the SDMA move to the Catalyst. Do you think that will have any cannibalization on the reference lab? Michael Erickson: No, no. What we consistently see, Ryan, is whenever we invest into one modality, for example, at the point of care or vice versa, the reference labs, we actually see that testing begets testing and we drive overall more diagnostics. The types of things when you think about using SDMA at the point of care, certainly, it can include well pet types of situations. But very often, it's a more acute or sick pet kind of use case. And with SDMA combined with the CLIP, customers are able to see up to 1/3 more true renal dysfunction than if they're just using creatinine alone. And that's for a sick pet. So it really is a really valuable medical application. And what we've done is we've taken the SDMA slide on the Catalyst, which we could put manually into the CLIP, and we've just put it there for them. So it takes out all the work of having from a workflow standpoint to do that, streamlines inventory management. And so we're getting a great response from customers to this innovation at the point of care. While at the same time, for many years, we've included SDMA in every single chemistry panel that's run at the reference labs. And so the bottom line with SDMA is that it really is an integral part of every type of chemistry that you'd want to run, whether it's at the point of care or in the reference labs. It's just best medicine. Ryan Daniels: Okay. Perfect. Very helpful. And then as a follow-up, also on the lab. I think you mentioned 20% of Cancer Dx is coming from competitive labs. And I think that's helping you with some conversions. And we've heard during our conversations that expanding the panel later this year could really be a big Catalyst because it will identify more cancers and make it a more valuable panel. So I'm curious if you could talk a little bit about your expectations for that, both in regards to helping lab growth and then maybe what that could do to market share gains for the lab in the future? Michael Erickson: Yes. Thanks, Ryan. We're really excited about Cancer Dx moving from a test to really a multi-cancer panel with the addition of mast cell tumors. These are very common amongst the most common canine cancers, mast cell tumors are. And they often get missed, as I mentioned in my comments, because it can be hard to find them in -- particularly with dogs that have long coats. And so to be able to systemically detect those and to take early action when found. And then, of course, pairing that with inVue Dx because when you find a positive mast cell tumor, you want to know, okay, which of these masses is the one that I want to take action on and actually remove. And that's where FNA on inVue Dx comes in. So that pairing of those 2 is a particularly valuable kind of end-to-end solution tool set, if you will, for the general practice veterinarian. So we do see this as a tipping point, if you will, from a cancer screening standpoint, having multi-cancer screening that's affordable as part of bloodwork for all at-risk dogs. That's all dogs over 7 and at-risk breeds over 4. We really see that as over time becoming the de facto standard. And so yes, and we're hearing this from customers as well. One of our large partners in Australia, for example, has on their own now added Cancer Dx to all of their senior dog premium wellness program participants and has seen just a fantastic uptake, both in terms of enrollments and just overall bloodwork. So this is the type of thing that we think over time will really help to develop the sector further. Operator: We will take our next question from Daniel Clark with Leerink Partners. Daniel Christopher Clark: I wanted to ask about your second half expectations. How are you kind of thinking about in CAG growth between the U.S. and the international segments just given the strong run we've kind of seen ex-U.S.? Andrew Emerson: Yes. Thanks for the question here, Dan. This is Andrew. I think we've seen really strong momentum in the regions, both the U.S. and international. Again, as Mike highlighted, I think we see a lot of opportunity internationally to continue to develop the sector. We've made investments both from a commercial perspective as well as within the infrastructure to support our customers more over time. And so I think -- internationally, I think we're now multiple quarters of double-digit growth and continue to see, again, strong momentum across the region in areas like Europe and APO in particular. Overall, on the U.S. side, certainly, the clinical visit challenges that we've seen have been the key constraining factor. But from an overall IDEXX U.S. CAG Diagnostics recurring revenue growth premium to those clinical visits. Yes, we have been actually ramping that up here in the last several quarters and that has a lot to do with our ability to maintain customers with the high loyalty rates and continue to provide solutions for their everyday challenges with new innovations and continue to build out best practices alongside them in a partnership. So no specific kind of direction we're giving on the makeup of growth ranges within those areas. But again, I think we feel confident really across the regions on a global basis. Daniel Christopher Clark: Okay. Got it. Super helpful. And then just a quick follow-up on kind of the visit trends in pet aged 5 plus, where you said they're contributing to both well and non-wellness positively. Have you seen any changes on a quarterly basis from that cohort? Or is it just generally positive? Michael Erickson: It's generally -- Dan, this is Mike. It's generally positive, and we've now seen this trend for multiple quarters in a row. And as I shared also, we're not just seeing it in our data, but we're hearing about it from our customers as well. So we think it's a consistent trend. Operator: We will take our next question from Michael Ryskin with Bank of America. Michael Ryskin: Great. I want to touch on inVue placements in the quarter, a little over 1,600. You reiterate the full year guide, but it's still a really nice step-up versus your 1Q instrument placement number for inVue. Is this just sort of normal lumpiness that we should expect in the business? Is there anything that you kind of turned back on just related to FNA, lumps and bumps? Just kind of what drove that momentum? Or should we just sort of ignore it and just sort of assume this is the normal noise quarter-to-quarter on placement numbers? Andrew Emerson: Yes, Mike, this is Andrew. Thanks for the question. For the inVue Dx placements, again, you could see there's been a level of variability here throughout the quarters. I think when it comes to placements, really, it's about when the customer is ready to take on some new instruments and plan for that. We work, again, in partnership with them. And so there's always some level of variability that you're highlighting on the placement metrics. From a year-to-date perspective, about 2,700 placements this year. That puts us essentially 50% of the way towards the full year delivery. And so we didn't guide necessarily on Q3 or Q4 independently for the inVue placements, but we still anticipate about 5,500 for the full year. Q4 tends to be a little bit stronger capital quarter in general for us. And that's just one thing to keep in mind here as you think about the rest of the year just in terms of the placement metrics themselves. But again, it's really about the partnership and the demand that we're seeing pull-through on the inVue Dx analyzer. And I think we continue to see a lot of momentum on that front, both in the U.S. and again, internationally. Michael Erickson: And Michael, I think -- look, I think the overall feedback that we're getting is just really positive. I mean every practice does cytology. They're all challenged with the workflow -- hands-on workflow complexity and technique sensitivity of slides and getting repeatable results for things like ear rechecks. And so inVue Dx, it's hitting the mark. And that's why we're seeing overall these very strong results. And ear cytology and blood morphology are very large categories of cytology that we're addressing as we come on and expand with FNA on inVue Dx. We think that just further expands excitement for this, and we keep adding even in our core applications. As I mentioned, we added 2 new red cell morphologies to our blood morphology offering. So each of these platforms within a platform just keeps expanding. And we're really, really happy with the overall performance, and 9,000 placements since launch makes this one of the most successful launches we've ever had. Michael Ryskin: Okay. That's great. And then maybe a quick follow-up. You talked about the Analyst Day a number of times, looking forward to it, as always. One thing you haven't touched on is Multi-Q. It's something you kind of -- you announced a little while ago, but we haven't had a lot of updates. Maybe I'll just ask sort of conceptually, if you could talk about the bandwidth and the capacity to launch 2 platforms, to ramp 2 platforms. Obviously, you have things like FNA and lumps and bumps and Cancer Dx. So you're not unfamiliar with launching multiple solutions at the same time, but 2 instrument platforms would still be somewhat of a new venture. So just talk about sort of bandwidth and capacity to do that if that was to come about. Michael Erickson: Yes. We're very comfortable with our capacity from a commercial standpoint. I mean we -- of course, we keep investing internationally as we shared, which is really focused on sector development, not capacity constraints, if you will. It's really focused on opportunity and developing the sector. And we also make targeted additions here domestically. I shared some of that on the call as well. But overall, we're really comfortable with our capacity to launch and bring forward the innovations that we are, and to support customers as we do this and make sure that they've got the right information and data and workflow and that they can incorporate these into their protocols so that they can be successful. Andrew Emerson: Yes. I would just highlight, Mike. We do this on a number of fronts today already. We have core analyzers with our Catalyst chemistry analyzer and hematology as well as SediVue and inVue, and that's on top of some broader platforms like Cancer Dx that continue to take sector development work. So I think we've got a model here that we're highly focused on being able to do more than one thing at a time. And I think that's a key focus for us going forward. Operator: We will take our next question from Daniel Grosslight with Citi. Daniel Grosslight: Congrats on a strong quarter here. I wanted to double-click on the margin degradation in the second half of this year. Obviously, you've got investments, which you've outlined here, and you also have FX being a headwind in the second half. But I was hoping you can provide a little bit more detail on the phasing of incremental investments in the second half. And as we think about the split between 3Q and 4Q, how should we be modeling out the margin and investments you're making in the business? Andrew Emerson: Dan, so just in terms of the margin outlook that we have, I think one of the things I would highlight is we would continue to expect gross margins to really lead our overall operating margin profile here. And I think if you look at the first half of the year, gross margins continue to benefit from the strong recurring revenue growth. We see high incremental margins as we obtain the type of volume growth that we've seen. And we're really expecting that to continue in the second half. And so gross margins will likely lead the operating profit flow-through. But as we highlighted, we're going to continue to make incremental investments in the second half, really for the longer term overall growth projections. And Mike highlighted the different commercial investments we were talking about and there's always some level of variability on project timing within areas like R&D. And we have different dynamics around things like our information technology structure internally, how do we think about really enabling the base of the business and making the right investments in our IT infrastructure. Areas like AI continue to add into that as well. So not necessarily splitting out Q2 versus -- or excuse me, Q3 versus Q4. Here, we did highlight on a comparable basis in Q3, we expect 20 to 50 basis points of operating margin benefit in Q3. So that gives you a sense for how we're thinking about it. But we'll continue to make those investments throughout the second half of the year. Daniel Grosslight: Yes. Makes sense. And you guys also raised your free cash flow conversion, which is great to see. How are you balancing buybacks against potential M&A opportunities? Are there any specific capability gaps or geographic markets where inorganic investment may be more efficient than growing organically? Andrew Emerson: Yes. I think one of the things we're constantly doing is just making sure we are investing in our organic growth profile. That is the core that we focus on. We have active assessments associated with things outside of our 4 walls and business development continues to be an area that we look at opportunistically as we see assets that may make sense for us. We're highly focused on those core areas within diagnostics and software. We've seen more assets recently in the software space when I think back to the recent deals that we have done in the past, but it's something we continue to pay attention to. And certainly, we're willing to leverage our capital against business development type of opportunities or in-licensing types of targets as well. Any of our excess cash, we really continue to see a conviction in the long-term orientation of the business. And so the best way that we've leveraged share buybacks to kind of deliver capital back to our shareholders. That's been the best way that we've seen so far going forward, but it's something we constantly assess. Michael Erickson: Thank you for the questions. Well, thank you very much. I'll wrap up the call now. Thank everybody for the questions. We'll now conclude our Q&A portion of this morning's call. It's a pleasure to share IDEXX's continued strong execution against our organic growth strategy, while delivering strong financial results in the second quarter. And so thank you for your participation this morning. And now we'll conclude the call. Operator: Once again, this will conclude today's call. We thank you for your participation. You may now disconnect. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. If you’d invested $5,000 then, you’d be sitting on $2,824,765 today.* Now, for the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. It’s a key player in the $1.8 trillion space race, and with the stock recently sitting 20% off its highs, the window to get in early is closing fast. Continue » *Stock Advisor returns as of August 3, 2026 This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Idexx Laboratories. The Motley Fool has a disclosure policy. IDEXX (IDXX) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool