IDEXX Laboratories jumps 21.8% after beating earnings and raising guidance

What happened

IDEXX Laboratories (IDXX) rose 21.8% on November 2, 2026, after the company reported third-quarter results that beat estimates and raised full-year guidance. The stock opened 13.4% above the previous close and finished the session at $671.64 as investors reacted to the report. The move came because of the results, which showed revenue and earnings ahead of expectations and prompted management to lift its outlook.

How big was the move

The stock’s jump was outsized for the company: the rise was 7.1 times a typical daily move for this stock and trading volume ran 3.5 times its 20-day average. The session diverged from broader markets as the S&P 500 fell 0.5% and the Healthcare sector median fell 1.6%; IDEXX’s performance was 23.5 percentage points better than the sector median. Over the last five sessions the stock rose 17.8%, while the S&P 500 over five sessions fell 1.8%, underscoring the stock-specific nature of the rally.

The technical picture

Technically, the stock traded well above its short- and medium-term averages: it was 21.9% above its 20-day moving average, 25.2% above its 50-day moving average and 17.3% above its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend. Momentum indicators showed strength but also potential overextension, with a Relative Strength Index (14 days) of 77 (above 70, a level often called overbought). The stock remained 12.8% below the 52-week high and had risen 29.6% over one month and 6.9% over one year, a one-year performance 3.7 percentage points behind the S&P 500.

Fundamentals and valuation

For the four quarters through September 30, 2026, IDEXX reported revenue of $4.66 billion, which grew 11.9% from a year earlier, and diluted earnings per share of $14.73, which rose 16.8% year over year. Gross margin was 62.7% (a year earlier: 61.7%), operating margin was 32.3% (a year earlier: 31.3%), and free-cash-flow margin was 27.9%. Return on invested capital was 40.9% and the balance sheet showed net debt of 0.1 times EBITDA. Share count over one year decreased by 2.0%, a modest tailwind to per-share metrics.

Valuation looked rich after the rally. The stock traded at 45.6 times trailing earnings and 45.5 times expected earnings, with a free-cash-flow yield of 3.0%. That price to trailing earnings level was lower than 67% of its own readings over the past five years (five-year median: 48.6 times earnings), indicating the multiple, while high, was not at an extreme relative to recent history.

Earnings and analyst expectations

IDEXX’s last report, on November 2, 2026, showed earnings per share of $3.96 against $3.73 expected, 6.2% above estimates, and the company has now beaten estimates in 15 consecutive quarters. The company reported third-quarter 2026 revenue of $1,214 million, up 10% year-over-year, and quarterly EPS of $3.98 versus $3.40 a year ago; management cited organic growth led by its Companion Animal Group and higher diagnostic utilization. Management raised its full-year 2026 revenue and earnings guidance following the quarter.

Analysts cover the stock with a consensus rating of Buy. The consensus price target is $692.33, 3.1% above the closing price, based on 23 analysts, and 57% of analysts rate the stock Buy or Strong Buy. The typical two-day reaction after recent reports was that the stock rose 10.4%, so the single-session move on November 2 was substantially larger than recent historical reactions.

What to watch

• February 1, 2027: Next scheduled earnings report.
• Consensus price target: $692.33, 3.1% above the closing price.
• Consecutive quarters beating estimates: 15.
• Trading volume on the session: 3.5 times its 20-day average.
• Price to trailing earnings: 45.6 times trailing earnings.