IDEXX Laboratories, Inc. stock research
FY2026 Q1
IDEXX Laboratories (IDXX) Gross Margin — Quarter Ended Mar 31, 2026
Revenue remained stable sequentially while gross profit rose and cost of revenue declined, resulting in an improved gross margin. Compared to the same quarter last year, revenue and gross profit were higher, and gross margin strengthened despite higher cost of revenue.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue remained stable sequentially while gross profit rose and cost of revenue declined, resulting in an improved gross margin. Compared to the same quarter last year, revenue and gross profit were higher, and gross margin strengthened despite higher cost of revenue.
- The strongest driver of gross margin was the sequential increase in gross profit combined with a reduction in cost of revenue, which together expanded the margin.
- Gross margin improved both sequentially and year-over-year, with the current quarter's ratio higher than the preceding quarter and the same quarter one year earlier. Revenue was stable compared to the prior quarter but higher than a year ago.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.4%
Gross profit
$722.7M
Revenue
$1.1B
Cost of revenue
$418.1M
Quarter-over-quarter change
+3.0 pts
Year-over-year change
+0.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $1.1B | $694.7M | $414.7M | 62.6% |
| Sep 30, 2025 | $1.1B | $683.4M | $421.9M | 61.8% |
| Dec 31, 2025 | $1.1B | $658.1M | $432.5M | 60.3% |
| Mar 31, 2026 | $1.1B | $722.7M | $418.1M | 63.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+3.0 pts
Year-over-year change
Mar 31, 2025
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest driver of gross margin was the sequential increase in gross profit combined with a reduction in cost of revenue, which together expanded the margin.
Gross margin improved both sequentially and year-over-year, with the current quarter's ratio higher than the preceding quarter and the same quarter one year earlier. Revenue was stable compared to the prior quarter but higher than a year ago.
Monitor the sustainability of the sequential cost of revenue reduction alongside the company's higher borrowings and reduced working capital.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| IDEXX Laboratories, Inc. (IDXX) | 63.4% |