IDEXX Laboratories (IDXX) shares surged 8.99% during intraday trading on Tuesday, as investors reacted to the veterinary diagnostics company's better-than-expected second-quarter results and an upward revision to its annual profit outlook.

The company reported adjusted earnings per share of $4.27 for the quarter ended June 30, handily beating the consensus analyst estimate of $3.94. Revenue rose 10% year-over-year to $1.22 billion, also exceeding the $1.20 billion forecast. Robust demand for pet healthcare testing and higher diagnostic utilization at veterinary clinics drove the solid performance.

IDEXX raised its full-year 2026 earnings guidance to a range of $14.69 to $14.94 per share, up from $14.45 to $14.90 previously, with the new midpoint above Wall Street's $14.65 estimate. The company also narrowed its annual revenue forecast to $4.70 billion to $4.75 billion, lifting the midpoint slightly above consensus. The improved outlook reflects confidence in sustained growth across the Companion Animal Group and diagnostic recurring revenue streams.