The updated reported revenue outlook includes a $20 million reduction for FX impacts, compared to prior estimates. We now estimate FX will reduce full-year reported growth by approximately 0.5%, with limited year-on-year revenue growth effects in Q4. In terms of our operational revenue growth outlook, we are updating our full-year organic growth guidance to 8.3% to 8.8%, supported by an outlook for CAG Diagnostics recurring revenue organic growth of 9.8% to 10.3%. This aligns with the lower end of our most recent guidance ranges in the midpoint of our original outlook for 2023. Our organic growth guidance assumes a level of continued pressure on U.S. same-store clinical visits and International same-store sales levels in Q4 reflecting ongoing clinic capacity management dynamics and macro-economic impacts on demand.
Consistent with earlier guidance our outlook for CAG Diagnostics recurring revenue growth reflects continued solid, positive benefits from IDEXX execution drivers, including consistent expectations for 6% to 7% net price improvement in the second half of 2023. In Q4, we expect global net price improvement within this range, with U.S. net price gains of 6%, reflecting the lapping of prior year price increases. Our Q4 outlook also incorporates a 1% equivalent day volume growth headwind. We’re maintaining the high end of our reported EPS outlook and narrowing the full-year EPS guidance range to $9.74 to $9.90 per share, an increase of $0.05 per share at midpoint. At midpoint we’re maintaining a consistent operational EPS outlook, as revisions to our organic revenue growth range are offset by positive adjustments to our projections for operating margins incorporating our strong year-to-date performance.
We’ve increased the outlook for reported operating margins to 29.6% to 29.8% for the full year. This reflects an outlook for 360 to 380 basis points in comparable operating margin expansion, including approximately 280 basis points in combined benefit from the $16 million Q1 customer contract resolution payment and the lapping of $80 million of discrete R&D investment in the second quarter of 2022. Our updated full year EPS guidance incorporates $0.11 per share in positive revisions combined to our interest expense and tax rate outlook including $0.04 in upsides related to share based compensation tax benefits. These gains are partially offset by $0.05 of negative impact from foreign exchange changes at updated rates. We now estimate that foreign exchange impacts will decrease EPS by $0.25 per share for the full year and will reduce reported full year operating margins by 70 basis points including impacts from the lapping of $26 million in 2022 hedge gains.
We’ve provided details on our updated 2023 outlook in the press release tables and earnings snapshots. That concludes our financial review. I’ll now turn the call over to Jay for his comments.
Jay Mazelsky: Thank you, Brian, and good morning. IDEXX continued to make excellent progress in advancing our business strategy in Q3, while delivering solid organic revenue growth and strong financial performance. Our strategy of high-touch commercial engagement, supported by relevant testing and workflow innovations, drove continued adoption of IDEXX’s world-class products and services. IDEXX solutions support our customer’s mission to deliver high standards of care, enabled through the continued expansion of diagnostics frequency and utilization at the practice level. Diagnostics revenue remains the fastest growing area of veterinary clinic revenues, a durable trend since the determination of a patient’s health status and the best treatment path very often requires testing.
IDEXX’s strong financial performance in Q3 was supported by solid gains in CAG Diagnostics recurring revenues across our major regions. The expansion of recurring revenues benefit from multiple IDEXX execution drivers, including solid placements of premium instruments building off high prior year levels, sustained new business gains, net price realization, and continued momentum in placements of cloud-based software solutions. These gains are offsetting near-term headwinds in overall clinic visit levels globally reflecting ongoing capacity management challenges at veterinary practices, as well as impacts from macroeconomic dynamics. Productivity remains a top priority for veterinary clinics, who continue to refine their business approach and make trade-offs necessary to balance staffing management challenges with strong demand for medical services.
IDEXX’s solutions anchored by our software-enabled multi-modality offering give clinics the tools to address these dynamics. Today, I’ll review how we’re advancing our strategy focused on developing the significant long-term growth opportunity for our business, while delivering strong financial performance. I’ll start with an update on our global commercial performance and how our focus on customer engagement supports the increase in adoption and utilization of diagnostics. IDEXX commercial teams are highly engaged in a customer-centric model that supports both existing customers’ use of diagnostics and expanding our customer base. Our commercial professionals delivered another excellent quarter of results in Q3. Solid CAG Diagnostics recurring revenue reflects benefits from our expanding loyal installed base and our veterinary partnership model to communicate the importance of diagnostics to clinicians.
It also reflects benefits from our focus on placing high value analyzers at existing and competitive accounts in order to drive profitable future recurring revenues including 5% competitive Catalyst placement growth in North America, which supported solid EVI growth. Our continued progress on this front reflects a relentless focus on providing busy clinicians with the products, services, and the support they need to serve the high demand for veterinary services and meet the expectations of pet owners who seek and increasingly demand no compromises in the care for their pets. In addition to driving the core growth in medical services in the clinic, diagnostics are also a key profit center. Continued growth in both diagnostics frequency and utilization per clinical visit was supported by gains in wellness testing per visit, building on substantial increases through the pandemic.
