Core Thesis - IDEXX Laboratories, Inc. is experiencing strong financial performance and growth, driven by its leadership in veterinary diagnostics and a robust recurring revenue model [6]. Financial Performance - For Q4 2025, IDEXX reported revenue of $1.09 billion, a 14% increase year-over-year, with organic growth of 12% and EPS of $3.08, surpassing the consensus estimate of $2.93 [3][4]. - Full-year revenue reached $4.30 billion, reflecting a 10% increase both reported and organically, with EPS of $13.08, marking a 14% increase over 2024 [3][4]. - The company generated $1.1 billion in free cash flow for 2025, fully converting net income to cash, and returned $1.2 billion to shareholders through share repurchases [5]. Growth Drivers - The Companion Animal Group (CAG) was the primary growth engine, generating $998 million in Q4 revenue with 13% organic growth, driven by recurring diagnostic revenue and volume gains [4]. - IDEXX set a quarterly record with over 1,900 inVue Dx instruments placed, contributing to 69% organic growth in CAG Diagnostic instrument revenues [4]. - Other segments, including Water and Livestock, Poultry & Dairy, also performed well, with organic growth of 10% and 4% respectively [5]. Future Outlook - IDEXX expects 2026 revenue to be between $4.63 billion and $4.72 billion, reflecting 7% to 9% organic growth, and EPS of $14.29 to $14.80, supported by continued margin expansion [5]. - Strategic investments in innovation, such as the inVue Dx platform and CancerDx test, are anticipated to drive future growth [5].

Baron Funds, an investment management company, released its fourth-quarter investor letter for the “Baron Focused Growth Fund”. A copy of the letter can be downloaded here. The Fund delivered strong results in the fourth quarter, appreciating 12.34% (Institutional Shares) compared to the Russell 2500 Growth Index’s (the Benchmark) 0.33 % return. The Fund returned 22.26% in 2025 compared to 10.31% return for the index. The firm highlighted its continued faith in its portfolio companies in the letter. As of ...

Fidelity Investments, an investment management company, recently released its “Fidelity Growth Strategies Fund” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fidelity Growth Strategy is a diversified equity strategy aimed at domestic midcap growth stocks. The approach focuses on identifying quality companies that deliver steady above-average growth and can outperform over time. The Fund (Retail Class shares) returned -3.44% in the quarter compared to the benchmark Ru ...

IDEXX Laboratories Inc. (NASDAQ:IDXX) reported better-than-expected fourth-quarter financial results and issued a fiscal 2026 forecast on Monday.The animal health company reported fourth-quarter 2025 earnings of $3.08 per share, up 18% year over year, beating the consensus of $2.94. Comparable earnings were $2.92 per share. The company reported sales of $1.091 billion, beating the consensus of $1.073 billion, up 14% on a reported and 12% on an organic basis.“We enter 2026 with an exciting innovation pipelin ...

IDEXX Laboratories Inc. (NASDAQ:IDXX) reported better-than-expected fourth-quarter financial results and issued a fiscal 2026 forecast on Monday.The animal health company reported fourth-quarter 2025 earnings of $3.08 per share, up 18% year over year, beating the consensus of $2.94. Comparable earnings were $2.92 per share. The company reported sales of $1.091 billion, beating the consensus of $1.073 billion, up 14% on a reported and 12% on an organic basis.“We enter 2026 with an exciting innovation pipelin ...

IDEXX Laboratories, Inc. (NASDAQ:IDXX) Price Target and Market OutlookIDEXX Laboratories, Inc. (NASDAQ:IDXX) is a prominent player in the animal diagnostics industry. The company specializes in providing veterinary diagnostics and software, catering to the growing demand for pet healthcare. With competitors like Zoetis and Heska, IDEXX remains a leader in the market, consistently innovating to meet the needs of veterinary professionals.Recent Price Target by BTIGOn February 2, 2026, BTIG set a price target ...

Core Insights - IDEXX Laboratories reported strong fourth-quarter revenue growth driven by its companion animal diagnostics business, but shares fell more than 4% intraday as earnings narrowly missed expectations and guidance came in largely in line [1] Group 1: Financial Performance - Revenue increased 14% year over year to $1.09 billion, topping analyst estimates of $1.07 billion [1] - Adjusted earnings per share totaled $2.92, slightly below the consensus estimate of $2.93 [1] - Operating margin expanded 150 basis points year over year to 28.9%, while adjusted operating margin improved by 120 basis points [2] Group 2: Business Segments - The Companion Animal Group segment posted revenue growth of 15% to $998.5 million, with international markets expanding 17% [2] - Growth was driven by a 12% increase in CAG Diagnostics recurring revenue, which reached $849.7 million [2] - IDEXX's Water business also delivered solid performance, with revenue rising 12% to $50.5 million [3] Group 3: Future Projections - For 2026, IDEXX projected revenue of $4.63 billion to $4.72 billion and earnings per share of $14.29 to $14.80, largely in line with expectations [3] - Organic revenue growth is expected to range from 7% to 9%, with operating margin expansion of 40 to 90 basis points [3]

Core Viewpoint - IDEXX Laboratories, Inc. is a leading player in the animal diagnostics industry, showcasing strong financial performance and exceeding market expectations in its latest earnings report for Q4 2025 [1] Financial Performance - IDEXX reported an earnings per share (EPS) of $3.08 for Q4 2025, surpassing the Zacks Consensus Estimate of $2.93, and showing a significant increase from $2.62 EPS in the same quarter the previous year, with an earnings surprise of +5.17% [2] - The company achieved approximately $1.09 billion in revenue for the quarter ending December 2025, exceeding the Zacks Consensus Estimate by 1.86%, and representing a notable increase from $954.29 million in revenue reported a year ago [2] Revenue Growth - Revenue growth was primarily driven by the Companion Animal Group (CAG), which reported a 15% increase in revenue and a 13% organic growth [3] Financial Metrics - IDEXX has a price-to-earnings (P/E) ratio of approximately 50.82, indicating that investors are willing to pay over 50 times the company's earnings for its shares [3] - The price-to-sales ratio stands at about 12.49, suggesting that the market values the company at over 12 times its annual sales [3] - The company's debt-to-equity ratio is approximately 0.71, indicating a moderate level of debt compared to its equity [3] - IDEXX demonstrates a reasonable level of short-term financial health with a current ratio of about 1.12, having slightly higher current assets compared to current liabilities [3]

In Q&A, management said wellness pressure appears more macro-driven, particularly among lower-income households, while non-wellness visits have been more resilient. CEO Jay Mazelsky noted “green shoots” for pets aged five years and older over the past two quarters, which the company attributes to aging pets from the pandemic adoption period. The company kept its 2026 baseline assumption for U.S. same-store clinical visits at roughly a 2% decline “until we have clear evidence that that’s going to improve.”Ev ...

IDEXX Laboratories, Inc. (IDXX) shares fell 5.63 percent to $632.79, down $37.67 on Monday, even after the company reported higher fourth-quarter earnings compared with last year.The veterinary diagnostics company posted net earnings of $248.19 billion, or $3.08 per share, up from $216.15 billion, or $2.62 per share, a year earlier. Quarterly revenue increased 14.2 percent to $1.09 trillion.The stock opened at $651.54 after closing at $670.46 previously and traded between $625.00 and $658.75 on the Nasdaq. ...