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].