A month has gone by since the last earnings report for Idexx Laboratories (IDXX). Shares have added about 1.5% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Idexx due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
IDEXX's Q3 Earnings and Revenue Top Estimates
IDEXX Laboratories, Inc. posted third-quarter 2025 earnings per share of $3.40, up 21.4% year over year. The figure surpassed the Zacks Consensus Estimate by 8.3%.
Comparable constant-currency earnings per share of $3.22 improved 15.4% year over year.
IDEXX’s Q3 Revenues
Quarterly revenues increased 13.3% year over year (up 12% organically) to $1.11 billion. The reported figure topped the Zacks Consensus Estimate by 3.2%.
This year-over-year upside was primarily driven by Companion Animal Group ("CAG") growth of 14% as reported and 12% organic, and Livestock, Poultry and Dairy ("LPD") revenue growth of 17% as reported and 14% organic.
Veterinary software, services and diagnostic imaging systems’ revenues increased 11% on a reported basis (same organically).
IDEXX’s Q3 Revenue Analysis by Segments
IDEXX derives revenues from four operating segments: CAG, Water, LPD and Other.
CAG’s revenues rose 13.5% year over year on a reported basis and 12.2% on an organic basis to $1.01 billion.
The Water segment’s revenues increased 8.2% year over year on a reported and 7% on an organic basis to $54.3 million.
For the third quarter, LPD revenues jumped 17.1% reportedly and 14.2% on an organic basis to $33.9 million.
Revenues from the Other segment increased 1.5%, on a reported basis as well as organically, to $4.5 million.
IDEXX’s Margin Performance
The gross profit rose 14.6% to $683.3 million. The gross margin expanded 73 basis points (bps) to 61.8% despite a 11.2% rise in the cost of revenues.
Sales and marketing expenses surged 8.8% to $159.2 million. G&A expenses rose 15.3% to $105.9 million. R&D expenses jumped 17.4% to $63.4 million. The operating profit in the reported quarter rose 16.8% year over year to $354.8 million. The operating margin in the quarter expanded 95 bps to 32.1%.
IDEXX’s Financial Position
IDEXX exited the third quarter with cash and cash equivalents of $208.2 million compared with $164.6 million at the end of the second quarter.
Cumulative net cash provided by operating activities was $826 million compared with $667 million in the prior-year period.
IDEXX’s 2025 Guidance
IDEXX raised its financial guidance for 2025.
Total revenues for 2025 are now expected to be in the range of $4,270-$4,300 million (previously $4,205-$4,280 million), indicating growth of 9.6-10.3% on a reported basis and 8.8-9.5% on an organic basis. The Zacks Consensus Estimate is currently pegged at $4.23 billion.
IDEXX now expects full-year EPS to be in the range of $12.81-$13.01 (previously $12.40-$12.76), indicating growth of 20-22%. The Zacks Consensus Estimate for full-year earnings per share is currently pegged at $12.61.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates revision.
VGM Scores
At this time, Idexx has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Idexx has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Idexx is part of the Zacks Medical - Instruments industry. Over the past month, Glaukos (GKOS), a stock from the same industry, has gained 23.4%. The company reported its results for the quarter ended September 2025 more than a month ago.
Glaukos reported revenues of $133.54 million in the last reported quarter, representing a year-over-year change of +38.1%. EPS of -$0.16 for the same period compares with -$0.28 a year ago.
For the current quarter, Glaukos is expected to post a loss of $0.22 per share, indicating a change of +45% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.4% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Glaukos. Also, the stock has a VGM Score of D.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
IDEXX Laboratories, Inc. (IDXX): Free Stock Analysis Report Glaukos Corporation (GKOS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
