It has been about a month since the last earnings report for Idexx Laboratories (IDXX). Shares have added about 0.5% 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 Q4 Earnings and Revenue Top Estimates
IDEXX Laboratories, Inc. posted fourth-quarter 2025 earnings per share of $3.08, up 18% year over year. The figure surpassed the Zacks Consensus Estimate by 5.17%.
Comparable constant-currency earnings per share of $2.92 improved 17% year over year.
Full-year 2025 earnings of $13.08 rose 22.6% from the 2024 level. The figure exceeded the Zacks Consensus Estimate by 1.2%.
IDEXX’s Revenues
Quarterly revenues increased 14% year over year (up 12% organically) to $1.09 billion. The reported figure topped the Zacks Consensus Estimate by 1.86%.
This year-over-year upside was primarily driven by Companion Animal Group ("CAG") growth of 15% as reported and 13% organic, and Water revenue growth of 12% as reported and 10% organic.
Veterinary software, services and diagnostic imaging systems’ revenues increased 13% on a reported basis (same organically), driven by the expansion of cloud-native software installed base.
Full-year 2025 total revenues of $4.30 billion improved 10% on a reported basis as well as organically from the 2024 level, driven by 9% as reported and 8% organic growth in CAG Diagnostics recurring revenue. The figure beat the Zacks Consensus Estimate by 0.5%.
Following the earnings announcement, IDXX shares lost 1.5% in the pre-market trading today.
IDEXX’s Q4 Revenue Analysis by Segments
IDEXX derives revenues from four operating segments: CAG, Water, Livestock, Poultry andDairy (“LPD”), and Other.
CAG’s revenues rose 14.7% year over year on a reported basis and 12.8% on an organic basis to $998.5 million.
The Water segment’s revenues increased 11.9% year over year on a reported and 9.5% on an organic basis to $50.5 million.
For the fourth quarter, LPD revenues jumped 8.5% reportedly and 4% on an organic basis to $37.5 million.
Revenues from the Other segment dropped 0.4% on a reported basis as well as organically to $4.1 million.
IDEXX’s Margin Performance
The gross profit rose 15.3% to $658.1 million. The gross margin expanded 55 basis points (bps) to 60.4% despite a 12.7% rise in the cost of revenues.
Sales and marketing expenses surged 11.3% to $167.1 million. G&A expenses rose 7.4% to $109 million. R&D expenses jumped 15.8% to $66.8 million. The operating profit in the reported quarter rose 20.6% year over year to $315.6 million. The operating margin in the quarter expanded 152 bps to 28.9%.
IDEXX’s Financial Position
IDEXX exited the fourth quarter with cash and cash equivalents of $180.1 million compared with $288.3 million at the end of 2024.
Cumulative net cash provided by operating activities was $1.18 billion compared with $929 million in the prior-year period.
IDEXX Issues 2026 Guidance
IDEXX provided an initial outlook for 2026, forecasting revenues in the range of $4,632 million-$4,720 million. This implies 7.6%-9.6% growth on a reported basis and 7%-9% on an organic basis. The Zacks Consensus Estimate is currently pegged at $4.66 billion.
Full-year earnings per share is projected to be between $14.29 and $14.80, calling for growth of 9-13%. The Zacks Consensus Estimate for the same is currently pegged at $14.45.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a flat trend in fresh estimates.
VGM Scores
Currently, Idexx has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, 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
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, Hologic (HOLX), a stock from the same industry, has gained 1.1%. The company reported its results for the quarter ended December 2025 more than a month ago.
Hologic reported revenues of $1.05 billion in the last reported quarter, representing a year-over-year change of +2.5%. EPS of $1.04 for the same period compares with $1.03 a year ago.
Hologic is expected to post earnings of $1.08 per share for the current quarter, representing a year-over-year change of +4.9%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.7%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for Hologic. Also, the stock has a VGM Score of C.
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IDEXX Laboratories, Inc. (IDXX): Free Stock Analysis Report Hologic, Inc. (HOLX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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