IDEXX Q4 revenue rises 14%, beats analyst expectations

Overview

• Pet healthcare innovator's Q4 revenue rose 14%, beating analyst expectations

• EPS for Q4 increased 18%, supported by operating margin expansion

• Company expects 2026 revenue growth of 7.6% - 9.6%

Outlook

• IDEXX projects 2026 revenue between $4,632 mln and $4,720 mln

• Company expects 2026 EPS of $14.29 - $14.80

• IDEXX anticipates 40 - 90 basis points operating margin improvement in 2026

Result Drivers

• CAG DIAGNOSTICS GROWTH - IDEXX's CAG Diagnostics recurring revenue grew 12% reported and 10% organic, driven by strong international gains and increased diagnostic frequency in the U.S.

• INSTRUMENT PLACEMENTS - Record placements of IDEXX inVue Dx and Catalyst instruments contributed to a 76% increase in capital instrument revenues.

• OPERATING MARGIN EXPANSION - Operating margin increased by 150 basis points due to strong volume gains, productivity initiatives, and price realization, offsetting inflationary impacts.

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy"

• Wall Street's median 12-month price target for IDEXX Laboratories Inc is $787.50, about 17.5% above its January 30 closing price of $670.46

• The stock recently traded at 46 times the next 12-month earnings vs. a P/E of 45 three months ago

Press Release: ID:nBw3D7NWTa

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