Idexx Laboratories (IDXX) AI Stock Analysis

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Idexx Laboratories

(NASDAQ:IDXX)

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Outperform 78 (OpenAI - 4o)

Rating:78Outperform

Price Target:

$806.00

▲(18.13% Upside)

Idexx Laboratories' strong financial performance and positive earnings call sentiment are the most significant factors driving the score. Technical indicators show a positive trend, but high valuation metrics and some operational challenges temper the overall outlook.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for IDEXX's products and services, supporting long-term business expansion and market leadership.

Innovation Strategy

A focus on innovation, such as new product placements, enhances competitive advantage and supports sustainable growth in the veterinary diagnostics market.

Financial Flexibility

The amended credit agreement increases financial flexibility, allowing IDEXX to invest in growth opportunities and manage operations more effectively.

Negative Factors

Decline in U.S. Clinical Visits

A decline in clinical visits may impact recurring revenue growth, posing a challenge to IDEXX's domestic market performance and revenue stability.

Wellness Visits Decline

Decreased wellness visits could affect long-term revenue streams, reflecting potential vulnerabilities in consumer demand within the veterinary sector.

Challenges in Rapid Assay Revenues

The decline in rapid assay revenues suggests challenges in product transition, which may affect short-term revenue and require strategic adjustments.

Idexx Laboratories (IDXX) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$56.07B

Dividend YieldN/A

Average Volume (3M)587.41K

Price to Earnings (P/E)54.1

Beta (1Y)0.91

Revenue Growth8.39%

EPS Growth21.44%

CountryUS

Employees11,000

SectorHealthcare

Sector Strength45

IndustryMedical - Diagnostics & Research

Share Statistics

EPS (TTM)3.40

Shares Outstanding79,851,330

10 Day Avg. Volume615,167

30 Day Avg. Volume587,409

Financial Highlights & Ratios

PEG Ratio6.51

Price to Book (P/B)21.37

Price to Sales (P/S)8.75

P/FCF Ratio42.72

Enterprise Value/Market Cap0.94

Enterprise Value/Revenue12.59

Enterprise Value/Gross Profit20.39

Enterprise Value/Ebitda36.12

Forecast

1Y Price Target

$792.78

Price Target Upside16.19% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering10

EPS Forecast (FY)12.9

Revenue Forecast (FY)$4.29B

Idexx Laboratories Business Overview & Revenue Model

Company DescriptionIDEXX Laboratories, Inc. is a global leader in veterinary diagnostics and water testing solutions. Founded in 1983 and headquartered in Westbrook, Maine, the company specializes in providing innovative products and services for the veterinary market, including diagnostic tests, instruments, and software solutions. IDEXX also offers products for livestock and poultry health, as well as testing services for drinking water and environmental samples. The company operates primarily in the animal health sector, contributing significantly to its growth and market presence.

How the Company Makes MoneyIDEXX Laboratories generates revenue primarily through the sale of diagnostic products and services for veterinarians, which include a wide range of tests for various diseases, instruments for performing those tests, and software solutions that enhance practice management. Key revenue streams include sales of in-house diagnostic instruments and consumables, reference laboratory services, and point-of-care testing products. Additionally, IDEXX earns income from its water testing segment, which provides testing products and services essential for ensuring safe drinking water. The company benefits from a robust network of partnerships with veterinary clinics, laboratories, and research institutions, enhancing its market reach and solidifying its position as a trusted supplier in the veterinary and environmental sectors.

Idexx Laboratories Key Performance Indicators (KPIs)

Any

Revenue by Geography

Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.

Chart InsightsIDEXX Laboratories is experiencing robust international revenue growth, driven by strong volume gains and price realization, as highlighted by an 8.5% increase in international CAG diagnostic recurring revenue. This contrasts with the U.S., where revenue growth is tempered by a decline in clinical visits. Despite these challenges, IDEXX's strategic focus on international markets and innovation, such as the launch of IDEXX Cancer Dx, positions it well for continued expansion. The company's updated outlook reflects confidence in overcoming macroeconomic pressures, with a sustained organic growth forecast of 6% to 9% for 2025.

Data provided by:

The Fly

Idexx Laboratories Earnings Call Summary

Earnings Call Date:Nov 03, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Feb 09, 2026

Earnings Call Sentiment Positive

IDEXX Laboratories reported strong financial performance and increased its full year guidance, driven by gains in CAG Diagnostics and international markets. However, challenges such as a decline in U.S. clinical visits and wellness visits persisted, along with impacts from foreign exchange and rapid assay revenue shifts.

Q3-2025 Updates

Positive Updates

Strong Revenue Growth

IDEXX reported a 13% increase in revenue as reported, with 12% organic growth, driven by a 10% gain in CAG Diagnostics recurring revenues, including significant growth in both U.S. and international regions.

EPS and Operating Margin Increase

Earnings per share grew to $3.40, marking a 15% increase. The operating margin also improved by 120 basis points on a comparable basis.

CAG Diagnostics Instrument Revenue Surge

CAG instrument revenues saw a 71% organic growth, supported by over 1,750 IDEXX InVue Dx analyzers placed.

International CAG Diagnostics Growth

International CAG Diagnostics recurring revenue grew 14% organically, reflecting strong volume gains and sustained growth over the past 10 quarters.

Increased Full Year Financial Guidance

IDEXX increased its full year revenue outlook by $43 million at midpoint, expecting overall reported revenue growth of 9.6% to 10.3% and EPS of $12.81 to $13.01 per share.

Negative Updates

Decline in U.S. Same-Store Clinical Visits

U.S. same-store clinical visits declined by 1.2% due to ongoing macro and sector pressures, impacting CAG Diagnostics recurring revenue growth.

Wellness Visits Decline

Wellness visits declined by 2.5%, continuing to face pressures from macroeconomic conditions.

Foreign Exchange Impact on Gross Margin

Reported gross margin gains were moderated by a 10 basis point impact from foreign exchange, net of hedge positions.

Challenges in Rapid Assay Revenues

Global rapid assay revenues declined by 5% organically due to a shift of pancreatic lipase testing to the Catalyst instrument platform, creating a 6% headwind in Q3 revenue growth.

Company Guidance

During the IDEXX Laboratories Third Quarter 2025 Earnings Conference Call, the company reported a strong financial performance with several key metrics highlighted. Revenue increased by 13% as reported and 12% organically, driven by over 10% organic growth in Companion Animal Group (CAG) Diagnostics recurring revenues, including an 8% increase in the U.S. and double-digit growth internationally. The company achieved a 71% organic growth in CAG instrument revenues, with over 1,750 IDEXX InVue Dx analyzers placed. Operating margins improved by 120 basis points, contributing to a 15% EPS growth on a comparable basis, resulting in an EPS of $3.40 for the quarter. The full-year revenue outlook was increased by $43 million at the midpoint, with an updated range of $4.270 billion to $4.300 billion, reflecting an overall reported revenue growth of 9.6% to 10.3%. The company's updated full-year EPS guidance is $12.81 to $13.01 per share, indicating a $0.33 increase per share at the midpoint. International CAG Diagnostics recurring revenue grew by 14% organically, with a 1% benefit related to equivalent days. IDEXX's innovation strategy continues to drive growth, as evidenced by strong placements of InVue Dx and the growing adoption of Cancer Dx, which has reached nearly 5,000 customers.

Idexx Laboratories Financial Statement Overview

Summary

Idexx Laboratories exhibits a strong financial profile with consistent revenue and profit growth, efficient cost management, and robust cash flow generation. The balance sheet reflects a balanced approach to leverage, supporting long-term stability. While the company shows slight fluctuations in growth rates, its overall financial health remains solid.

Income Statement

Very Positive

Idexx Laboratories demonstrates strong financial performance with consistent revenue growth and robust profit margins. The TTM data shows a Gross Profit Margin of 61.54% and a Net Profit Margin of 24.41%, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also healthy, reflecting strong operational efficiency. The revenue growth rate of 3.21% in the TTM period suggests steady growth, although slightly lower than previous years.

Balance Sheet

Positive

The balance sheet shows a moderate Debt-to-Equity Ratio of 0.85 in the TTM period, indicating a balanced approach to leverage. The Return on Equity is impressive at 64.42%, showcasing strong profitability relative to shareholder equity. However, the Equity Ratio of 46.10% suggests a moderate reliance on debt financing. Overall, the company maintains a stable financial position with effective use of equity.

Cash Flow

Very Positive

Cash flow analysis reveals a strong Free Cash Flow Growth Rate of 23.15% in the TTM period, indicating effective cash generation. The Operating Cash Flow to Net Income Ratio of 1.06 and Free Cash Flow to Net Income Ratio of 0.85 reflect efficient cash conversion from earnings. The company demonstrates solid cash flow management, supporting its operational and strategic initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.17B	3.90B	3.66B	3.37B	3.22B	2.71B
Gross Profit	2.57B	2.38B	2.19B	2.00B	1.89B	1.57B
EBITDA	1.45B	1.28B	1.22B	1.01B	1.04B	793.81M
Net Income	1.03B	887.87M	845.04M	679.09M	744.85M	581.78M
Balance Sheet
Total Assets	3.39B	3.29B	3.26B	2.75B	2.44B	2.29B
Cash, Cash Equivalents and Short-Term Investments	208.17M	288.27M	453.93M	112.55M	144.45M	383.93M
Total Debt	1.11B	986.95M	1.07B	1.47B	1.03B	1.00B
Total Liabilities	1.83B	1.70B	1.78B	2.14B	1.75B	1.66B
Stockholders Equity	1.56B	1.60B	1.48B	608.74M	689.99M	632.09M
Cash Flow
Free Cash Flow	953.57M	798.08M	772.88M	394.15M	636.00M	540.44M
Operating Cash Flow	1.09B	929.00M	906.51M	542.98M	755.55M	648.06M
Investing Cash Flow	-147.95M	-207.06M	-125.25M	-195.35M	-292.97M	-109.38M
Financing Cash Flow	-1.04B	-878.07M	-442.00M	-370.94M	-697.41M	-248.42M

Idexx Laboratories Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price682.31

Price Trends

50DMA

690.27

Negative

100DMA

665.74

Positive

200DMA

574.70

Positive

Market Momentum

MACD

-1.56

Positive

RSI

40.73

Neutral

STOCH

35.81

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IDXX, the sentiment is Neutral. The current price of 682.31 is below the 20-day moving average (MA) of 714.26, below the 50-day MA of 690.27, and above the 200-day MA of 574.70, indicating a neutral trend. The MACD of -1.56 indicates Positive momentum. The RSI at 40.73 is Neutral, neither overbought nor oversold. The STOCH value of 35.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IDXX.

Idexx Laboratories Risk Analysis

Idexx Laboratories disclosed 24 risk factors in its most recent earnings report. Idexx Laboratories reported the most risks in the "Legal & Regulatory" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Idexx Laboratories Peers Comparison

Overall Rating

UnderperformOutperform

Sector (51)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDXX	78 Outperform	$56.07B	54.09	64.63%	―	8.39%	21.44%
ZTS	74 Outperform	$54.55B	20.82	49.87%	1.69%	2.68%	11.51%
A	73 Outperform	$39.21B	30.26	20.62%	0.72%	6.73%	3.34%
ILMN	71 Outperform	$21.03B	30.51	31.20%	―	-2.39%	―
ELAN	69 Neutral	$11.08B	305.90	0.54%	―	3.08%	-82.39%
RVTY	67 Neutral	$11.08B	48.80	3.04%	0.29%	3.37%	-18.80%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

* Healthcare Sector Average

Performance Comparison

IDXX

Idexx Laboratories

682.31

265.20

63.58%

Agilent

138.36

3.62

2.69%

ILMN

Illumina

136.19

1.23

0.91%

RVTY

Revvity

97.58

-14.60

-13.01%

ZTS

Zoetis

123.54

-39.81

-24.37%

ELAN

Elanco Animal Health

22.22

10.17

84.40%

Idexx Laboratories Corporate Events

Private Placements and FinancingBusiness Operations and Strategy

IDEXX Laboratories Amends Credit Agreement for Flexibility

Neutral

Nov 13, 2025

On November 12, 2025, IDEXX Laboratories, Inc. and its subsidiaries entered into Amendment No. 2 to their fourth amended and restated credit agreement, involving a $1.0 billion unsecured revolving credit facility and a $250 million term loan. This amendment extends the maturity dates, adds IDEXX Holdings II GmbH as a borrower, and introduces various financial and operational adjustments, impacting the company’s financial flexibility and operational capacity.

Executive/Board Changes

IDEXX Laboratories Appoints Karen Peacock to Board

Positive

Oct 7, 2025

On October 6, 2025, IDEXX Laboratories elected Karen Peacock as an independent Class I Director and appointed her to its Compensation and Talent Committee and Finance Committee. This strategic addition to the board is expected to enhance the company’s leadership with Peacock’s extensive experience in B2B, SaaS software, and AI, potentially strengthening IDEXX’s position in the pet healthcare industry.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 09, 2025