Idexx Laboratories (IDXX) AI Stock Analysis

Compare

2,142 Followers

Top Page

Idexx Laboratories

(NASDAQ:IDXX)

Select Model

Outperform 70 (OpenAI - 5.2)

Rating:70Outperform

Price Target:

$704.00

▲(11.29% Upside)

The score is anchored by strong financial quality (premium margins, solid free cash flow, and improved balance sheet) and supportive 2026 guidance. Offsetting factors are weak current technical momentum and a high P/E that leaves less room for error, with corporate execution risk around the CEO transition as a secondary consideration.

Positive Factors

Free Cash Flow Generation

Sustained, large free cash flow provides durable financial flexibility: supports R&D and instrument rollouts, funds sizable buybacks and dividends, and buffers cyclicality in clinic volumes. High FCF conversion underpins capital allocation optionality over the next 2–6 months.

High and Expanding Profitability

Robust gross and expanding operating margins reflect pricing power, product mix and scale advantages in diagnostics. Margin durability supports reinvestment in innovation and absorbs moderate revenue slowdowns, preserving long-term operational cash generation.

Installed Base and Recurring Revenue Growth

Growing installed base and recurring consumables drive durable recurring revenue and higher lifetime customer value. Instrument placements expand consumable volume and software cross-sell, creating stickier revenue streams and predictable aftermarket economics over multiple years.

Negative Factors

Slowing Top-Line Growth Trend

A decelerating revenue trajectory reduces the pace at which economies of scale and new product adoption can offset cost and investment needs. Sustained slower growth increases reliance on margin expansion and buybacks to deliver shareholder returns, elevating execution sensitivity.

Declining U.S. Same-Store Clinic Visits

Fewer veterinary visits structurally lower addressable testing volumes and consumable usage absent offsetting adoption. Persistent declines in wellness visits limit organic growth potential in the core market and force heavier reliance on price, product transitions, or international expansion.

Product Transition & Instrument Lapping Risks

Shifts to new platforms and lapping of prior instrument placements create durable revenue-mix volatility and near-term headwinds to consumables and instrument sales. These transitions can compress growth and margins until new installs and consumable adoption scale, raising execution risk.

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

Market Cap

$51.34B

Dividend YieldN/A

Average Volume (3M)418.26K

Price to Earnings (P/E)49.2

Beta (1Y)0.93

Revenue Growth8.39%

EPS Growth21.44%

CountryUS

Employees11,000

SectorHealthcare

Sector Strength45

IndustryMedical - Diagnostics & Research

Share Statistics

EPS (TTM)3.08

Shares Outstanding79,851,330

10 Day Avg. Volume540,406

30 Day Avg. Volume418,262

Financial Highlights & Ratios

PEG Ratio2.30

Price to Book (P/B)33.75

Price to Sales (P/S)12.59

P/FCF Ratio51.26

Enterprise Value/Market Cap1.00

Enterprise Value/Revenue11.90

Enterprise Value/Gross Profit19.26

Enterprise Value/Ebitda34.88

Forecast

1Y Price Target

$782.14

Price Target Upside23.65% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering8

EPS Forecast (FY)14.45

Revenue Forecast (FY)$4.67B

Idexx Laboratories Business Overview & Revenue Model

Company DescriptionIDEXX Laboratories, Inc. develops, manufactures, and distributes products and services primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets worldwide. The company operates through CAG; Water Quality Products; LPD; and Other segments. It provides point-of-care veterinary diagnostic products, including instruments, consumables, and rapid assay test kits; veterinary reference laboratory diagnostic and consulting services; practice management and diagnostic imaging systems and services for veterinarians; and health monitoring, biological materials testing, and laboratory animal diagnostic instruments and services for biomedical research community. The company also offers diagnostic and health-monitoring products for livestock, poultry, and dairy; products that test water for various microbiological contaminants; and point-of-care electrolytes and blood gas analyzers and SARS-CoV-2 RT-PCR that are used in the human point-of-care medical diagnostics market; in-clinic chemistry, blood and urine chemistry, hematology, and SediVue Dx analyzers; SNAP rapid assays test kits. In addition, it provides Colilert, Colilert-18, and Colisure tests, which detect the presence of total coliforms and E. coli in water; Enterolert, Pseudalert, Filta-Max and Filta-Max xpress, Legiolert, and Quanti-Tray products; veterinary software and services for independent veterinary clinics and corporate groups. The company markets its products through marketing, customer service, sales, and technical service groups, as well as through independent distributors and other resellers. IDEXX Laboratories, Inc. was incorporated in 1983 and is headquartered in Westbrook, Maine.

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 revenue growth in both the U.S. and international markets, with notable momentum in international CAG Diagnostics. Despite a decline in U.S. clinical and wellness visits, international growth remains strong, driven by strategic placements of InVue Dx analyzers and increased adoption of Cancer Dx. The company raised its full-year revenue and EPS guidance, reflecting confidence in sustained growth. However, challenges such as foreign exchange impacts and shifts in rapid assay revenues could pose risks to future performance.

Data provided by:

The Fly

Idexx Laboratories Earnings Call Summary

Earnings Call Date:Feb 02, 2026

(Q4-2025)

% Change Since: |

Next Earnings Date:May 06, 2026

Earnings Call Sentiment Positive

The call presented a strong operating performance with double-digit organic growth, record instrument placements, meaningful margin expansion, robust free cash flow and aggressive buybacks, and clear commercial and product momentum (InVue DX, CancerDx, Catalyst menu expansions, and software ARR growth). Headwinds include persistent weakness in same-store clinical visits (especially wellness), a decline in rapid assay revenues due to product transition, some instrument-revenue lapping and mix effects, and moderation in pricing. Overall, the positives (revenue/margin growth, cash generation, product commercialization and international strength) outweigh the cited challenges, and management provided constructive 2026 guidance that incorporates known headwinds.

Q4-2025 Updates

Positive Updates

Strong Top-Line Growth

Q4 revenue increased 14% reported and 12% organically; full-year 2025 organic revenue growth was 10%. CAG Diagnostics recurring revenues grew 10% organically in Q4 and 8% organically for the full year. US CAG recurring revenues rose 9% organically in Q4, driven by ~4% net price improvement and ~5% volume growth.

Record Premium Instrument Placements and Installed Base Expansion

Q4 placements of premium instruments totaled 6,567, up 42% year-over-year; full-year placements were ~22,500. InVue DX placements were nearly 6,400 for the year. Global premium instrument installed base expanded ~12% year-over-year and the Catalyst installed base reached ~78,000 units.

Strong Profitability and Cash Generation

Full-year operating margin was 31.6%, up 90 basis points on a comparable basis. Q4 operating profit grew 21% reported (17% comparable). Q4 EPS was $3.08 (+17% comparable) and full-year EPS was $13.08 (+14% comparable). Free cash flow for 2025 was $1.1 billion (100% of net income). The company repurchased $1.2 billion of shares (2.4M shares) and reduced diluted shares outstanding by 2.7% year-over-year.

Meaningful Product Innovation and Commercial Momentum

Multiple launches and expansions (InVue DX, CancerDx, Catalyst Cortisol, Catalyst pancreatic lipase, advanced radiography system) materially contributed to adoption and economic value. InVue DX instrument revenue contributed over $75 million in 2025 and supported roughly 200 basis points of company growth. CancerDx reached nearly 6,000 customers and will add mast cell tumor detection mid-2026.

Recurring Software and SaaS Momentum

Cloud-based PIMs and other software delivered double-digit recurring revenue growth in Q4. Velo users grew ~40% sequentially and nearly tripled year-over-year. The company closed the year with record quarterly bookings and growing ARR, supporting cross-sell and higher utilization.

Reference Lab and International Strength

Global reference lab revenues expanded 9% organically in Q4, aided by volume growth and competitive submissions (~18%). International CAG Diagnostics recurring revenue grew 12% organically in Q4, with strong international instrument growth and double-digit international consumable gains.

Confident 2026 Financial Outlook

Full-year 2026 guidance: revenue $4.632B–$4.72B (+7.6%–9.6% reported; 7%–9% organic), CAG Diagnostics recurring revenue growth targeted at 8%–10% organic, reported operating margin guidance 32%–32.5%, EPS $14.29–$14.80 (10%–14% comparable), and free cash flow conversion outlook of 85%–95% of net income.

Negative Updates

Pressure on Clinic Visits — Wellness Declines

US same-store clinical visits declined ~1.7% in Q4 and ~1.9% for full-year 2025. Wellness visits were down ~3.6% in Q4. Management is guiding for approximately a 2% decline in U.S. same-store clinical visits for 2026, creating a persistent sector headwind.

Rapid Assay Revenue Decline and Transition Headwinds

Rapid assay revenues fell 3% organically in Q4. The transition of pancreatic lipase testing to the Catalyst slide produced an estimated ~4% headwind to Q4 revenue growth for rapid assays, limiting near-term sales in that category.

Instrument Revenue Mix and Lapping Effects to Pressure Growth

Management expects CAG instrument revenues to decline in 2026 as the company laps the rapid InVue expansion in 2025; strong instrument mix in Q4 also imposed gross-margin mix pressure. Additionally, lapping a concluded litigation accrual creates a comparable-year headwind (management cited ~20–30 basis points effects in margins and EPS comparability adjustments).

Moderation in Net Price Realization

Company expects modestly lower net price realization in 2026 versus 2025: global net price realization is expected near ~4% (modestly lower than 2025) and US net price improvement ~3.5% (vs. ~4% in 2025), indicating some moderation in pricing contribution.

Slower Adoption in Certain Channels and Controlled Rollouts

InVue placements into large corporate practices have longer sell-in cycles and are progressing more slowly than independent practice deployments. The FNA capability is in a controlled launch, limiting immediate consumables flow-through; management acknowledged InVue consumables are not yet a large contributor to consumable revenue.

Mixed Performance Across Segments and Increased Capital Spending

LPD segment growth was modest (+4% organic in Q4). Company plans higher capital spending in 2026 ($180M vs $125M in 2025, ~4% of revenue), which lowers expected free cash flow conversion (guidance 85%–95% vs 100% in 2025) and could weigh on near-term cash metrics.

Company Guidance

IDEXX's 2026 guidance calls for full‑year revenue of $4.632–$4.72 billion (reported growth 7.6%–9.6%, organic 7%–9%), CAG Diagnostics recurring revenue organic growth of 8%–10% (≈100 bps improvement at midpoint vs. 2025), and an approximate 60 bps foreign‑exchange tailwind to revenue; management expects ~4% global net price realization (≈3.5% in the U.S.) while assuming roughly a 2% decline in U.S. same‑store clinical visits. The company plans ~5,500 InVue DX placements in 2026, expects CAG instrument revenues to decline as it laps prior rapid placements, and sees reported operating margin of 32%–32.5% (comparable improvement of 30–80 bps year‑over‑year, net of ~30 bps FX benefit and ~20 bps headwind from lapping a litigation accrual). EPS is guided to $14.29–$14.80 (up ~10%–14% on a comparable basis), which reflects $34 million of net interest expense and an FX benefit of about $0.22; the tax rate is expected to be consistent year‑to‑year excluding share‑based compensation. Cash conversion is targeted at 85%–95% of net income with capital expenditures of $180 million (~4% of revenue) and share repurchases intended to reduce diluted shares 1%–2% while maintaining leverage ratios; a 1% change in the U.S. dollar is estimated to move full‑year revenue by ≈$16 million and operating income by ≈$5 million. For Q1, IDEXX expects reported revenue growth of 11.5%–13.5% (≈2.5% FX benefit), organic growth of 9%–11% (including ~1%–1.5% benefit from CAG instrument revenues), Q1 CAG recurring growth of 8.5%–10.5% (≈50 bps days benefit), and reported operating margins of 31.4%–31.9% (net of ~90 bps headwind from lapping prior litigation accrual and ~30 bps FX benefit).

Idexx Laboratories Financial Statement Overview

Summary

High-quality profitability and cash generation, with improving margins and strong free cash flow. Balance sheet flexibility improved materially with sharply lower debt, but the key risk is slowing revenue growth and some missing/unreliable leverage and cash-coverage metrics in the dataset.

Income Statement

Very Positive

IDEXX shows strong, durable profitability with gross margin holding around ~58–62% and net margin improving to ~24.6% in 2025 (vs ~22.8% in 2024). Operating profitability also strengthened (EBIT margin ~31.7% in 2025 vs ~29.3% in 2024). The main weakness is growth deceleration: revenue growth slowed from high-single digits earlier (2023) to ~6.5% (2024) and ~3.3% (2025), indicating a moderating top-line trajectory despite continued margin expansion.

Balance Sheet

Positive

Leverage improved meaningfully over time, with total debt falling sharply in 2025 (down to ~$75M from ~$987M in 2024), strengthening financial flexibility. Equity has also grown vs the 2020–2022 period, supporting a sturdier capital base. Offsetting this, reported leverage/return metrics for 2025 are shown as 0.0 (likely missing/unreliable in the dataset), and earlier years show periods of elevated leverage (e.g., high debt relative to equity in 2021–2022), which historically increased balance sheet risk.

Cash Flow

Very Positive

Cash generation is strong and improving: operating cash flow rose to ~$1.18B in 2025 and free cash flow to ~$1.06B, with free cash flow growth accelerating to ~10.9% in 2025 (vs ~3.3% in 2024). Free cash flow consistently tracks net income well (free cash flow running at ~73%–89% of net income over 2020–2025), supporting earnings quality. A key weakness is variability—2022 saw a notable drop in free cash flow (negative growth), and 2025’s operating cash flow coverage is reported as 0.0 (missing/unreliable), limiting visibility into cash conversion for that year.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.30B	3.90B	3.66B	3.37B	3.22B
Gross Profit	2.66B	2.38B	2.19B	2.00B	1.89B
EBITDA	1.47B	1.28B	1.22B	1.01B	1.04B
Net Income	1.06B	887.87M	845.04M	679.09M	744.85M
Balance Sheet
Total Assets	3.35B	3.29B	3.26B	2.75B	2.44B
Cash, Cash Equivalents and Short-Term Investments	180.07M	288.27M	453.93M	112.55M	144.45M
Total Debt	847.84M	986.95M	1.07B	1.47B	1.03B
Total Liabilities	1.75B	1.70B	1.78B	2.14B	1.75B
Stockholders Equity	1.61B	1.60B	1.48B	608.74M	689.99M
Cash Flow
Free Cash Flow	1.06B	798.08M	772.88M	394.15M	636.00M
Operating Cash Flow	1.18B	929.00M	906.51M	542.98M	755.55M
Investing Cash Flow	-136.24M	-207.06M	-125.25M	-195.35M	-292.97M
Financing Cash Flow	-1.16B	-878.07M	-442.00M	-370.94M	-697.41M

Idexx Laboratories Technical Analysis

Technical Analysis Sentiment

Negative

Last Price632.56

Price Trends

50DMA

701.45

Negative

100DMA

677.94

Negative

200DMA

613.92

Positive

Market Momentum

MACD

-13.61

Positive

RSI

32.61

Neutral

STOCH

18.90

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IDXX, the sentiment is Negative. The current price of 632.56 is below the 20-day moving average (MA) of 691.35, below the 50-day MA of 701.45, and above the 200-day MA of 613.92, indicating a neutral trend. The MACD of -13.61 indicates Positive momentum. The RSI at 32.61 is Neutral, neither overbought nor oversold. The STOCH value of 18.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
ZTS	74 Outperform	$55.84B	20.63	49.87%	1.69%	2.68%	11.51%
A	73 Outperform	$37.61B	28.90	20.62%	0.72%	6.73%	3.34%
IDXX	70 Outperform	$51.34B	49.17	66.20%	―	8.39%	21.44%
ELAN	69 Neutral	$12.12B	334.71	0.54%	―	3.08%	-82.39%
ILMN	68 Neutral	$20.50B	30.06	31.20%	―	-2.39%	―
RVTY	64 Neutral	$11.77B	49.15	3.21%	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

642.94

174.39

37.22%

Agilent

132.98

-13.83

-9.42%

ILMN

Illumina

134.19

9.51

7.63%

RVTY

Revvity

103.83

-18.19

-14.91%

ZTS

Zoetis

126.70

-46.45

-26.83%

ELAN

Elanco Animal Health

24.40

12.37

102.83%

Idexx Laboratories Corporate Events

Business Operations and StrategyExecutive/Board Changes

Idexx Laboratories announces planned CEO succession and transition

Positive

Jan 13, 2026

On January 13, 2026, IDEXX Laboratories announced a planned CEO succession under which Michael (Mike) Erickson, PhD, will be promoted to President and Chief Executive Officer and appointed to the board effective May 12, 2026, while current President and CEO Jonathan (Jay) Mazelsky will become Executive Chair until his retirement following the company’s annual shareholder meeting in May 2027. The transition plan, supported by detailed employment, incentive, and change-in-control agreements for Erickson and an updated employment arrangement for Mazelsky, underscores the board’s emphasis on continuity and long-term strategic execution, as Erickson brings extensive internal experience across diagnostics, software, strategy, and global point-of-care and telemedicine businesses that are central to IDEXX’s position in the veterinary diagnostics and healthcare technology market.

The most recent analyst rating on (IDXX) stock is a Buy with a $775.00 price target. To see the full list of analyst forecasts on Idexx Laboratories stock, see the IDXX Stock Forecast page.

Business Operations and StrategyPrivate Placements and Financing

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.

The most recent analyst rating on (IDXX) stock is a Hold with a $775.00 price target. To see the full list of analyst forecasts on Idexx Laboratories stock, see the IDXX Stock Forecast page.

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: Feb 03, 2026