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Idexx Laboratories (IDXX) AI Stock Analysis
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Idexx Laboratories
(NASDAQ:IDXX)
IDXX scores well primarily on strong financial performance (high margins and strong free cash flow) and a positive earnings update with raised guidance and continued margin expansion. The overall score is tempered by a premium valuation (P/E ~40.9) and only moderate technical confirmation, with the stock still below its 200-day moving average.
Idexx Laboratories Key Performance Indicators (KPIs)
Revenue by GeographyBreaks revenue down by region (U.S., Europe, Rest of World), showing where Idexx earns most sales and which markets are growing fastest. Helps investors assess dependence on mature versus emerging markets, local veterinary demand trends, and exposure to currency and regional economic risk.
International revenue shifted from steady gains into pronounced acceleration through 2025–Q1 2026, fuelled by instrument placements (inVue Dx), higher consumables usage, and international rollouts like Cancer DX—an important driver behind management’s upward FY26 guidance. That momentum underpins durable recurring revenue but remains exposed to lumpy placement pacing, regional supply‑chain issues (Water) and FX sensitivity, so expect strong growth overall but quarter‑to‑quarter variability in reported results.
The FlyIdexx Laboratories (IDXX) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $43.42B
- Dividend Yield
- ―
- Average Volume (3M)
- 551.47K
- Price to Earnings (P/E)
- 38.7
- Beta (1Y)
- 0.80
- Revenue Growth
- 12.77%
- EPS Growth
- 18.22%
- Country
- US
- Employees
- 11,000
- Sector
- Healthcare
- Sector Strength
- 51
- Industry
- Medical - Diagnostics & Research
Idexx Laboratories Business Overview & Revenue Model
Company Description
IDEXX Laboratories, Inc. is a global enterprise focused on creating, producing, and distributing a wide array of products and services. Its primary client base includes companion animal veterinary practices, the livestock and poultry industries, dair...
How the Company Makes Money
IDEXX makes money primarily by selling veterinary diagnostic products and delivering recurring diagnostic services, supported by long-term customer relationships with veterinary practices and laboratories. Its major revenue streams include: (1) Compa...
Idexx Laboratories Earnings Call Summary
The call conveyed a strongly constructive operational and financial picture: solid organic revenue growth (~9% Q2), recurring CAG Diagnostics strength, robust margin and EPS expansion, strong free cash flow and aggressive capital returns, plus clear product and innovation momentum (inVue Dx, Cancer Dx, Catalyst SDMA). Offsetting items include continued pressure on U.S. clinic and wellness visits, a Q2 instrument revenue lap effect, foreign-exchange headwinds, and planned incremental investments that will temper near-term margin gains. Overall, the positive drivers — durable recurring revenue expansion, margin gains, cash generation, and multiple innovation milestones — materially outweigh the cited headwinds.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
IDEXX raised its 2026 outlook to $4,700–$4,745 million in revenue (≈$5M increase at midpoint, reflecting a $20M operational improvement offset by a $15M FX headwind), implying reported revenue growth of 9.1%–10.3% and overall organic revenue growth of 8.5%–9.7%; organic CAG Diagnostics recurring revenue is guided to 9.5%–10.7% (including ~4% net price realization). Full‑year EPS is now $14.69–$14.94 (up $0.14 at midpoint), a 13%–15% comparable EPS growth range (EPS includes a $0.05 share‑based compensation benefit and a $0.05 FX headwind), and a 1% USD strengthening would cut revenue by ≈$8M and EPS by ≈$0.03. Reported operating margin is expected at 32.3%–32.5% with 70–90 bps of comparable operating margin improvement for the year; Q3 margins are guided to 32.5%–32.8% with a 20–50 bps comparable expansion. Free cash flow conversion is raised to 90%–100% of net income (capex ≈$180M); Q2 FCF was $323M, H1 FCF $557M, trailing‑12‑month conversion 110%. Leverage finished the quarter ~0.6x gross/0.5x net; share repurchases totaled $332M in Q2 and $693M YTD, reducing diluted shares by ~2% Y/Y; management expects ~1.5% U.S. clinical visit declines in 2H at midpoint.
Idexx Laboratories Financial Statement Overview
Summary
High-quality financial profile supported by strong profitability (TTM gross margin ~62%, net margin ~25%) and robust cash generation (TTM operating cash flow ~$1.37B; free cash flow ~$1.25B, ~15.8% FCF growth). Balance sheet leverage is manageable and improved versus 2021–2022 (TTM debt ~$669M; debt-to-equity ~0.71). Key offsets are a normalizing growth profile and a relatively lean equity base that can amplify sensitivity if profitability softens.
Income Statement
90Very PositiveBalance Sheet
78PositiveCash Flow
87Very Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.55B | 4.30B | 3.90B | 3.66B | 3.37B | 3.22B |
| Gross Profit | 2.84B | 2.66B | 2.38B | 2.19B | 2.00B | 1.89B |
| EBITDA | 1.62B | 1.51B | 1.28B | 1.22B | 1.01B | 1.04B |
| Net Income | 1.14B | 1.06B | 887.87M | 845.04M | 679.09M | 744.85M |
Balance Sheet | ||||||
| Total Assets | 3.44B | 3.35B | 3.29B | 3.26B | 2.75B | 2.44B |
| Cash, Cash Equivalents and Short-Term Investments | 196.93M | 180.07M | 288.27M | 453.93M | 112.55M | 144.45M |
| Total Debt | 1.10B | 1.08B | 986.95M | 1.07B | 1.47B | 1.03B |
| Total Liabilities | 1.83B | 1.75B | 1.70B | 1.78B | 2.14B | 1.75B |
| Stockholders Equity | 1.61B | 1.61B | 1.60B | 1.48B | 608.74M | 689.99M |
Cash Flow | ||||||
| Free Cash Flow | 1.25B | 1.05B | 798.08M | 772.88M | 394.15M | 636.00M |
| Operating Cash Flow | 1.37B | 1.18B | 929.00M | 906.51M | 542.98M | 755.55M |
| Investing Cash Flow | -132.04M | -136.24M | -207.06M | -125.25M | -195.35M | -292.97M |
| Financing Cash Flow | -1.20B | -1.16B | -878.07M | -442.00M | -370.94M | -697.41M |
Idexx Laboratories Technical Analysis
Price Trends
Market Momentum
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 551.21 is above the 20-day moving average (MA) of 543.85, above the 50-day MA of 534.27, and below the 200-day MA of 572.62, indicating a neutral trend. The MACD of 10.11 indicates Negative momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 62.09 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.
Latest Risks Added
0 New RisksIdexx Laboratories Peers Comparison
Overall Rating
A81Outperform
TMO76.9Outperform
ILMN76Outperform- IDXX75Outperform
DHR73Outperform
WAT57Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| A | 81Outperform | $49.30B | 34.35 | 20.47% | 0.58% | 8.60% | 19.07% |
| TMO | 77Outperform | $257.71B | 36.70 | 13.31% | 0.26% | 8.27% | 9.59% |
| ILMN | 76Outperform | $35.63B | 40.07 | 31.45% | ― | 6.00% | 31.48% |
| IDXX | 75Outperform | $43.42B | 38.71 | 71.96% | ― | 12.77% | 18.22% |
| DHR | 73Outperform | $163.38B | 37.95 | 8.18% | 0.65% | 5.52% | 25.53% |
| WAT | 57Neutral | $45.46B | 115.10 | 1.88% | ― | 52.47% | -63.86% |
| Sector * | 51Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| IDXX | Idexx Laboratories | 551.21 | -171.73 | -23.75% | |
| A | Agilent Technologies | 174.87 | 31.26 | 21.77% | |
| DHR | Danaher Corporation | 232.23 | 19.74 | 9.29% | |
| ILMN | Illumina | 235.99 | 116.00 | 96.67% | |
| TMO | Thermo Fisher Scientific | 697.00 | 134.10 | 23.82% | |
| WAT | Waters Corp | 462.72 | 117.13 | 33.89% |
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: Aug 04, 2026