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Idexx Laboratories (IDXX) AI Stock Analysis

IDXX

Idexx Laboratories

(NASDAQ:IDXX)

Select Model
Rating:75Outperform
Price Target:$585.00▼(-10.25% Downside)
Action:reiterated
Date:08/04/26

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.

Positive Factors
Recurring diagnostics growthStrong recurring diagnostic growth demonstrates durable demand beyond clinic visit volumes and supports predictable revenue from consumables and services. The premium to U.S. visit trends also indicates effective pricing, workflow integration, and customer retention.
Negative Factors
U.S. visit pressurePersistent declines in U.S. clinical and wellness visits can constrain test volumes and slow growth in visit-linked services. Continued consumer pressure and slower pet additions may delay volume recovery, even if IDEXX retains share and gains pricing.

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.

$0.00$100.00M$200.00M$300.00M$400.00MMar 21Jun 21Sep 21Dec 21Mar 22Jun 22Sep 22Dec 22Mar 23Jun 23Sep 23Dec 23Mar 24Jun 24Sep 24Dec 24Mar 25Jun 25Sep 25Dec 25Mar 26Jun 26
Chart Insights

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.

Data provided by:The Fly

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

-40%-30%-20%-10%0%10%20%IDXX-23.67%SPY+11.79%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
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

Earnings Call Date:Nov 01, 2026(Q3-2026)|Next Earnings Date:Feb 07, 2027
Earnings Call SentimentPositive

The call was strongly positive overall. IDEXX reported broad-based organic growth, double-digit gains in key recurring-revenue businesses, expanding international execution, strong instrument and innovation adoption, improved margins, higher EPS, and raised full-year guidance. The main challenges were declining U.S. clinical visits, muted puppy and kitten adoption, modest rapid assay growth, foreign exchange pressure, and near-term ezyVet-related dilution and costs.

Positive Updates

Strong Third-Quarter Organic Revenue Growth
Third-quarter revenue increased 10% organically, driven by 10% growth in Companion Animal Group revenue, 8% growth in the water business, and 3% growth in livestock, poultry, and dairy.

Negative Updates

U.S. Clinical Visits Declined
U.S. same-store clinical visits declined an estimated 1.8% in the quarter. Management said the macro environment remained a challenge and that puppy and kitten adoption levels were more muted, although aging pets continued to support demand.

Company Guidance

For full year 2026, IDEXX raised its revenue outlook to $4.741 billion to $4.767 billion, a $32 million increase at midpoint, with reported revenue growth of 10.1% to 10.8%, overall organic revenue growth of 9.3% to 10%, and organic CAG Diagnostics recurring revenue growth of 10.3% to 11%, including approximately 4% benefit from global net price realization; the ranges represent an increase of approximately 60 basis points at midpoint along with tightening the low end of the range. EPS guidance increased to $14.96 to $15.16 per share, a $0.25 per share increase at midpoint, reflecting 15% to 16% comparable EPS growth, a tax rate estimated at 20.5%, lower net interest expense of approximately $32 million, approximately $0.13 per share of dilution related to ezyVet, $0.25 per share of foreign exchange benefits, $19 million or $0.24 per share of share-based compensation benefits, and a 2% reduction in average diluted shares outstanding. Reported operating margin guidance is 32.1% to 32.3%, reflecting 50 to 70 basis points of full year comparable operating margin improvement and approximately 30 basis points of negative impact related to ezyVet; free cash flow conversion is expected to be 95% to 100% of net income, with capital spending of approximately $160 million. For the fourth quarter, reported operating margins are expected to be 28.4% to 29.3%, with an approximately 70-basis-point headwind from foreign currency partially offset by benefits from the ezyVet acquisition; a 1% strengthening of the US dollar would reduce revenue by approximately $4 million and EPS by $0.02 per share for the remainder of the year.

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 Positive

Balance Sheet

78Positive

Cash Flow

87Very Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.55B4.30B3.90B3.66B3.37B3.22B
Gross Profit2.84B2.66B2.38B2.19B2.00B1.89B
EBITDA1.62B1.51B1.28B1.22B1.01B1.04B
Net Income1.14B1.06B887.87M845.04M679.09M744.85M
Balance Sheet
Total Assets3.44B3.35B3.29B3.26B2.75B2.44B
Cash, Cash Equivalents and Short-Term Investments196.93M180.07M288.27M453.93M112.55M144.45M
Total Debt1.10B1.08B986.95M1.07B1.47B1.03B
Total Liabilities1.83B1.75B1.70B1.78B2.14B1.75B
Stockholders Equity1.61B1.61B1.60B1.48B608.74M689.99M
Cash Flow
Free Cash Flow1.25B1.05B798.08M772.88M394.15M636.00M
Operating Cash Flow1.37B1.18B929.00M906.51M542.98M755.55M
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

Technical Analysis SentimentNeutral
Last Price651.82

Price Trends

50DMA534.27Positive
100DMA547.13Positive
200DMA572.62Negative

Market Momentum

MACD10.11Negative
RSI52.39Neutral
STOCH62.09Neutral

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 651.82 is above the 20-day moving average (MA) of 543.85, above the 50-day MA of 534.27, and above 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.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

0 New Risks

Idexx Laboratories Peers Comparison

Overall Rating

UnderperformOutperform
Sector (51)

Financial Indicators

IDXX against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TMOTMO77Outperform$257.71B36.7013.31%0.26%8.27%9.59%
ILMNILMN76Outperform$35.63B40.0731.45%―6.00%31.48%
IDXXIDXX75Outperform$43.42B38.7171.96%―12.77%18.22%
DHRDHR73Outperform$163.38B37.958.18%0.65%5.52%25.53%
AA70Outperform$49.30B34.3520.47%0.58%8.60%19.07%
WATWAT57Neutral$45.46B115.101.88%―52.47%-63.86%
Sector *51Neutral$7.86B-0.30-43.30%2.27%22.53%-2.21%

* Healthcare Sector Average

Performance Comparison

0%50%100%IDXXADHRILMNTMOWATDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
IDXX and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
IDXXIdexx Laboratories551.21-171.73-23.75%
AAgilent Technologies174.8731.2621.77%
DHRDanaher Corporation232.2319.749.29%
ILMNIllumina235.99116.0096.67%
TMOThermo Fisher Scientific697.00134.1023.82%
WATWaters Corp462.72117.1333.89%
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: Aug 04, 2026