IDEXX Laboratories Inc. (Nasdaq: IDXX) posted an increase in fourth-quarter earnings and revenue that exceeded market expectations and released its initial full-year outlook for 2026.
The Westbrook-based maker of veterinary diagnostics and software reported diluted earnings per share of $3.08, representing an increase of 18% as reported and 17% on a comparable basis.
Earnings per share exceeded the $2.93 per share consensus estimate of Wall Street analysts polled by Zacks Investment Research. Over the last four quarters, the company has surpassed consensus estimates four times.
IDEXX said the $3.08 includes a 9 cents per share positive impact from currency changes and 7 cents per share in tax benefits from share-based compensation.
Results also reflect an operating margin expansion of 150 basis points as reported and 120 basis points on a comparable basis, it said.
Fourth-quarter revenue of $1.09 billion was 14% above a year ago as reported and 12% higher on an organic basis.
Revenue beat the Zacks prediction by 1.86%, meaning IDEXX has topped consensus estimates in three of the last four quarters.
The company attributed the revenue increase to growth in its Companion Animal Group and water-testing business units.
Jay Mazelsky FILE PHOTO
“IDEXX delivered a strong finish to 2025, supported by consistently high levels of execution by IDEXX teams around the world,” said Jay Mazelsky, the company’s outgoing president and CEO.
Calling 2025 a “pivotal year” for the company, he added that “we enter 2026 with an exciting innovation pipeline, expanding instrument and software installed bases, and strong momentum across our global business.”
Ahead of Mazelsky's planned retirement in 2027, he will be succeeded this May by Michael Erickson as president and CEO.
Full-year outlook
In its financial guidance for 2026, the company issued an initial revenue expectation of $4.63 billion to $4.72 billion.
Full-year earnings per share, expected to be in the range of $14.29 to $14.80, reflects expectations for solid organic revenue gains and a targeted operating margin improvement of 40 to 90 basis points, the company said.
As of Friday’s market close, IDEXX shares had a market value of around $53.5 billion. Shares closed the week on Wall Street at $670.46, around 43% higher than a year ago.
