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IDEXX Stock Up on Q2 Earnings & Revenue Beat, Margins Expand
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Key Takeaways
IDXX reported Q2 EPS of $3.63, up 48.8% and above the Zacks Consensus Estimate by 9.7%.
IDEXX's Q2 revenues grew 10.6% to $1.11B, led by 9% organic growth in CAG Diagnostics and 9.1% in Water.
IDXX raised 2025 revenue outlook to $4.205-$4.280B and EPS to $12.40-$12.76, citing strong execution.
IDEXX Laboratories, Inc. (IDXX - Free Report) posted second-quarter 2025 earnings per share (EPS) of $3.63, up 48.8% year over year. The figure surpassed the Zacks Consensus Estimate by 9.67%.
Comparable constant-currency EPS of $3.50 improved 16.7% year over year.
IDEXX’s Q2 Revenues
Quarterly revenues increased 10.6% year over year (up 9% organically) to $1.11 billion. The reported figure topped the Zacks Consensus Estimate by 4.01%.
This year-over-year upside was primarily driven by Companion Animal Group ("CAG") Diagnostics’ recurring revenue growth of 9% on a reported basis and 7% organically.
Veterinary software, services and diagnostic imaging systems’ revenues increased 9% on a reported basis (same organically).
Following the earnings announcement, IDXX shares gained 9.2% in the pre-market trading today.
IDEXX’s Q2 Revenue Analysis by Segments
IDEXX derives revenues from four operating segments: CAG, Water, Livestock, Poultryand Dairy (“LPD”), and Other.
CAG’s revenues rose 10.9% year over year on a reported basis and 9.7% on an organic basis to $1.02 billion.
The Water segment’s revenues increased 9.1% year over year on a reported and 8.4% on an organic basis to $51 million.
For the second quarter, LPD revenues jumped 4.8% reportedly and 2.6% on an organic basis to $31.77 million.
Revenues from the Other segment increased 0.1% on a reported basis and on an organic basis to $4.2 million.
IDEXX’s Margin Performance
The gross profit rose 12.2% to $694.7 million. The gross margin expanded 92 basis points (bps) to 62.6% despite a 7.9% rise in the cost of revenues.
Sales and marketing expenses surged 12.9% to $161.1 million. G&A expenses fell 37.2% to $99 million. R&D expenses jumped 11.6% to $61.9 million. The operating profit in the reported quarter rose 541.4% year over year to $373.1 million. The operating margin in the quarter expanded 734 bps to 33.6%.
IDEXX’s Financial Position
IDEXX exited the second quarter with cash and cash equivalents of $164.6 million compared with $164 million at the end of the first quarter.
Total debt (including the current portion) was $423.7 million compared with $449.8 million at the end of the first quarter.
Cumulative net cash provided by operating activities was $423.7 million compared with $446.9 million in the prior-year period.
IDEXX’s 2025 Guidance
IDEXX provided updated guidance for 2025. Total revenues for 2025 are now expected in the range of $4,205-$4,280 million (previously $4,095-$4,210 million), indicating growth of 7.7%-9.7%% on a reported basis and 7%-9% on an organic basis. The Zacks Consensus Estimate is currently pegged at $4.15 billion.
IDEXX now expects full-year EPS in the range of $12.40-$12.76 (earlier $11.93-$12.43), calling for growth of 16-20%. The Zacks Consensus Estimate for full-year EPS is currently pegged at $12.21.
Our View on IDEXX
IDEXX exited the second quarter of 2025 with both revenues and earnings beating estimates. The company’s innovation-driven strategy delivered solid global growth. IDEXX reported a record quarterly instrument placement, including nearly 2,400 IDEXX inVue Dx placements, building on the successful launch of IDEXX Cancer Dx in North America. CAG Diagnostics’ recurring revenues remained a key driver, benefiting from strong commercial execution, including net customer gains and solid price realization.
The Water segment displayed solid organic growth across major regions, with strong International growth. LPD growth was led by commercial execution in North America and the Asia Pacific. Furthermore, the expansion of both margins in the quarter is highly encouraging.
IDEXX’s Zacks Rank & Key Picks
IDXX currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Medpace Holdings (MEDP - Free Report) , GeneDx Holdings (WGS - Free Report) and Boston Scientific (BSX - Free Report) .
Medpace Holdings, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2025 EPS of $3.1, which beat the Zacks Consensus Estimate by 3.33%. Revenues of $603.3 million topped the consensus mark by 11.48%. You can see the complete list of today’s Zacks #1 Rank stocks here.
MEDP has a historical five-year earnings growth rate of 30.9% compared with the S&P 500 composite’s 10.1% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 13.87%.
GeneDx Holdings, sporting a Zacks Rank #1 at present, posted a second-quarter 2025 adjusted EPS of 50 cents, exceeding the Zacks Consensus Estimate by a remarkable 400%. Revenues of $102.7 million surpassed the Zacks Consensus Estimate by 21.24%.
WGS has an estimated earnings growth rate of 79.6% for 2026 compared with the industry’s 18.6% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 231.40%.
Boston Scientific, currently carrying a Zacks Rank #2 (Buy), reported a second-quarter 2025 adjusted EPS of 75 cents, which topped the Zacks Consensus Estimate by 4.2%.
BSX has a historical five-year earnings growth rate of 13.3% compared with the industry’s 2.7% growth. The company’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 8.11%.
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IDEXX Stock Up on Q2 Earnings & Revenue Beat, Margins Expand
Key Takeaways
IDEXX Laboratories, Inc. (IDXX - Free Report) posted second-quarter 2025 earnings per share (EPS) of $3.63, up 48.8% year over year. The figure surpassed the Zacks Consensus Estimate by 9.67%.
Comparable constant-currency EPS of $3.50 improved 16.7% year over year.
IDEXX’s Q2 Revenues
Quarterly revenues increased 10.6% year over year (up 9% organically) to $1.11 billion. The reported figure topped the Zacks Consensus Estimate by 4.01%.
This year-over-year upside was primarily driven by Companion Animal Group ("CAG") Diagnostics’ recurring revenue growth of 9% on a reported basis and 7% organically.
Veterinary software, services and diagnostic imaging systems’ revenues increased 9% on a reported basis (same organically).
Following the earnings announcement, IDXX shares gained 9.2% in the pre-market trading today.
IDEXX’s Q2 Revenue Analysis by Segments
IDEXX derives revenues from four operating segments: CAG, Water, Livestock, Poultry and Dairy (“LPD”), and Other.
CAG’s revenues rose 10.9% year over year on a reported basis and 9.7% on an organic basis to $1.02 billion.
The Water segment’s revenues increased 9.1% year over year on a reported and 8.4% on an organic basis to $51 million.
For the second quarter, LPD revenues jumped 4.8% reportedly and 2.6% on an organic basis to $31.77 million.
Revenues from the Other segment increased 0.1% on a reported basis and on an organic basis to $4.2 million.
IDEXX’s Margin Performance
The gross profit rose 12.2% to $694.7 million. The gross margin expanded 92 basis points (bps) to 62.6% despite a 7.9% rise in the cost of revenues.
Sales and marketing expenses surged 12.9% to $161.1 million. G&A expenses fell 37.2% to $99 million. R&D expenses jumped 11.6% to $61.9 million. The operating profit in the reported quarter rose 541.4% year over year to $373.1 million. The operating margin in the quarter expanded 734 bps to 33.6%.
IDEXX’s Financial Position
IDEXX exited the second quarter with cash and cash equivalents of $164.6 million compared with $164 million at the end of the first quarter.
Total debt (including the current portion) was $423.7 million compared with $449.8 million at the end of the first quarter.
Cumulative net cash provided by operating activities was $423.7 million compared with $446.9 million in the prior-year period.
IDEXX’s 2025 Guidance
IDEXX provided updated guidance for 2025. Total revenues for 2025 are now expected in the range of $4,205-$4,280 million (previously $4,095-$4,210 million), indicating growth of 7.7%-9.7%% on a reported basis and 7%-9% on an organic basis. The Zacks Consensus Estimate is currently pegged at $4.15 billion.
IDEXX now expects full-year EPS in the range of $12.40-$12.76 (earlier $11.93-$12.43), calling for growth of 16-20%. The Zacks Consensus Estimate for full-year EPS is currently pegged at $12.21.
Our View on IDEXX
IDEXX exited the second quarter of 2025 with both revenues and earnings beating estimates. The company’s innovation-driven strategy delivered solid global growth. IDEXX reported a record quarterly instrument placement, including nearly 2,400 IDEXX inVue Dx placements, building on the successful launch of IDEXX Cancer Dx in North America. CAG Diagnostics’ recurring revenues remained a key driver, benefiting from strong commercial execution, including net customer gains and solid price realization.
The Water segment displayed solid organic growth across major regions, with strong International growth. LPD growth was led by commercial execution in North America and the Asia Pacific. Furthermore, the expansion of both margins in the quarter is highly encouraging.
IDEXX’s Zacks Rank & Key Picks
IDXX currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Medpace Holdings (MEDP - Free Report) , GeneDx Holdings (WGS - Free Report) and Boston Scientific (BSX - Free Report) .
Medpace Holdings, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2025 EPS of $3.1, which beat the Zacks Consensus Estimate by 3.33%. Revenues of $603.3 million topped the consensus mark by 11.48%. You can see the complete list of today’s Zacks #1 Rank stocks here.
MEDP has a historical five-year earnings growth rate of 30.9% compared with the S&P 500 composite’s 10.1% growth. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 13.87%.
GeneDx Holdings, sporting a Zacks Rank #1 at present, posted a second-quarter 2025 adjusted EPS of 50 cents, exceeding the Zacks Consensus Estimate by a remarkable 400%. Revenues of $102.7 million surpassed the Zacks Consensus Estimate by 21.24%.
WGS has an estimated earnings growth rate of 79.6% for 2026 compared with the industry’s 18.6% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 231.40%.
Boston Scientific, currently carrying a Zacks Rank #2 (Buy), reported a second-quarter 2025 adjusted EPS of 75 cents, which topped the Zacks Consensus Estimate by 4.2%.
BSX has a historical five-year earnings growth rate of 13.3% compared with the industry’s 2.7% growth. The company’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 8.11%.