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Should You Add IDEXX Stock to Your Portfolio Right Now?

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Key Takeaways

  • IDEXX posted 11% organic growth in international CAG diagnostic recurring revenues in Q2 2025.
  • IDXX's cloud-native PIMS platforms ezyVet and Neo saw double-digit placement growth in the second quarter.
  • IDEXX ended Q2 2025 with $164.6M in cash versus $654M in short-term debt and $450M long-term debt.

IDEXX Laboratories, Inc.’s (IDXX - Free Report) second-quarter growth was backed by the robust performance of its CAG (Companion Animal Group) Diagnostics business. The consistent growth in international CAG diagnostic recurring revenues is highly promising. Robust demand for its cloud-based products further bodes optimism for the stock. However, unfavorable solvency poses a risk for IDEXX’s operations.

In the past year, this Zacks Rank #2 (Buy) stock has edged up 33% against the industry’s 15.2% decline. The S&P 500 composite grew 15.4% in the same time frame.

The renowned medical device company has a market capitalization of $51.34 billion. IDEXX’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 6.1%.

Let’s delve deeper.

IDXX’s Tailwinds

Strong Global Performance: IDEXX is focused on growing its global commercial capability to sustain strong CAG Diagnostics recurring revenue growth. The company continues to strengthen its growth prospects by delivering high-touch commercial engagement in the fastest-growing regions while maintaining strong business performance. This expanded global commercial capability is yielding strong results overseas, with a notable 11% organic rise in international CAG diagnostic recurring revenues in the second quarter of 2025. The consumable gains were supported by double-digit growth in the global premium instrument installed base.

The company is particularly witnessing strong global gains in consumable revenues, banking on strong gains across its Catalyst and inVue Dx. IDEXX VetLab consumable’s organic revenue improvement was driven by robust double-digit growth in international regions.

Cloud-Based Software in Trend: The huge demand for medical services motivates IDEXX to develop its software solutions. The company’s software solutions are driving innovation-driven growth by improving clinic workflows and supporting greater utilization of diagnostics. In the second quarter, the company delivered strong performance across its practice information management systems and pet owner engagement tools. IDEXX’s cloud-native PIMS platforms, ezyVet and Neo, delivered double-digit placement growth in the quarter under review. Meanwhile, the newly introduced Vello software solution experienced continued momentum with double-digit sequential growth in active users.

CAG Continues to Perform Well: IDEXX’s focus on innovation in CAG has resulted in a highly compelling portfolio of products and services. Over the past few quarters, CAG Diagnostics’ recurring revenue growth has consistently remained above sector growth levels. In the second quarter of 2025, worldwide CAG Diagnostics’ recurring revenues increased 7.5% organically, supported by an average net price improvement and benefits from CAG Diagnostics' instrument revenue growth. Furthermore, the company generated substantial revenues and margins from the sale of consumables used in IDEXX VetLab instruments. Veterinary software and diagnostic imaging revenues increased 9% organically, including the benefits of solid growth in recurring revenues and ongoing momentum in cloud-based software placements.

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Concern for IDXX

Solvency Position: IDEXX closed the second quarter of 2025 with cash and cash equivalents of $164.6 million and short-term debt of $654 million, higher than the cash level. Meanwhile, long-term debt (net of the current portion) remained flat year over year at $450 million, but was higher than the cash levels.

IDXX Stock Estimate Trend

The Zacks Consensus Estimate for IDEXX’s 2025 EPS has moved north 2.8% to $12.55 in the past 30 days.

The Zacks Consensus Estimate for the company’s 2025 revenues is pegged at $4.23 billion, implying an 8.6% rise from the year-ago reported number.

Other Key Picks

Some other top-ranked stocks in the broader medical space are Envista (NVST - Free Report) , Phibro Animal Health (PAHC - Free Report) and Boston Scientific (BSX - Free Report) .

Envista has an estimated earnings growth rate of 15.8% for fiscal 2026 compared with the S&P 500 composite’s 11.7% growth. Shares of the company have rallied 15.3% compared with the industry’s 4% growth. NVST’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 16.5%.

NVST sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Phibro Animal Health, currently carrying a Zacks Rank #2, has an estimated long-term earnings growth rate of 26% compared with the industry’s 14.2%. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 30.6%. PAHC’s shares have surged 63.9% compared with the industry’s 4.1% growth in the past year.

Boston Scientific, carrying a Zacks Rank #2 at present, has an earnings yield of 2.9% compared to the industry’s -0.9%. Shares of the company have rallied 33.3% compared with the industry’s 4.1% growth. BSX’s earnings outpaced estimates in each of the trailing four quarters, with the average surprise being 30.6%.

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