A month has gone by since the last earnings report for Idexx Laboratories (IDXX Quick QuoteIDXX - Free Report) . Shares have lost about 0.4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Idexx due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for IDEXX Laboratories, Inc. before we dive into how investors and analysts have reacted as of late.

IDEXX Q2 Earnings & Revenues Beat Estimates, Margins Expand

IDEXX Laboratories, Inc. (IDXX Quick QuoteIDXX - 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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates revision.

VGM Scores

Currently, Idexx has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Idexx has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Idexx is part of the Zacks Medical - Instruments industry. Over the past month, Thermo Fisher Scientific (TMO Quick QuoteTMO - Free Report) , a stock from the same industry, has gained 4.5%. The company reported its results for the quarter ended June 2025 more than a month ago.

Thermo Fisher reported revenues of $10.86 billion in the last reported quarter, representing a year-over-year change of +3%. EPS of $5.36 for the same period compares with $5.37 a year ago.

Thermo Fisher is expected to post earnings of $5.51 per share for the current quarter, representing a year-over-year change of +4.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Thermo Fisher. Also, the stock has a VGM Score of F.