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IDEXX Laboratories Stock Rallies 75.6% YTD: What's Behind the Surge?
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Key Takeaways
IDEXX Laboratories' stock jump is tied to strong CAG Diagnostics recurring revenue momentum.
IDXX's CAG recurring revenues grew over 10% organically, with gains in the U.S. and international regions.
High demand for cloud-based products and expanding Vello adoption further boosted IDEXX Laboratories' growth.
IDEXX Laboratories (IDXX - Free Report) has shown remarkable momentum so far this year, climbing 75.6%. The stock outperformed the industry’s 4.2% rise and the S&P 500 composite’s 18.5% gain.
Carrying a Zacks Rank #3 (Hold) at present, the pet healthcare innovator’s robust strategic execution is highlighted by new business gains, high customer retention levels and solid net price realization. Its software solutions are facilitating growth by enhancing clinic workflows and promoting greater utilization of diagnostics.
Headquartered in Westbrook, ME, IDEXX Laboratories offers products and services mainly for the companion animal veterinary, livestock and poultry, water testing and dairy sectors. Through its Companion Animal Group (“CAG”) Diagnostics segment, the company provides diagnostic capabilities that meet veterinarians’ diverse needs, including in-clinic diagnostic solutions and outside reference laboratory services. IDEXX’s sales footprint spans the United States and key regions globally, including Africa, Asia Pacific, Canada, Europe and Latin America.
What’s Behind IDXX Stock’s Price Surge?
The rally in the company’s share price can be linked to the strong momentum in the CAG Diagnostics business. Over the past few quarters, CAG Diagnostics’ recurring revenue growth has consistently remained above sector growth levels. The company’s long-term success in CAG recurring diagnostic products and services is backed by growing utilization of existing and new test offerings, acquisition of new customers, high customer loyalty and retention and modest annual price increases.
In the third quarter of 2025, CAG Diagnostics’ recurring revenues grew more than 10% organically, reflecting over 8% gains in the United States and double-digit growth in the international regions. IDEXX VetLab consumables revenues rose on higher test volumes and realized pricing. Volume gains came from increased testing across major regions, including the benefits from a 10% uptick in the company’s active premium instruments installed base.
In addition, the company’s cloud-based products, including ezyVet, Animana, Cornerstone, IDEXX NEO, DVMAX PIMS (practice information management systems) and Web PACS (picture archiving and communication system imaging software), continue to be in high demand. IDEXX’s pet owner engagement application, Vello, expanded with active clinics growing more than 20% sequentially and over half of PIMS bookings in the quarter adding a Vello subscription. The integration of Vello with IDEXX’s diagnostics and PIMS ecosystem further amplifies its value, making it an increasingly important part of IDEXX's long-term growth engine. Furthermore, the company is building on the robust features of its customer engagement solution by integrating Greenline Pet, a digital platform acquired earlier in 2024.
Through strategic investments, the company continues to strengthen its growth prospects by delivering high-touch commercial engagement in the fastest-growing regions while maintaining strong business performance. In the third quarter of 2025, the company delivered its 11th straight quarter of double-digit installed base growth internationally, along with a significant step-up in CAG Diagnostics’ recurring revenue growth across major regions.
Image Source: Zacks Investment Research
Concerns for IDEXX
Global macroeconomic conditions, including growing geopolitical complexities, supply-chain disruptions leading to unit cost increases of raw materials, shortages of healthcare staff, fluctuations in foreign currency exchange rates and volatility in capital markets, could continue to affect IDEXX’s results of operations. Headwinds from currency fluctuations also remain a concern.
A Glance at Estimates for IDXX
The Zacks Consensus Estimate for IDEXX’s 2025 and 2026 earnings per share (EPS) is pegged at $12.93 and $14.42, respectively, indicating a year-over-year increase of 21.2% and 11.6%. In the past 60 days, the Zacks Consensus Estimate for the company's 2025 EPS has risen 2.5%.
Revenues for 2025 are projected to grow 9.9% to $4.28 billion, while those for 2026 are expected to reach $4.66 billion, implying an 8.9% increase.
Estimates for Globus Medical’s EPS have increased 11.8% in the past 30 days. Shares of the company have risen 8.5% in the past year compared with the industry’s growth of 1.1%. GMED’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 16.2%. In the last reported quarter, it delivered an earnings surprise of 49.4%.
Boston Scientific’s shares have jumped 12.3% in the past year. Estimates for the company’s 2025 EPS have increased 1 cent to $3.04 in the past 30 days. BSX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 7.4%. In the last reported quarter, it posted an earnings surprise of 5.6%.
Estimates for MDT’s fiscal 2026 EPS of $5.65 have increased 0.5% in the past 30 days. Shares of the company have rallied 21.7% in the past year against the industry’s 0.1% decline. MDT’s earnings surpassed estimates in each of the trailing four quarters, with an average surprise of 2.7%. In the last reported quarter, it delivered an earnings surprise of 3.8%.
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IDEXX Laboratories Stock Rallies 75.6% YTD: What's Behind the Surge?
Key Takeaways
IDEXX Laboratories (IDXX - Free Report) has shown remarkable momentum so far this year, climbing 75.6%. The stock outperformed the industry’s 4.2% rise and the S&P 500 composite’s 18.5% gain.
Carrying a Zacks Rank #3 (Hold) at present, the pet healthcare innovator’s robust strategic execution is highlighted by new business gains, high customer retention levels and solid net price realization. Its software solutions are facilitating growth by enhancing clinic workflows and promoting greater utilization of diagnostics.
Headquartered in Westbrook, ME, IDEXX Laboratories offers products and services mainly for the companion animal veterinary, livestock and poultry, water testing and dairy sectors. Through its Companion Animal Group (“CAG”) Diagnostics segment, the company provides diagnostic capabilities that meet veterinarians’ diverse needs, including in-clinic diagnostic solutions and outside reference laboratory services. IDEXX’s sales footprint spans the United States and key regions globally, including Africa, Asia Pacific, Canada, Europe and Latin America.
What’s Behind IDXX Stock’s Price Surge?
The rally in the company’s share price can be linked to the strong momentum in the CAG Diagnostics business. Over the past few quarters, CAG Diagnostics’ recurring revenue growth has consistently remained above sector growth levels. The company’s long-term success in CAG recurring diagnostic products and services is backed by growing utilization of existing and new test offerings, acquisition of new customers, high customer loyalty and retention and modest annual price increases.
In the third quarter of 2025, CAG Diagnostics’ recurring revenues grew more than 10% organically, reflecting over 8% gains in the United States and double-digit growth in the international regions. IDEXX VetLab consumables revenues rose on higher test volumes and realized pricing. Volume gains came from increased testing across major regions, including the benefits from a 10% uptick in the company’s active premium instruments installed base.
In addition, the company’s cloud-based products, including ezyVet, Animana, Cornerstone, IDEXX NEO, DVMAX PIMS (practice information management systems) and Web PACS (picture archiving and communication system imaging software), continue to be in high demand. IDEXX’s pet owner engagement application, Vello, expanded with active clinics growing more than 20% sequentially and over half of PIMS bookings in the quarter adding a Vello subscription. The integration of Vello with IDEXX’s diagnostics and PIMS ecosystem further amplifies its value, making it an increasingly important part of IDEXX's long-term growth engine. Furthermore, the company is building on the robust features of its customer engagement solution by integrating Greenline Pet, a digital platform acquired earlier in 2024.
Through strategic investments, the company continues to strengthen its growth prospects by delivering high-touch commercial engagement in the fastest-growing regions while maintaining strong business performance. In the third quarter of 2025, the company delivered its 11th straight quarter of double-digit installed base growth internationally, along with a significant step-up in CAG Diagnostics’ recurring revenue growth across major regions.
Image Source: Zacks Investment Research
Concerns for IDEXX
Global macroeconomic conditions, including growing geopolitical complexities, supply-chain disruptions leading to unit cost increases of raw materials, shortages of healthcare staff, fluctuations in foreign currency exchange rates and volatility in capital markets, could continue to affect IDEXX’s results of operations. Headwinds from currency fluctuations also remain a concern.
A Glance at Estimates for IDXX
The Zacks Consensus Estimate for IDEXX’s 2025 and 2026 earnings per share (EPS) is pegged at $12.93 and $14.42, respectively, indicating a year-over-year increase of 21.2% and 11.6%. In the past 60 days, the Zacks Consensus Estimate for the company's 2025 EPS has risen 2.5%.
Revenues for 2025 are projected to grow 9.9% to $4.28 billion, while those for 2026 are expected to reach $4.66 billion, implying an 8.9% increase.
Key Picks
Some better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Boston Scientific (BSX - Free Report) and Medtronic (MDT - Free Report) . While Globus Medical sports a Zacks Rank #1 (Strong Buy), Boston Scientific and Medtronic carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for Globus Medical’s EPS have increased 11.8% in the past 30 days. Shares of the company have risen 8.5% in the past year compared with the industry’s growth of 1.1%. GMED’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 16.2%. In the last reported quarter, it delivered an earnings surprise of 49.4%.
Boston Scientific’s shares have jumped 12.3% in the past year. Estimates for the company’s 2025 EPS have increased 1 cent to $3.04 in the past 30 days. BSX’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 7.4%. In the last reported quarter, it posted an earnings surprise of 5.6%.
Estimates for MDT’s fiscal 2026 EPS of $5.65 have increased 0.5% in the past 30 days. Shares of the company have rallied 21.7% in the past year against the industry’s 0.1% decline. MDT’s earnings surpassed estimates in each of the trailing four quarters, with an average surprise of 2.7%. In the last reported quarter, it delivered an earnings surprise of 3.8%.