IDEXX Laboratories (IDXX Quick QuoteIDXX - Free Report) has shown strong momentum in the last 12 months, rising 39.4%. The stock has comfortably surpassed the industry’s 4.3% decline and the S&P 500 Composite’s 23.1% return.

Carrying a Zacks Rank #3 (Hold) at present, the pet healthcare innovator's ongoing momentum in Companion Animal Group (“CAG”) Diagnostics’ recurring revenues is supported by improved net price realization and solid volume growth, driven by business expansion.

International opportunity remains appealing to IDEXX Laboratories, as it continues investing in its commercial footprint. Its software solutions are enhancing clinic workflows and promoting greater utilization of diagnostics, supporting expansion.

Headquartered in Westbrook, ME, IDEXX Laboratories distributes products and services primarily for the companion animal veterinary, livestock, poultry and dairy, and water testing industries. The company provides software, hardware and integrated services that run key functions of veterinary clinics, including managing patient electronic health records, scheduling, client communication, billing and inventory management.

IDEXX Laboratories’ footprint spans more than 175 countries, with innovation and customer focus being crucial to its long-term value creation strategy.

What’s Behind IDXX Stock’s Price Surge?

The increase in the company’s share price can be linked to the consistently strong performance in the CAG Diagnostics business. Worldwide CAG Diagnostics’ recurring revenues increased 10% organically in the fourth quarter of 2025, including solid benefits from volume growth and average global net price improvement.

Latest innovations, such as the Cancer Dx diagnostic panel for early detection of canine lymphoma, inVue Dx cellular analyzer, as well as the expansion of the Catalyst platform with the Catalyst Pancreatic Lipase and the Catalyst Cortisol Test, continue to gain commercial traction.

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In December, IDEXX Laboratories initiated a controlled launch of Fine Needle Aspirate on inVue Dx, a critical diagnostic technique used daily to assess masses and skin lesions. Fourth-quarter 2025 veterinary software and diagnostic imaging revenues also increased 13% organically, supported by recurring revenue gains, with momentum from the company’s vertical SaaS strategy.

IDEXX Laboratories is expanding its global commercial capability to sustain strong CAG Diagnostics recurring revenue growth. Its commercial strategies are tailored to regional dynamics worldwide, supported by strong Reference Laboratory networks and an innovation-led approach that ensures high product/market fit, such as with ProCyte One hematology analyzer and SNAP Leishmania. International regions delivered strong growth throughout 2025, reflecting ongoing demand for diagnostic solutions and significant global opportunity.

Meanwhile, the company’s software ecosystem remains a key component of its value proposition. The solutions are driving growth by improving clinic workflows and supporting greater utilization of diagnostics. Throughout last year, IDEXX Laboratories delivered strong performance in its practice information management systems (PIMS), alongside continued momentum in pet owner engagement tools, such as Vello. The integration of Vello with the diagnostics and PIMS ecosystem further expands its value, making it an increasingly important part of the company’s long-term growth engine. The year ended with record quarterly bookings, signaling strong momentum for these software solutions.

Concerns for IDEXX

In recent times, U.S. clinical visit growth levels have been constrained by the persistent staffing challenges at veterinary clinics and the cumulative impacts of broader macroeconomic challenges on consumers. IDEXX Laboratories’ U.S. outlook for 2026 anticipates net price improvement of 3.5%, with U.S. same-store clinical visit growth expected to decline 2%, given the ongoing macro and sector constraints.

A Glance at IDXX’s Estimates

The Zacks Consensus Estimate for IDEXX’s 2026 and 2027 earnings per share (EPS) is expected to increase 11.2% and 12.4% year over year, respectively, to $14.55 and $16.36. In the past 30 days, the consensus mark for the company's 2026 EPS has inched up 0.4%. 

Revenues for 2026 are projected to grow 8.6% to $4.67 billion, while the same for 2027 is expected to reach $5.09 billion, implying a 8.9% increase.

Key Picks

Some better-ranked stocks in the broader medical space are Globus Medical (GMED Quick QuoteGMED - Free Report) , Intuitive Surgical (ISRG Quick QuoteISRG - Free Report) and Edwards Lifesciences (EW Quick QuoteEW - Free Report) .

Globus Medical has an earnings yield of 4.9%, well ahead of the industry’s negative 0.7% yield. Its earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 18.8%. The company’s shares have rallied 15.5% against the industry’s 4.3% fall in the past year.

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

Intuitive Surgical, flaunting a Zacks Rank #1, has an earnings yield of 2.1% against the industry’s negative 0.7% yield. Shares of the company have risen 1.5% against the industry’s 4.3% fall. ISRG’s earnings topped estimates in the trailing four quarters, the average surprise being 13.2%.

Edwards Lifesciences, carrying a Zacks Rank #2 (Buy) at present, has an earnings yield of 3.6% against the industry’s negative 0.7% yield. Shares of the company have climbed 19.1% against the industry’s 4.3% decline. EW’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 5.5%.