Shares of IDEXX Laboratories (IDXX Quick QuoteIDXX - Free Report) have rallied 39.1% over the past 12 months, showing impressive momentum. The stock has outpaced its industry, which rose 2.3%, as well as the S&P 500 Composite’s 29.6% gain. 

Carrying a Zacks Rank #3 (Hold) at present, the pet healthcare innovator's focus on innovation in Companion Animal Group (“CAG”) Diagnostics has resulted in a highly compelling portfolio of products and services for its commercial teams to support customers. The company is growing its global commercial capability to sustain strong CAG Diagnostics recurring revenue growth. Its software ecosystem also continues to be an essential component of its value proposition. 

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 central to its long-term value creation.

Factors Favoring IDXX’s Price Rally

The rally in the company’s share price can be linked to its strong global execution in the CAG business. Newer 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 CatalystCortisol Test, continue to gain commercial traction. In December, the company initiated a controlled launch of Fine Needle Aspirate (FNA) on inVue Dx, a critical diagnostic technique used daily to assess masses and skin lesions.

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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. Volume benefited from sustained new business gains, aided by high customer retention levels and rapid adoption of innovations.

IDEXX Laboratories’ commercial strategies are globally tailored to regional dynamics, supported by strong Reference Laboratory networks and backed by an innovation approach that ensures high product/market fit, such as with ProCyte One hematology analyzer and SNAP Leishmania. Growth in international regions remained strong throughout 2025, underscoring continued demand for diagnostic solutions and significant global opportunity. To expand diagnostic frequency, the company is also investing in commercial footprint where customer readiness and growth potential are strongest.

Cloud-based solutions are boosting innovation-driven growth by improving clinic workflows and supporting greater utilization of diagnostics. Throughout 2025, IDEXX 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 company’s diagnostics and PIMS ecosystem expands its value, making it an increasingly important part of IDEXX's long-term growth engine. The ezyVet and Neo platforms demonstrated strength among multi-location practices and corporate customers. The year ended with record quarterly bookings, signaling strong momentum for these software solutions.

What Concerns IDXX?

IDEXX Laboratories’ U.S. outlook for 2026 anticipates net price improvement of roughly 3.5%, with U.S. same-store clinical visit growth expected to decline 2%, given ongoing macro and sector constraints. Global macroeconomic conditions, including growing geopolitical complexities, supply-chain disruptions leading to unit cost increases of raw materials and shortages of healthcare staff, could continue to affect the company’s results of operations adversely. 

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 12.5% year over year, respectively, to $14.55 and $16.36. In the past 60 days, the consensus mark for the company's 2026 EPS has risen 0.2%. 

Revenues for 2026 are projected to grow 8.7% to $4.68 billion, while revenues for 2027 are 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) , BrightSpring Health Services (BTSG Quick QuoteBTSG - Free Report) and Cardinal Health (CAH Quick QuoteCAH - Free Report) .

Globus Medical has an earnings yield of 4.9%, well ahead of the industry’s negative 2.2% yield. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 18.8%. The company’s shares have rallied 23.9% compared with the industry’s 1% growth 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.

BrightSpring Health Services, sporting a Zacks Rank #1 at present, has an estimated long-term earnings growth rate of 47.2% against the industry’s 14.5% growth. Shares of the company have surged 166% against the industry’s 2.1% growth in the past year. BTSG’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 40.4%.

Cardinal Health, carrying a Zacks Rank #2 (Buy), has an earnings yield of 4.8% compared with the industry’s 6.5% yield. Shares of the company have rallied 59.9% compared with the industry’s 11.1% growth. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 9.3%.