IDEXX Laboratories reported fourth-quarter earnings of $3.08 per share, an 18% increase year-over-year, surpassing the consensus estimate of $2.94. Revenue rose 14% to $1.091 billion, outpacing the $1.073 billion consensus and reflecting 12% organic growth. The company achieved comparable EPS of $2.92 and organic revenue growth across all major regions, driven by robust diagnostic frequency and volume gains in its Companion Animal Group and Water businesses.

For fiscal 2026, IDEXX guided to EPS of $14.29–$14.80 and annual revenue of $4.632–$4.720 billion, compared with consensus of $14.39 EPS and $4.658 billion in sales. The outlook assumes CAG Diagnostics recurring revenue growth of 8.0%–10.0% on an organic basis and operating margin expansion of 30–80 basis points. Management cited an expanding instrument and software installed base, a robust innovation pipeline, and anticipated net price benefits of approximately 4% for the year.

The Companion Animal Group division delivered $998.5 million in revenue, up 14.7% as reported and 12% organically, led by 76% growth in capital instrument revenues (69% organic) from record instrument placements including over 1,900 inVue Dx systems. Water segment sales increased 12% reported (10% organic) to $50.5 million, while Livestock, Poultry & Dairy revenues grew 8% reported (4% organic) to $37.5 million. Gross margin expanded to 60.3%, up 50 basis points on a reported basis, and operating margin rose to 28.9%, 150 basis points higher than the prior year.

Following the earnings release, BTIG and UBS analysts maintained their Buy and Neutral ratings respectively but lowered their price targets—BTIG from 830 to 800 and UBS from 750 to 730—citing guidance slightly below consensus and end-market visit weakness. Investors should weigh the company’s strong top-line momentum and margin expansion against modest upside to forecasts and valuation adjustments in the context of ongoing adoption of new diagnostic products.