IDEXX Laboratories Gains 39.4% as CAG Diagnostics Revenues Rise 10%
IDEXX Laboratories’ shares have climbed 39.4% over the past year, comfortably outpacing the industry’s 4.3% decline and S&P 500’s 23.1% return. Quarterly CAG Diagnostics recurring revenues rose 10% organically in Q4 2025, while software and diagnostic imaging sales grew 13%, driven by volume expansion and pricing gains.
1. Share Performance
IDEXX Laboratories’ stock has surged 39.4% over the last 12 months, significantly outperforming the industry’s 4.3% decline and the S&P 500’s 23.1% gain. This outperformance reflects robust demand for its diagnostics and software offerings globally.
2. CAG Diagnostics Momentum
The Companion Animal Group Diagnostics segment delivered a 10% organic increase in recurring revenues in Q4 2025, fueled by average net price improvement and solid volume growth across key markets. Innovations such as the Catalyst Pancreatic Lipase and Catalyst Cortisol tests further strengthened market adoption.
3. Software and Innovation
Software solutions and diagnostic imaging revenues rose 13% organically in Q4, supported by record quarterly bookings of practice information management systems and pet owner engagement tools like Vello. New product launches—including the Cancer Dx panel and inVue Dx cellular analyzer with Fine Needle Aspirate capability—are driving clinic workflow efficiency and diagnostic utilization.
4. Outlook and Risks
IDEXX projects 3.5% net price improvement in U.S. diagnostics for 2026 but expects a 2% decline in same-store clinical visits due to staffing challenges and broader macroeconomic pressures. Consensus estimates forecast EPS growth of 11.2% to $14.55 in 2026 and revenue growth of 8.6% to $4.67 billion, underpinning its long-term expansion strategy.