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 reached $1.091 billion, up 14% on a reported basis and 12% organically, ahead of the $1.073 billion Street estimate. Companion Animal Group (CAG) revenue grew 14.7% to $998.5 million, driven by 12% recurring diagnostics revenue growth and a 76% surge in capital instrument revenues, including over 1,900 IDEXX inVue Dx placements. Water segment sales rose 12% to $50.53 million, while Livestock, Poultry & Dairy revenues increased 8% to $37.48 million. Gross margin expanded by 50 basis points to 60.3%, and operating margin reached 28.9%, up 150 basis points year-over-year.

For fiscal 2026, IDEXX issued EPS guidance of $14.29 to $14.80 versus the $14.39 consensus, and sales guidance of $4.632 billion to $4.720 billion against a $4.658 billion consensus. The outlook assumes reported CAG Diagnostics recurring revenue growth of 8.6% to 10.6% and organic growth of 8.0% to 10.0%. The company expects operating margin expansion of 40 to 90 basis points and a 7.0% to 9.0% organic revenue increase, reflecting continued gains from instrument placements, software adoption and net price improvement.

Despite beating Q4 estimates and outlining a robust innovation pipeline, IDEXX shares fell 5.57% on the day of the announcement. Market participants cited the slight guidance miss on EPS and sales relative to Wall Street forecasts, along with concerns over weaker veterinary clinic visit trends, as key drivers of the sell-off. Analysts at William Blair and others note that while instrumentation and software install bases are expanding, near-term end-market uncertainties are weighing on investor sentiment.