IDEXX Laboratories, Inc. (IDXX)

IDEXX Laboratories' stock has shown strong momentum, rallying 64.7% in the last 12 months, outperforming the industry and the S&P 500 Composite. Key drivers for this performance include the continued strength of its Companion Animal Group (CAG) Diagnostics business, consistent recurring revenue growth, and the positive impact of its software solutions. In Q3 2025, CAG Diagnostics' recurring revenues grew more than 10% organically, with over 8% gains in the United States, and the company reported double-digit installed base growth internationally for the 11th consecutive quarter. Several analysts issued "Buy" or "Overweight" ratings and price targets for IDXX between July and December 2025, with a median target of $762.5. On January 13, 2026, IDEXX announced the promotion of Michael Erickson, PhD, to President and Chief Executive Officer, effective May 12, 2026. The company is scheduled to release its 2025 fourth-quarter and full-year financial results on February 2, 2026, with analysts projecting a profit of $2.93 per share for Q4 2025. Fundsmith Equity Fund highlighted IDEXX Laboratories in its fourth-quarter 2025 investor letter, noting its resurrection from being a detractor in the previous year due to the ebbing of the COVID-era pet adoption mania.

While specific detailed demand seasonality data for IDEXX Laboratories' products and services is not readily available without specialized access, the company's business model and reported performance suggest a relatively stable and growing demand. IDEXX operates on a "razor-and-blade" model, where the initial placement of diagnostic instruments drives a recurring, high-margin revenue stream from consumables and services. The Companion Animal Group (CAG) Diagnostics recurring revenue has shown consistent organic growth, even amidst some pressure on veterinary visits, indicating that pet owners and veterinarians continue to prioritize pet health. The global veterinary diagnostics market itself is projected for consistent growth. Although there was a mention of the "ebbing of the Covid era mania for pet adoption" impacting the stock in late 2024/early 2025, this appears to be a broader market trend rather than inherent seasonality in demand for IDEXX's core diagnostic products and services. The company's international expansion and focus on increasing diagnostic frequency also contribute to a more stable and growing demand profile.

IDEXX Laboratories, Inc. is a multinational corporation focused on developing, manufacturing, and distributing products and services for the companion animal veterinary, livestock and poultry, dairy, and water testing industries. It also offers human medical point-of-care and laboratory diagnostics. The company operates within the Healthcare sector, specifically in the Diagnostics & Research industry, and is also categorized under Consumer/Non-Cyclical and Fish/Livestock. IDEXX's business is structured around three main segments: Companion Animal Group (CAG), Water Quality Products (Water), and Livestock, Poultry and Dairy (LPD). The company operates on a "razor-and-blade" model, selling instruments at a lower margin to secure a high-margin, recurring revenue stream from proprietary consumables and reference laboratory services.

IDEXX Laboratories, Inc. is headquartered in Westbrook, Maine, U.S., with its EMEA divisions based in Hoofddorp, Netherlands. The company has a significant global presence, serving customers in over 175 countries and territories. Its worldwide infrastructure includes a network of more than 80 reference laboratories, advanced manufacturing sites, and strategically located sales and distribution offices across the Americas, Europe, the Middle East, Africa, and Asia-Pacific. Approximately 35% of its revenue is derived from outside the United States.

IDEXX Laboratories maintains a strong brand reputation as a global leader in veterinary diagnostics and pet healthcare innovation. The company's mission is to enhance the health and well-being of pets, people, and livestock, which guides its innovation and customer-centric solutions. IDEXX continues to introduce new products, such as IDEXX Cancer Dx and the Catalyst Pancreatic Lipase Test. The Companion Animal Group (CAG) Diagnostics segment consistently demonstrates a high customer retention rate of over 97%, indicating strong customer loyalty and satisfaction. Forbes has recognized IDEXX among "America's Best-In-State Companies" and "America's Best Employers" in 2025 and 2026. In January 2025, the company announced plans to achieve carbon neutrality in its operations by 2030.

Institutional investors are the primary owners of IDEXX Laboratories, Inc., holding a significant majority of the company's shares, ranging from approximately 76.56% to 91.06%. Major institutional shareholders include Vanguard Group Inc., BlackRock, Inc., State Street Corp, Fundsmith LLP, Geode Capital Management, Llc, Bank of New York Mellon Corp, and BAMCO Inc /Ny/. Jonathan W. Ayers is noted as the largest individual shareholder, owning 577,830 shares, representing 0.72% of the company. Insiders held a smaller portion, amounting to around 0.28% to 1.78% of the outstanding shares.