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Did IDEXX’s Strong Q3 Beat and Raised Outlook Just Shift IDEXX Laboratories' (IDXX) Investment Narrative?

Simply Wall St·12/04/2025 17:20:40
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  • IDEXX Laboratories recently reported its third-quarter 2025 results, posting earnings per share of $3.40, a 21.4% increase year over year, and raised its full-year 2025 outlook for both revenue and earnings growth.
  • The strong performance was powered by robust expansion in the Companion Animal Group and Livestock, Poultry and Dairy segments, highlighting the growing importance of recurring diagnostics and testing services in IDEXX’s global portfolio.
  • With IDEXX lifting full-year guidance on the back of stronger Companion Animal Group momentum, we’ll now examine how this shapes its investment narrative.

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IDEXX Laboratories Investment Narrative Recap

To own IDEXX Laboratories, you generally have to believe in the long term rise of veterinary and livestock diagnostics and the durability of high margin recurring testing revenue. The latest Q3 2025 beat and raised guidance support that thesis in the near term, but do not remove the key risks around softer U.S. vet visit trends and the company’s reliance on price increases to support growth.

Among recent announcements, IDEXX’s ongoing share repurchases in 2025 stand out alongside the strong quarter, with roughly US$979 million spent buying back shares year to date. While this capital return can enhance per share metrics, it sits against a backdrop of higher leverage and a freshly amended US$1.0 billion revolving credit facility and US$250 million term loan that investors will want to factor into their assessment of risk and flexibility.

However, investors should also be aware that rising debt levels and pricing dependence could both become pressure points if...

Read the full narrative on IDEXX Laboratories (it's free!)

IDEXX Laboratories' narrative projects $5.2 billion revenue and $1.3 billion earnings by 2028. This requires 8.8% yearly revenue growth and an earnings increase of about $300 million from $985.7 million today.

Uncover how IDEXX Laboratories' forecasts yield a $754.83 fair value, a 4% upside to its current price.

Exploring Other Perspectives

IDXX Community Fair Values as at Dec 2025
IDXX Community Fair Values as at Dec 2025

Four members of the Simply Wall St Community value IDEXX between about US$486 and US$785 per share, underscoring how far apart views can be. Against that wide band, the reliance on recurring diagnostics growth and higher utilization per veterinary visit will likely be central to how you interpret the company’s long term earnings power and should prompt you to compare several different scenarios before forming a view.

Explore 4 other fair value estimates on IDEXX Laboratories - why the stock might be worth as much as 8% more than the current price!

Build Your Own IDEXX Laboratories Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.