# IDEXX Laboratories (IDXX) Sector: Veterinary diagnostics and software | Field | Value | |---|---| | Price | $696.64 | | Market cap | $55B | | Intrinsic value source | Analysts | | Data as of | 2026-11-11 | | Next earnings | 2027-02-02 (estimate) | Analysts: Bullish Picks: Research only Discount category: Far above intrinsic value ## In short Investors pay a high multiple for IDEXX's recurring diagnostics revenue, and only steady growth of this revenue with rising margins can support this price. ## Themes and gap - Themes: Weak consumer (weak-consumer), New management (management-change) - Gap type: Can close (closable) - Why: Each quarterly report shows whether recurring diagnostics revenue keeps growing near 10% and margins keep rising. ## About IDEXX Laboratories (IDEXX) makes diagnostic products and software for veterinarians, and tests for water, livestock, poultry and dairy. Its Companion Animal Group sells analyzers for veterinary clinics, such as IDEXX inVue Dx, and the consumables they use, rapid assay tests, reference laboratory services, and practice management and diagnostic imaging software. In Q3 2026, recurring diagnostics revenue from consumables, laboratory services and rapid tests was $967 million of total revenue of $1,214 million. The Water segment sells tests for water quality, and the Livestock, Poultry and Dairy segment sells tests for animal diseases. Revenue was $4,304 million in 2025. The shares trade on Nasdaq. The head office is in Westbrook, Maine. Mike Erickson has been President and Chief Executive Officer since May 12, 2026. ## Thesis Investors pay a high multiple of earnings for IDEXX because most of its revenue repeats. Veterinary clinics buy consumables and tests for the analyzers that they own, and they send samples to its laboratories. Recurring diagnostics revenue grew 11% in Q3 2026, and the operating margin was 33.1%. For this price to hold, three things must be true. Clinic visits and testing per visit must keep growing, also if pet owners spend less. New analyzers, such as IDEXX inVue Dx and the next one, IDEXX MultiCue Dx, must add tests and consumables revenue. And the operating margin must keep rising while IDEXX invests in sales, software and new products. The investor session on January 18, 2027 and the Q4 2026 report with the 2027 guidance, expected in early February 2027, are the next tests. Slower growth of recurring revenue can lower the multiple fast. ## Checkpoints - Nov 2, 2026: Q3 2026 results: recurring revenue growth. Status: Passed. Watch: Recurring diagnostics revenue growth of 9% or more and a raised EPS outlook pass; a lower outlook fails. Outcome: Recurring diagnostics revenue grew 11%, and IDEXX raised its 2026 EPS outlook to $14.96 to $15.16. - Jan 18, 2027: Investor session at VMX: IDEXX MultiCue Dx. Status: Pending. Watch: Clear launch plans for the IDEXX MultiCue Dx analyzer pass; a delay fails. - Feb 2, 2027 (estimate): Q4 2026 results and the 2027 guidance. Status: Pending. Watch: 2026 EPS of $14.96 or more and 2027 guidance for organic revenue growth near 9% or more pass; a lower growth outlook fails. ## Balance sheet - Cash: $198M - Debt: $849M - Net debt: $651M - Undrawn credit line: $773M - Debt due within 12 months: $549M IDEXX funds itself mainly with cash flow, a credit facility and senior notes. At September 30, 2026, cash and cash equivalents were $197.5 million. Debt was about $849 million: $474.0 million drawn under the $1.25 billion credit facility, which includes a $250.0 million term loan, and $375 million of senior notes, of which $75 million are due on February 12, 2027. The remaining borrowing availability under the credit facility was $773.2 million. In the first nine months of 2026, IDEXX bought back 1.39 million shares for $815.7 million. It expects free cash flow of 95% to 100% of net income in 2026. At October 28, 2026, there were 78,786,265 shares. IDEXX pays no dividend. As of 2026-09-30. Sources: - https://www.sec.gov/Archives/edgar/data/874716/000110465926120892/tm2628647d1_ex99-1.htm - https://www.sec.gov/Archives/edgar/data/874716/000087471626000135/idxx-20260930.htm ## Dividends IDEXX Laboratories does not pay a dividend. Source: company filings and market data, read on 2026-11-11. ## Recent events - 2026-11-02: IDEXX reported Q3 2026 results. Revenue rose 10% to $1,214 million, and EPS rose 18% to $4.01. It placed more than 1,900 IDEXX inVue Dx analyzers, and the installed base reached nearly 11,000. IDEXX raised its 2026 guidance to revenue of $4,741 to $4,767 million and EPS of $14.96 to $15.16, and it lowered its operating margin outlook to 32.1% to 32.3% because of acquisition costs. - 2026-09-15: IDEXX bought CoVet, a maker of AI software that helps veterinary teams with clinical notes and workflow, for about $250 million, including an estimated contingent payment of $20 million. - 2026-08-04: IDEXX reported Q2 2026 results. Revenue rose 10% to $1,217 million, and EPS rose 18% to $4.27. The IDEXX inVue Dx installed base passed 9,000 analyzers. - 2026-05-12: Mike Erickson became President and Chief Executive Officer. Jay Mazelsky, the former Chief Executive Officer, became Executive Chair of the board until the annual meeting in May 2027. - 2026-05-05: IDEXX reported Q1 2026 results. Revenue rose 14% to $1,141 million, and EPS rose 17% to $3.47. - 2026-02-02: IDEXX reported 2025 results. Revenue rose 10% to $4,304 million, and EPS rose 23% to $13.08. It gave first 2026 guidance for EPS of $14.29 to $14.80. ## Latest news and filings - Last earnings: 2026-11-02 (8-K: https://www.sec.gov/Archives/edgar/data/874716/000110465926120892/) - Next earnings: 2027-02-02 (expected; the company has not confirmed it) | Filed | Form | Headline | Period end | XBRL document | Link | | --- | --- | --- | --- | --- | --- | | 2026-11-02 | 10-Q | Quarterly report for the period ended Sep 30, 2026 | 2026-09-30 | idxx-20260930 | https://www.sec.gov/Archives/edgar/data/874716/000087471626000135/idxx-20260930.htm | | 2026-11-02 | 8-K | Earnings release | | | https://www.sec.gov/Archives/edgar/data/874716/000110465926120892/ | | 2026-08-04 | 10-Q | Quarterly report for the period ended Jun 30, 2026 | 2026-06-30 | idxx-20260630 | https://www.sec.gov/Archives/edgar/data/874716/000087471626000123/idxx-20260630.htm | | 2026-08-04 | 8-K | Earnings release | | | https://www.sec.gov/Archives/edgar/data/874716/000110465926090033/ | | 2026-05-15 | 8-K | Change to shareholder rights or bylaws and Shareholder vote results | | idxx-20260512 | https://www.sec.gov/Archives/edgar/data/874716/000087471626000110/idxx-20260512.htm | | 2026-05-05 | 10-Q | Quarterly report for the period ended Mar 31, 2026 | 2026-03-31 | idxx-20260331 | https://www.sec.gov/Archives/edgar/data/874716/000087471626000076/idxx-20260331.htm | | 2026-05-05 | 8-K | Earnings release | | | https://www.sec.gov/Archives/edgar/data/874716/000110465926055203/ | | 2026-03-26 | 8-K | Change of directors or officers | | | https://www.sec.gov/Archives/edgar/data/874716/000110465926034906/tm269826d1_8k.htm | | 2026-02-20 | 10-K | Annual report for the period ended Dec 31, 2025 | 2025-12-31 | idxx-20251231 | https://www.sec.gov/Archives/edgar/data/874716/000087471626000038/idxx-20251231.htm | | 2026-02-13 | 8-K | Change of directors or officers | | idxx-20260213 | https://www.sec.gov/Archives/edgar/data/874716/000087471626000007/idxx-20260213.htm | Every filing on SEC EDGAR (CIK 874716): https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000874716&type=&dateb=&owner=include&count=40 ## Risks - Medium: Testing depends on clinic visits. If pet owners spend less or visit veterinarians less often, the growth of recurring diagnostics revenue can slow. - Medium: Other companies also sell analyzers, rapid tests and laboratory services to veterinarians. Lower prices or new products from competitors can take customers from IDEXX. - Medium: IDEXX spends large amounts on share buybacks, $815.7 million in the first nine months of 2026, and it uses its credit facility for part of this. Lower cash flow or higher interest rates can reduce buybacks and EPS growth. - Low: Acquisitions and new software, such as CoVet, add costs. In Q3 2026, acquisition costs lowered the 2026 operating margin outlook to 32.1% to 32.3%. - Low: IDEXX sells in many countries. A stronger U.S. dollar lowers revenue and EPS from other countries. In its 2026 guidance, currency adds about $0.25 to EPS. ## Links - Page: https://picks.utilarium.app/company/IDXX/ - History of changes: https://picks.utilarium.app/company/IDXX/history/ - JSON with full history: https://picks.utilarium.app/data/company/IDXX.json > Picks is a personal record of stock picks. It gives general opinions about stocks, including a "Top pick" label. They are not tailored to your needs, goals or risk tolerance. Kevin is not a registered adviser and relies on the general-advice exemption in Canadian securities law (NI 31-103 s.8.25). Do your own research, or ask a registered adviser. Kevin may hold any stock on this site. Prices, intrinsic values and ratings can be delayed or wrong; check the original source. Full disclaimer: /disclaimer/.