IDEXX Surpasses Earnings Expectations, Justifying Premium Valuation

Pet healthcare is witnessing a surge in demand as more households prioritize their pets’ well-being, driving companies in this sector to outperform expectations. This trend is reflected in IDEXX Laboratories Inc.‘s (NASDAQ:IDXX) recent financial results, showcasing significant growth and revised earnings guidance.

IDEXX Laboratories on Monday reported second-quarter 2025 adjusted earnings of $3.50, up 17% year over year, beating the consensus of $3.28.

The pet healthcare company reported sales of $1.11 billion, beating the consensus of $1.06 billion, up 11% on a reported and 9% on an organic basis, driven by Companion Animal Group (CAG) growth of 11% as reported and 10% organic, and Water revenue growth of 9% as reported and 8% organic.

CAG revenue growth to $1.02 billion was led by CAG Diagnostics recurring revenue growth of 9% as reported and 7% organic, including 15% reported and 11% organic gains in International regions, and 6% reported and organic growth in the U.S., outpacing sector growth levels.

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IDEXX Surprises With Strong Earnings Growth

Water achieved revenue growth of 9% on a reported basis and 8% on an organic basis, reaching $51 ...