IDEXX Laboratories (NASDAQ:IDXX) reported fourth-quarter earnings that surpassed analyst expectations, fueled by double-digit growth in its core companion animal business and significant margin expansion.
The pet healthcare leader saw its shares steady in early trading as it coupled the results with a robust 2026 outlook that projects continued earnings growth despite persistent declines in U.S. clinical visits.
For the quarter ended Dec. 31, 2025, IDEXX reported revenue of $1.09 billion, a 14% increase from a year earlier.
Earnings per diluted share rose 18% to $3.08, clearing the average analyst estimate of $2.93.
The performance was driven by the Companion Animal Group (CAG), which saw revenue climb 15% as reported, or 13% organically, as the company successfully converted a higher volume of diagnostic test frequency and premium instrument placements into recurring revenue.
For the full year 2025, the company delivered $4.30 billion in revenue and earnings per share of $13.08.
Results were buoyed by an operating margin expansion of 270 basis points on a reported basis, though about 180 basis points of that gain stemmed from a comparison to a prior-year litigation expense.
On a comparable basis, margins grew a healthy 90 basis points, reflecting the company’s ability to maintain pricing power and operational efficiency even as broader macro pressures weighed on consumer spending at veterinary clinics.
Looking ahead, IDEXX issued 2026 earnings guidance of $14.29 to $14.80 per share.
The forecast assumes solid organic revenue gains and a further targeted improvement in operating margins of 40 to 90 basis points.