IDEXX Q2 2025 slides reveal 17% EPS growth, company raises full-year guidance

Published 04/08/2025, 16:36
IDEXX Q2 2025 slides reveal 17% EPS growth, company raises full-year guidance

Introduction & Market Context

IDEXX Laboratories Inc. (NASDAQ:IDXX) delivered exceptional second-quarter results for 2025, significantly exceeding analyst expectations and triggering a substantial stock rally. Following the earnings announcement on August 4, IDEXX shares surged 26.59% to $677.96, approaching the company’s 52-week high of $688.12.

The veterinary diagnostics leader demonstrated its ability to grow despite challenging market conditions, with clinical visits declining in the U.S. companion animal sector. IDEXX’s performance underscores the company’s strong market position and the increasing utilization of diagnostics in veterinary care.

Quarterly Performance Highlights

IDEXX reported Q2 2025 revenue of $1,109 million, representing 11% reported growth and 9% organic growth year-over-year. Operating profit reached $373 million, constituting 34% of revenue. Diluted earnings per share came in at $3.63, showing impressive 49% reported growth and 17% comparable growth, significantly outpacing the analyst consensus of $3.29.

As shown in the following comprehensive earnings summary:

The company’s premium instrument placements remained robust, with 6,070 total placements worldwide in Q2. This included 1,413 Catalyst analyzers, 1,525 Premium Hematology instruments, 744 SediVue Dx analyzers, and 2,388 IDEXX inVue Dx instruments. These placements have contributed to solid growth in the installed base, with Catalyst up 6%, Premium Hematology up 7%, and SediVue up 15% year-over-year.

Segment Performance Analysis

The Companion Animal Group (CAG) segment, which represents IDEXX’s core business, delivered $1,022 million in revenue, growing 11% as reported and 10% organically. Within CAG, the Diagnostics Recurring revenue stream reached $878 million, growing 9% as reported and 7% organically.

IDEXX VetLab Consumables showed particularly strong performance with 15% reported growth and 14% organic growth, reaching $375 million. Reference Laboratory Diagnostic and Consulting Services generated $368 million, growing 6% as reported and 5% organically.

The Water segment contributed $51 million in revenue, growing 9% as reported and 8% organically. The Livestock, Poultry and Dairy (LPD) segment added $32 million, with 5% reported growth and 3% organic growth.

Market Trends and Growth Drivers

A notable aspect of IDEXX’s performance is its ability to grow despite declining clinical visits in the U.S. companion animal sector. As illustrated in the following chart tracking practice revenue and visit growth:

The data shows that while total visits declined by 3.6% and clinical visits specifically fell by 2.5% in Q2 2025, practice revenue still managed to grow by 1.6%. This divergence highlights the increasing value per visit that veterinary practices are generating.

IDEXX’s growth is primarily driven by increased diagnostic utilization rather than visit volume. The following breakdown illustrates the contributors to U.S. companion animal diagnostic revenue growth:

Despite the 2.5% decline in clinical visits, diagnostic utilization (revenue per clinical visit including diagnostics) increased by 6.5%, resulting in overall growth of 4.5% for Q2 2025. This trend demonstrates the growing importance of diagnostics in veterinary care and IDEXX’s strong position to capitalize on this shift.

Forward-Looking Statements

Based on the strong Q2 performance, IDEXX has raised its full-year guidance for 2025. The company now expects:

Revenue is projected to reach $4,205-$4,280 million, representing 7.7%-9.7% reported growth and 7.0%-9.0% organic growth. This includes a favorable foreign exchange impact of approximately $70 million.

Operating margin is expected to expand to 31.3%-31.6%, with reported margin expansion of 240-270 basis points and comparable margin expansion of 50-80 basis points. Full-year EPS guidance has been raised to $12.40-$12.76, representing 16%-20% reported growth and 9%-13% comparable growth.

During the earnings call, CEO Jay Mazelski emphasized the company’s strategic focus, stating, "Diagnostics sit at the center of the system of care, and pet owner expectations for quality care continue to rise." He added, "We are extremely well positioned to support these broad care objectives with our expanding menu of innovative diagnostics, testing platforms, and our cloud-native software solutions."

The company also highlighted its plans for international expansion and new product launches, including the CancerDx test scheduled for international rollout in 2026, which should provide additional growth opportunities beyond the current guidance period.

IDEXX’s ability to drive growth through increased diagnostic utilization, even in a challenging market environment with declining clinical visits, demonstrates the company’s strong market position and the resilience of its business model. With continued innovation and expansion, IDEXX appears well-positioned to maintain its leadership in the veterinary diagnostics market.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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