IDEXX Laboratories (NASDAQ: IDXX) reported strong fourth-quarter revenue growth driven by its companion animal diagnostics business, but shares fell more than 4% intraday as earnings narrowly missed expectations and guidance came in largely in line.
Revenue increased 14% year over year to $1.09 billion, topping analyst estimates of $1.07 billion. Adjusted earnings per share totaled $2.92, slightly below the consensus estimate of $2.93.
Growth was driven by a 12% increase in CAG Diagnostics recurring revenue, which reached $849.7 million. The company recorded a quarterly high in instrument placements, including more than 1,900 IDEXX inVue Dx systems.
Operating margin expanded 150 basis points year over year to 28.9%, while adjusted operating margin improved by 120 basis points. The Companion Animal Group segment posted revenue growth of 15% to $998.5 million, with international markets expanding 17%.
IDEXX’s Water business also delivered solid performance, with revenue rising 12% to $50.5 million. The global premium instrument installed base grew 12%, supporting a 17% increase in consumables revenue.
For 2026, IDEXX projected revenue of $4.63 billion to $4.72 billion and earnings per share of $14.29 to $14.80, largely in line with expectations. Organic revenue growth is expected to range from 7% to 9%, with operating margin expansion of 40 to 90 basis points.
