Core Insights - Baron Partners Fund achieved a significant return of 19.07% in Q4 2025, outperforming both the Russell Midcap Growth Index (-3.70%) and the Russell 3000 Index (2.40%) [1] - For the entire calendar year of 2025, the Fund returned 24.86%, again outperforming the Russell Midcap Growth Index (8.66%) and the Russell 3000 Index (17.15%) [1] - The Fund focuses on long-term investments in a non-diversified portfolio of well-managed growth businesses across various market caps [1] Company Highlights: IDEXX Laboratories, Inc. - IDEXX Laboratories, Inc. is a US-based healthcare company with a market capitalization of $51.73 billion, specializing in products for veterinary diagnostics and testing in various industries [2] - As of February 10, 2026, IDEXX's stock closed at $646.53 per share, with a 41.36% increase over the past twelve months, despite a recent decline of -9.00% in the past month [2] - The company has introduced new tests in 2025, with another expected in 2026, and has reported better-than-expected financial results, contributing positively to the Fund's performance [3] - IDEXX's competitive trends are viewed as outstanding, with expectations for proprietary innovations to drive future growth, supported by increasing trends in pet ownership and spending [3] - The stock appreciated 63.6% in 2025, indicating strong market performance [3]

Core Thesis - IDEXX Laboratories, Inc. is experiencing strong financial performance and growth, driven by its leadership in veterinary diagnostics and a robust recurring revenue model [6]. Financial Performance - For Q4 2025, IDEXX reported revenue of $1.09 billion, a 14% increase year-over-year, with organic growth of 12% and EPS of $3.08, surpassing the consensus estimate of $2.93 [3][4]. - Full-year revenue reached $4.30 billion, reflecting a 10% increase both reported and organically, with EPS of $13.08, marking a 14% increase over 2024 [3][4]. - The company generated $1.1 billion in free cash flow for 2025, fully converting net income to cash, and returned $1.2 billion to shareholders through share repurchases [5]. Growth Drivers - The Companion Animal Group (CAG) was the primary growth engine, generating $998 million in Q4 revenue with 13% organic growth, driven by recurring diagnostic revenue and volume gains [4]. - IDEXX set a quarterly record with over 1,900 inVue Dx instruments placed, contributing to 69% organic growth in CAG Diagnostic instrument revenues [4]. - Other segments, including Water and Livestock, Poultry & Dairy, also performed well, with organic growth of 10% and 4% respectively [5]. Future Outlook - IDEXX expects 2026 revenue to be between $4.63 billion and $4.72 billion, reflecting 7% to 9% organic growth, and EPS of $14.29 to $14.80, supported by continued margin expansion [5]. - Strategic investments in innovation, such as the inVue Dx platform and CancerDx test, are anticipated to drive future growth [5].

Core Viewpoint - Baron Focused Growth Fund demonstrated strong performance in Q4 2025, significantly outperforming the Russell 2500 Growth Index, with a return of 12.34% compared to the index's 0.33% [1] Group 1: Fund Performance - The Fund achieved a total return of 22.26% in 2025, while the Russell 2500 Growth Index returned 10.31% [1] - As of December 31, 2025, the top 10 positions of the Fund accounted for 60.1% of net assets [1] Group 2: IDEXX Laboratories, Inc. Overview - IDEXX Laboratories, Inc. is a leading US-based healthcare company focused on diagnostics for the veterinary industry, benefiting from an increase in pet ownership during the COVID pandemic [3] - As of February 4, 2026, IDEXX's stock closed at $642.94 per share, with a market capitalization of $51.438 billion [2] - The stock experienced a -9.75% return in the past month but has increased by 39.60% over the past twelve months [2] Group 3: Investment Sentiment - IDEXX Laboratories, Inc. was held by 55 hedge fund portfolios at the end of Q3 2025, an increase from 48 in the previous quarter [4] - Despite recognizing IDEXX's potential, there is a belief that certain AI stocks may offer greater upside potential with less downside risk [4]

Core Viewpoint - Fidelity Growth Strategies Fund's fourth-quarter 2025 investor letter highlights the performance of mid-cap growth stocks and emphasizes the importance of identifying quality companies with sustainable growth potential [1]. Group 1: Fund Performance - The Fidelity Growth Strategies Fund returned -3.44% in Q4 2025, outperforming the benchmark Russell Midcap® Growth Index, which returned -3.70% [1]. - The U.S. stock market experienced a rapid rebound in Q4, driven by strong corporate fundamentals and significant spending on artificial intelligence [1]. - Mid-cap growth stocks underperformed compared to large-cap stocks, which benefited from a narrow group of companies linked to generative AI [1]. Group 2: IDEXX Laboratories, Inc. (NASDAQ:IDXX) - IDEXX Laboratories, Inc. is a healthcare company focused on veterinary products and has a market capitalization of $51.438 billion [2]. - The stock closed at $642.94 per share on February 4, 2026, with a -9.75% return in the past month but a 39.60% increase over the past twelve months [2]. - The Fidelity Growth Strategies Fund noted that not holding IDEXX, which had a +6% return, negatively impacted performance, despite IDEXX's strong quarterly results [3]. Group 3: Hedge Fund Interest - IDEXX Laboratories, Inc. was held by 55 hedge fund portfolios at the end of Q3, an increase from 48 in the previous quarter [4]. - While acknowledging IDEXX's potential, the company believes that certain AI stocks present greater upside potential and lower downside risk [4].

Core Insights - IDEXX Laboratories Inc. reported better-than-expected fourth-quarter financial results for 2025, with earnings of $3.08 per share, an 18% increase year over year, surpassing the consensus estimate of $2.94 [1] - The company also reported sales of $1.091 billion, exceeding the consensus of $1.073 billion, reflecting a 14% increase on a reported basis and a 12% increase on an organic basis [1] Financial Forecast - For fiscal 2026, IDEXX Laboratories expects earnings to be in the range of $14.29 to $14.80 per share, compared to the consensus estimate of $14.39 [2] - The company forecasts annual sales for 2026 to be between $4.632 billion and $4.720 billion, with the consensus at $4.658 billion, driven by CAG Diagnostics recurring revenue growth of 8.6% to 10.6% as reported and 8.0% to 10.0% on an organic basis [3] Market Reaction and Analyst Opinions - Following the earnings announcement, IDEXX Laboratories shares increased by 1.7%, trading at $650.54 [3] - Analysts have adjusted their price targets for IDEXX Laboratories, with BTIG maintaining a Buy rating but lowering the target from $830 to $800, while UBS maintained a Neutral rating and reduced the target from $750 to $730 [4]

Core Viewpoint - IDEXX Laboratories Inc. reported strong fourth-quarter financial results for 2025, exceeding expectations, and provided a positive forecast for fiscal 2026 [1][2][3] Financial Performance - Fourth-quarter 2025 earnings were $3.08 per share, an 18% increase year over year, surpassing the consensus estimate of $2.94 [1] - Sales for the fourth quarter reached $1.091 billion, exceeding the consensus of $1.073 billion, reflecting a 14% increase on a reported basis and a 12% increase on an organic basis [1] Fiscal 2026 Forecast - IDEXX Laboratories expects earnings for fiscal 2026 to be in the range of $14.29 to $14.80 per share, compared to the consensus estimate of $14.39 [2] - The company forecasts annual sales for 2026 to be between $4.632 billion and $4.720 billion, above the consensus of $4.658 billion, driven by CAG Diagnostics recurring revenue growth of 8.6% to 10.6% as reported and 8.0% to 10.0% on an organic basis [3] Market Reaction - Following the earnings announcement, IDEXX Laboratories shares increased by 1.7%, trading at $650.54 [3] Analyst Ratings - BTIG analyst Mark Massaro maintained a Buy rating on IDEXX Laboratories but lowered the price target from $830 to $800 [4] - UBS analyst Andrea Alfonso maintained a Neutral rating and reduced the price target from $750 to $730 [4]

Core Insights - IDEXX Laboratories, Inc. is a leading company in the animal diagnostics industry, focusing on veterinary diagnostics and software to meet the increasing demand for pet healthcare [1] Group 1: Price Target and Stock Performance - BTIG has set a price target of $800 for IDXX, indicating a potential increase of approximately 25.08% from the current stock price of $639.60 [2] - The stock has experienced a recent decrease of $30.86, or -4.60%, but maintains a strong performance with a 52-week high of $769.98 and a low of $356.14 [2] Group 2: Revenue and Profit Projections - IDEXX's revenue and profit projections for 2026 are expected to exceed Wall Street estimates, driven by robust demand for pet diagnostics [3] - The anticipated growth in veterinary services and increased testing per visit is expected to counterbalance any shifts in clinic visit trends [3] Group 3: Market Capitalization and Trading Activity - The company's market capitalization stands at approximately $51.07 billion, highlighting its significant industry presence [4] - IDXX has a trading volume of 1,016,178 shares, indicating strong investor interest, with a daily trading range between $622.71 and $658.75 [4]

Core Insights - IDEXX Laboratories 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 [1] Group 1: Financial Performance - Revenue increased 14% year over year to $1.09 billion, topping analyst estimates of $1.07 billion [1] - Adjusted earnings per share totaled $2.92, slightly below the consensus estimate of $2.93 [1] - Operating margin expanded 150 basis points year over year to 28.9%, while adjusted operating margin improved by 120 basis points [2] Group 2: Business Segments - The Companion Animal Group segment posted revenue growth of 15% to $998.5 million, with international markets expanding 17% [2] - Growth was driven by a 12% increase in CAG Diagnostics recurring revenue, which reached $849.7 million [2] - IDEXX's Water business also delivered solid performance, with revenue rising 12% to $50.5 million [3] Group 3: Future Projections - 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 [3] - Organic revenue growth is expected to range from 7% to 9%, with operating margin expansion of 40 to 90 basis points [3]

Core Viewpoint - IDEXX Laboratories, Inc. is a leading player in the animal diagnostics industry, showcasing strong financial performance and exceeding market expectations in its latest earnings report for Q4 2025 [1] Financial Performance - IDEXX reported an earnings per share (EPS) of $3.08 for Q4 2025, surpassing the Zacks Consensus Estimate of $2.93, and showing a significant increase from $2.62 EPS in the same quarter the previous year, with an earnings surprise of +5.17% [2] - The company achieved approximately $1.09 billion in revenue for the quarter ending December 2025, exceeding the Zacks Consensus Estimate by 1.86%, and representing a notable increase from $954.29 million in revenue reported a year ago [2] Revenue Growth - Revenue growth was primarily driven by the Companion Animal Group (CAG), which reported a 15% increase in revenue and a 13% organic growth [3] Financial Metrics - IDEXX has a price-to-earnings (P/E) ratio of approximately 50.82, indicating that investors are willing to pay over 50 times the company's earnings for its shares [3] - The price-to-sales ratio stands at about 12.49, suggesting that the market values the company at over 12 times its annual sales [3] - The company's debt-to-equity ratio is approximately 0.71, indicating a moderate level of debt compared to its equity [3] - IDEXX demonstrates a reasonable level of short-term financial health with a current ratio of about 1.12, having slightly higher current assets compared to current liabilities [3]

Core Insights - IDEXX Laboratories reported double-digit growth in the fourth quarter, driven by premium instrument placements and increased diagnostic utilization, despite ongoing pressure on U.S. veterinary visit volumes [5][12][19] Group 1: Financial Performance - Fourth-quarter revenue increased by 14% as reported and 12% organically, with a notable 10% organic growth in CAG Diagnostics recurring revenues [4][12] - The company achieved an EPS of $3.08, reflecting a 17% increase on a comparable basis [4] - Operating profit grew by 21% as reported and 17% on a comparable basis, supported by gross margin gains [12] Group 2: Market Trends and Challenges - U.S. same-store clinical visits declined approximately 1.7% in the fourth quarter and 1.9% for the full year 2025, with wellness visits down 3.6% [2][5] - Management indicated that wellness pressure is more macro-driven, particularly affecting lower-income households, while non-wellness visits have shown resilience [1][5] Group 3: Product Innovations and Developments - IDEXX highlighted record placements of premium instruments, with over 1,900 inVue Dx placements contributing to a 69% year-over-year expansion in CAG Diagnostics instrument revenues [3][7] - The inVue Dx was characterized as "transformational," with nearly 6,400 placements in 2025 and a controlled launch of fine needle aspirate (FNA) for mast cell tumor detection [8][9] - The company plans to expand its Cancer Dx panel to include canine mast cell tumor detection, with North America availability expected mid-2026 [9][11] Group 4: 2026 Outlook - For 2026, IDEXX projects revenue between $4.632 billion and $4.72 billion, indicating a reported growth of 7.6%–9.6% and organic growth of 7%–9% [14][15] - CAG Diagnostics recurring revenues are expected to grow 8%–10% organically, with a projected net price realization of about 4% [15] - IDEXX anticipates operating margins of 32.0%–32.5% for 2026, with improvements largely driven by gross margin growth [17]