Revenue Growth - Fourth quarter revenue reached $1,091 million, a 14% increase year-over-year, with 12% organic growth, driven by a 15% increase in Companion Animal Group (CAG) revenue[3] - Full year revenue totaled $4,304 million, marking a 10% increase as reported and organically, with CAG Diagnostics recurring revenue growing by 9% reported and 8% organic[5] - Revenue for Q4 2025 was $1,090,579,000, an increase of 14.3% compared to $954,288,000 in Q4 2024[46] - Total revenue for Q4 2025 reached $1,090,579, a 14.3% increase from $954,288 in Q4 2024[48] - Total revenue for the full year 2025 was $4,303,702, a 10.4% increase from $3,897,504 in 2024[48] - The company's organic revenue growth was 9.6%, with a notable 14.5% growth in international markets[50] Earnings and Profitability - Earnings per diluted share (EPS) for the fourth quarter were $3.08, reflecting an 18% increase as reported and 17% on a comparable basis, supported by a 150 basis point expansion in operating margin[4] - Expected EPS for 2026 is projected to be between $14.29 and $14.80, representing a growth of 9% to 13% as reported and 10% to 14% on a comparable basis[7] - The diluted earnings per share (EPS) for Q4 2025 was $3.08, an 18% increase compared to $2.62 in Q4 2024[35] - Comparable EPS, excluding certain adjustments, was $2.92 for Q4 2025, up 17% from $2.49 in Q4 2024[35] - The company anticipates a comparable EPS growth of 14% for the full year 2026, adjusted for share-based compensation and currency impacts[36] Operating Performance - Gross profit increased by 15% as reported, with a gross margin of 60.3%, reflecting a 50 basis point expansion[16] - Operating margin for the fourth quarter was 28.9%, an increase of 150 basis points compared to the prior year[17] - Operating profit for Q4 2025 was $315,605 thousand, reflecting a 21% increase year-over-year[31] - Income from operations for Q4 2025 was $315,605, a 20.6% increase from $261,686 in Q4 2024, with an operating margin of 28.9%[48] - The company reported a full-year income from operations of $1,360,031, up 20.5% from $1,128,337 in 2024[48] Future Projections - The company projects 2026 revenue guidance between $4,632 million and $4,720 million, indicating a growth of 7.6% to 9.6% reported and 7.0% to 9.0% organic[7] - CAG Diagnostics recurring revenue growth for 2026 is anticipated to be between 8.6% and 10.6% reported and 8.0% to 10.0% organic, supported by sustained execution drivers[18] - Projected full year 2026 operating margin is expected to expand by approximately 30 basis points due to favorable currency exchange rate changes[31] Cash Flow and Capital Expenditures - Free cash flow for the year ended December 31, 2025, was calculated by deducting approximately $125 million in capital expenditures from net cash provided by operating activities of approximately $1,182 million[41] - The company expects projected purchases of property and equipment for 2026 to be around $180 million, impacting future free cash flow[41] - Free cash flow for 2025 was $1,057,129, up from $808,079 in 2024[56] Balance Sheet and Equity - Total assets increased to $3,350,759 from $3,293,443, showing a solid balance sheet position[52] - The company’s total stockholders' equity rose to $1,605,383, up from $1,595,313 in 2024[52] - Long-term debt, net of current portion, decreased to $374,842 thousand as of December 31, 2025, from $449,786 thousand as of December 31, 2024[57] - Total shareholders' equity as of December 31, 2025, was $1,605,383 thousand, up from $1,595,313 thousand as of December 31, 2024[57] Research and Development - Research and development expenses for the full year 2025 were $251,207,000, up from $219,792,000 in 2024[46] Legal and Other Matters - The company concluded a litigation matter with a payment of approximately $80 million, impacting its financial position[45]

WESTBROOK, Maine--(BUSINESS WIRE)--IDEXX Laboratories, Inc. (NASDAQ: IDXX), a global leader in pet healthcare innovation, today announced fourth quarter and full year results. Fourth Quarter and Full Year Results The Company reports revenues of $1,091 million for the fourth quarter of 2025, an increase of 14% compared to the prior year period as reported and 12% on an organic basis, driven by Companion Animal Group ("CAG") growth of 15% as reported and 13% organic and Water revenue growth of 12. ...

Group 1: Company Innovations - IDEXX Laboratories launched the ImageVue DR50 Plus, an advanced veterinary imaging system that offers high-definition, AI-powered diagnostics with up to 25% less radiation than its previous model and 60% less than other solutions [1] - The new imaging system is designed to improve safety and efficiency, reducing retakes, supporting new panel sizes, and integrating with IDEXX's Web PACS, telemedicine, and ezyVet software [1] Group 2: Leadership Transition - Michael Erickson will become President and CEO of IDEXX Laboratories effective May 12, 2026, succeeding Jonathan Mazelsky, who will transition to executive Chair of the Board and retire after the 2027 annual shareholder meeting [2] - Analysts at Stifel expect a seamless transition and believe Erickson will benefit from IDEXX's portfolio of recently launched products [3] Group 3: Market Position and Growth - IDEXX Laboratories is recognized as a global leader in animal health diagnostics and software, providing essential tools for veterinarians and diagnostic testing for livestock, poultry, and water quality [4] - Stifel analysts project a fourth-quarter 2025 Companion Animal Group Diagnostics recurring organic revenue growth estimate of 8.9% [3]

Core Insights - IDEXX Laboratories, Inc. (IDXX) is scheduled to release its fourth-quarter 2025 results on February 2, before the market opens [1] - The company reported adjusted earnings per share (EPS) of $3.40 in the last quarter, exceeding the Zacks Consensus Estimate by 8.28%, and has consistently beaten estimates over the past four quarters with an average surprise of 7.12% [1] Q4 Estimates - The Zacks Consensus Estimate for fourth-quarter revenues is $1.07 billion, reflecting a 12.2% increase from the previous year [2] - The EPS estimate stands at $2.93, indicating an 11.8% rise year-over-year [2] - Earnings estimates have remained stable at $2.93 over the past 60 days [3] Key Drivers of Performance - The Companion Animal Group (CAG) is expected to maintain its momentum, driven by strong commercial execution and recurring revenues from diagnostics, particularly in the U.S. and international markets [4] - IDEXX VetLab consumables are anticipated to benefit from increased test volumes and higher realized prices [4] - Key innovations such as the IDEXX inVue Dx Analyzer and IDEXX Cancer Dx panel are likely to have seen strong adoption, contributing to increased recurring revenues in Veterinary Software and Services [5] Segment Performance - CAG revenues are projected to grow by 12.7% year-over-year in Q4 2025 [7] - The Water segment is expected to see revenues increase by 7.8% year-over-year, supported by higher prices and volumes [10] - The Livestock, Poultry and Dairy (LPD) division is also anticipated to experience a 7.8% year-over-year revenue increase, driven by higher test volumes and prices across various regions [11] Earnings Model Insights - IDEXX Laboratories has an Earnings ESP of 0.00%, indicating no expected surprise in earnings [12] - The company currently holds a Zacks Rank of 2 (Buy) [13]

Core Insights - IDEXX Laboratories, Inc. (IDXX) is positioned for growth due to strong momentum in its Companion Animal Group (CAG) Diagnostics business, supported by global commercial capabilities and software solutions that enhance clinic workflows [1][3][10] Financial Performance - Over the past year, IDEXX's stock has increased by 59.3%, significantly outperforming the industry, which fell by 3.9%, and the S&P 500, which grew by 16.6% [2] - The company has a market capitalization of $57.2 billion and has consistently surpassed earnings estimates, achieving an average surprise of 7.1% over the last four quarters [2] Growth Drivers - CAG Diagnostics has shown robust performance, with recurring revenue growth exceeding 10% organically in Q3 2025, driven by over 8% growth in the U.S. and double-digit growth internationally [3][8] - IDEXX's VetLab consumables revenues increased due to higher test volumes and pricing strategies [3] - The company experienced a 10% increase in its active premium instruments installed base, contributing to volume gains across major regions [4] International Expansion - IDEXX has achieved double-digit installed base growth for 11 consecutive quarters, with strong CAG Diagnostics recurring revenue growth across major regions [5] - The company plans to enter three new countries by 2026, focusing on high-return investments to drive broader adoption of its solutions [9] Software Solutions - IDEXX's cloud-based software ecosystem is crucial for its growth, with double-digit installed base growth in its PIMS platforms, now exceeding 10,000 locations [10] - The Vello application for pet owner engagement has expanded significantly, with active clinics growing over 20% sequentially [11] Financial Challenges - As of Q3 2025, IDEXX had cash and cash equivalents of $208 million against $605 million in short-term debt, raising concerns about its solvency [12] - The strengthening U.S. dollar has negatively impacted revenues from international sales, reducing gross profit margins by approximately 10 basis points [13] Future Outlook - The Zacks Consensus Estimate for IDEXX's 2025 EPS is $12.93, indicating a 21.2% growth over 2024, with revenues projected at $4.28 billion, reflecting a 9.9% increase from the previous year [14]

Core Insights - IDEXX Laboratories, Inc. has launched the ImageVue DR50 Plus Digital Imaging System, which is positioned as the most advanced diagnostic imaging solution for veterinary practices, emphasizing high-definition, AI-powered imaging with reduced radiation exposure [1][2][3] Product Features - The ImageVue DR50 Plus system reduces radiation exposure by up to 25% compared to IDEXX's previous best-in-class system and by up to 60% compared to other veterinary imaging solutions [1][2] - It features advanced image optimization, automated protocols, and irradiated side sampling technologies to minimize retakes and improve image quality [2][3] - The system includes a new 17x17 panel option for broader patient coverage and integrates seamlessly with IDEXX software and telemedicine solutions, enhancing workflow efficiency [2][5] Market Context - Radiography is a standard diagnostic technique in nearly every U.S. veterinary clinic, with approximately 75% of technicians being women of childbearing age, highlighting the importance of minimizing radiation exposure for health and safety [2][5] - IDEXX's innovations aim to support veterinary professionals in making timely and accurate diagnoses while ensuring patient and staff safety [4][9] Software Integration - IDEXX Web PACS Software provides centralized access to images, automating processes and reducing manual steps, which saves time on diagnosis [5] - The integration with ezyVet Practice Management Software allows veterinarians to efficiently manage cases and receive results directly in patient records [5] Availability - The ImageVue DR50 Plus Digital Imaging System is currently available to veterinary clinics in the United States and Canada [6]

Core Viewpoint - IDEXX Laboratories, Inc. has announced the promotion of Michael (Mike) Erickson, PhD, to President and CEO effective May 12, 2026, as part of a planned succession process, with Jonathan (Jay) Mazelsky transitioning to Executive Chair of the Board [1][3] Group 1: Leadership Transition - Dr. Erickson has nearly two decades of leadership experience and has held senior positions at IDEXX since 2011, currently serving as Executive Vice President and General Manager of Global Point of Care Diagnostics and Telemedicine [2] - The Board's decision to appoint Dr. Erickson is based on a robust succession planning process, recognizing his deep understanding of the business and suitability to lead IDEXX forward [3] - Mr. Mazelsky will retire following the annual meeting of shareholders in May 2027 and will assist Dr. Erickson during the transition period [1][3] Group 2: Company Overview - IDEXX Laboratories is a global leader in pet healthcare innovation, providing diagnostic and software products that enhance veterinary medicine [4] - The company employs approximately 11,000 people and offers solutions in over 175 countries, contributing to the health and well-being of pets, people, and livestock [4]

Group 1: Fundsmith Equity Fund Performance - Fundsmith Equity Fund's T Class Accumulation shares returned 0.8% in 2025, underperforming the MSCI World Index which returned 12.8% [1] - The fund has outperformed the index by 1.7% per annum since its inception [1] - Underperformance in 2025 attributed to index concentration, growth of assets in Index Funds, and dollar weakness [1] Group 2: IDEXX Laboratories, Inc. Overview - IDEXX Laboratories, Inc. focuses on products for veterinary diagnostics, livestock, poultry, dairy, and water testing markets [2] - The stock had a one-month return of 4.56% and a 52-week gain of 73.13% [2] - As of January 12, 2026, IDEXX's stock closed at $724.76 with a market capitalization of $57.98 billion [2] Group 3: IDEXX Laboratories, Inc. Performance and Hedge Fund Interest - IDEXX Laboratories made its sixth appearance in Fundsmith's investor letter, recovering from previous underperformance [3] - Revenue for IDEXX increased by 13% reported and 12% organically in Q3 2025 [3] - 55 hedge fund portfolios held IDEXX at the end of Q3 2025, an increase from 48 in the previous quarter [3]

Core Viewpoint - IDEXX Laboratories, Inc. is set to release its financial results for the fourth quarter and full year of 2025 on February 2, 2026, before the market opens [1] Financial Results Announcement - The financial results will be released before the market opens on February 2, 2026 [1] - An analyst conference call is scheduled to begin at 8:30 a.m. ET on the same day [1] - A live webcast of the conference call, along with a transcript of prepared remarks and the Q4 2025 Earnings Snapshot, will be accessible through a provided link [1]

Core Insights - The Fundsmith Equity Fund reported a total return of +0.8% for 2025, underperforming the MSCI World Index which rose by +12.8% [4][7]. - Since inception on November 1, 2010, the Fund has outperformed the Index by 1.7% per annum with a Sortino Ratio of 0.75, indicating less downside volatility compared to the Index [7][8]. - The Fund is ranked as the third best performer in the Investment Association Global sector of 155 funds since inception, with a return 322 percentage points above the sector average [8]. Performance Analysis - The Fund's performance in 2025 was impacted by three main issues: index concentration, the growth of assets in index funds, and dollar weakness [9][10][36]. - The top ten stocks in the S&P 500 accounted for 39% of its value and contributed 50% of its total return in USD by the end of 2025, highlighting significant market concentration [13][10]. - The rise of index funds has led to a momentum strategy that disproportionately benefits large-cap stocks, making it challenging for active funds to compete without holding these stocks [17][20]. Market Dynamics - The US dollar weakened against the pound from approximately $1.25/GBP to $1.35/GBP during 2025, affecting the GBP value of the Fund as most companies are US-listed [36][40]. - The price of gold reached a 50-year high of $4,319 per ounce, reflecting concerns about dollar strength and market conditions [39]. Portfolio Composition - The Fund's portfolio turnover was low at 12.7%, with a total cost of investment (TCI) of 1.06%, indicating a focus on minimizing trading costs [70][72]. - The weighted average free cash flow yield of the portfolio increased from 3.1% to 3.7% during 2025, suggesting improved valuation relative to the S&P 500 [68][69]. Stock Contributions - The top five detractors from the Fund's performance included Novo Nordisk, Automatic Data Processing, Church & Dwight, Coloplast, and Fortinet, with Novo Nordisk facing significant challenges in its market [45][46]. - Conversely, the top contributors were Alphabet, IDEXX, Philip Morris, Meta Platforms, and Microsoft, with Alphabet making its first appearance among the top contributors [51][52]. Investment Strategy - The Fund maintains a strategy focused on investing in high-quality companies with predictable growth and adequate returns on capital, avoiding momentum-driven investments [41][42]. - The Fund's management emphasizes the importance of understanding the underlying business performance and maintaining a long-term perspective on investments [60][79].