What are the underlying drivers of consumables growth, and how should we think about its cadence in 2026? How much is inVue Dx contributing to consumables flow-through, and how does it translate to overall portfolio consumables growth?

Consumables growth is driven by expanding the premium instrument installed base (12% expansion in FY25) and increasing utilization intensity through innovation. inVue Dx consumables usage is tracking to plan. New Catalyst placements (over 1,350 new/competitive in Q4) and rapid uptake of new innovations like Pancreatic Lipase and Cortisol are key drivers. “The approach that we take with putting platforms out in the market and growing our installed base with this overlay of Technology For Life has proved very successful in terms of driving relevant consumables testing.”

Where are the new customer gains for Reference Lab (U.S. vs. international), and is innovation driving market share in this competitive category?

IDEXX is seeing strong Reference Lab growth globally, driven by investments in the network, enabling infrastructure (LIS, VetConnect PLUS), and innovation like Cancer Dx and fecal antigen. Cancer Dx attracts competitive submissions (approx. 18% now), as veterinarians prioritize patient care over primary lab provider, leading to broader business over time. “But cancer also has got a lot of attention, both in terms of differentiation and having customers who don't use us as their primary reference lab send us samples.”

Can you quantify the revenue contribution of Cancer Dx in 2025 and the expected dollar contribution of inVue Dx and Cancer Dx in 2026?

While inVue Dx contributed over $75 million in instrument revenue in 2025, Cancer Dx's direct revenue contribution is modest ($60 per stand-alone test, $15 in a panel). Its primary impact is indirect, leveraging broader diagnostics usage. The addressable opportunity for Cancer Dx panel expansion is estimated at $1.1 billion over time. “We believe that for Cancer Dx, the opportunity to expand that panel or profile is about $1.1 billion over time.”

IDXX

IDEXX Laboratories (IDXX) Q4 FY25 earnings call: guidance and Q&A

Q: How are wellness vs. non-wellness visits evolving in 2026, given the aging "pandemic puppy" cohort? Are corporate practices moderating price increases?

Management expects the 2% decline in U.S. same-store clinical visits to continue in 2026, with non-wellness visits being more resilient. They noted some moderation in vet service price increases from corporate practices, which are now more focused on driving patient traffic. Diagnostics utilization per visit continues to expand across both wellness and non-wellness categories. “We think that likely reflects the pandemic adoption boom and these pets aging and will likely continue going forward.”

Earnings call· Dec 2025 (Q4 FY25)· Health Care· Feb 2, 2026

Source: earnings call transcript

Executive summary

IDEXX Laboratories Q4 FY25 — Strong Growth Driven by Innovation and Premium Instrument Placements

IDEXX closed FY25 with strong Q4 performance, driven by double-digit revenue growth and record premium instrument placements, particularly inVue Dx. The company's innovation-driven strategy, including new platform launches and commercial expansions, underpinned solid financial results despite ongoing pressures on U.S. clinical visits. Management is confident in its 2026 outlook, focusing on continued organic revenue growth and profit gains through commercial execution and extensible new platforms.

Highlights

Revenue increased 14% as reported and 12% organically in Q4 FY25.
CAG Diagnostics recurring revenues grew 10% organically in Q4 FY25.
Record premium instrument placements in Q4 FY25, up 42% year-over-year, including over 1,900 IDEXX inVue Dx placements.
Full-year 2025 EPS of $13.08, up 14% on a comparable basis.
Full-year 2025 operating margins reached 31.6%, an increase of 90 basis points on a comparable basis.

Concerns

U.S. same-store clinical visits declined 1.7% in Q4 FY25 and 1.9% for full-year 2025.
Rapid assay revenues declined 3% organically in Q4 FY25, impacted by U.S. wellness visit pressure and pancreatic lipase transition.
Expected declines in CAG instrument revenues in 2026 as the company laps the rapid expansion of inVue Dx placements.

Guidance & targets

Category	Target	Timeline	Confidence
Full-year 2026 revenue	$4.632 billion to $4.720 billion high materiality	FY26 · 2026	High
Full-year 2026 organic revenue growth	7% to 9% high materiality	FY26 · 2026	High
Full-year 2026 foreign exchange benefit to revenue growth	approximately 60 basis point low materiality	FY26 · 2026	Medium
Full-year 2026 CAG Diagnostics recurring revenues organic growth	8% to 10% high materiality	FY26 · 2026	High
Full-year 2026 global net price realization for CAG Diagnostics recurring revenues	approximately 4% medium materiality	FY26 · 2026	High
Full-year 2026 U.S. net price improvement for CAG Diagnostics recurring revenues	approximately 3.5% medium materiality	FY26 · 2026	High
Full-year 2026 U.S. same-store clinical visit growth	declines of approximately 2% medium materiality	FY26 · 2026	High
Full-year 2026 inVue Dx instrument placements	5,500 instruments medium materiality	FY26 · 2026	High
Full-year 2026 reported operating margin	32.0% to 32.5% high materiality	FY26 · 2026	High
Full-year 2026 EPS	$14.29 to $14.80 per share high materiality	FY26 · 2026	High
Full-year 2026 net interest expense	$34 million low materiality	FY26 · 2026	High
Full-year 2026 free cash flow conversion ratio	85% to 95% medium materiality	FY26 · 2026	High
Full-year 2026 capital spending	$180 million medium materiality	FY26 · 2026	High
Full-year 2026 diluted shares outstanding reduction	1% to 2% year-over-year medium materiality	FY26 · 2026	High
Q1 2026 reported revenue growth	11.5% to 13.5% high materiality	Q1 · 2026	High
Q1 2026 organic revenue growth	9% to 11% high materiality	Q1 · 2026	High
Q1 2026 CAG Diagnostic recurring revenue growth	8.5% to 10.5% high materiality	Q1 · 2026	High
Q1 2026 reported operating margins	31.4% to 31.9% high materiality	Q1 · 2026	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
CAG Strong performance driven by volume growth, net price improvement, new business gains, and expanded utilization of innovations. CAG Diagnostics recurring revenue organic growth: 10%U.S. CAG Diagnostics recurring revenue organic growth: 9%International organic CAG Diagnostics recurring revenue growth: 12%IDEXX VetLab consumable revenues organic growth: 15%Global Reference Lab revenues organic growth: 9%CAG veterinary software, services and diagnostic imaging revenues organic growth: 13%	—	13% organic	—	—
Water Strong organic growth supported by international and U.S. market performance. Double-digit international revenue growthSolid gains in the U.S.	—	10% organic	—	—
Livestock, Poultry and Dairy Organic growth primarily driven by performance in the Americas. Solid gains in the Americas	—	4% organic	—	—

IDXX operating KPIs by quarter

IDXX operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2024 Q4 FY24	Mar 2025 Q1 FY25	Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	This call Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Premium instrument placements	4,625 In the fourth quarter, we placed 4,625 premium instruments, down 12% from high prior year levels. Source: earnings call transcript	4,163 During Q1, we placed 4,163 CAG premium instruments, a decline of 13% against high prior-year levels. Source: earnings call transcript	6,070 Total premium placements reached 6,070 units, an increase of 23% year-over-year. Source: earnings call transcript	5,665 Total premium placements reached 5,665 units, an increase of 37% year-over-year. Source: earnings call transcript	6,567 In the fourth quarter, we placed 6,567 premium instruments, up 42% from the prior year. Source: earnings call transcript	4,650 CAG premium instrument placements reached 4,650 units during the first quarter, an increase of 12% year-over-year and the quality of placements remains superb reflected in over 1,000 global new and competitive catalyst placements, including nearly 320 in North America. Source: earnings call transcript	5,265 CAG premium instrument placements reached 5,265 units during the second quarter resulting in an expected year-over-year decline as we lap the broad commercial availability of inVue Dx in the prior year. Source: earnings call transcript	+13.2%
Employees	<11K I extend my deepest gratitude to our nearly 11,000 employees whose dedication and hard work have made these accomplishments possible. Source: earnings call transcript	—	11K As I conclude our prepared remarks, I want to express my deep appreciation for our 11,000 IDEXX employees worldwide. Source: earnings call transcript	11K As we conclude, I want to extend my deep gratitude to our 11,000 IDEXX employees worldwide. Source: earnings call transcript	11K I want to close by thanking our 11,000 employees around the world. Source: earnings call transcript	~11K Our approximately 11,000 IDEXX employees around the world are purpose-driven and our talent fuels the company's growth. Source: earnings call transcript	—	—
IDEXX InVue Dx instrument placements	—	—	—	1,753 Globally, we placed 1,753 IDEXX InVue Dx instruments as we continue to meet customer demand for this highly innovative analyzer. Source: earnings call transcript	1,900+ We achieved record premium instrument placements in Q4, with strong gains across our major platforms, including over 1,900 IDEXX inVue Dx placements, supporting a 69% organic year-over-year expansion of our CAG Diagnostic instrument revenues. Source: earnings call transcript	1,100 Strong premium instrument placements in the quarter resulted in 28% organic growth of CAG instrument revenues and included 1,100 IDEXX inVue Dx analyzers. Source: earnings call transcript	1,602 Globally, we placed 1,602 IDEXX inVue Dx instruments in Q2 and over 1,000 new and competitive catalyst instruments globally with nearly 300 in the US IDEXX global reference lab revenues increased over 10% organically in Q2, led by volume gains. Source: earnings call transcript	+45.6%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline
IDEXX Cancer Dx panel	expansion	midyear 2026
IDEXX Cancer Dx	expansion	Q1 FY26
inVue Dx	launch	December 2025
Catalyst Cortisol	launch	Q3 FY25
Advanced Radiography System	launch	early January 2026

Risks & headwinds

Pressure on U.S. clinical visits Q4 FY25, Full Year 2025, expected to continue in FY26

U.S. same-store clinical visit declines of approximately 1.7% in Q4 FY25 and 1.9% for full year 2025.

Mitigation:IDEXX innovations contributing to diagnostic frequency and volume utilization gains per clinical visit; focus on non-wellness visits which are more resilient.

Declines in CAG instrument revenues FY26

Expected declines in CAG instrument revenues in 2026

Mitigation:Planning for solid placement levels across premium instrument categories, including 5,500 inVue Dx instruments in 2026.

Ongoing macro and sector constraints FY26

U.S. same-store clinical visit declines of approximately 2% incorporated into FY26 guidance.

Mitigation:Higher end of CAG Diagnostic recurring revenue growth outlook captures potential for improved trends, lower end calibrates for further pressures.

Business mix headwinds on gross margin Q4 FY25

Offsetting headwinds from business mix on strong instrument revenue levels in Q4 FY25.

Mitigation:Gross margin gains aided by strong consumable growth and benefits from higher Reference Lab gross margins.

Q&A highlights

How are wellness vs. non-wellness visits evolving in 2026, given the aging "pandemic puppy" cohort? Are corporate practices moderating price increases?

Management expects the 2% decline in U.S. same-store clinical visits to continue in 2026, with non-wellness visits being more resilient. They noted some moderation in vet service price increases from corporate practices, which are now more focused on driving patient traffic. Diagnostics utilization per visit continues to expand across both wellness and non-wellness categories.

“We think that likely reflects the pandemic adoption boom and these pets aging and will likely continue going forward.”

asked by Christopher Schott · answered by Jay Mazelsky

2 min read 7 chapters

Detailed narrative

Innovation-Driven Growth Strategy

IDEXX's 2025 performance was driven by its innovation strategy, including successful scaling of new platforms like inVue Dx, Cancer Dx, Vello, and Catalyst Cortisol. These solutions provided valuable insights and productivity lifts for customers, reinforcing the company's leadership in diagnostics and software. The strategy focuses on customer-centric innovation and solutions deeply embedded in veterinary workflows, contributing to strong recurring revenue.

Commercial Expansion and Customer Engagement

The company completed a targeted expansion of its commercial footprint in Q4 FY25 in key international regions (Germany, UK, Australia) and the U.S. This expansion reduced the number of accounts per representative, enabling more frequent and higher-quality interactions, which historically leads to increased utilization and customer satisfaction. Customer retention in Global CAG Diagnostics remains in the high 90s, underscoring the value of IDEXX solutions.

Aging Pet Population and Diagnostic Frequency

The deepening human-animal bond and commitment to high-standard care, especially for aging pets, is a key driver. Early signs of aging pets (canines 5+ years old) showed solid visit growth for non-wellness visits for a second consecutive quarter. Diagnostic frequency, the percentage of visits including diagnostic testing, expanded in Q4, highlighting structural demand for advanced diagnostics and its role in driving broader veterinary care.

inVue Dx Transformational Impact

The inVue Dx platform has been one of IDEXX's most successful product launches, with nearly 6,400 placements in 2025. Its controlled launch of fine needle aspirate (FNA) capability in December for mast cell tumor detection is viewed as a significant platform expansion. FNA automates key steps and applies AI-powered analysis, providing results within minutes, enhancing clinical confidence for cancer screening and diagnosis.

Catalyst Platform Expansion

The Catalyst platform continues to deliver value through disciplined menu expansions, including Catalyst Pancreatic Lipase (broad uptake in 2025) and Catalyst Cortisol (launched Q3 FY25). These additions enable faster, more informed decisions at the point of care. Over 50% of North American Catalyst users adopted the Pancreatic Lipase Test in the first 12 months, demonstrating rapid uptake across the approximately 78,000 global Catalyst installed base.

Software Ecosystem as a Growth Driver

IDEXX's software ecosystem, including cloud-based PIMS (ezyVet and Neo) and pet owner engagement tools like Vello, is a significant growth driver. Cloud-based PIMS saw double-digit installed base growth, particularly among multi-location practices. Vello users grew over 40% quarter-over-quarter and nearly tripled year-over-year, leading to fewer no-shows, more clinical visits, and increased diagnostics usage in practices that adopt it.

Cancer Dx Panel Expansion

The IDEXX Cancer Dx panel is expanding to include canine mast cell tumor detection, expected mid-2026 in North America, building on the successful commercialization of canine lymphoma. The lymphoma test has shown potential for early detection (up to 8 months prior to clinical manifestation) and monitoring remission during chemotherapy, with an addressable opportunity of approximately 130,000 tests per year in North America for monitoring alone.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.