IDEXX Laboratories Inc. (NASDAQ:IDXX) is one of the best medical technology stocks to invest in. On February 3, BTIG lowered its price target on IDEXX Laboratories Inc. (NASDAQ:IDXX) to $800 from $830 and maintained a Buy rating. The company cited concerns about IDEXX’s 2026 guidance despite strong earnings performance in the fourth quarter of 2025.
IDEXX reported strong fourth-quarter results, with revenue of $1.09 billion, up 14% from last year and above analyst expectations of $1.072 billion. Earnings per share rose 18% to $3.08, beating the Street estimate of $2.93. The company remains highly profitable, with a gross margin of 61.7% and a return on equity of 65% over the trailing 12 months.
The companion animal business, IDEXX’s core segment, grew 15% to $998 million, driven by strong instrument revenue of $58 million, a 76% year-over-year increase. Growth was supported by 1,940 placements of InVueDx systems, as well as strong demand for Catalyst and SediVue products. This continues IDEXX’s long-term trend of around 10% annual revenue growth and aligns with management’s strategy of share buybacks to enhance shareholder value.
For 2026, IDEXX expects revenue of $4.63-$4.72 billion and earnings per share of $14.29-$14.80, with operating margins improving slightly to 32%-32.5%. BTIG noted a 200 basis point drag due to fewer pet visits, primarily from low-income owners, but expects 4% price growth globally. The company also plans about 5,500 new placements of InVueDx systems next year, up from 6,400 in 2025, to help offset these headwinds.
IDEXX Laboratories Inc. (NASDAQ:IDXX) develops, manufactures and distributes information technology and diagnostic products for the veterinary, livestock, poultry, dairy and water testing markets. Its offerings include point-of-care diagnostic instruments, rapid assay test kits, veterinary reference laboratory services and microbiological contaminant testing systems.
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Disclosure: None. This article was originally published in Internal jumpsuit.