IDEXX Strengthens Veterinary Diagnostics Position with Solid Q2 25 Results and Launch of Catalyst Cortisol Test

IDEXX Laboratories reported a solid Q2 25 revenue of $1.1bn, an 11% y/y increase, driven by 10.8% growth in the Companion Animal Group. Operating profit rose 41.4% y/y, reaching $373m, with a 730bp margin expansion to 33.6%. The company also launched the Catalyst Cortisol Test, enhancing its point-of-care diagnostic capacities and boosting its recurring revenue model. IDEXX's strong performance led to a 27.5% stock jump and increased target prices from JPMorgan, Morgan Stanley, and Jefferies.

IDEXX Laboratories Inc (IDXX) reported robust financial performance for the second quarter of 2025, with revenue reaching $1.1 billion, an 11% year-over-year increase. The company's strong performance was driven by a 10.8% growth in the Companion Animal Group, while operating profit surged 41.4% year-over-year to $373 million, expanding the margin to 33.6% [1].

The quarter was marked by the launch of the Catalyst Cortisol Test, which enhances IDEXX's point-of-care diagnostic capabilities and boosts its recurring revenue model. The company also reported a 17% growth in earnings per share (EPS) on a comparable basis, supported by high operating profit gains [1].

IDEXX's Q2 performance was well-received by the market, leading to a 27.5% stock jump and increased target prices from major investment banks such as JPMorgan, Morgan Stanley, and Jefferies. The stock price surged to an over-three-year high of $688.12, setting it up for its best day on record if gains hold [2].

The company's full-year revenue outlook was increased by $90 million to a range of $4.25 billion to $4.29 billion, reflecting strong Q2 performance and favorable foreign exchange impacts. Free cash flow for the quarter was $152 million, and for the first half of 2025, it was $360 million [1].

However, IDEXX faced some challenges in the quarter, including a 2.5% decline in US same-store clinical visit growth levels and a 3% organic decline in global Rapid assay revenues. These were attributed to macroeconomic and sector headwinds, as well as customers shifting pancreatic lipase testing to the Catalyst instrument platform [1].

Looking ahead, IDEXX is optimistic about its long-term prospects, with a five-year placement opportunity of approximately 20,000 for its inVue DX instruments. The company is also investing in its sales force to support the growing portfolio of diagnostic solutions [1].

References:
[1] https://www.gurufocus.com/news/3033685/idexx-laboratories-inc-idxx-q2-2025-earnings-call-highlights-strong-revenue-and-eps-growth-amid-macroeconomic-challenges
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TW1GA:0-idexx-laboratories-hits-over-3-year-high-after-upbeat-2025-forecast/