IDEXX (IDXX) Q3 2025 Earnings: Strong Growth in Pet Diagnostics

IDEXX Laboratories (IDXX), a major player in the world of veterinary diagnostics, recently released its financial results for the third quarter of 2025. For anyone interested in the booming pet care industry, this filing provides a detailed look at the company's performance. Let's dive into their latest 10-Q filing and unpack the key trends from their income statement.

Strong Top-Line Growth and Expanding Margins

IDEXX reported a strong third quarter, with total revenue reaching $1.11 billion, a solid 13.3% increase from the $976 million reported in the same quarter last year. More impressively, this growth wasn't just on the top line. The company's income from operations grew even faster, rising 16.8% to $355 million. This indicates healthy operational leverage, as the operating margin expanded from 31.2% to 32.1% year-over-year.

To better understand how IDEXX generates its revenue and manages its costs, the following flow diagram visualizes the company's income statement for the third quarter.

You may notice a small "Other" revenue category in the chart. This primarily consists of IDEXX's business in point-of-care electrolytes and blood gas analyzers for the human medical diagnostics sector, known as OPTI Medical.

Companion Animal Group Continues to Lead the Pack

The heart of IDEXX's business is its Companion Animal Group (CAG), which provides diagnostic products and services for veterinarians. This segment is the company's primary growth engine, and it didn't disappoint.

• CAG revenue grew 13.5% to $1.01 billion, accounting for over 91% of the company's total revenue.
• IDEXX VetLab consumables, a key source of recurring revenue, saw impressive growth of 17.8%. This suggests that veterinarians with IDEXX equipment are running more tests, a sign of strong demand for pet healthcare.
• The standout figure was the 74.3% surge in CAG Diagnostics capital instruments revenue. Selling more diagnostic instruments is crucial as it builds an installed base that drives future high-margin consumable sales.

Interestingly, revenue from Rapid assay products declined by 4.5%. However, the company clarifies this is not a sign of weakness. Instead, it reflects a successful strategic shift, as customers migrate from standalone rapid tests to using the more advanced Catalyst instrument platform for similar diagnostics.

A Look at Other Segments and the Bottom Line

While CAG steals the spotlight, IDEXX's other segments also contributed positively to its growth.

• The Water segment, which provides water microbiology testing products, grew its revenue by 8.2% to $54.3 million.
• The Livestock, Poultry and Dairy (LPD) segment posted a strong 17.1% revenue increase, reaching $33.9 million.

Ultimately, this strong performance across the board translated into a healthy bottom line. IDEXX reported a net income of $274.6 million for the quarter, an increase of nearly 18% from the $232.8 million earned in Q3 2024. This resulted in diluted earnings per share of $3.40, up from $2.80 in the prior-year period.

In conclusion, IDEXX's third-quarter report paints a picture of a company firing on all cylinders. Its core companion animal business is thriving, driven by strong instrument placements and the recurring revenue from consumables. The company is not only growing its revenue but also improving its profitability, demonstrating effective management and a strong position in the resilient and expanding market for animal health.