IDEXX Laboratories (IDXX) has just wrapped up FY 2025 with fourth quarter revenue of US$1,090.6 million and basic EPS of US$3.11, alongside trailing twelve month revenue of US$4.3 billion and EPS of US$13.17 that frame the latest print against a fuller year of performance. Over recent quarters the company has seen revenue move from US$954.3 million in Q4 2024 to just above US$1.1 billion in Q2 and Q3 2025, while quarterly EPS stepped from US$2.64 to a range between roughly US$3.0 and US$3.66, setting up this release against a clear run of larger top line and earnings figures. With trailing net profit margins running in the mid 20s, investors are likely to focus on how much of that profitability level IDEXX can hold as it cycles through this earnings update.

See our full analysis for IDEXX Laboratories.

With the latest numbers on the table, the next step is to see how this earnings profile lines up with the widely shared bull and bear stories around IDEXX and where those narratives might need updating.

Margins Hold Near 25% Net Level

• On a trailing basis, IDEXX earned US$1.06b in net income on US$4.3b of revenue, which works out to a 24.7% net margin compared with 22.5% a year earlier.
• For those taking a bullish view, this margin profile sits alongside trailing EPS of US$13.17 and 18.6% earnings growth over the last year, which indicates the business has been turning a larger share of its US$4.3b revenue into profit even as it scales.
  • Supporters who highlight high quality earnings can point to net income moving from US$887.9m on US$3.9b of revenue a year ago to US$1.06b on US$4.3b now, with margins higher on both points.
  • At the same time, forecasts for roughly 9.8% annual earnings growth and about 8.7% annual revenue growth frame expectations that this profitability level may remain a central part of the growth story if those outcomes are achieved.

To see how these margin trends fit into the bigger long term story, check out the full earnings narrative that investors are debating right now. 📊 Read the full IDEXX Laboratories Consensus Narrative.

Premium P/E Versus Peers

• The stock is trading on a trailing P/E of 49.7x, which stands well above the cited peer level of 27.9x and the US Medical Equipment industry at 31.1x, while the current share price of US$639.60 is above the stated DCF fair value of US$529.17.
• Skeptics point to this gap as a key bearish theme, and the numbers support that concern because investors are paying a higher multiple for IDEXX than for many peers even though earnings are forecast to grow about 9.8% per year and revenue about 8.7% per year, which are described as being below the referenced broader US market forecasts.
  • The spread between the share price of US$639.60 and the DCF fair value of US$529.17 highlights that the market price is above one valuation anchor even after factoring in the 18.6% trailing earnings growth.
  • With the company already earning a 24.7% net margin, bears question whether paying close to 50x trailing earnings leaves enough room if future growth tracks closer to the high single digit forecasts rather than the stronger trailing 12 month result.

Earnings Momentum Across Recent Quarters

• Looking at the last six quarters, quarterly revenue stepped from US$954.3m in Q4 2024 to between roughly US$998.4m and US$1.11b through FY 2025, while basic EPS ranged from US$2.64 in Q4 2024 up to US$3.66 in Q2 2025 and finished FY 2025 at US$3.11.
• Supporters of the earnings story highlight this pattern of larger quarterly revenue and EPS figures through FY 2025, and the trailing EPS of US$13.17 combined with 18.6% earnings growth over the last year is consistent with that, even though the most recent quarter sat a bit below the Q2 2025 EPS high point of US$3.66.
  • Net income excluding extra items moved from US$216.1m in Q4 2024 to between roughly US$242.7m and US$294.0m over FY 2025, which aligns with the higher trailing 12 month net income of US$1.06b versus US$887.9m a year earlier.
  • Those trailing figures are also the base for the cited forecasts of about 9.8% yearly earnings growth, giving investors a clear starting point when thinking about how much of the recent earnings run rate could continue.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on IDEXX Laboratories's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

IDEXX’s rich 49.7x P/E, which is at a premium to peers and above its stated DCF fair value, leaves little margin for error if earnings growth slows toward forecasts.

If you are uneasy paying that kind of premium, shift your attention to these 877 undervalued stocks based on cash flows today and focus on companies where pricing looks more grounded in current cash flows.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.