IDEXX Laboratories: Worth The Premium

IDEXX Laboratories remains a buy, supported by a durable moat, strong recurring revenue, and a long-term international growth runway.

Recent Q2 2026 results showed 9% organic revenue growth, EPS guidance raised to $14.69–14.94, and robust expansion of diagnostic offerings.

Installed base growth for core machines is moderating in the US but remains early-stage internationally, underpinning multi-decade expansion potential.

Valuation is premium (P/E 41.5, PEG 2.25), but improving FCF conversion and capital allocation justify long-term positioning despite near-term price sensitivity.

IDEXX Laboratories (IDXX), founded in 1983 and based in Westbrook, ME, is in the business of providing diagnostic services and products to veterinary clinics.

Most of their revenue (~92%) is derived from companion animals, or what it calls CAG (companion animal