In Q4 2025, IDEXX reported revenue of $32.7 billion , representing a 7.9% increase year-over-year. Net income during the quarter was $8.8 billion, up 26.8% compared to the same period in the prior year. This robust earnings growth reflects IDEXX's success in driving higher sales as well as its ability to expand profit margins. The company's net margin in Q4 2025 was 26.8%, up from 24.7% in the year-ago quarter. This margin expansion indicates IDEXX is becoming more efficient at converting revenue into profitability, a key driver of long-term shareholder value creation. IDEXX has also demonstrated impressive return on invested capital (ROIC), which stood at 31.6% in the most recent quarter. This high ROIC suggests the company is effectively deploying capital to generate strong earnings, further supporting its margin expansion and earnings growth. Given IDEXX's robust financial performance, I expect the company to continue delivering above-average earnings growth and margin improvement over the next 12-18 months. With the stock currently trading at $946.83, I see potential upside to $1,100 per share, representing an 16% increase from current levels. PORTFOLIO ROTATION:

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