Here’s Why IDEXX Laboratories (IDXX) Surged in Q3

Baron Funds, an investment management company, released its “Baron Asset Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities continued the previous quarter’s rally in the third quarter of 2025. The expectation of the Federal Reserve (the Fed) to cut interest rates was the primary driver behind the market rally. In the third quarter, the fund declined 4.23% (Institutional Shares) compared to 2.78% for the Russell Midcap Growth Index and an 8.18% return for the Russell 3000 Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Baron Asset Fund highlighted stocks such as IDEXX Laboratories, Inc. (NASDAQ:IDXX). IDEXX Laboratories, Inc. (NASDAQ:IDXX) develops, manufactures, and distributes products primarily for the companion animal veterinary, livestock and poultry, dairy, and water testing markets. The one-month return of IDEXX Laboratories, Inc. (NASDAQ:IDXX) was 11.86%, and its shares gained 62.01% of their value over the last 52 weeks. On November 7, 2025, IDEXX Laboratories Inc. (NASDAQ:IDXX) stock closed at $708.45 per share, with a market capitalization of $56.571 billion.

Baron Asset Fund stated the following regarding IDEXX Laboratories, Inc. (NASDAQ:IDXX) in its third quarter 2025 investor letter:

“Veterinary diagnostics leader IDEXX Laboratories, Inc. (NASDAQ:IDXX) contributed to performance after reporting better-than expected financial results. Foot traffic to veterinary clinics in the U.S. continued to improve modestly from depressed levels, contributing to roughly 10% constant currency revenue growth in its core Companion Animal segment – its best result in two years. In addition, the company installed 2,400 of its inVue Dx cellular analyzers, exceeding investor expectations, and boding well for the associated future consumable revenue stream. IDEXX also continued aggressively to repurchase its shares, signaling management’s confidence that favorable dynamics should continue. We see increasing evidence that long-term secular trends around pet ownership and pet care spending have structurally accelerated, and we expect IDEXX’s long-term growth rate and margin profile to improve.”

Jim Cramer on IDEXX Laboratories, Inc. (IDXX): “I Just Can't Get My Arms Around It”

IDEXX Laboratories Inc. (NASDAQ:IDXX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 48 hedge fund portfolios held IDEXX Laboratories Inc. (NASDAQ:IDXX) at the end of the second quarter, compared to 51 in the previous quarter. IDEXX Laboratories Inc.’s (NASDAQ:IDXX) revenue increased 13% as reported and 12% organically in the third quarter of 2025.  While we acknowledge the risk and potential of IDEXX Laboratories, Inc. (NASDAQ:IDXX) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than IDEXX Laboratories, Inc. (NASDAQ:IDXX) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered IDEXX Laboratories, Inc. (NASDAQ:IDXX) and shared Conestoga Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.