IDEXX Laboratories makes diagnostic tests, equipment and software used by veterinarians to diagnose and monitor health conditions in pets and livestock, holding a leading position in veterinary diagnostics globally. Its diagnostic instruments are typically placed directly in veterinary clinics, with IDEXX then earning ongoing, recurring revenue from the test kits and reagents those instruments consume, a razor-and-blades model similar to other diagnostic equipment businesses. Growing pet ownership and increasing willingness among pet owners to spend on veterinary care, sometimes described as the humanization of pets, has been a long-term tailwind for the veterinary diagnostics industry overall. IDEXX's recurring revenue from consumables and services tends to be steadier than a business dependent on one-time equipment sales, since veterinary clinics need a continuous supply of tests to diagnose the animals they treat.