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Acquisition establishes Labcorp as the only central laboratory provider with a wholly owned laboratory network across four continents

, /PRNewswire/ -- Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, today announced the acquisition of MLM Medical Labs (MLM), a leading global central and specialty laboratory provider with operations across the United States, Germany and South Africa. Financial terms of the transaction were not disclosed.

The acquisition enhances Labcorp's position as a leading independent central laboratory services provider by expanding its presence in key clinical research regions and strengthening its biomarker and specialty testing capabilities. The transaction expands Labcorp's laboratory footprint and establishes Labcorp as the only central laboratory provider with a wholly owned laboratory network across four continents: North America, Europe, Asia and Africa. The combination brings together Labcorp's global scale, breadth of scientific capabilities and operational infrastructure with MLM's established laboratory network and science-led service model.

"Clinical trial sponsors today need scientific expertise, global reach and operational flexibility to advance increasingly complex development programs," said Brian Caveney, M.D., EVP and president, biopharma laboratory services and chief medical and scientific officer, Labcorp. "MLM complements Labcorp's existing strengths and enhances our ability to support sponsors of all sizes, from emerging biotechs to leading pharmaceutical companies. Together, we are well positioned to provide the capabilities, regional expertise and high-touch support sponsors need to advance innovative therapies worldwide."

This integrated global infrastructure enhances Labcorp's ability to support complex multinational clinical trials with consistent scientific, operational and regulatory oversight from a single trusted partner. The acquisition also expands Labcorp's laboratory footprint in critical clinical research markets, including Africa, where MLM operates the continent's first fully CAP-accredited central laboratory.

In addition, the acquisition strengthens Labcorp's scientific and regulatory expertise and broadens access to biomarker and specialty testing capabilities that support increasingly complex clinical development programs.

This acquisition reflects Labcorp's ongoing commitment to investing in central laboratory services and meeting the evolving needs of clinical trial sponsors worldwide.

Evercore served as exclusive financial advisor to Labcorp and Pierson Ferdinand and Hogan Lovells served as Labcorp's legal counsel.

About Labcorp 
Labcorp (NYSE: LH) is a global leader of innovative and comprehensive laboratory services that helps doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. We provide insights and advance science to improve health and improve lives through our unparalleled diagnostics and drug development laboratory capabilities. The company's nearly 71,000 employees serve clients in approximately 100 countries, provided support for more than 85% of the new drugs and therapeutic products approved by the FDA in 2025 and performed more than 750 million tests for patients around the world. Learn more at www.labcorp.com. 

Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements with respect to the acquisition of MLM Medical Labs and how its capabilities are anticipated to benefit clinical trial sponsors.

Each of the forward-looking statements is subject to change based on various important factors, many of which are beyond the company's control. These factors, in some cases, have affected and in the future (together with other factors) could affect the company's ability to implement the company's business strategy, and actual results could differ materially from those suggested by these forward-looking statements. As a result, readers are cautioned not to place undue reliance on any of the forward-looking statements.

The company has no obligation to provide any updates to these forward-looking statements even if its expectations change. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. Further information on potential factors, risks and uncertainties that could affect operating and financial results is included in the company's most recent Annual Report on Form 10-K under the heading RISK FACTORS and in the company's other filings with the SEC. The information in this press release should be read in conjunction with a review of the company's filings with the SEC including the information in the company's most recent Annual Report on Form 10-K under the heading "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS."

SOURCE Labcorp

Elecsys® pTau-217 is the first and only FDA-cleared single-biomarker blood test to both rule in and rule out amyloid pathology across specialty and primary care settings Measures phosphorylated Tau 217 (pTau-217), an indicator of amyloid pathology and a hallmark of Alzheimer's disease Intended for individuals 55 and older with signs, symptoms or complaints of cognitive decline , /PRNewswire/ -- Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, announced today it will offer the Elecsys® pTau-217 test following clearance by the U.S. Food and Drug Administration (FDA). Developed by Roche Diagnostics, the blood test aids in identifying amyloid pathology associated with Alzheimer's disease in individuals 55 and older with signs, symptoms or complaints of cognitive decline. Elecsys® pTau-217 is the first and only FDA-cleared single-biomarker blood test to both rule in and rule out amyloid pathology across specialty and primary care settings

Photo courtesy of Labcorp For many individuals experiencing cognitive decline, evaluation for Alzheimer's disease often involves multiple tests, care settings and healthcare providers. As blood-based biomarkers for neurological conditions continue to advance, pTau-217 has emerged as a leading biomarker to help clinicians rule in or rule out amyloid pathology in people presenting with symptoms or concerns of cognitive decline. While several pTau-217 assays are commercially available, standardization across care settings remains an important consideration for clinicians. The Elecsys® pTau-217 test provides a single, standardized assay with the same clinically validated cutoffs across primary and specialty care settings, supporting a consistent approach to patient assessment.

"The best advances in Alzheimer's disease testing should make the diagnostic process simpler, more accessible and more consistent for both patients and clinicians," said Dr. Brian Caveney, chief medical and scientific officer at Labcorp. "For individuals and families seeking answers about cognitive changes, the path to evaluation can be long and uncertain. By making the Elecsys® pTau-217 test available nationwide, Labcorp is expanding access to innovative blood-based testing and helping clinicians provide more timely assessments and informed next steps for patients."

Key Features of the Elecsys® pTau-217 Test

Uses the same clinical cutoffs across primary and specialty care settings, providing a standardized approach to patient assessment. Provides positive, intermediate and negative result categories to support assessment of the likelihood of amyloid pathology. Offers a convenient, minimally invasive blood-based testing option with performance comparable to cerebrospinal fluid (CSF) testing and positron emission tomography (PET) imaging. Once ordered by a clinician, patients can have their blood drawn in a physician's office or at one of Labcorp's more than 2,200 patient service centers nationwide. Results are interpreted alongside clinical information and other relevant findings as part of a comprehensive evaluation. Advancing Labcorp's Alzheimer's Disease Testing Portfolio
The addition of Elecsys® pTau-217 expands Labcorp's Alzheimer's disease testing portfolio. The test joins Labcorp's existing offerings, including the FDA-cleared Elecsys® pTau-181 test and the Lumipulse® pTau-217/Beta-Amyloid 42 Ratio.

Labcorp plans to make the test available nationwide in the coming months. For more information about Labcorp's Alzheimer's disease testing, visit https://www.labcorp.com/treatment-areas/neurology/conditions/neurodegenerative/alzheimers.

About Labcorp
Labcorp (NYSE: LH) is a global leader of innovative and comprehensive laboratory services that helps doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. We provide insights and advance science to improve health and improve lives through our unparalleled diagnostics and drug development laboratory capabilities. The company's nearly 71,000 employees serve clients in approximately 100 countries, provided support for more than 85% of the new drugs and therapeutic products approved by the FDA in 2025 and performed more than 750 million tests for patients around the world. Learn more at www.labcorp.com.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements with respect to the expected availability, utility, and benefits of the Elecsys® pTau217 test to detect Alzheimer's disease pathology.

Each of the forward-looking statements is subject to change based on various important factors, many of which are beyond the company's control. These factors, in some cases, have affected and in the future (together with other factors) could affect the company's ability to implement the company's business strategy, and actual results could differ materially from those suggested by these forward-looking statements. As a result, readers are cautioned not to place undue reliance on any of the forward-looking statements.

The company has no obligation to provide any updates to these forward-looking statements even if its expectations change. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. Further information on potential factors, risks and uncertainties that could affect operating and financial results is included in the company's most recent Annual Report on Form 10-K under the heading RISK FACTORS and in the company's other filings with the SEC. The information in this press release should be read in conjunction with a review of the company's filings with the SEC including the information in the company's most recent Annual Report on Form 10-K under the heading "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS."

SOURCE Labcorp

Labcorp's FDA‑approved PGDx elio® tissue complete CDx helps identify advanced melanoma patients with certain BRAF variants eligible for BRAF and BRAF/MEK inhibitor therapies Supports access to targeted treatment options for the deadliest form of skin cancer , /PRNewswire/ -- Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, today announced that the U.S. Food and Drug Administration (FDA) has approved Labcorp's PGDx elio® tissue complete CDx as a companion diagnostic to help identify patients with advanced melanoma with certain BRAF variants who may benefit from treatment with FDA-approved targeted therapiesi.

Addressing a Critical Need in Advanced Melanoma
Melanoma is the deadliest form of skin cancer, with a five‑year survival rate of just 16% for patients diagnosed with stage IV disease. However, targeted therapies are an important treatment option for patients with advanced melanoma whose tumors have a BRAF alteration. As a companion diagnostic, PGDx elio tissue complete CDx helps clinicians identify which melanoma patients carry these BRAF V600E/K variants and may benefit from treatment with FDA-approved BRAF inhibitors and BRAF/MEK inhibitor combination regimens.

"Advanced melanoma is an extremely aggressive and life‑threatening cancer, but targeted treatments are offering real hope for patients," said Shakti Ramkissoon, M.D., Ph.D., vice president, medical lead for oncology at Labcorp. "Labcorp's FDA‑approved companion diagnostic improves access to these therapies by allowing clinicians to confirm which patients may be eligible for and can start receiving those treatments as soon as possible."

A Comprehensive and Scalable Testing Solution
Labcorp's PGDx elio tissue complete CDx is approved for use by qualified healthcare professionals across hospitals and clinical laboratories, supporting broader patient access to high-quality molecular testing. As a kit-based solution, the companion diagnostic can be implemented directly within hospitals and health systems, expanding access to testing while enabling organizations to retain samples and data that may inform future clinical research.

The addition of Labcorp's PGDx elio tissue complete CDx reflects the continued expansion of Labcorp's precision medicine portfolio, which includes comprehensive tissue- and liquid-based oncology diagnostics designed to support personalized care. For more information about PGDx elio tissue complete or Labcorp's oncology solutions, visit https://www.labcorp.com/oncology/providers/testing-solutions/kitted-solutions/pgdx-elio-tissue-complete-cdx.

About Labcorp
Labcorp (NYSE: LH) is a global leader of innovative and comprehensive laboratory services that helps doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. We provide insights and advance science to improve health and improve lives through our unparalleled diagnostics and drug development laboratory capabilities. The company's nearly 71,000 employees serve clients in approximately 100 countries, provided support for more than 85% of the new drugs and therapeutic products approved by the FDA in 2025 and performed more than 750 million tests for patients around the world. Learn more at www.labcorp.com.

iPGDx elio tissue complete CDx is a qualitative next generation sequencing-based in vitro diagnostic device that uses a high-throughput hybridization-based capture technology utilizing DNA isolated from formalin-fixed paraffin embedded tumor tissue. The PGDx elio tissue complete CDx targeted panel can detect single nucleotide variants, small insertions and deletions, copy number amplifications, and translocations. It is intended to be used as a companion diagnostic to identify melanoma patients who may benefit from treatment with targeted therapies listed below in accordance with the approved therapeutic product labeling.

PGDx elio tissue complete CDx Indications
Indication: Melanoma
Biomarker: BRAF V600E/ BRAF V600K
Therapy: BRAF inhibitors approved by FDA or BRAF/MEK inhibitor combinations approved by FDA

SOURCE Labcorp

First FDA-approved IHC assay identifies patients who may be eligible for combination treatment with TRUQAP® (capivasertib)

, /PRNewswire/ -- Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, announced the nationwide availability of Roche's VENTANA® PTEN (SP218) RxDx Assay, the first immunohistochemistry (IHC) companion diagnostic test approved by the U.S. Food and Drug Administration (FDA) to determine PTEN protein loss, also known as PTEN deficiency, in tumors of patients with prostate adenocarcinoma. The assay helps identify patients who may be eligible for treatment with AstraZeneca's TRUQAP® (capivasertib) in combination with abiraterone acetate and prednisone.

Addressing an Unmet Need in Prostate Cancer Care
Excluding skin cancer, prostate cancer is the most common cancer among men in the United States, with more than 330,000 new cases expected each year. PTEN is a tumor suppressor protein that plays a critical role in regulating cell growth. Loss of PTEN protein expression has been associated with more aggressive disease progression and reduced benefit from current standard-of-care therapies in prostate cancer. Until recently, there were no approved treatment options specifically targeting this biology.

The VENTANA PTEN (SP218) RxDx Assay is a companion diagnostic designed to detect PTEN protein loss in prostate cancer tissue specimens, providing clinicians with important biomarker information to help guide treatment decisions and support personalized patient care.

"Biomarker testing is essential to advancing precision oncology and helping connect patients with the therapies most appropriate for their disease," said Shakti Ramkissoon, M.D., Ph.D., vice president, medical lead for oncology at Labcorp. "The launch of the VENTANA PTEN (SP218) RxDx Assay underscores how Labcorp is expanding access to innovative companion diagnostics and delivering the timely insights physicians need to make personalized treatment decisions."

Advancing Access to FDA-Approved Companion Diagnostics
Labcorp participated in Roche's early access program to support Day 1 laboratory readiness for the assay, reinforcing the company's commitment to helping patients gain timely access to newly approved targeted therapies and the companion diagnostics needed to identify eligible patients.

The VENTANA PTEN (SP218) RxDx Assay is now available through Labcorp's national network of laboratories and complements the company's comprehensive portfolio of genomic, molecular and companion diagnostic testing services that support precision oncology care. As one of the nation's largest providers of oncology testing services, Labcorp enables physicians across community and academic settings to access FDA-approved companion diagnostics at scale, helping bring precision medicine to more patients regardless of where they receive care. The assay can also be ordered alongside Labcorp's broader portfolio of oncology testing services, providing clinicians with comprehensive biomarker insights from a single laboratory partner.

To learn more about the assay, visit https://oncology.labcorp.com/tests/484680/PTEN-IHC-with-interpretation-for-prostate-adenocarcinoma

About Labcorp
Labcorp (NYSE: LH) is a global leader of innovative and comprehensive laboratory services that helps doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. We provide insights and advance science to improve health and improve lives through our unparalleled diagnostics and drug development laboratory capabilities. The company's nearly 71,000 employees serve clients in approximately 100 countries, provided support for more than 85% of the new drugs and therapeutic products approved by the FDA in 2025 and performed more than 750 million tests for patients around the world. Learn more at www.labcorp.com.

SOURCE Labcorp

Results from operations for second quarter 2026 versus second quarter 2025: Revenue: $3.73 billion vs. $3.53 billion, up 5.8% Diluted EPS: $3.64 vs. $2.84, up 28.5% Adjusted EPS: $4.99 vs. $4.35, up 14.9% Raised full-year enterprise revenue growth and adjusted EPS guidance: Annual revenue growth guidance of 5.4% to 6.3%; up 30 basis points at the midpoint Adjusted EPS range of $18.10 to $18.55; up 30 cents at the midpoint Announced $1.0 billion increase in share repurchase authorization, bringing the remaining total authorization to $1.4 billion Advanced Labcorp Oncology offerings in lung, colorectal, and prostate cancers, expanding access to screening, improving diagnosis, guiding treatment selection, and monitoring recurrence Announced the launch of Marker by Labcorp™, a genetic health panel that provides consumers with personalized genetic insights , /PRNewswire/ -- Labcorp Holdings Inc. (NYSE: LH), a global leader of innovative and comprehensive laboratory services, today announced results for the second quarter ended June 30, 2026 and updated its full-year financial guidance.

"Labcorp delivered another very strong quarter, with 6% revenue growth, significant margin expansion, and double-digit adjusted EPS growth reflecting continued momentum across the business," said Adam Schechter, Chairman and CEO of Labcorp. "During the second quarter, we expanded our leadership in oncology and other high-growth specialty areas, strengthened our position as the partner of choice for health systems, biopharmaceutical companies, and regional/local laboratories, and advanced our use of technology to improve the experience for consumers and providers. Our performance and continued execution position us well to deliver sustainable growth and long-term value for customers and shareholders."

Labcorp continues to advance its strategic priorities:

Lead in specialty testing, with several advancements in Labcorp Oncology:

Added an advanced DPYD genotyping test that helps identify patients at risk for severe chemotherapy treatment-related toxicity. Launched ColoSense® nationwide, the first FDA-approved, RNA-based colorectal cancer screening test with at-home collection. With Medicare and expanding commercial payer coverage, this test increases patient access to screening and enables earlier detection. As ColoSense's primary nationwide distributor, we are further strengthening our comprehensive colorectal cancer portfolio. Entered into a clinical trial collaboration with Fox Chase Cancer Center to evaluate Labcorp's Plasma Detect Genome MRD in patients at risk of early-stage non-small cell lung cancer recurrence. Expanded nationwide access to Roche's FDA-approved VENTANA PTEN (SP218) companion diagnostic for people living with prostate cancer who may now be eligible for combination treatment with AstraZeneca's targeted therapy TRUQAP. Be a partner of choice for health systems and regional/local laboratories:

Awarded once again a Department of Defense contract to provide laboratory testing for service members and their families across military hospitals worldwide. Completed the acquisition of select outreach laboratory services from Parkview Health in Indiana and Ohio. Completed the acquisition of Tribal Diagnostics, a clinical laboratory serving communities in Oklahoma and Texas. Grow Consumer Health:

Announced the Marker by Labcorp Genetic Health Panel through Labcorp OnDemand where consumers can get their biomarker and genetic testing and insights from a single source.  Introduced Canada's first at-home, self-collection test to measure women's fertility-related hormones and men's testosterone levels. Launched an AI-powered app, MyLabcorp, which has been downloaded by millions of consumers. The app allows patients to schedule appointments, view their test results, and gain deeper insights into their health. Shape our future through technology and innovation:

Expanded a collaboration with Epic to place 6,500-plus diagnostic tests on Epic's Aura platform.  Enhanced the patient experience at Labcorp's Patient Service Centers, through expanded appointment availability, streamlined scheduling, and proactive rescheduling reminders and assistance. Labcorp also remains committed to a disciplined allocation of capital. In the second quarter of 2026, the company invested $225.7 million in acquisitions, repurchased $353.8 million of stock, and paid out $58.7 million in dividends. The company also paid down $500.0 million in senior notes in June. On July 9, 2026, the company announced a quarterly cash dividend of $0.72 per share of common stock, payable on September 11, 2026, to stockholders of record at the close of business on August 28, 2026. In July, the Board of Directors approved an increase of $1.0 billion in the company's share repurchase authorization, bringing the remaining total authorization to $1.4 billion.

LABCORP HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED RESULTS

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

Delta

2026

2025

Delta

Revenue Summary (Dollars in millions)

Total Revenue

$ 3,731.1

$ 3,527.3

5.8 %

$ 7,268.7

$ 6,872.4

5.8 %

Organic(1)

4.2 %

3.6 %

Acquisitions, net of Divestitures(2)

1.2 %

1.3 %

Foreign Exchange

0.4 %

0.9 %

(1) Excludes the impact from acquisitions, divestitures, and currency, as well as other strategic actions taken in Early Development.

(2) Includes the impact from strategic actions taken in Early Development.

Earnings Summary (Dollars in millions, except per share data)

Operating Income ("OI")

$   451.6

$   394.5

$    832.4

$    720.5

OI as % of Revenue

12.1 %

11.2 %

90 bps

11.5 %

10.5 %

100 bps

Adjustments (3)

$   137.1

$   137.1

$    264.2

$    280.1

Adjusted Operating Income  ("AOI") (4)

$   588.7

(5)

$   531.6

$ 1,096.6

$ 1,000.6

AOI as % of Revenue

15.8 %

(5)

15.1 %

70 bps

15.1 %

14.6 %

50 bps

Net Earnings Attributable to Labcorp
Holdings Inc.

$   298.7

$   237.9

$   576.5

$   450.7

Diluted EPS

$     3.64

$     2.84

$     6.99

$     5.36

Adjusted EPS (4)

$     4.99

$     4.35

14.9 %

$     9.24

$     8.19

12.8 %

(3) Adjustments include amortization, impairment charges, restructuring charges, and special items.

(4) Non-GAAP financial measure. See "Reconciliation of Non-GAAP Measures" for additional information.

(5) The increase in adjusted operating income and margin was due to organic growth and operating efficiencies.

LABCORP HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED RESULTS

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Cash Flow Summary (Dollars in millions)

Operating Cash Flow

$        445.5

$        620.6

$         637.0

$         639.1

Capital Expenditures

131.6

77.9

252.6

203.9

Free Cash Flow

$        313.9

(1)

$        542.7

$         384.4

$         435.2

(1) The difference in free cash flow was primarily due to working capital timing and planned increases in capital expenditures.

Capital Allocation Summary

At the end of the quarter, Labcorp's cash and cash equivalents balance was $141.8 million and total debt was $5.86 billion.  In June, we retired $500.0 million in senior notes. During the quarter, the company invested $225.7 million in acquisitions, repurchased $353.8 million of stock, and paid out $58.7 million in dividends. LABCORP HOLDINGS INC. AND SUBSIDIARIES

Diagnostics Laboratories Segment Summary

Three Months Ended June 30,

2026

2025

Delta

Revenue Summary (Dollars in millions)

Total Revenue

$           2,900.7

$           2,748.8

5.5 %

Organic

3.6 %

Acquisitions, net of Divestitures

1.9 %

Earnings Summary (1) (Dollars in millions)

Adjusted Operating Income ("AOI") (2)

$ 522.6

(3)

$ 482.8

AOI as % of Revenue

18.0 %

(3)

17.6 %

50 bps

(1) Non-GAAP financial measure. See "Reconciliation of Non-GAAP Measures" for additional information.

(2) Excludes amortization, restructuring charges, special items, and unallocated corporate expenses.

(3) Adjusted Operating Income and margin increased due to organic growth and operating efficiencies.

Three Months Ended June 30, 2026

Requisition

Price/Mix

Volume Delta (4)

Delta (4)

Metrics Summary

Total

3.0 %

2.5 %

Organic (5)

1.8 %

1.8 %

Acquisitions, net of Divestitures

1.3 %

0.6 %

Foreign Exchange

— %

— %

(4) Column shows changes versus the three months ended June 30, 2025.

(5) Organic price/mix includes lab management agreements.

LABCORP HOLDINGS INC. AND SUBSIDIARIES

Biopharma Laboratory Services Segment Summary

Three Months Ended June 30,

2026

2025

Delta

Revenue Summary (Dollars in millions)

Total Revenue

$ 836.2

$ 784.8

6.5 %

(1)

Organic(2)

6.2 %

Acquisitions, net of Divestitures(3)

(1.4) %

Foreign Exchange

1.8 %

(1) Central Labs revenue growth of 9.8%; Early Development revenue was down 1.4%.

(2) Excludes the impact from acquisitions, divestitures, and currency, as well as other strategic actions taken in Early Development.

(3) Includes the impact from strategic actions taken in Early Development.

Earnings Summary (4) (Dollars in millions)

Adjusted Operating Income ("AOI") (5)

$ 142.2

(6)

$ 123.3

AOI as % of Revenue

17.0 %

(6)

15.7 %

130 bps

(4) Non-GAAP financial measure. See "Reconciliation of Non-GAAP Measures" for additional information.

(5) Excludes amortization, restructuring charges, special items, and unallocated corporate expenses.

(6) Adjusted Operating Income and margin increased, driven by organic growth and operating efficiencies from the strategic actions taken in Early Development.

As of

June 30, 2026

Metrics Summary (Dollars in billions)

TTM Net Orders

$           3.32

TTM Book to Bill

1.03

Backlog

$           8.73

(7)

Next Twelve Months Forecast Backlog Conversion

$           2.75

(7) Backlog increased 0.2% compared to this period last year.

Guidance for 2026

Labcorp is updating 2026 full year guidance to reflect its second quarter performance and full year outlook. The following guidance assumes foreign exchange rates effective as of June 30, 2026. Enterprise level guidance includes the estimated impact from currently anticipated capital allocation, including acquisitions, share repurchases, and dividends.

(Dollars in millions, except per share data)

Previous

Updated

2026 Guidance

2026 Guidance

Low

High

Low

High

Revenue

Labcorp Enterprise (1)(2)

$14,649

$14,803

$14,710

$14,827

Growth (3)

5.0 %

6.1 %

5.4 %

6.3 %

Diagnostics Laboratories

$11,431

$11,518

$11,450

$11,532

Growth (3)

5.1 %

5.9 %

5.3 %

6.0 %

Biopharma Laboratory Services (4)

$3,216

$3,266

$3,269

$3,300

Growth (3)

3.8 %

5.4 %

5.5 %

6.5 %

Adjusted EPS

$17.70

$18.35

$18.10

$18.55

Free Cash Flow

$1,240

$1,360

$1,240

$1,360

(1) 2026 Updated Enterprise guidance includes an impact from foreign currency translation of 0.4%.

(2) Enterprise level revenue is presented net of intercompany transaction eliminations.

(3) Growth based on 2025 Enterprise revenue of $13,952 million, Diagnostics Laboratories revenue of $10,876 million, and Biopharma Laboratory Services revenue of $3,098 million.

(4) 2026 Updated Biopharma Laboratory Services guidance includes an impact from foreign currency translation of 1.5%.

Use of Adjusted Measures
The company has provided in this press release and accompanying tables "adjusted" financial information that has not been prepared in accordance with GAAP, including adjusted net income, adjusted EPS (or adjusted net income per share), adjusted operating income, adjusted operating margin, free cash flow, and certain segment information. The company believes these adjusted measures are useful to investors as a supplement to, but not as a substitute for, GAAP measures, in evaluating the company's operational performance. The company further believes that the use of these non-GAAP financial measures provides an additional tool for investors in evaluating operating results and trends, and growth and shareholder returns, as well as in comparing the company's financial results with the financial results of other companies. However, the company notes that these adjusted measures may be different from and not directly comparable to the measures presented by other companies. Reconciliations of these non-GAAP measures to the most comparable GAAP measures and an identification of the components that comprise "special items" used for certain adjusted financial information are included in the tables accompanying this press release.

The company today is providing an investor relations presentation with additional information on its business and operations, which is available in the investor relations section of the company's website at https://ir.labcorp.com. Analysts and investors are directed to the website to review this supplemental information.

A webcast discussing Labcorp's quarterly results will be held today at 9:00 a.m. ET and is available by accessing the Labcorp investor relations website and navigating to the "Events" section. Alternatively, the live webcast can be accessed on this link. This webcast will be archived and accessible for one year.

About Labcorp
Labcorp (NYSE: LH) is a global leader of innovative and comprehensive laboratory services that helps doctors, hospitals, pharmaceutical companies, researchers, and patients make clear and confident decisions. We provide insights and advance science to improve health and improve lives through our unparalleled diagnostics and drug development laboratory capabilities. The company's nearly 71,000 employees serve clients in approximately 100 countries, provided support for more than 85% of the new drugs and therapeutic products approved by the FDA in 2025, and performed more than 750 million tests for patients around the world. Learn more at www.labcorp.com. 

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements, including, but not limited to, statements with respect to (i) the estimated 2026 guidance and related assumptions, (ii) the impact of various factors on operating and financial results, including global economic and market conditions  on the company's businesses, operating results, cash flows and/or financial condition, (iii) future business  strategies, (iv) expected savings, synergies and other benefits to the company, customers or patients from acquisitions and other transactions and partnerships, and (v) opportunities for future growth.

Each of the forward-looking statements is subject to change based on various important factors, many of which are beyond the company's control, including without limitation: (i) the failure to receive tax-free treatment with respect to the spin-off of the company's former Clinical Development and Commercialization Services business for U.S. federal income purposes; (ii) the impact of spin-off related items; (iii) personnel costs and potential difficulties with employee relations and retention; (iv) the trading price of the company's stock, competitive actions and other unforeseen changes and general uncertainties in the marketplace; (v) the impact of changes to existing or adoption of new laws and regulations applicable to the company, including healthcare reform, or changes to the interpretation and application of such laws and regulations; (vi) customer purchasing decisions, including changes in payer regulations or policies; (vii) adverse actions of governmental and third-party payers; (viii) changes in testing guidelines or recommendations; (ix) the impact of global geopolitical events; (x) the effect of public opinion on the company's reputation; (xi) adverse results in material litigation matters; (xii) failure to maintain or develop customer relationships; (xiii) the company's ability to develop or acquire new products and adapt to technological changes; (xiv) failure of the company's information technology, systems, or data security; (xv) the impact of potential losses under repurchase agreements; (xvi) adverse weather conditions; (xvii) the number of revenue days in a financial period; (xviii) inflation; (xix) increased competition; and (xx) the effect of exchange rate fluctuations. These factors, in some cases, have affected and in the future (together with other factors) could affect the company's ability to implement the company's business strategy, and actual results could differ materially from those suggested by these forward-looking statements. As a result, readers are cautioned not to place undue reliance on any of the forward-looking statements.

The company has no obligation to provide any updates to these forward-looking statements even if its expectations change. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. Further information on potential factors, risks and uncertainties that could affect operating and financial results is included in the company's most recent Annual Report on Form 10-K and subsequent Forms 10-Q, including in each case under the heading RISK FACTORS, and in the company's other filings with the SEC. The information in this press release should be read in conjunction with a review of the company's filings with the SEC including the information in the company's most recent Annual Report on Form 10-K, and subsequent Forms 10-Q, under the heading "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS".

- End of Text -
- Tables to Follow -

LABCORP HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In Millions, Except Per Share Data)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Revenues

$       3,731.1

$       3,527.3

$       7,268.7

$       6,872.4

Cost of revenues

2,619.1

2,481.1

5,142.9

4,878.2

Gross profit

1,112.0

1,046.2

2,125.8

1,994.2

Selling, general, and administrative expenses

577.2

579.3

1,128.2

1,125.3

Amortization of intangibles and other assets

78.1

68.3

153.7

137.9

Restructuring and other charges

5.1

4.1

11.5

10.5

Operating income

451.6

394.5

832.4

720.5

Other (expense) income:

Interest expense

(61.1)

(57.1)

(116.2)

(113.1)

Investment income

5.6

1.7

17.8

8.2

Equity method loss, net

(6.2)

(1.7)

(11.3)

(2.0)

Other, net

(3.5)

(32.7)

(16.6)

(33.7)

Earnings from operations before income taxes

386.4

304.7

706.1

579.9

Provision for income taxes

87.3

66.4

129.0

128.6

Net earnings

299.1

238.3

577.1

451.3

Less: Net earnings attributable to the noncontrolling
interest

(0.4)

(0.4)

(0.6)

(0.6)

Net earnings attributable to Labcorp Holdings Inc.

$         298.7

$         237.9

$         576.5

$         450.7

Earnings per common share:

Basic earnings per common share

$          3.66

$          2.85

$          7.03

$          5.40

Diluted earnings per common share

$          3.64

$          2.84

$          6.99

$          5.36

Weighted-average basic common shares outstanding

81.7

83.4

82.0

83.5

Weighted-average diluted common shares outstanding

82.0

83.9

82.4

84.1

LABCORP HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In Millions)

June 30, 2026

December 31, 2025

ASSETS

Current assets:

Cash and cash equivalents

$               141.8

$               532.3

Accounts receivable, net

2,342.4

2,103.8

Unbilled services, net

162.4

156.9

Supplies inventory

562.2

534.7

Prepaid expenses and other

606.1

692.8

Total current assets

3,814.9

4,020.5

Property, plant, and equipment, net

3,100.5

3,081.5

Goodwill, net

7,030.1

6,789.5

Intangible assets, net

3,678.2

3,596.0

Joint venture partnerships and equity method investments

139.3

153.9

Other assets, net

769.3

751.3

Total assets

$           18,532.3

$           18,392.7

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$               688.5

$               840.8

Accrued expenses and other

862.4

847.8

Unearned revenue

387.8

439.1

Short-term operating lease liabilities

180.3

191.1

Short-term finance lease liabilities

4.7

4.6

Short-term borrowings and current portion of long-term debt

0.9

500.1

Total current liabilities

2,124.6

2,823.5

Long-term debt

5,857.6

5,084.6

Operating lease liabilities

661.0

682.6

Finance lease liabilities

61.6

63.0

Deferred income taxes and other tax liabilities

486.7

454.5

Other liabilities

717.6

647.8

Total liabilities

9,909.1

9,756.0

Commitments and contingent liabilities

Noncontrolling interest

16.4

16.9

Shareholders' equity:

Common stock, 80.9 and 82.2 shares outstanding at June 30, 2026, and
December 31, 2025, respectively

7.3

7.5

Additional paid-in capital

—

—

Retained earnings

8,701.4

8,639.9

Accumulated other comprehensive loss

(101.9)

(27.6)

Total shareholders' equity

8,606.8

8,619.8

Total liabilities and shareholders' equity

$           18,532.3

$           18,392.7

LABCORP HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

CASH FLOWS FROM OPERATING ACTIVITIES:

Net earnings

$   299.1

$   238.3

$   577.1

$   451.3

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization

179.0

170.3

352.3

337.1

Stock compensation

34.9

34.1

66.6

66.9

Operating lease right-of-use asset expense

49.1

50.8

97.1

99.4

Deferred income taxes

24.4

(6.1)

26.4

(12.2)

Other, net

14.2

38.0

25.6

46.1

Change in assets and liabilities (net of effects of acquisitions and divestitures):

(Increase) decrease in accounts receivable

(59.2)

30.9

(247.1)

(139.9)

(Increase) decrease in unbilled services

(0.7)

0.9

(6.9)

4.8

Increase in supplies inventory

(65.1)

(11.9)

(29.7)

(3.5)

Decrease in prepaid expenses and other

23.1

12.8

27.1

57.8

(Decrease) increase in accounts payable

(11.7)

67.0

(150.4)

(80.6)

(Decrease) increase in unearned revenue

(17.6)

0.2

(49.7)

(8.7)

Decrease in accrued expenses and other

(24.0)

(4.7)

(51.4)

(179.4)

Net cash provided by operating activities

445.5

620.6

637.0

639.1

CASH FLOWS FROM INVESTING ACTIVITIES:

Capital expenditures

(131.6)

(77.9)

(252.6)

(203.9)

Proceeds from sale of assets

1.9

1.9

9.7

2.4

Proceeds from sale or distribution of equity affiliates or other investments

—

6.9

—

6.9

Purchase of equity affiliates or other investments

(10.8)

(15.0)

(17.5)

(172.0)

Acquisition of businesses, net of cash acquired

(225.7)

(10.0)

(427.9)

(63.5)

Net cash used for investing activities

(366.2)

(94.1)

(688.3)

(430.1)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from term loan

—

—

750.0

—

Payments on senior notes

(500.0)

—

(500.0)

(1,000.0)

Proceeds from accounts receivable securitization

175.0

—

175.0

225.0

Payments on accounts receivable securitization

(150.0)

—

(150.0)

—

Proceeds from revolving credit facilities

—

—

—

64.8

Payments on revolving credit facilities

—

—

—

(64.8)

Net share settlement tax payments from issuance of stock to employees

(6.3)

(3.5)

(46.1)

(29.0)

Net proceeds from issuance of stock to employees

1.8

—

34.7

25.7

Dividends paid

(58.7)

(59.9)

(119.9)

(121.5)

Purchase of common stock

(353.8)

(200.0)

(451.8)

(200.0)

Other, net

(27.9)

(4.0)

(31.3)

(7.3)

Net cash used for financing activities

(919.9)

(267.4)

(339.4)

(1,107.1)

Effect of exchange rate on changes in Cash and cash equivalents

1.3

18.8

0.2

26.7

Net (decrease) increase in Cash and cash equivalents

(839.3)

277.9

(390.5)

(871.4)

Cash and cash equivalents at beginning of period

981.1

369.4

532.3

1,518.7

Cash and cash equivalents at end of period

$   141.8

$   647.3

$   141.8

$   647.3

LABCORP HOLDINGS INC. AND SUBSIDIARIES

Condensed Combined Non-GAAP Segment Information

(Dollars in Millions)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Diagnostics Laboratories

Revenues

$    2,900.7

$    2,748.8

$     5,662.8

$     5,378.4

Adjusted operating income

$       522.6

$       482.8

$        981.3

$        910.3

Adjusted operating margin

18.0 %

17.6 %

17.3 %

16.9 %

Biopharma Laboratory Services

Revenues

$       836.2

$      784.8

$     1,616.8

$     1,506.1

Adjusted operating income

$       142.2

$      123.3

$        262.9

$        230.2

Adjusted operating margin

17.0 %

15.7 %

16.3 %

15.3 %

Consolidated

Revenues

$    3,731.1

$   3,527.3

$     7,268.7

$     6,872.4

Adjusted segment operating income

$       664.8

$      606.1

$     1,244.2

$     1,140.5

Unallocated corporate expense

(76.1)

(74.5)

(147.6)

(139.9)

Consolidated adjusted operating income

$      588.7

$      531.6

$     1,096.6

$     1,000.6

Adjusted operating margin

15.8 %

15.1 %

15.1 %

14.6 %

The consolidated revenue and adjusted segment operating income are presented net of intercompany transaction eliminations and other amounts not used in determining segment performance. Adjusted operating income and adjusted operating margin are non-GAAP measures. See the subsequent reconciliation of non-GAAP financial measures.

LABCORP HOLDINGS INC. AND SUBSIDIARIES

Reconciliation of Non-GAAP Measures

(Dollars and Shares in Millions, Except Per Share Data)

Three Months Ended June 30,

Six Months Ended June 30,

2026

2025

2026

2025

Adjusted Operating Income

Operating income

$      451.6

$      394.5

$       832.4

$       720.5

Amortization of intangibles and other assets (a)

78.1

68.3

153.7

137.9

Restructuring and other charges (b)

5.1

4.1

11.5

10.5

Acquisition and disposition-related costs (c)

21.3

15.1

31.2

44.2

LaunchPad costs (d)

11.7

17.2

24.7

37.3

Other

20.9

31.9

43.1

46.4

TSA reimbursement (e)

—

0.5

—

3.8

Adjusted operating income

$      588.7

$      531.6

$     1,096.6

$     1,000.6

Adjusted operating profit margin

15.8 %

15.1 %

15.1 %

14.6 %

Adjusted Net Income

Net income

$      298.7

$      237.9

$       576.5

$       450.7

Impact of adjustments to operating income

137.1

137.1

264.2

280.1

Loss on venture fund investments, net (f)

1.5

32.7

8.6

36.1

Equity method loss from SYNLAB investment (g)

6.2

—

11.2

—

TSA reimbursement (e)

—

(0.5)

—

(3.8)

Other

0.6

0.7

(7.9)

0.7

Income tax impact of adjustments (h)

(34.9)

(43.4)

(91.0)

(75.3)

Adjusted net income

$      409.2

$      364.5

$       761.6

$       688.5

Weighted-average diluted common shares outstanding

82.0

83.9

82.4

84.1

Adjusted net income per share

$       4.99

$       4.35

$         9.24

$         8.19

(a)

Amortization of intangible assets acquired as part of business acquisitions.

(b)

Restructuring and other charges represent amounts incurred in connection with the elimination of redundant positions and facilities and contract termination costs within the organization in connection with our LaunchPad initiatives, and acquisitions or dispositions of businesses by the company.

(c)

Acquisition and disposition-related costs include due-diligence legal and advisory fees, retention bonuses, impact of delayed contract or license transfers, and other integration or disposition related activities.

(d)

LaunchPad costs include non-capitalized costs associated with the implementation of systems, consolidation of processes, and consulting costs incurred as part of various business process improvement initiatives.

(e)

Represents transition services fees charged to Fortrea Holdings Inc. related to administrative and IT systems support.  The costs to provide these services are included in operating income but the service fees are included in other income.

(f)

The company makes investments in companies or investment funds developing promising technology related to its operations. The company recorded net gains and losses related to several distributions from venture funds, increases in the market value of investments, and impairments of other investments due to the underlying performance of the investments.

(g)

Adjustment removes the impact of the equity method income from the Company's minority investment in SYNLAB.

(h)

Income tax impact of adjustments calculated based on the tax rate applicable to each item.

SOURCE Labcorp Holdings Inc

Key Takeaways Labcorp is expected to post Q2 revenue growth of 5.4% and EPS growth of 10.1% year over year.LH expanded diagnostics through partnerships, acquisitions and new oncology, neurology and consumer tests.Labcorp likely saw BLS support from Central Laboratories as Early Development streamlining continued. Labcorp Holdings Inc. (LH - Free Report) , or Labcorp, is slated to report its second-quarter 2026 results on July 30, before the market opens.

In the last reported quarter, the company posted adjusted earnings per share (EPS) of $4.25, surpassing the Zacks Consensus Estimate by 3.91%. Labcorp outpaced estimates in each of the trailing four quarters, the average surprise being 3.31%.

Q2 Estimates for LHThe Zacks Consensus Estimate for Labcorp’s second-quarter 2026 revenues is pegged at $3.72 billion. This suggests a 5.4% rise from the year-ago reported figure.

The Zacks Consensus Estimate for second-quarter EPS indicates an improvement of 10.1% to $4.79. The estimate has remained unchanged in the past 60 days.

Here's a quick review of the company’s performance leading up to its second-quarter earnings.

What Could Shape Labcorp's Q2 Results?In the second quarter of 2026, Diagnostics Laboratories’ (Dx) performance is likely to have continued to witness strong organic contribution. Labcorp's ongoing expansion through health system partnerships and acquisitions is expected to have supported testing volumes by broadening its patient and provider network. During the quarter, the company announced a nationwide strategic collaboration with Children's Hospital of Philadelphia to expand access to advanced diagnostics for pediatric patients.

In May, Labcorp launched an expanded DPYD Genotyping test to identify cancer patients at risk for severe chemotherapy side effects. Earlier in March, it acquired the select assets of Crouse Health's Laboratory Alliance of Central New York and executed an agreement to manage Crouse Health’s inpatient laboratories. All these developments are expected to have favorably boosted the quarter’s top line.

The company’s expanding specialty testing portfolio likely remained another tailwind. These tests are focused in the areas spanning oncology, women's health, neurology and autoimmune disease, which are projected to far outpace the broader diagnostics market. In second-quarter 2026, Oncology results are likely to have benefited from the launch of several liquid biopsy tests and expanded access to molecular residual disease (MRD) solutions.

Labcorp further strengthened the portfolio by launching Agilent Technologies' FDA-approved companion diagnostic to identify patients with platinum-resistant ovarian cancer who may be eligible for Merck's KEYTRUDA. The company’s market-leading Alzheimer's testing portfolio may have boosted Neurology revenues.

Beyond the core testing, the company also introduced the first FDA-cleared rapid fentanyl test of its kind made in the United States, delivering results in just 10 minutes. The Labcorp OnDemand platform is also expected to have favorably supported revenues, driven by strong demand across its expanding menu of consumer health tests.

Labcorp may have also benefited from its ongoing use of advanced technologies, including AI and robotics, to enhance customer experiences and productivity. In April, the company expanded its collaboration with Epic, making its full test menu available through the Aura platform. Other recent initiatives include the development of an AI-powered real-world data platform with Amazon Web Services and Datavant to accelerate Alzheimer's research and a strategic collaboration with Optum.ai to streamline laboratory operations. Collectively, all these factors are expected to have positively impacted Labcorp’s second-quarter revenues.

The Zacks Consensus Estimate expects Dx revenues to grow 6.1% year over year.

Within the Biopharma Laboratory Services (“BLS”) segment,Labcorp has likely benefited from the solid performance of Central Laboratories. The company may have also progressed with its strategic actions to streamline the Early Development business, which may have limited overall growth. 

The Zacks Consensus Estimate suggests that BLS revenues will grow 2.7% year over year.

Earnings Whispers for LabcorpPer our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates, which is exactly the case here, as you can see below:

Earnings ESP:  Labcorp has an Earnings ESP of +0.71%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Key MedTech PicksHere are some other medical stocks worth considering, as these also have the right combination of elements to post an earnings beat this time:

CVS Health (CVS - Free Report) has an Earnings ESP of +1.42% and a Zacks Rank #2. The company is slated to release second-quarter 2026 results on Aug. 5.

CVS’ earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.79%. The Zacks Consensus Estimate expects the company’s second-quarter EPS to increase 3.3% from the year-ago quarter’s figure.

Henry Schein (HSIC - Free Report) has an Earnings ESP of +0.41% and a Zacks Rank #2. The company is expected to release second-quarter 2026 results soon.

HSIC’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.74%. The Zacks Consensus Estimate for the company’s second-quarter EPS calls for a rise of 10.9% from the year-ago quarter’s figure.

Alcon (ALC - Free Report) has an Earnings ESP of +3.13% and a Zacks Rank #2. The company is slated to release second-quarter 2026 results on Aug. 10.

ALC’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.66%. The Zacks Consensus Estimate anticipates the company’s second-quarter EPS to increase 1.3% from the year-ago quarter’s figure.

Key Takeaways Labcorp is expanding oncology, neurology and genetic testing to support long-term growth.LH's Q1 2026 revenues increased 5.8%, aided by acquisitions, partnerships and network expansion.Labcorp's AI, automation and launchpad savings initiatives aim to improve efficiency and margins. Labcorp Holdings Inc. (LH - Free Report) , or Labcorp, is well-poised for growth in the coming quarters owing to its progress on its strategic priority to lead in important specialty testing areas, which are growth drivers for both its businesses. Strategic partnerships and acquisitions help the company broaden its patient and provider network while deepening its presence in key markets. Additionally, it leverages AI and technology to enhance margins and customer experience. Yet, macroeconomic pressures and adverse currency swings pose risks for Labcorp.

In the past year, this Zacks Rank #2 (Buy) stock has risen 3.2% compared with 2.2% growth of the industry and a 23.3% increase of the S&P 500 Composite.

The renowned healthcare diagnostics company has a market capitalization of $21.20 billion. Labcorp’s earnings yield of 6.9% is well ahead of the industry’s 4.3% yield. In the trailing four quarters, the company delivered an average earnings surprise of 3.31%.

Let’s delve deeper.

Tailwinds Supporting LH StockTargeted Development in High-Growth Areas: Labcorp’s continued expansion in faster-growing specialty testing areas, such as oncology, women’s health, autoimmune disease and neurology, is strengthening its growth profile. In the first quarter of 2026, Neurology delivered double-digit growth, driven by an expanded Alzheimer's testing portfolio. Oncology benefited from several newly launched liquid biopsy tests and wider availability of MRD solutions. The MRD portfolio includes the Plasma Detect ID for patients with stage I–III breast cancer or stage I–IIIA non-small cell lung cancer, as well as the Labcorp Plasma Detect Genome for stage III colon cancer, which is now available nationwide.

Image Source: Zacks Investment Research

The integration of Invitae has further expanded the company’s reach in genetic testing solutions. Labcorp is also collaborating with Illumina to advance precision oncology through applications of next-generation sequencing (NGS) solutions across the healthcare ecosystem. The Labcorp OnDemand consumer health platform delivered double-digit growth in the first quarter, supported by its expanded offerings.

Strategic Acquisitions and Partnerships to Drive Growth: In recent years, Labcorp has built a significant number of strategic relationships with health systems and regional/local laboratories, expanding its patient and provider network, and strengthening its presence in key markets. In the first quarter of 2026, enterprise revenues grew 5.8% year over year, with net acquisitions contributing 1.4%.

Recent activities include the purchase of select assets of Crouse Health’s Laboratory Alliance of Central New York’s (Lab Alliance) laboratory business and an agreement to manage their daily inpatient lab operations. Labcorp also acquired select assets of New York-based Empire City Laboratories, became the first U.S. commercial laboratory with an agreement to implement Roche’s cobas Mass Spec solution, and signed a new multi-year partnership agreement with SOMOS.

Focus on Operational Efficiency: The company continues to benefit from its launchpad initiatives, which target $100-$125 million in savings annually. In the first quarter of 2026, Labcorp expanded its collaboration with PathAI to deploy an FDA-cleared digital pathology platform across its national anatomic pathology labs and hospital lab partnerships. Together with Amazon Web Services and Datavant, the company is developing a new AI-powered real-world data platform to accelerate Alzheimer's research. More recently, Labcorp teamed up with Optum.ai to simplify laboratory operations by advancing AI.

Across its core operations, AI and automation are already deployed in areas such as pathology, cytology and microbiology. Labcorp’s generative AI tool, Test Finder, is designed to simplify lab test selection and is also integrated into Labcorp Diagnostic Assistant.

What Ails Labcorp?Macroeconomic Risks: Labcorp’s operations are heavily dependent on the demand for diagnostic testing and drug development services from patients, physicians, hospitals, medical device companies, and others. In recent times, volatilities in global economic conditions, including inflation, have significantly reduced the demand for these services, affecting the customers’ ability to pay and, consequently, the profitability of the company. Added to this, the escalation of the present geopolitical tensions and retaliatory tariffs is putting pressure on the supply chain and services, increasing the prices of offerings. In the first quarter of 2026, the cost of revenues went up 5.3% year over year.

Exposed to Currency Headwind: Labcorp's huge exposure in international markets makes it vulnerable to currency fluctuations. With the recent upward trend observed in the value of the U.S. dollar, further acceleration expected by analysts in this value will cause the company’s revenues to face a tough situation overseas.

LH Stock’s Estimate TrendThe Zacks Consensus Estimate for Labcorp’s 2026 earnings per share (EPS) has increased 1 cent to $18.00 in the past 30 days. 

The Zacks Consensus Estimate for the company’s 2026 revenues is pegged at $14.71 billion, implying 5.4% growth compared to the last year.

Other Key PicksSome other top-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Align Technology (ALGN - Free Report) and Integra LifeSciences (IART - Free Report) .

Globus Medical has an earnings yield of 5.9% compared with the industry’s negative 3.5% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 26.3%. GMED shares have rallied 39.2% against the industry’s 7.5% decline over the past year.

GMED sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Align Technology, sporting a Zacks Rank #1, has an estimated long-term earnings growth rate of 10.3% compared with the industry’s 5.5% growth. Shares of the company have dipped 9% against the industry’s 6.9% growth. ALGN’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 7.8%.

Integra LifeSciences, carrying a Zacks Rank #2, has an earnings yield of 13.6% against the industry’s negative 3.5% yield. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 16.7%. IART shares have rallied 45.5% against the industry’s 7.4% decline over the past year.