Labcorp intends to be the first commercial laboratory to offer FDA-approved HPV testing with the BD Onclarity™ HPV Assay across clinician-collected and self-collected screening options in clinic, patient service center, and at-home settings Through a network serving more than 850,000 physicians and healthcare providers and more than 2,200 patient service centers, Labcorp is helping expand access to cervical cancer screening nationwide First and only FDA-approved HPV test that supports all ASCCP Enduring Risk-Based Management Guidelines by providing comprehensive extended genotyping , /PRNewswire/ -- Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, and Waters Corporation (NYSE: WAT), a global life sciences and diagnostics leader, today announced a partnership to expand access to the FDA-approved BD Onclarity HPV Assay through Labcorp's nationwide laboratory network beginning in late 2026.
Cervical cancer is largely preventable through routine screening and early detection of human papillomavirus (HPV), yet millions of women remain overdue for recommended tests. This collaboration is designed to help address persistent cervical cancer screening gaps by bringing more accessible screening options to patients across the United States. Labcorp will provide these HPV testing options to support its clinician programs, Gaps in Care health plan programs, and Labcorp OnDemand consumer channel.2-8
"Barriers such as privacy, access, and socioeconomic factors can make it difficult to stay current with cervical cancer screening," said Jeff Andrews, M.D., FRCSC, Vice President of Medical Affairs, Waters Advanced Diagnostics, Waters Corporation.5-7 "We are at the start of a new era in which screening can extend beyond the clinic, enable more personalized risk assessment, and reach people who have historically been underserved. By offering greater flexibility in how and where people are screened, our collaboration marks a critical step forward in bridging one of today's most profound care gaps."
The Most Comprehensive FDA-Approved HPV Testing Option
The BD Onclarity HPV Assay is the only FDA-approved HPV test that supports all American Society for Colposcopy and Cervical Pathology (ASCCP) Enduring Risk-Based Management Guidelines.2,9
"Cervical cancer screening saves lives, but too many women still face barriers to getting screened," said Dr. Brian Caveney, Chief Medical and Scientific Officer, Labcorp. "By expanding access and options for comprehensive FDA-approved HPV testing, we can help more women stay current with recommended screening, reach those who may be overdue for care, and support earlier identification of cervical cancer risk."
Certain HPV genotypes, including types 16, 18 and 45, are associated with an increased risk of cervical cancer, making genotype-specific information important for patient management.9 As HPV vaccination has reduced infections from HPV types 16 and 18, other high-risk HPV strains now account for a growing share of cervical disease, particularly among younger, vaccinated populations.10 The BD Onclarity HPV Assay offers extended genotyping that individually identifies HPV types 16, 18, 31, 45, 51 and 52 along with three sets of strategically pooled results, regardless of collection method, making it the most comprehensive HPV screening tool available in the U.S. today.2,11
Waters and Labcorp intend to offer the BD Onclarity HPV Assay by the end of 2026. To learn more, visit https://womenshealth.labcorp.com/providers/cervical-cancer-screening.
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
About Waters Corporation:
Waters Corporation (NYSE: WAT) is a global leader in life sciences and diagnostics, dedicated to accelerating the benefits of pioneering science through analytical technologies, informatics, and service. With a focus on regulated, high-volume testing environments, our innovative portfolio harnesses deep scientific expertise across chemistry, physics, and biology. We collaborate with customers around the world to advance the release of effective, high-quality medicines, ensure the safety of food and water, and drive better patient outcomes by detecting diseases earlier, managing routine infections, and combating antibiotic resistance. Through a shared culture of relentless innovation, our passionate team of ~15,000 colleagues turn scientific challenges into breakthroughs that improve lives worldwide. For more information, please visit www.waters.com/about.
Disclaimer:
The BD Biosciences and BD Diagnostic Solutions businesses have been acquired by Waters Corporation ("Waters"). Becton, Dickinson and Company or one of its affiliates or subsidiaries ("BD") remains the legal manufacturer of Biosciences and Diagnostic Solutions products until all required regulatory transfers are completed. During this interim period, BD maintains full responsibility for all regulatory obligations of the legal manufacturer. Product information provided here is supplied under BD's regulatory authority. To learn more about the relationship between Waters and BD during this transition period, please see our detailed summary: www.waters.com/bdtransaction.
BD is a trademark of Becton, Dickinson and Company. Waters is a trademark of Waters Corporation or its affiliates. All other marks are the property of their respective owners. The BD Onclarity HPV Assay is manufactured by Becton, Dickinson and Company or one of its affiliates or subsidiaries.
Cautionary Statement Regarding Forward-Looking Statements:
This press release contains forward-looking statements, including, but not limited to, statements with respect to Waters Corporation and Labcorp and its competitors' timing and ability to offer the BD Onclarity HPV Assay across various settings, and the anticipated benefits to patients of screening for cervical cancer using the BD Onclarity HPV Assay.
Each of the forward-looking statements is subject to change based on various important factors, many of which are beyond the control of Labcorp or Waters Corporation. These factors, in some cases, have affected and in the future (together with other factors) could affect the ability of Labcorp or Waters Corporation to implement its respective 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 forward-looking statements included in this release represent the companies' estimates or views as of the date of this release and should not be relied upon as representing the companies' estimates or views as of any date subsequent to the date of this release. Neither Labcorp nor Waters Corporation has any 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 each of Labcorp's and Waters Corporation's most recent Annual Report on Form 10-K and subsequent Forms 10-Q, including in each case under the headings RISK FACTORS and MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, and in each of Labcorp's and Waters Corporation's other filings with the SEC.
References:
All figures are for 2025, rounded. BD Onclarity™ HPV Assay US Package Insert [8089894]. Okunade KS. Human papillomavirus and cervical cancer. J Obstet Gynaecol. 2020;40(5):602-608. doi:10.1080/01443615.2019.1634030. World Health Organization, Cervical Cancer Fact Sheet (updated 3 July 2026). Sk Abd Razak R, Amsah N, Heng PP, Jane Ling MY, Mohtar N, Masdor NA, Othman R, Hod R, Idris IB. Barriers and facilitators of cervical cancer screening among female healthcare. professionals: a systematic review. BMC Public Health. 2026. doi:10.1186/s12889-026-27501-2. U.S. Centers for Disease Control and Prevention. Cancer: Reducing Structural Barriers Planning Guide. Published May 21, 2024. Accessed April 30, 2026, at https://www.cdc.gov/cancer/php/ebi-planning-guides/reducing-structural-barriers-planning-guide.html. Farajimakin O. Barriers to Cervical Cancer Screening: A Systematic Review. Cureus. 2024;16(7):e65555. doi:10.7759/cureus.65555. Self-collected vaginal specimens can be tested as an alternative specimen type when cervical sampling is either contraindicated or cervical samples otherwise cannot be obtained. Massad et al. Applying Results of Extended Genotyping to Management of Positive Cervicovaginal Human Papillomavirus Test Results: Enduring Guidelines Journal of Lower Genital Tract Disease • Volume 00, Number 00, Month 2025. Wright TC Jr, Parvu V, Stoler MH, et al. HPV infections and cytologic abnormalities in vaccinated women 21-34 years of age. There are currently two FDA-approved HPV tests with extended genotyping with different configurations. The BD Onclarity™ HPV Assay individually identifies 6 high-risk HPV genotypes and strategically groups 3 results for 8 moderate risk HPV genotypes. Contacts:
Molly Gluck
Director, Product and Thought Leadership Communications
Waters Corporation
+1.508.498.9732
[email protected]
Research collaboration aims to strengthen the science used to assess whether new medicines could be abused, supporting safer drug development and more informed regulatory decisions
, /PRNewswire/ -- Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, today announced a collaboration with the U.S. Food and Drug Administration (FDA) and Charles River Laboratories to advance the science used to evaluate a medicine's abuse potential, or the likelihood that it could be abused. The research aims to support safer drug development and more informed regulatory decisions.
The collaboration brings together complementary expertise from industry and government. Labcorp will contribute its experience conducting regulatory abuse potential studies, while FDA scientists will conduct data analysis and contribute regulatory science expertise. Together, the organizations aim to advance the science used to evaluate the risk that a medicine could be abused using harmonized behavioral economics methodology to quantify and rank abuse potential.
"This research has the potential to improve how abuse-related risks are evaluated and inform decisions throughout drug development and regulatory review," said Brian Caveney, M.D., EVP and president, biopharma laboratory services and chief medical and scientific officer, Labcorp. "Ultimately, this work can support safer therapies, stronger regulatory decision-making and improved protections for patients and communities."
Understanding how medicines and emerging substances may be used outside controlled settings is critical to protecting public health and informing regulatory decision-making. The collaboration aims to advance the science used to assess abuse-related risks and generate evidence that may help improve the prediction of real-world use patterns.
Labcorp has supported abuse potential evaluation studies since 2009, helping sponsors generate evidence used to inform scheduling, labeling and other regulatory decisions. The company's expertise is complemented by advanced toxicology capabilities that help identify and monitor illicit substances and emerging synthetic drugs, providing insights into evolving drug-use trends and emerging public health threats.
Together, these capabilities help researchers understand evolving drug-use trends, identify emerging threats and generate evidence that supports public health and regulatory decision-making.
For more information about Labcorp's abuse potential evaluation services, visit: https://www.labcorp.com/biopharma/nonclinical/therapeutics/abuse-liability.
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.
This press release contains forward-looking statements, including, but not limited to, statements with respect to the benefits of the collaborative study of the potential abuse of medicines.
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."
BURLINGTON, N.C., Oct. 21, 2026 /PRNewswire/ -- Labcorp Holdings Inc. (NYSE: LH), a global leader of innovative and comprehensive laboratory services, announced today that its Board of Directors has declared a cash dividend of $0.72 per share of common stock.
Labcorp Holdings Inc. (NYSE:LH) has agreed to acquire the prenatal health testing business of Myriad Genetics Inc. (NASDAQ:MYGN) in an all-cash transaction valued at $210 million, plus the value of the unit's inventory upon closing.
SALT LAKE CITY and BURLINGTON, N.C., Oct. 20, 2026 (GLOBE NEWSWIRE) -- Myriad Genetics, Inc. (NASDAQ: MYGN), a leader in molecular diagnostic testing and precision medicine, and Labcorp (NYSE: LH), a global leader in innovative and comprehensive laboratory services, today announce they have entered into a definitive agreement for Myriad to sell its Prenatal Health testing business, which includes the Prequel®, Foresight®, SneakPeek®, and FirstGene® tests, to Labcorp for $210 million in cash, plus the value of the inventory of the Prenatal Health testing business at closing.
“This announcement is the direct outcome of our disciplined strategic review process, which is focused on sharpening our portfolio, enhancing operational execution and driving shareholder value,” said Sam Raha, President and CEO, Myriad Genetics. “This transaction is expected to be accretive to Myriad’s revenue growth and profitability, while meaningfully strengthening the balance sheet to support continued investment in our strategic priorities tied to the cancer care continuum and long-term value creation. Working closely with Labcorp, one of the nation’s largest laboratory service providers, we expect a smooth transition that preserves uninterrupted patient access to our prenatal tests.”
When complete, the transaction is expected to provide more patients and physicians with expanded access to Labcorp’s comprehensive, high-quality laboratory services, convenient patient service center network, robust data analytics and digital tools.
"This transaction supports Labcorp's specialty testing growth strategy," said Bryan Vaughn, Executive Vice President and President of Diagnostics, Labcorp. “Myriad Genetics has built a highly complementary reproductive genetics platform, supported by innovative screening solutions and deep scientific expertise. By combining these capabilities with Labcorp's operational strength and high-quality women's health portfolio, we aim to improve outcomes, expand access to advanced screening solutions and enhance the patient and provider experience.”
Labcorp expects the transaction to add approximately $160 million in revenue in year one, to be slightly accretive to adjusted earnings in year one, and to reach average diagnostics segment margins by end of year two, once fully integrated.
Over the last twelve months, Myriad’s Prenatal Health testing portfolio has been used by thousands of providers and over 600,000 patients. Myriad plans to provide further commentary regarding this transaction, and other related organizational changes, on its third quarter earnings call on November 4, 2026.
The deal is subject to regulatory clearance and customary closing conditions, and the transaction is expected to close by early 2027.
Guggenheim Securities, LLC is acting as exclusive financial advisor, and Covington & Burlington LLP is acting as legal advisor to Myriad Genetics.
Barclays is acting as financial advisor, and Polsinelli is acting as legal advisor to Labcorp.
About Myriad Genetics
Myriad Genetics is a leading molecular diagnostic and precision medicine company committed to advancing health and well-being for all. Myriad Genetics develops and commercializes molecular tests that help patients and providers uncover genetic insights. Our tests assess the risk of developing disease or disease progression and guide treatment decisions across medical specialties where molecular insights can significantly improve patient care, support earlier detection, enable more precise treatment and contribute to lowering healthcare costs. For more information, visit myriad.com.
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.
Myriad Genetics Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the sale of Myriad’s Prenatal Health testing business; the expected benefits of the transaction, including that it will be accretive to Myriad’s revenue growth and profitability, strengthen its balance sheet, and support investment in its strategic priorities; and the expectation that the transaction will close by early 2027. These “forward-looking statements” are management’s expectations of future events as of the date hereof and are subject to known and unknown risks and uncertainties that could cause actual results, conditions, and events to differ materially and adversely from those anticipated. Such factors include those risks described in the Myriad’s filings with the U.S. Securities and Exchange Commission, including Myriad’s Annual Report on Form 10-K filed on February 24, 2026, as well as any updates to those risk factors filed from time to time in Myriad’s Quarterly Reports on Form 10-Q or Current Reports on Form 8-K. Myriad is not under any obligation, and it expressly disclaims any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise except as required by law.
This press release contains forward-looking statements, including, but not limited to, statements with respect to the anticipated benefits of the transaction for providers and patients, its advancement of Labcorp’s strategic priorities, and the expected financial impact of the transaction, including expected post-closing revenues and margins, and the timing of achieving such financial results.
Each of the forward-looking statements is subject to change based on various important factors, many of which are beyond Labcorp's control. These factors, in some cases, have affected and in the future (together with other factors) could affect Labcorp's ability to implement its 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.
Labcorp 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 Labcorp's most recent Annual Report on Form 10-K under the heading RISK FACTORS and in subsequent quarterly reports on Form 10-Q and its other filings with the SEC. The information in this press release should be read in conjunction with a review of Labcorp's filings with the SEC including the information in its most recent Annual Report on Form 10-K under the heading "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS".
Birch Hill Investment Advisors LLC decreased its position in Labcorp Holdings Inc. (NYSE:LH – Free Report) by 26.3% in the 3rd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm owned 37,629 shares of the medical research company’s stock after selling 13,439 shares during the period. Birch Hill Investment Advisors LLC’s holdings in Labcorp were worth $11,594,000 at the end of the most recent quarter.
Several other institutional investors and hedge funds have also modified their holdings of the business. Allied Private Wealth LLC acquired a new position in shares of Labcorp during the 2nd quarter worth about $33,000. Cedar Mountain Advisors LLC lifted its position in shares of Labcorp by 786.7% in the first quarter. Cedar Mountain Advisors LLC now owns 133 shares of the medical research company’s stock valued at $35,000 after buying an additional 118 shares during the last quarter. SHP Wealth Management acquired a new position in shares of Labcorp during the 4th quarter worth approximately $40,000. Jones Financial Companies Lllp acquired a new stake in Labcorp during the 2nd quarter valued at $58,000. Finally, Steph & Co. bought a new position in shares of Labcorp in the first quarter valued at about $64,000. 95.94% of the stock is currently owned by institutional investors and hedge funds.
Labcorp Trading Down 2.0% Shares of Labcorp stock opened at $318.44 on Friday. Labcorp Holdings Inc. has a 12-month low of $244.52 and a 12-month high of $341.80. The company has a current ratio of 1.80, a quick ratio of 1.53 and a debt-to-equity ratio of 0.69. The stock has a fifty day simple moving average of $320.58 and a 200 day simple moving average of $289.08. The company has a market capitalization of $25.83 billion, a P/E ratio of 26.34, a price-to-earnings-growth ratio of 1.81 and a beta of 0.87.
Labcorp (NYSE:LH – Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The medical research company reported $4.99 earnings per share for the quarter, beating the consensus estimate of $4.78 by $0.21. Labcorp had a net margin of 6.99% and a return on equity of 16.74%. The company had revenue of $3.73 billion during the quarter, compared to analyst estimates of $3.71 billion. During the same quarter in the prior year, the business earned $4.35 earnings per share. The firm’s revenue for the quarter was up 5.8% on a year-over-year basis. Labcorp has set its FY 2026 guidance at 18.100-18.550 EPS. On average, sell-side analysts anticipate that Labcorp Holdings Inc. will post 18.32 earnings per share for the current fiscal year. Wall Street Analyst Weigh In A number of equities research analysts have recently issued reports on LH shares. Barclays boosted their target price on shares of Labcorp from $320.00 to $330.00 and gave the company an “equal weight” rating in a research report on Friday, September 11th. Weiss Ratings upgraded shares of Labcorp from a “buy (b)” rating to a “buy (b+)” rating in a research report on Tuesday, October 6th. Piper Sandler lifted their price target on Labcorp from $300.00 to $309.00 and gave the company a “neutral” rating in a research note on Tuesday, August 4th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $306.00 price objective on shares of Labcorp in a research note on Friday, July 31st. Finally, JPMorgan Chase & Co. boosted their price objective on Labcorp from $330.00 to $360.00 and gave the stock an “overweight” rating in a research report on Monday, August 3rd. Eight investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $337.73.
View Our Latest Stock Report on Labcorp
Insider Buying and Selling at Labcorp In related news, CEO Adam H. Schechter sold 4,669 shares of the company’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $320.37, for a total value of $1,495,807.53. Following the sale, the chief executive officer owned 102,565 shares in the company, valued at $32,858,749.05. This represents a 4.35% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kerrii B. Anderson sold 3,000 shares of the business’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $318.02, for a total transaction of $954,060.00. Following the transaction, the director directly owned 6,563 shares of the company’s stock, valued at $2,087,165.26. The trade was a 31.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 8,593 shares of company stock worth $2,733,295 over the last three months. 0.84% of the stock is owned by insiders.
About Labcorp (Free Report)
Labcorp (NYSE:LH), formally Laboratory Corporation of America Holdings, is a global life sciences and laboratory services company headquartered in Burlington, North Carolina. The company provides diagnostic testing, drug development services and technology-enabled laboratory solutions to healthcare providers, pharmaceutical and biotechnology companies, government agencies and consumers.
Its diagnostics business offers routine and specialty laboratory testing, including testing related to oncology, women’s health, infectious diseases, genetics and genomics.
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Key Takeaways OPK agrees to sell select BioReference assets to Labcorp for $722M in cash, plus a potential $150M earnout.The deal includes the 4Kscore Test, specialty testing operations and more than 80 patient service centers.OPKO Health aims to focus on biopharma, while Labcorp expects $250M in first-year revenue from the deal. OPKO Health (OPK - Free Report) recently announced an agreement to sell select assets of its wholly owned subsidiary, BioReference Health, to Labcorp Holdings Inc. (LH - Free Report) for $722 million in cash at closing, subject to adjustments. As part of the deal, OPK will also sell BioReference's proprietary 4Kscore Test, with the agreement including an earnout of up to $150 million tied to revenues generated by the test.
The 4Kscore Test is an FDA-approved blood test that assesses the likelihood of aggressive prostate cancer before a biopsy decision.
Per management, the deal will allow OPKO Health to concentrate resources on its biopharmaceutical business. The company sees Labcorp’s national scale as an opportunity to expand access to BioReference’s 4Kscore Test and describes the transaction as an important catalyst for unlocking further value for shareholders.
OPK Stock Trend Following the NewsFollowing the announcement, OPK stock rose 17.5% at yesterday’s close. Year to date, the stock has gained 27.8% against the industry’s 2.3% decline. However, the S&P 500 has risen 12.9% in the same timeframe.
The divestiture could help OPKO Health simplify its business structure and direct greater attention and resources toward its biopharmaceutical portfolio. The upfront cash proceeds may provide financial flexibility to support strategic priorities, while the additional earnout offers potential upside if 4Kscore Test revenues meet the transaction’s terms. By transferring selected diagnostic assets to a larger laboratory operator, OPK could reduce the operational demands associated with these businesses and focus on advancing its pharmaceutical opportunities.
OPK currently has a market capitalization of $1.02 billion.
Image Source: Zacks Investment Research
More on the NewsOPKO Health’s BioReference has built a longstanding presence in laboratory diagnostics, particularly in New York and New Jersey, with specialty expertise in oncology, women’s health and urology. The business serves correctional institutions nationwide and remains the exclusive national commercial provider of the 4Kscore Test.
Through the transaction, OPK will transfer BioReference’s clinical and women’s health testing businesses, urology and corrections testing operations and certain other operational assets to Labcorp Holdings. The transaction also includes more than 80 additional patient service centers and the 4Kscore Test. Labcorp forecasts the acquired business to generate about $250 million in revenues during the first year after closing, based on its current post-closing estimates.
Bryan Vaughn, executive vice president and president of diagnostics at Labcorp, stated that the deal will strengthen the company’s ability to provide affordable, high-quality specialized diagnostic services to more patients and healthcare providers. Expanding its clinical, women’s health, urology and corrections testing capabilities, while increasing access to the 4Kscore Test, will help physicians make better-informed decisions, enhance patient care and improve access to essential laboratory services.
Both companies will continue operating independently until closing, with no changes to existing services or operations.
Industry Prospects Favoring the MarketAccording to Grand View Research, the global clinical laboratory services market is projected to reach $229.9 billion in 2026 and is estimated to witness a CAGR of 4.3% from 2026 to 2035.
Factors like the increasing burden of chronic disease prevalence, consequent demand for early diagnostic tests, rapid advances in data management and sample preparation due to growing volumes of testing samples are driving market growth.
Other NewsIn August, OPKO Health expanded its financing relationship with HealthCare Royalty, a KKR business, through the issuance of $125 million in additional senior secured notes backed by its royalty interests from the mazdutide license agreement with Eli Lilly. The notes mature in 2044, with total payments capped at 1.5 times the funded amount, allowing OPK to access non-dilutive capital while retaining long-term participation in mazdutide royalty growth in China.
OPK’s Zacks Rank & Other Key PicksCurrently, OPKO Health flaunts a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) and Merit Medical Systems (MMSI - Free Report) , each carrying a Zacks Rank #2 (Buy) at present.You can see the complete list of today’s Zacks #1 Rank stocks here.
Globus Medical reported a second-quarter 2026 adjusted EPS of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%.
GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.
Merit Medical Systems reported second-quarter 2026 adjusted EPS of $1.19, which beat the Zacks Consensus Estimate by 23.9%. Revenues of $418.8 million surpassed the Zacks Consensus Estimate by 3.5%.
MMSI has an estimated long-term earnings growth rate of 10.4%. MMSI’s earnings surpassed estimates in the trailing four quarters, the average surprise being 14.1%.
Labcorp Holdings Inc. (NYSE:LH) stock traded higher Thursday after the company agreed to acquire select assets of BioReference Health from OPKO Health Inc. (NASDAQ:OPK) in a deal worth up to $872 million.
OPKO Health shares surged nearly 8% following the announcement.
Labcorp Expands Diagnostic Testing BusinessUnder the agreement, Labcorp will pay $722 million in cash at closing, subject to adjustments based on the acquired business’s revenue.
The deal also includes up to $150 million in additional payments tied to revenue from BioReference’s 4Kscore Test.
Labcorp will acquire BioReference’s clinical and women’s health testing operations, urology and corrections testing businesses, and certain operational assets. The acquisition also includes more than 80 patient service centers.
A key part of the deal is the FDA-approved 4Kscore Test, a blood test that helps assess the likelihood of aggressive prostate cancer before a biopsy decision.
Labcorp expects the acquired operations to generate approximately $250 million in revenue during the first year after closing.
As of June 30, 2026, Labcorp held $141.8 million in cash and cash equivalents.
OPKO Health Shifts Focus to BiopharmaceuticalsLabcorp Diagnostics President Bryan Vaughn said the acquisition would expand access to specialized testing and strengthen the company’s clinical, women’s health and urology services.
He added that Labcorp’s national network would make advanced diagnostics, including the 4Kscore Test, available to more patients and health care providers.
For OPKO Health, the divestiture represents a strategic shift toward its core biopharmaceutical business.
Chairman and CEO Phillip Frost said the transaction would simplify operations, free up resources for biopharmaceutical development and help unlock shareholder value.
The companies expect Labcorp’s national network to expand access to BioReference’s diagnostic services.
Regulatory Approval Still PendingThe transaction remains subject to regulatory approvals and customary closing conditions.
Until the deal closes, Labcorp and OPKO Health will continue operating independently, with no changes to existing services.
Lazard is advising Labcorp, while Piper Sandler is serving as OPKO Health’s exclusive financial adviser.
Analyst Sees Value in BioReference DealWilliam Blair views Labcorp’s purchase multiple of less than three times forward sales as reasonable. Analyst Jared Haase said the 4Kscore Test is a particularly attractive asset because of its established clinical value and potential for wider adoption through Labcorp’s national network.
Price ActionPrice Action: Labcorp Holdings shares were up 1.79% at $323.01 and OPKO Health shares were up 17.88% at $1.61 at the time of publication on Thursday, according to Benzinga Pro data.
Acquisition will expand access to clinical laboratory services, including a broad specialty testing menu for patients and providers nationwide
, /PRNewswire/ -- Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, and OPKO Health, Inc. (Nasdaq: OPK), a multinational biopharmaceutical company, announced today that they have entered into an agreement for Labcorp to acquire select assets of BioReference Health, LLC, a wholly owned subsidiary of OPKO Health.
OPKO
Through this transaction, Labcorp will acquire BioReference Health's laboratory testing businesses focused on clinical and women's health testing services, urology, corrections and certain operational assets, including over 80 additional patient service centers. As part of the agreement, Labcorp will also acquire BioReference Health's proprietary 4Kscore® Test, an FDA-approved blood test that helps predict the likelihood of finding aggressive prostate cancer before a biopsy decision, making this important test more broadly available to patients across the country.
When complete, the transaction is expected to provide patients, physicians and customers with greater access to Labcorp's comprehensive, high-quality laboratory services, including a broad specialty testing menu, convenient patient service center network and robust data analytics and digital tools.
"This acquisition strengthens our ability to deliver affordable, high-quality, specialized diagnostic services to more patients and providers around the country," said Bryan Vaughn, Executive Vice President and President of Diagnostics at Labcorp. "By expanding our clinical, women's health, urology and corrections testing capabilities and broadening access to innovative diagnostics such as the FDA-approved 4Kscore Test, we can help providers make more informed decisions, improve patient care and increase access to the comprehensive laboratory services people need to live healthier lives."
"This transaction will allow OPKO to streamline operations and focus our resources on our biopharmaceutical business," said Phillip Frost, M.D., Chairman and Chief Executive Officer of OPKO. "Labcorp's national scale and capabilities will broaden patient and provider access to BioReference's 4Kscore Test to many more patients across the country. We believe this transaction is an important catalyst to further unlock additional value for our shareholders."
The purchase price for the transaction is $722 million in cash at closing, subject to an upward or downward adjustment (if any) based on closing business revenues, and up to an additional $150 million in an earnout based on revenue from the 4Kscore Test. Labcorp expects the business revenue to be approximately $250 million in the first year after close, based on Labcorp's current post-closing forecasts.
This transaction is subject to regulatory approvals and customary closing conditions. Until the transaction closes, there will be no changes to operations or services, and both companies will continue to operate independently.
Lazard is serving as Labcorp's financial advisor, Hogan Lovells Cadwalader US LLP is serving as lead transaction counsel and Parker Poe is serving as real estate counsel.
Piper Sandler & Co. is serving as OPKO's exclusive financial advisor, and Greenberg Traurig P.A. is serving as 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.
About OPKO
OPKO Health, Inc. (Nasdaq: OPK) is a multinational biopharmaceutical and diagnostics company that seeks to establish industry-leading positions in large, rapidly growing markets by leveraging its discovery, development, and commercialization expertise and novel and proprietary technologies. For more information, visit www.opko.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements with respect to (a) the anticipated impact of the transaction including expanding access to comprehensive, high-quality laboratory services, (b) increased access to testing services and expanded testing capabilities including with respect to the 4Kscore Test, (c) anticipated timing to closing, final purchase price, post-closing revenue, and earnout for the 4Kscore Test, (d) other anticipated potential benefits of the acquisition to Labcorp and OPKO Health, and (e) required regulatory approvals and customary closing conditions.
Each of the forward-looking statements is subject to change based on various important factors, many of which are beyond the control of Labcorp or OPKO Health. These factors, in some cases, have affected and in the future (together with other factors) could affect the ability of Labcorp or OKPO Health to implement its respective 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.
Neither Labcorp nor OPKO Health has any 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 each of Labcorp's and OPKO Health's most recent Annual Report on Form 10-K and subsequent Forms 10-Q, including in each case under the headings RISK FACTORS and MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS, and in each of Labcorp's and OPKO Health's other filings with the SEC.
First lab test offered in collaboration with Thrive Global Combines Labcorp's scientific expertise with Thrive Global's behavior change approach to help consumers turn health insights into healthier daily habits Delivers insights from five key cardiometabolic health indicators paired with educational content and recommended Thrive Microsteps® , /PRNewswire/ -- Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, today announced the launch of the Thrive 5 Health Test, the first lab test offered in collaboration with Arianna Huffington's behavior change technology company, Thrive Global. Available through Labcorp OnDemand, the offering pairs trusted health insights from Labcorp with Thrive Global's behavior change approach, giving consumers a better understanding of their health and practical ways to improve it.
"Too often, we get information about our health without guidance on what to do about it," said Arianna Huffington, founder and CEO of Thrive Global. "Through our collaboration with Labcorp, we are closing that gap by combining Thrive Global's behavior change approach with lab testing for the first time. Labcorp's scientific expertise helps people better understand what's happening inside their bodies, and Thrive Global then helps turn that understanding into small daily habits that improve health—whether they're managing a chronic condition or taking steps to protect their health for the future."
From Health Insights to Action
The Thrive 5 Health Test delivers insights from five cardiovascular, inflammatory and metabolic health indicators: ApoB for cholesterol-related cardiovascular risk, hs-CRP for inflammation, HbA1c for blood sugar, blood pressure and body mass index. Together, the five measures provide a more complete view of an individual's cardiometabolic health than any single measure alone and help identify areas where focused action may have a meaningful impact.
After receiving their results, consumers gain access to educational content from Thrive Global and recommended Thrive Microsteps®: small daily actions related to food, movement, sleep, stress management and connection that support sustainable behavior change. By combining health insights with actionable next steps, the Thrive 5 Health Test helps consumers better understand their cardiometabolic health and make meaningful changes to improve it.
"Arianna Huffington and Thrive Global have spent years helping people understand that better health is shaped not only by what we know, but by what we do every day," said Amy Summy, executive vice president and chief marketing officer at Labcorp. "By combining Labcorp's scientific expertise and nationwide network with Thrive Global's leadership in behavior change, we can help people move from knowing their numbers to understanding what they can do about them. That's a fundamentally more useful health experience for consumers."
Convenient Testing, Meaningful Insights
Consumers can purchase the Thrive 5 Health Test through Labcorp OnDemand and schedule testing at select Labcorp patient service centers nationwide. Results, educational content and recommended Thrive Microsteps are delivered through Labcorp's secure patient portal and MyLabcorp™ mobile app.1 Consumers can use this information to consult with their healthcare provider and determine whether additional follow-up is appropriate.
The Thrive 5 Health Test reflects Labcorp's commitment to creating new consumer health experiences that bring trusted scientific insights directly to individuals and help them take a more active role in improving their health.
To learn more or purchase the Thrive 5 Health Test, visit https://www.ondemand.labcorp.com/lab-tests/thrive-five-health-test.
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.
1All resources within this program are designed for general wellbeing support and are intended for informational purposes only. They do not constitute medical advice, clinical recommendations, or a substitute for the guidance of a qualified healthcare provider. Always consult your healthcare provider about guidelines that are right for you.
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Stock to Watch: Labcorp Holdings (LH - Free Report) Headquartered in Burlington, NC, Labcorp Holdings, Inc. (Labcorp) is a leading healthcare diagnostics company, providing comprehensive clinical laboratory services and end-to-end drug development support. In 2015, Labcorp acquired New Jersey-based Covance, a drug development services company providing a wide range of early stage and late-stage product development services on a worldwide basis primarily to the pharmaceutical and biotechnology industries.
LH is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 16.84; value investors should take notice.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.08 to $18.32 per share. LH boasts an average earnings surprise of +3.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, LH should be on investors' short list.
Key Takeaways Labcorp is expanding specialty testing in oncology, women's health, autoimmune disease and neurology.Labcorp's acquisitions and partnerships added to revenue growth and expanded access to specialty testing.Labcorp uses AI, automation and efficiency efforts to lift margins despite cost and reimbursement risks. Labcorp Holdings Inc. (LH - Free Report) , or Labcorp, is expanding in high-growth specialty testing markets while broadening its consumer testing business. Acquisitions, health-system relationships and new contracts are boosting the company’s reach and supporting growth. The company also continues to leverage artificial intelligence (AI), automation and operational initiatives to strengthen productivity and margins. Meanwhile, macroeconomic uncertainty and changing reimbursement policies could pressure Labcorp’s testing volumes, costs and cash flow.
Year to date, this Zacks Rank #3 (Hold) stock has risen 23.4% compared with the 4.8% growth of the industry and a 12.7% rise of the S&P 500 composite.
The renowned healthcare diagnostics company has a market capitalization of $25.11 billion. Labcorp’s earnings yield of 5.9% favorably compares with the industry’s 3.7% yield. In the trailing four quarters, the company delivered an average earnings surprise of 3.1%.
Let’s delve deeper.
Tailwinds for LabcorpTargeted Development in High-Growth Areas: Labcorp continues to expand in specialty testing areas such as oncology, women’s health, autoimmune disease and neurology. These areas delivered double-digit revenue growth during the first half of 2026 and helped the company win new health-system and provider customers. In oncology, Labcorp launched ColoSense nationwide, expanded companion diagnostic access for prostate cancer and added an advanced DPYD genotyping test. It also entered into a clinical trial collaboration to evaluate Plasma Detect Genome MRD in patients at risk of early-stage lung cancer recurrence. The consumer business maintained double-digit growth, supported by Labcorp OnDemand, Marker by Labcorp and new at-home testing options. Specialty patients also tend to require more tests over time, supporting continued growth in tests per accession and favorable mix.
Image Source: Zacks Investment Research
Strategic Acquisitions and Partnerships to Drive Growth: Labcorp continues to build relationships with health systems and regional laboratories, expanding its patient network and access to specialty testing. During the second quarter of 2026, the company completed acquisitions of select Parkview Health outreach laboratory services and Tribal Diagnostics. It also secured another Department of Defense contract to provide testing across military hospitals worldwide. Net acquisitions added 1.2% to enterprise revenue growth and 1.9% to Diagnostics growth during the quarter. Labcorp invested $225.7 million in acquisitions, and management described the deal pipeline as very active. The expanded collaboration with Epic also places more than 6,500 Labcorp tests on the Aura platform, simplifying access for healthcare providers and supporting deeper integration with health-system customers.
Focus on Operational Efficiency: Labcorp is using technology, automation and artificial intelligence to improve productivity and customer access. Enterprise adjusted operating margin expanded 70 basis points year over year to 15.8% in the second quarter of 2026. Diagnostics margin increased 50 basis points to 18%, while BLS margin rose 130 basis points to 17%. Management attributed the gains to organic growth, operating efficiencies and actions within Early Development. The Launchpad program remains on track, and management expects enterprise, Diagnostics and BLS margins to improve for full-year 2026. Labcorp also launched the AI-powered MyLabcorp application, enhanced scheduling at patient service centers and expanded its Epic collaboration.
What Ails Labcorp?Macroeconomic and Cost Risks: Labcorp depends on testing demand from patients, physicians, hospitals and biopharmaceutical customers. Economic volatility, inflation, geopolitical disruption and tariffs can affect customer spending, supply costs and laboratory operations. The cost of revenues increased 5.6% year over year in the second quarter of 2026 and 5.4% during the first half. Although margins expanded, continued cost inflation could require further productivity gains or pricing actions to protect profitability.
Reimbursement and Cash-Flow Constraints: Changes in government and third-party reimbursement remain a risk for the company’s Diagnostics arm. Management estimated that Affordable Care Act-related changes reduced second-quarter 2026 diagnostic volume by 20-30 basis points and continues to assume a 30-basis-point full-year impact. The affected payer group represents less than 4-5% of diagnostic volume, but further coverage changes could weaken utilization or collections.
LH Stock Estimate TrendIn the past 30 days, the Zacks Consensus Estimate for Labcorp’s 2026 earnings per share (EPS) has edged up 0.2% to $18.32.
The Zacks Consensus Estimate for 2026 revenues is pegged at $14.75 billion, implying 5.7% growth relative to the 2025 figure.
Key PicksSome better-ranked stocks in the broader medical space are Veracyte (VCYT - Free Report) , Phibro Animal Health (PAHC - Free Report) and Globus Medical (GMED - Free Report) .
Veracyte has an earnings yield of 4.7% against the industry’s negative 1.4% yield. Shares of the company have risen 35.3% compared with the industry’s 4.5% growth. VCYT’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 41.8%.
VCYT sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Phibro Animal Health, sporting a Zacks Rank #1, has an earnings yield of 10.2% compared with the industry’s 2.5% yield. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 18.4%. PAHC shares have fallen 8.9% against the industry’s 28% decline over the past year.
Globus Medical, sporting a Zacks Rank #1, has an earnings yield of 6.8% against the industry’s negative 1.7% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 27.9%. GMED shares have rallied 32.6% compared with the industry’s 4.5% growth over the past year.
Labcorp Holdings Inc. (NYSE:LH – Get Free Report) shares gapped down prior to trading on Tuesday . The stock had previously closed at $320.99, but opened at $303.46. Labcorp shares last traded at $313.95, with a volume of 129,255 shares traded.
Trending Headlines about Labcorp Here are the key news stories impacting Labcorp this week:
Positive Sentiment: At its 2026 Investor Day, Labcorp highlighted potential acquisitions and continued investment in laboratory technology. These initiatives could expand its testing capabilities, improve efficiency and support longer-term revenue growth. Labcorp Holdings Eyes Acquisitions and Lab Tech Investment After 2026 Investor Day Positive Sentiment: Labcorp reaffirmed its long-term earnings outlook, signaling continued confidence in demand for clinical testing and its operating strategy. The company’s previously reported quarterly results also exceeded analyst expectations for earnings and revenue. Labcorp Reaffirms Long-Term Earnings Outlook Positive Sentiment: Baird raised its price target for Labcorp to $361 from $352 and maintained an Outperform rating, indicating that the analyst sees upside despite industry and reimbursement risks. Baird Adjusts Price Target on Labcorp Holdings Positive Sentiment: Seeking Alpha upgraded LH to Buy, citing resilient diagnostic demand, new test launches, a diversified biopharma business and solid operating margins. The analysis also noted that Labcorp had outperformed broad-market and healthcare peers year to date. Labcorp’s Future Driven by Clinical Testing Demand Neutral Sentiment: Recent performance coverage indicates LH has generally lagged some competitors in the latest session, even though longer-term performance comparisons remain favorable. Labcorp Stock Underperforms Competitors Negative Sentiment: Medicare’s signals regarding cuts to payment rates for laboratory services weighed on Labcorp and Quest Diagnostics. Investors are concerned that lower reimbursement could pressure revenue, margins and earnings, creating the most immediate reason for the stock’s weakness. Quest Diagnostics and Labcorp Shares Fall on Medicare Payment Concerns Analyst Ratings Changes LH has been the topic of a number of recent research reports. Wall Street Zen raised Labcorp from a “hold” rating to a “buy” rating in a research report on Sunday, July 12th. JPMorgan Chase & Co. boosted their target price on shares of Labcorp from $330.00 to $360.00 and gave the stock an “overweight” rating in a report on Monday, August 3rd. Piper Sandler increased their price target on shares of Labcorp from $300.00 to $309.00 and gave the company a “neutral” rating in a research report on Tuesday, August 4th. Robert W. Baird set a $352.00 price target on shares of Labcorp in a report on Friday, July 31st. Finally, Bank of America lifted their price objective on shares of Labcorp from $300.00 to $320.00 and gave the stock a “buy” rating in a research report on Monday, July 13th. Nine research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $337.73.
Get Our Latest Report on Labcorp Labcorp Trading Down 2.4% The company has a 50 day moving average of $316.74 and a two-hundred day moving average of $283.82. The stock has a market capitalization of $24.65 billion, a PE ratio of 25.14, a P/E/G ratio of 1.77 and a beta of 0.88. The company has a debt-to-equity ratio of 0.69, a quick ratio of 1.53 and a current ratio of 1.80.
Labcorp (NYSE:LH – Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The medical research company reported $4.99 EPS for the quarter, beating analysts’ consensus estimates of $4.78 by $0.21. Labcorp had a return on equity of 16.74% and a net margin of 6.99%.The company had revenue of $3.73 billion during the quarter, compared to analysts’ expectations of $3.71 billion. During the same period last year, the business posted $4.35 earnings per share. The firm’s revenue was up 5.8% compared to the same quarter last year. Labcorp has set its FY 2026 guidance at 18.100-18.550 EPS. Sell-side analysts predict that Labcorp Holdings Inc. will post 18.32 EPS for the current year.
Labcorp Announces Dividend The business also recently announced a quarterly dividend, which was paid on Friday, September 11th. Investors of record on Friday, August 28th were paid a $0.72 dividend. The ex-dividend date was Friday, August 28th. This represents a $2.88 dividend on an annualized basis and a yield of 0.9%. Labcorp’s dividend payout ratio (DPR) is 23.82%.
Insider Activity at Labcorp In other Labcorp news, EVP Bryan Vaughn sold 234 shares of the company’s stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $286.19, for a total transaction of $66,968.46. Following the transaction, the executive vice president owned 6,746 shares in the company, valued at approximately $1,930,637.74. This represents a 3.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Kerrii Anderson sold 3,000 shares of the firm’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $318.02, for a total transaction of $954,060.00. Following the completion of the transaction, the director directly owned 6,563 shares of the company’s stock, valued at approximately $2,087,165.26. This represents a 31.37% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 8,919 shares of company stock worth $2,826,593 in the last 90 days. 0.84% of the stock is owned by insiders.
Hedge Funds Weigh In On Labcorp Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Hilton Head Capital Partners LLC acquired a new position in shares of Labcorp in the fourth quarter valued at about $27,000. Allied Private Wealth LLC acquired a new stake in shares of Labcorp during the second quarter worth about $33,000. Cedar Mountain Advisors LLC lifted its holdings in shares of Labcorp by 786.7% during the first quarter. Cedar Mountain Advisors LLC now owns 133 shares of the medical research company’s stock worth $35,000 after purchasing an additional 118 shares during the period. SHP Wealth Management purchased a new stake in Labcorp in the fourth quarter valued at approximately $40,000. Finally, REAP Financial Group LLC boosted its position in Labcorp by 20.4% in the fourth quarter. REAP Financial Group LLC now owns 218 shares of the medical research company’s stock valued at $55,000 after buying an additional 37 shares during the last quarter. Hedge funds and other institutional investors own 95.94% of the company’s stock.
Labcorp Company Profile (Get Free Report)
Labcorp (NYSE: LH), formerly Laboratory Corporation of America Holdings, is a global life sciences and laboratory services company headquartered in Burlington, North Carolina. The company provides diagnostic testing and related services to physicians, hospitals, health systems, employers, government agencies and consumers.
Its diagnostics business offers routine and specialty laboratory testing, including molecular, genetic, oncology, women’s health, infectious disease and pathology services.
Further Reading Five stocks we like better than Labcorp Chips to Bots: Qualcomm’s Agentic AI Breakout Ciena Fell 40%—Now One Analyst Sees 50% Upside Energy Transfer Taps the AI Power Boom Viking’s Obesity Edge May Be Staying Power, Not Weight Loss Receive News & Ratings for Labcorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Labcorp and related companies with MarketBeat.com's FREE daily email newsletter.
HCA Healthcare (NYSE:HCA – Get Free Report) and Labcorp (NYSE:LH – Get Free Report) are both large-cap healthcare companies, but which is the better business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, dividends, risk, valuation, profitability and institutional ownership.
Dividends HCA Healthcare pays an annual dividend of $3.12 per share and has a dividend yield of 0.7%. Labcorp pays an annual dividend of $2.88 per share and has a dividend yield of 0.9%. HCA Healthcare pays out 10.4% of its earnings in the form of a dividend. Labcorp pays out 23.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. HCA Healthcare has raised its dividend for 6 consecutive years.
Insider and Institutional Ownership 62.7% of HCA Healthcare shares are held by institutional investors. Comparatively, 95.9% of Labcorp shares are held by institutional investors. 1.5% of HCA Healthcare shares are held by company insiders. Comparatively, 0.8% of Labcorp shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Profitability This table compares HCA Healthcare and Labcorp’s net margins, return on equity and return on assets. Net Margins Return on Equity Return on Assets HCA Healthcare 8.77% -244.79% 11.10% Labcorp 6.99% 16.74% 7.81% Analyst Ratings This is a summary of current ratings and recommmendations for HCA Healthcare and Labcorp, as reported by MarketBeat.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score HCA Healthcare 1 8 15 0 2.58 Labcorp 0 3 9 0 2.75 HCA Healthcare presently has a consensus price target of $463.70, indicating a potential upside of 6.18%. Labcorp has a consensus price target of $337.73, indicating a potential upside of 11.12%. Given Labcorp’s stronger consensus rating and higher possible upside, analysts plainly believe Labcorp is more favorable than HCA Healthcare.
Volatility and Risk HCA Healthcare has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500. Comparatively, Labcorp has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.
Earnings & Valuation This table compares HCA Healthcare and Labcorp”s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio HCA Healthcare $75.60 billion 1.25 $6.78 billion $29.87 14.62 Labcorp $13.95 billion 1.77 $876.50 million $12.09 25.14 HCA Healthcare has higher revenue and earnings than Labcorp. HCA Healthcare is trading at a lower price-to-earnings ratio than Labcorp, indicating that it is currently the more affordable of the two stocks.
Summary HCA Healthcare beats Labcorp on 10 of the 17 factors compared between the two stocks.
About HCA Healthcare (Get Free Report)
HCA Healthcare, Inc., through its subsidiaries, owns and operates hospitals and related healthcare entities in the United States. It operates general and acute care hospitals that offers medical and surgical services, including inpatient care, intensive care, cardiac care, diagnostic, and emergency services; and outpatient services, such as outpatient surgery, laboratory, radiology, respiratory therapy, cardiology, and physical therapy. The company also operates outpatient health care facilities consisting of freestanding ambulatory surgery centers, freestanding emergency care facilities, urgent care facilities, walk-in clinics, diagnostic and imaging centers, rehabilitation and physical therapy centers, radiation and oncology therapy centers, physician practices, and various other facilities. In addition, it operates behavioral hospitals, which provide therapeutic programs comprising child, adolescent and adult psychiatric care, adolescent and adult alcohol, drug abuse treatment, and counseling services. The company was formerly known as HCA Holdings, Inc. HCA Healthcare, Inc. was founded in 1968 and is headquartered in Nashville, Tennessee.
About Labcorp (Get Free Report)
Labcorp Holdings, Inc. engages in providing medical testing services. The company was founded on April 16, 2024 and is headquartered in Burlington, NC.
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
SummaryLabcorp Holdings Inc. is upgraded to Buy, supported by resilient demand for diagnostics and robust Q2 results, despite upcoming Medicare rate cuts.LH outperformed both the S&P 500 and healthcare peers YTD, with strong technical support and positive operating margins.Revenue durability, new test launches, and a diversified biopharma segment bolster LH's growth and risk profile amid regulatory headwinds.LH stock valuation appears modest, with total return forecasted to exceed a 9.9% hurdle rate by 2027, positioning LH as a long-term growth and safe dividend play. Dragos Condrea/iStock via Getty Images
A $26B Lab Company Prone To Public Policy and Regulatory Impacts While I was reading over the Seeking Alpha news desk this week, one story from the healthcare sector really stood out, highlighting just how some
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Medical testing giant Labcorp Holdings (LH -2.66%) stock slipped 3.3% through 11:05 a.m. Tuesday, after the Centers for Medicare & Medicaid Services (CMS) disclosed Monday that they've been paying about 16% more for lab work than private insurers pay.
No longer.
Effective Jan. 1, 2027, CMS says it will cut reimbursement rates for lab costs by up to 15%.
Image source: Getty Images.
What this means for Labcorp (and for you) CMS estimates the reduced reimbursement rates will save taxpayers $1 billion per year. Unfortunately for Labcorp, though, these savings will come directly out of its own revenue stream.
In its latest 10-K filing with the SEC, Labcorp highlighted a reduction in the rates it receives from Medicare and Medicaid as one key risk to investing in Labcorp stock, warning that "its revenues, profitability, and cash flows may be materially impacted" by such an action by CMS. The question is: how badly might Labcorp be hurt?
And the answer: According to this same 10-K filing, Labcorp got approximately 8% of its revenue from CMS reimbursement in 2025.
Premium Feature
Moneyball Superscore
78/100
Today's Change
(
-2.66
%) $
-8.55
Current Price
$
312.44
What's next for Labcorp? And now we can do a little math. A 15% reduction to an 8% revenue stream implies that if CMS reduces its rates by the full 15%, Labcorp's annual revenue would decrease by 1.2%. Now, Labcorp notes that successive 15% per year reductions are possible from 2027 through 2029. This still implies that the worst-case scenario for Labcorp is about a 3.6% reduction in its business.
With Labcorp stock down 3.3%, that worst-case scenario has been just about priced into the stock today. From where I sit, that means there's little reason to expect Labcorp stock to keep going down after today.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Labcorp Holdings Inc. (LH) Morgan Stanley 24th Annual Global Healthcare Conference September 15, 2026 11:30 AM EDT
Company Participants
Adam Schechter - President, CEO & Chairman
Julia Wang - CFO & Executive VP
Conference Call Participants
Erin Wilson Wright - Morgan Stanley, Research Division
Presentation
Erin Wilson Wright
Morgan Stanley, Research Division
Good afternoon, everyone, and welcome to the Morgan Stanley Global Healthcare Conference. I'm Erin Wright, the lead health care services analyst at Morgan Stanley. For more important disclosures, please see the Morgan Stanley research disclosure website at morganstanley.com/researchdisclosures.
And with that, we're happy to have Labcorp with us today, hot on the heels of their Investor Day last week, CEO, Adam Schechter; as well as CFO, Julia Wang, are with us today. Thank you so much for joining us.
Question-and-Answer Session
Erin Wilson Wright
Morgan Stanley, Research Division
Let's kick it off with just a bigger picture question on the back of the Investor Day. Some of your high-level takeaways that you wanted to drive home for investors. You reaffirmed the long-term kind of guide or largely reaffirmed the long-term guide with some tweaks. And can you kind of break down some of those building blocks and how you think about the long term for Labcorp?
Adam Schechter
President, CEO & Chairman
Absolutely. Good afternoon, everybody. Erin, thanks for having us. It's a pleasure to be here. So last week, we had our Investor Day. And the first thing we did was we showed data on the last 3 years when we provided longer-term guidance and showed that we were able to achieve exactly what we committed to achieving.
The second thing we did was we reaffirmed our guidance for the rest of 2026, which we feel very strongly about, remains compelling, and we reaffirmed that guidance. The third thing we did
Labcorp Holdings Inc. (LH) Analyst/Investor Day September 10, 2026 9:00 AM EDT
Company Participants
Dewey Steadman - Senior Vice President of Investor Relations
Adam Schechter - President, CEO & Chairman
Bryan Vaughn - EVP & President of Diagnostics
Brian Caveney - Exec VP, President of Biopharma Laboratory Services & Chief Medical and Scientific Officer
Shakti Ramkissoon
Akinbolade Oyegunwa - Executive VP and Chief Information & Technology Officer
Julia Wang - CFO & Executive VP
Conference Call Participants
David MacDonald - Truist Securities, Inc., Research Division
Lisa Gill - JPMorgan Chase & Co, Research Division
Erin Wilson Wright - Morgan Stanley, Research Division
Elizabeth Anderson - Evercore ISI Institutional Equities, Research Division
Michael Cherny - Leerink Partners LLC, Research Division
Lu Li - BofA Securities, Research Division
David Westenberg - Piper Sandler & Co., Research Division
Pito Chickering - Deutsche Bank AG, Research Division
Eric Coldwell - Robert W. Baird & Co. Incorporated, Research Division
Kevin Caliendo - UBS Investment Bank, Research Division
Presentation
Operator
Good morning, everyone. We're going to get started. Please welcome Dewey Steadman, Senior Vice President, Investor Relations.
Dewey Steadman
Senior Vice President of Investor Relations
So welcome, everyone. I'm not mic'd up. Welcome, everyone, to Labcorp's 2026 Investor Day. Before we get started, please note that our presentations will include forward-looking statements. These statements are subject to change based on various factors, many of which are beyond our control. More information is included in our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q and other filings with the SEC.
Our presentation today will include adjusted financial measures, and please see the use of adjusted measures section within our presentation for more information about the use of adjusted non-GAAP financial measures.
We'll kick off today's Investor Day with our Chairman and CEO, Adam Schechter, outlining our strategy, market differentiation and avenues for enterprise growth. Then we'll have business
Reaffirming Financial TargetsThe company validated its full-year 2026 financial guidance. Management anticipates adjusted earnings per share between $18.10 and $18.55, surpassing the Wall Street estimate of $18.01.
Furthermore, the firm expects 2026 sales between $14.710 billion and $14.827 billion, edging past the $14.707 billion estimate.
The guidance reflects Diagnostics Laboratories’ sales estimate of $11.45 billion-$11.53 billion, and Biopharma Laboratory Services sales of $3.269 billion-$3.30 billion.
Long-Term Growth ProjectionsLooking ahead to 2029, the diagnostic testing maker provided an optimistic financial outlook. Management targets a compound annual revenue growth rate of 5% to 8%.
Additionally, the company expects compound annual adjusted EPS growth of 8.5% to 11.5%.
By the end of 2029, the firm aims to expand its adjusted operating margin by 75 to 150 basis points. Compound annual free cash flow growth should mirror the adjusted earnings growth over this period.
Read Next
Strategic Focus AreasTo achieve these financial milestones, the health care giant established four core strategic priorities.
First, the company plans to spearhead specialty testing by driving innovation in oncology, neurology, autoimmune diseases, and women’s health.
Second, management wants to solidify the firm’s position as a preferred partner for health systems and pharmaceutical companies by utilizing distinct operational and scientific capabilities.
Third, the enterprise will push personalized health solutions forward, deploying scientific insights to guide therapy development and selection.
Finally, advanced technology will shape the organization’s future operations. The firm plans to integrate artificial intelligence and robotics to scale its tailored health care experiences and maintain industry leadership.
LH Stock Price Activity: Labcorp shares were down 3.73% to $309.12 at the time of publication on Thursday, according to Benzinga Pro data.
Concurrent Investment Advisors LLC grew its holdings in Labcorp Holdings Inc. (NYSE:LH – Free Report) by 64.4% in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 5,369 shares of the medical research company’s stock after purchasing an additional 2,103 shares during the period. Concurrent Investment Advisors LLC’s holdings in Labcorp were worth $1,504,000 as of its most recent SEC filing.
Other hedge funds and other institutional investors have also modified their holdings of the company. Victory Capital Management Inc. lifted its stake in Labcorp by 103.1% in the 4th quarter. Victory Capital Management Inc. now owns 5,356,825 shares of the medical research company’s stock worth $1,343,922,000 after acquiring an additional 2,719,475 shares in the last quarter. Allspring Global Investments Holdings LLC grew its stake in Labcorp by 1.0% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 2,226,446 shares of the medical research company’s stock valued at $607,241,000 after acquiring an additional 22,170 shares in the last quarter. Geode Capital Management LLC grew its stake in Labcorp by 0.6% during the 4th quarter. Geode Capital Management LLC now owns 2,137,010 shares of the medical research company’s stock valued at $534,023,000 after acquiring an additional 13,775 shares in the last quarter. Wellington Management Group LLP increased its holdings in shares of Labcorp by 15.9% in the 3rd quarter. Wellington Management Group LLP now owns 2,105,791 shares of the medical research company’s stock valued at $604,488,000 after purchasing an additional 289,029 shares during the period. Finally, Boston Partners purchased a new stake in shares of Labcorp in the fourth quarter worth approximately $480,271,000. Institutional investors and hedge funds own 95.94% of the company’s stock.
Insider Buying and Selling In other news, CEO Adam Schechter sold 4,669 shares of the stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $320.37, for a total transaction of $1,495,807.53. Following the transaction, the chief executive officer owned 102,565 shares in the company, valued at $32,858,749.05. This represents a 4.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kerrii Anderson sold 3,000 shares of the firm’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $318.02, for a total transaction of $954,060.00. Following the transaction, the director owned 6,563 shares in the company, valued at $2,087,165.26. This represents a 31.37% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 8,919 shares of company stock valued at $2,826,593. 0.84% of the stock is owned by company insiders.
Labcorp Stock Down 1.1% Shares of Labcorp stock opened at $321.17 on Thursday. The firm has a market cap of $26.05 billion, a price-to-earnings ratio of 26.56, a P/E/G ratio of 1.84 and a beta of 0.88. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.80 and a quick ratio of 1.53. Labcorp Holdings Inc. has a 52-week low of $244.52 and a 52-week high of $341.80. The stock has a 50-day simple moving average of $309.48 and a 200-day simple moving average of $281.56. Labcorp (NYSE:LH – Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The medical research company reported $4.99 EPS for the quarter, beating the consensus estimate of $4.78 by $0.21. Labcorp had a return on equity of 16.74% and a net margin of 6.99%.The business had revenue of $3.73 billion during the quarter, compared to analysts’ expectations of $3.71 billion. During the same quarter in the previous year, the business posted $4.35 EPS. The firm’s quarterly revenue was up 5.8% compared to the same quarter last year. Labcorp has set its FY 2026 guidance at 18.100-18.550 EPS. On average, equities research analysts expect that Labcorp Holdings Inc. will post 18.32 earnings per share for the current fiscal year.
Labcorp Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Friday, September 11th. Shareholders of record on Friday, August 28th will be given a $0.72 dividend. This represents a $2.88 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Friday, August 28th. Labcorp’s payout ratio is currently 23.82%.
Wall Street Analyst Weigh In Several analysts recently commented on the stock. Truist Financial raised their price target on shares of Labcorp from $320.00 to $350.00 and gave the stock a “buy” rating in a report on Friday, July 31st. Robert W. Baird set a $352.00 price objective on shares of Labcorp in a research note on Friday, July 31st. Morgan Stanley increased their target price on shares of Labcorp from $308.00 to $338.00 and gave the stock an “overweight” rating in a research report on Friday, July 31st. Piper Sandler lifted their target price on shares of Labcorp from $300.00 to $309.00 and gave the company a “neutral” rating in a research note on Tuesday, August 4th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Labcorp from $330.00 to $360.00 and gave the company an “overweight” rating in a report on Monday, August 3rd. Nine equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Labcorp currently has an average rating of “Moderate Buy” and an average target price of $330.00.
View Our Latest Stock Report on LH
Labcorp Profile (Free Report)
Labcorp (NYSE: LH), formerly Laboratory Corporation of America Holdings, is a global life sciences and laboratory services company headquartered in Burlington, North Carolina. The company provides diagnostic testing and related services to physicians, hospitals, health systems, employers, government agencies and consumers.
Its diagnostics business offers routine and specialty laboratory testing, including molecular, genetic, oncology, women’s health, infectious disease and pathology services.
Further Reading Five stocks we like better than Labcorp Qualcomm’s Data Center Bet Looks More Real After Amazon’s AI Deal GE Aerospace’s $11.75B Deal Puts Howmet Aerospace in Focus Casey’s Post-Earnings Drop May Give Investors a Better Entry Into a Quality Retailer Sovereign AI: Palantir and Nebius Cut the Cloud Cord Want to see what other hedge funds are holding LH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Labcorp Holdings Inc. (NYSE:LH – Free Report).
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Reaffirms full-year 2026 guidance Provides long-term outlook through 2029, with compound annual revenue growth of 5% to 8% and compound annual adjusted earnings per share (EPS) growth of 8.5% to 11.5% Outlines strategic growth priorities driven by a differentiated platform powered by science, technology and global scale Presents long-term value creation framework driven by sustainable growth, strong cash flow generation and disciplined capital deployment , /PRNewswire/ -- Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, today will host its 2026 Investor Day at 9 a.m. ET, where the company will provide an in-depth review of its growth strategy, innovation roadmap and long-term financial outlook. The event will highlight Labcorp's unique position at the intersection of diagnostics, biopharma, science and technology and how the company is creating long-term value for customers and shareholders.
"Labcorp has never been more relevant than it is today," said Adam Schechter, Chairman and CEO of Labcorp. "The healthcare landscape is being transformed by scientific innovation, personalized medicine and consumer-directed care, and the strengths of Labcorp will help shape the future of healthcare. Labcorp's growth strategy supports our expectation for above-market performance and underpins our long-term outlook through 2029 of compound annual growth of 5% to 8% in revenue and 8.5% to 11.5% in adjusted earnings per share."
Strategic Priorities Focused on High-Growth Areas
At Investor Day, Labcorp will highlight the four strategic priorities that are driving its next phase of growth and strengthening its leadership position across the healthcare ecosystem. These priorities are:
Leading in specialty testing through continued innovation in oncology, neurology, autoimmune diseases and women's health. Being a partner of choice for health systems and leading pharmaceutical companies through differentiated scientific and operational capabilities. Driving personalized health solutions using science and insights to help develop therapies, inform therapy selection and deliver tailored experiences at scale. Shaping the company's future through advanced technology, including artificial intelligence and robotics. Long-Term Financial Outlook
In addition to reaffirming its 2026 guidance, Labcorp will discuss its outlook through 2029. Specifically, the company expects to achieve:
Compound annual revenue growth between 5% and 8% Adjusted operating margin expansion between 75 and 150 basis points by the end of 2029 Compound annual adjusted EPS growth between 8.5% and 11.5% Compound annual free cash flow growth in line with adjusted earnings growth "Our confidence in this outlook is grounded in a proven record of delivering on our commitments and a disciplined value creation framework that converts growth into earnings, cash flow and shareholder returns," said Julia Wang, Executive Vice President and Chief Financial Officer.
Webcast
A live webcast of the event will be available through the Labcorp Investor Relations website beginning at 9 a.m. ET. A replay of the webcast and supporting materials will be available after the conclusion of the event.
Guidance for 2026
Labcorp is affirming 2026 full-year guidance, last updated on July 30, 2026. 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.
2026 Guidance
Low
High
Revenue
Labcorp Enterprise (1)(2)
$14,710
$14,827
Growth (3)
5.4 %
6.3 %
Diagnostics Laboratories
$11,450
$11,532
Growth (3)
5.3 %
6.0 %
Biopharma Laboratory Services (4)
$3,269
$3,300
Growth (3)
5.5 %
6.5 %
Adjusted EPS
$18.10
$18.55
Free Cash Flow
$1,240
$1,360
(1) 2026 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 Biopharma Laboratory Services guidance includes an impact from foreign currency translation of 1.5%.
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.
Use of Adjusted Measures
The company has provided in this press release "adjusted" financial information that has not been prepared in accordance with GAAP, including adjusted EPS (or adjusted net income per share), adjusted operating margin, and free cash flow. Moreover, the company is not able to provide reconciliations of these adjusted measures on a forward-looking basis because it is unable to predict, without unreasonable effort, certain components thereof. As such, any associated estimate and its impact on these measures could vary materially, and the company cannot address the probable significance of unavailable 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.
Non-GAAP adjusted measures should not be considered as an alternative to the corresponding measures prepared in accordance with GAAP, and these adjusted measures may be different from and not directly comparable to the measures presented by other companies.
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, the long-term financial outlook, and the long-term capital deployment strategy, and related assumptions of each, (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) current and future offerings, capabilities, and business strategies, including those related to high-growth specialty areas, (iv) expected savings, synergies and other benefits to the company, customers or patients from acquisitions and other transactions, partnerships, company initiatives and investments, (v) the use of technology, including the use of artificial intelligence (AI), and expected operational efficiencies, revenue growth, impacts on customer and patient experience and access, and other benefits from the use of such technologies, and (vi) 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 preferences and 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) failures of, or adverse events relating to, the company's information technology systems, programs, or processes or the company's 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".
GREENWICH, Conn. and MÖNCHENGLADBACH, Germany--(BUSINESS WIRE)--Great Point Partners (“GPP”), a Greenwich-based private investment firm focused exclusively on the health care industry, is pleased to announce that it has sold GPP III portfolio company, MLM Medical Labs (“MLM”), to Labcorp. MLM is a leading provider of global central and specialty lab services supporting clinical trials, biomarker testing, and drug development in the life sciences and biopharma industries.Rohan Saikia, Managing Di.
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."
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Stock to Watch: Labcorp Holdings (LH - Free Report) Headquartered in Burlington, NC, Labcorp Holdings, Inc. (Labcorp) is a leading healthcare diagnostics company, providing comprehensive clinical laboratory services and end-to-end drug development support. In 2015, Labcorp acquired New Jersey-based Covance, a drug development services company providing a wide range of early stage and late-stage product development services on a worldwide basis primarily to the pharmaceutical and biotechnology industries.
LH is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 17.84; value investors should take notice.
Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.32 to $18.32 per share. LH also boasts an average earnings surprise of +3.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, LH should be on investors' short list.
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.8% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Labcorp Holdings (LH - Free Report) Headquartered in Burlington, NC, Labcorp Holdings, Inc. (Labcorp) is a leading healthcare diagnostics company, providing comprehensive clinical laboratory services and end-to-end drug development support. In 2015, Labcorp acquired New Jersey-based Covance, a drug development services company providing a wide range of early stage and late-stage product development services on a worldwide basis primarily to the pharmaceutical and biotechnology industries.
LH is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Medical stock. LH has a Momentum Style Score of B, and shares are up 4.9% over the past four weeks.
Eight analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.32 to $18.32 per share. LH also boasts an average earnings surprise of +3.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, LH should be on investors' short list.
Enhanced digital experience designed to improve visibility, simplify workflows and support faster decision-making
, /PRNewswire/ -- Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory solutions, today announced enhancements to the digital experience of Labcorp Global Trial Connect™, the company's portfolio of clinical trial services, data and technology that enhances and accelerates delivery. The newly redesigned platform introduces new capabilities across the Labcorp Sponsor™ and Labcorp Investigator™ portal experiences of Global Trial Connect, providing greater visibility across studies, simplifying workflows and helping sponsors and investigator sites make faster, more informed decisions.
Labcorp Global Trial Connect "As clinical trials become increasingly complex, sponsors and investigator sites need technology that helps them work more effectively," said Brian Caveney, M.D., EVP and president, Biopharma Laboratory Services and chief medical and scientific officer, Labcorp. "The latest enhancements to Global Trial Connect make it easier to access insights, manage study activities and navigate trial complexity with confidence, allowing customers to focus less on operational tasks and more on advancing research and supporting patients."
Designed with Customers, for Customers
Guided by input from more than 80 sponsors and 100 investigator sites worldwide, the latest enhancements to Global Trial Connect were informed by extensive customer feedback, product testing and direct input. Key updates include:
A more intuitive user experience with simplified navigation and role-based customization Streamlined study management with integrated tools for study oversight, reporting and supply tracking Embedded in-portal kit ordering that reduces manual data entry by 75% while optimizing inventory oversight and management Greater visibility into study performance through a unified Study Oversight Dashboard that brings together study, site, sample and supply insights in a single view Simplified report creation with a new Report Wizard that guides users through building and customizing reports to meet their needs Enhanced sample visibility through end-to-end tracking across the sample lifecycle Advancing the Future of Clinical Trial Delivery
These enhancements represent the latest milestone in Labcorp's ongoing investment in digital solutions across its Biopharma Laboratory Services business, helping sponsors and investigator sites deliver high-quality clinical trials more efficiently. Through continued collaboration with customers, Labcorp will further evolve Global Trial Connect to address emerging industry challenges and provide a more connected experience across the clinical trial lifecycle.
To learn more about the latest capabilities and watch an overview video of the enhancements, visit the Global Trial Connect page https://www.labcorp.com/biopharma/central-labs/global-trial-connect.
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.
Key Takeaways Labcorp is expanding specialty testing in oncology, women's health, autoimmune disease and neurology.Acquisitions and partnerships added to revenue growth and expanded Labcorp's health-system reach.Reimbursement changes and rising costs could pressure LH's Diagnostics utilization and profitability. Labcorp Holdings Inc. (LH - Free Report) , or Labcorp, is set to benefit from the expansion of its testing capabilities in strategic high-growth areas, including neurology and autoimmune disease. The company’s efforts to enhance its partnership with hospitals and health care systems have strengthened its footprint in important markets. Solid financial health also adds to the stock’s appeal. Yet, broader economic pressures and reimbursement-related headwinds may weigh on its results.
Over the past year, this Zacks Rank #3 (Hold) stock has risen 21.9% compared with the 13.4% growth of the industry and a 20.8% rise of the S&P 500 composite.
The renowned healthcare diagnostics company has a market capitalization of $27.28 billion. Labcorp’s earnings yield of 5.4% favorably compares with the industry’s 3.9% yield. In the trailing four quarters, the company delivered an average earnings surprise of 3.1%.
Let’s delve deeper.
Tailwinds for LabcorpTargeted Development in High-Growth Areas: Labcorp continues to expand in specialty testing areas such as oncology, women’s health, autoimmune disease and neurology. These areas delivered double-digit revenue growth during the first half of 2026 and helped the company win new health-system and provider customers.
In oncology, Labcorp launched ColoSense nationwide, expanded companion diagnostic access for prostate cancer and added an advanced DPYD genotyping test. It also entered into a clinical trial collaboration to evaluate Plasma Detect Genome MRD in patients at risk of early-stage lung cancer recurrence. The consumer business maintained double-digit growth, supported by Labcorp OnDemand, Marker by Labcorp and new at-home testing options. Specialty patients also tend to require more tests over time, supporting continued growth in tests per accession and favorable mix.
Image Source: Zacks Investment Research
Strategic Acquisitions and Partnerships to Drive Growth: Labcorp continues to build relationships with health systems and regional laboratories, expanding its patient network and access to specialty testing. During the second quarter of 2026, the company completed acquisitions of select Parkview Health outreach laboratory services and Tribal Diagnostics. It also secured another Department of Defense contract to provide testing across military hospitals worldwide.
Net acquisitions added 1.2% to enterprise revenue growth and 1.9% to Diagnostics growth during the quarter. The expanded collaboration with Epic also places more than 6,500 Labcorp tests on the Aura platform, simplifying access for healthcare providers and supporting deeper integration with health-system customers.
Solvency, Buybacks and Dividends: Labcorp ended the second quarter of 2026 with cash and cash equivalents of $141.8 million. Short-term borrowings and the current portion of long-term debt were $0.9 million, much lower than the cash level. The company also retired $500 million of senior notes during the quarter. Labcorp repurchased $353.8 million of stock and paid $58.7 million in dividends during the second quarter. In July 2026, the board increased the share-repurchase authorization by $1 billion, bringing the remaining authorization to $1.4 billion.
What Ails Labcorp?Macroeconomic and Cost Risks: Labcorp depends on testing demand from patients, physicians, hospitals and biopharmaceutical customers. Economic volatility, inflation, geopolitical disruption and tariffs can affect customer spending, supply costs and laboratory operations. The cost of revenues increased 5.6% year over year in the second quarter of 2026 and 5.4% during the first half. Although margins expanded, continued cost inflation could require further productivity gains or pricing actions to protect profitability. The biopharmaceutical business also remains exposed to changes in research budgets, study timing and customer funding, particularly within smaller biotech companies and Early Development programs.
Reimbursement and Cash Flow Constraints: Changes in government and third-party reimbursement remain a risk for the Diagnostics arm. Management estimated that Affordable Care Act-related changes reduced second-quarter 2026 diagnostic volume by 20-30 basis points and continues to assume a 30-basis-point full-year impact. The affected payer group represents less than 4-5% of diagnostic volume, but further coverage changes could weaken utilization or collections.
LH Stock Estimate TrendIn the past 30 days, the Zacks Consensus Estimate for Labcorp’s 2026 earnings per share (EPS) has edged up 1.6% to $18.28.
The Zacks Consensus Estimate for 2026 revenues is pegged at $14.75 billion, implying 5.7% growth relative to the 2025 figure.
Key PicksSome better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Veracyte (VCYT - Free Report) and Teleflex (TFX - Free Report) .
Globus Medical has an earnings yield of 5.8% compared to the industry’s negative 1.7% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 27.9%. GMED shares have rallied 37% against the industry’s 2.7% 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.
Veracyte, sporting a Zacks Rank #1, has an earnings yield of 4.6% against the industry’s negative 1.7% yield. Shares of the company have risen 40.3% against the industry’s 2.7% decline. VCYT’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 41.8%.
Teleflex, carrying a Zacks Rank #2 (Buy), has an estimated long-term earnings growth rate of 20.7% compared with the industry’s 12.8% growth. Its earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.2%. TFX shares have rallied 8.5% against the industry’s 2.7% decline over the past year.
BURLINGTON, N.C., Aug. 28, 2026 /PRNewswire/ -- Labcorp (NYSE: LH), a global leader of innovative and comprehensive laboratory services, announced today that members of the executive management team will participate in a fireside chat at the Morgan Stanley 24th Annual Global Healthcare Conference on Tuesday, Sept.
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."
Collaboration will support leadership development, practice improvement and innovation across the nation's Community Health Centers BURLINGTON, N.C. and BETHESDA, Md.
Shares of Labcorp Holdings Inc. (NYSE:LH – Get Free Report) hit a new 52-week high during trading on Tuesday . The stock traded as high as $326.89 and last traded at $323.18, with a volume of 786484 shares changing hands. The stock had previously closed at $318.13.
Analysts Set New Price Targets Several research analysts recently weighed in on the stock. Piper Sandler boosted their price target on shares of Labcorp from $300.00 to $309.00 and gave the stock a “neutral” rating in a report on Tuesday, August 4th. Robert W. Baird set a $352.00 price objective on shares of Labcorp in a report on Friday, July 31st. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $306.00 target price on shares of Labcorp in a report on Friday, July 31st. Wall Street Zen upgraded Labcorp from a “hold” rating to a “buy” rating in a research report on Sunday, July 12th. Finally, Morgan Stanley raised their price target on Labcorp from $308.00 to $338.00 and gave the stock an “overweight” rating in a research note on Friday, July 31st. Nine research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $330.00.
View Our Latest Report on Labcorp
Labcorp Stock Performance The company has a current ratio of 1.80, a quick ratio of 1.53 and a debt-to-equity ratio of 0.69. The firm’s fifty day moving average is $287.48 and its 200 day moving average is $275.09. The company has a market cap of $26.21 billion, a PE ratio of 26.73, a price-to-earnings-growth ratio of 1.84 and a beta of 0.87. Labcorp (NYSE:LH – Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The medical research company reported $4.99 earnings per share for the quarter, topping the consensus estimate of $4.78 by $0.21. Labcorp had a net margin of 6.99% and a return on equity of 16.74%. The firm had revenue of $3.73 billion for the quarter, compared to the consensus estimate of $3.71 billion. During the same period last year, the firm posted $4.35 earnings per share. The company’s revenue for the quarter was up 5.8% on a year-over-year basis. Labcorp has set its FY 2026 guidance at 18.100-18.550 EPS. As a group, research analysts predict that Labcorp Holdings Inc. will post 18.32 EPS for the current fiscal year.
Labcorp Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Friday, September 11th. Shareholders of record on Friday, August 28th will be paid a dividend of $0.72 per share. The ex-dividend date is Friday, August 28th. This represents a $2.88 dividend on an annualized basis and a yield of 0.9%. Labcorp’s dividend payout ratio is 23.82%.
Insider Activity In other news, CEO Adam H. Schechter sold 4,669 shares of the firm’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $320.37, for a total value of $1,495,807.53. Following the completion of the sale, the chief executive officer directly owned 102,565 shares of the company’s stock, valued at $32,858,749.05. This trade represents a 4.35% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Bryan T. Vaughn sold 234 shares of the stock in a transaction dated Thursday, July 2nd. The shares were sold at an average price of $286.19, for a total transaction of $66,968.46. Following the completion of the sale, the executive vice president directly owned 6,746 shares in the company, valued at approximately $1,930,637.74. The trade was a 3.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 6,681 shares of company stock valued at $2,073,617 in the last 90 days. Company insiders own 0.84% of the company’s stock.
Institutional Inflows and Outflows Hedge funds and other institutional investors have recently bought and sold shares of the business. UBS Group AG boosted its position in Labcorp by 2.2% in the 4th quarter. UBS Group AG now owns 495,535 shares of the medical research company’s stock valued at $124,320,000 after buying an additional 10,706 shares during the last quarter. Fifth Third Bancorp grew its position in Labcorp by 106.5% during the 1st quarter. Fifth Third Bancorp now owns 57,981 shares of the medical research company’s stock worth $15,470,000 after purchasing an additional 29,899 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of Labcorp by 0.6% in the fourth quarter. Geode Capital Management LLC now owns 2,137,010 shares of the medical research company’s stock worth $534,023,000 after acquiring an additional 13,775 shares during the last quarter. CIBC Asset Management Inc boosted its holdings in Labcorp by 61.3% in the fourth quarter. CIBC Asset Management Inc now owns 19,974 shares of the medical research company’s stock worth $5,011,000 after purchasing an additional 7,592 shares in the last quarter. Finally, Victory Capital Management Inc. grew its stake in Labcorp by 103.1% in the 4th quarter. Victory Capital Management Inc. now owns 5,356,825 shares of the medical research company’s stock valued at $1,343,922,000 after buying an additional 2,719,475 shares during the last quarter. 95.94% of the stock is owned by institutional investors and hedge funds.
About Labcorp (Get Free Report)
Laboratory Corporation of America Holdings, commonly known as Labcorp (NYSE: LH), is a global life sciences company that provides comprehensive clinical laboratory and drug development services. The company operates a broad network of laboratories, patient service centers and specialty testing sites to deliver diagnostic information and testing solutions that support patient care, clinical decision-making and population health initiatives.
Labcorp’s core businesses encompass clinical laboratory testing and pharmaceutical development services.
Further Reading Five stocks we like better than Labcorp Commodities Are Booming, But These 3 ETFs Tell Different Stories 3 Active ETFs Making Big Moves in August This ETF Is Outperforming by Avoiding the S&P 500’s Biggest Problem Birkenstock Beats the Skeptics—But Not on EPS Receive News & Ratings for Labcorp Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Labcorp and related companies with MarketBeat.com's FREE daily email newsletter.
BURLINGTON, N.C., Aug. 17, 2026 /PRNewswire/ -- Labcorp Holdings Inc. (NYSE: LH), a global leader of innovative and comprehensive laboratory services, today announced it will host an Investor Day on Thursday, September 10, 2026, from 9 a.m.
Adam H. Schechter, President & CEO, sold 4,669 shares of Labcorp Holdings Inc. (LH +0.33%) for approximately $1.5 million on Aug. 11, 2026, according to a SEC Form 4 filing.
Transaction summaryMetricValueShares sold (directly held)4,669Transaction value$1.5 millionPost-transaction shares (directly held)102,565Post-transaction value$33 millionTransaction value based on SEC Form 4 weighted average sale price ($320.37); post-transaction value based on Aug. 11, 2026, market close ($322.42).
Key questionsWhat was the mechanism governing this sale?
The transaction was executed under a Rule 10b5-1 plan, which allows insiders to set a predetermined schedule for selling shares to meet liquidity or diversification needs while complying with insider trading regulations.What is the scale of the CEO's remaining equity interest?
Schechter continues to hold 102,565 shares directly, representing a market valuation of $33 million as of the Aug. 11, 2026, market close.How has the equity performed relative to this transaction?
Shares of the medical diagnostics company realized a 21% total return over the 12 months concluding on the Aug. 11, 2026, transaction date.What does the trade indicate about insider sentiment?
Given that the sale represented approximtely 4% of Schechter's direct holdings and was executed via a Rule 10b5-1 plan, the activity reflects routine portfolio management rather than a discretionary change in outlook.Company OverviewMetricValueShare Price (as of market close 2026-08-11)$322.42Market Capitalization$26.4 billionRevenue (TTM)$14.3 billionNet Income (TTM)$1.0 billionCompany SnapshotLabcorp Holdings provides comprehensive diagnostic laboratory services, including clinical testing, drug development support, and scientific research capabilities, generating revenue from healthcare facilities, pharmaceutical companies, medical professionals, and patients.The company operates a centralized laboratory services business model, processing patient samples and delivering diagnostic results to healthcare providers while generating revenue through testing fees, volume-based contracts, and pharmaceutical research partnerships.Labcorp serves a diverse customer base, including hospitals, physician practices, pharmaceutical firms conducting clinical trials, employers offering occupational health services, and individual patients seeking diagnostic testing.
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Labcorp Holdings is one of the largest clinical laboratory networks in the United States, with 71,000 employees and a market capitalization of $26.4 billion. The company leverages its extensive laboratory infrastructure and technological capabilities to maintain a competitive position in the diagnostics market, supported by strong financial performance with TTM revenue of $14.3 billion and net income of $1.0 billion.
Labcorp's diversified customer base and integrated service offerings across clinical diagnostics, drug development, and occupational health provide multiple revenue streams and operational resilience.
What this transaction means for investorsThis sale shouldn’t concern investors, as it represented a small percentage of the executive’s holdings. Moreover, it was completed under a Rule 10b5-1 plan. Insiders often use this to execute pre-planned transactions to avoid appearing to act on any material non-public information.
Importantly, Labcorp’s business continues to perform well. TTM revenue grew 6.4% year over year. Margins are on the rise, with operating profit surging 25% on a trailing basis. The growth reflects solid performance from the diagnostics segment and a recovery in the company’s biopharma lab services business.
Following its recent quarterly results, management raised its full-year guidance reflecting operating momentum. Analysts expect the company to grow 20% annually over the next two years, while the stock trades at a modest forward price-to-earnings multiple of 17x.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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Stock to Watch: Labcorp Holdings (LH - Free Report) Headquartered in Burlington, NC, Labcorp Holdings, Inc. or Labcorp, is a leading healthcare diagnostics company, providing comprehensive clinical laboratory services and end-to-end drug development support. In 2015, Labcorp acquired NJ based Covance, a drug development services company providing a wide range of early stage and late-stage product development services on a worldwide basis primarily to the pharmaceutical and biotechnology industries.
LH is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Medical stock. LH has a Momentum Style Score of A, and shares are up 15.3% over the past four weeks.
Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2026, while the Zacks Consensus Estimate has increased $0.24 to $18.24 per share. LH also boasts an average earnings surprise of +3.1%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, LH should be on investors' short list.
Key Takeaways Labcorp enters the second half of 2026 with faster revenue growth, wider margins and higher guidance. LH's specialty testing and Biopharma Laboratory Services are supporting growth and profitability. Labcorp trades above its five-year median valuation, leaving less room for execution misses. Labcorp Holdings Inc. (LH - Free Report) is entering the second half of 2026 with faster revenue growth, wider margins and higher full-year guidance. Specialty testing and Biopharma Laboratory Services are adding operating support while efficiency programs are helping profitability.
The trade-off is valuation. LH now carries a premium to both its five-year median and its Zacks sub-industry multiple, leaving less room for execution misses. That backdrop favors a measured view of the shares.
Labcorp’s Specialty Mix Supports the Bull CaseSpecialty testing remains a central growth driver. Oncology, women’s health, autoimmune disease and neurology produced double-digit revenue growth in the first half of 2026, helping Labcorp win health-system and provider customers.
Per the Zacks Consensus Estimate, the company’s 2026 revenues are expected to grow 5.6% year over year.
Image Source: Zacks Investment Research
The company also expanded its test menu and access points. New oncology offerings, a broader Epic collaboration and additional health-system relationships can support test utilization and a favorable mix because specialty patients often require more testing over time. Quest Diagnostics Incorporated (DGX - Free Report) is a relevant diagnostics peer, with a broad testing portfolio that includes specialty and oncology services.
LH’s Margin Gains Improve Earnings QualitySecond-quarter adjusted operating margin expanded 70 basis points year over year to 15.8%. Diagnostics margin rose 50 basis points to 18%, while Biopharma Laboratory Services margin increased 130 basis points to 17%.
Labcorp attributed the gains to organic growth, operating efficiencies and actions within Early Development. Launchpad, automation, artificial intelligence and other technology initiatives remain part of the productivity effort. Medpace Holdings, Inc. (MEDP - Free Report) , a full-service clinical research organization with central laboratory capabilities, provides a useful comparison point for the competitive biopharma-services landscape.
Labcorp’s Valuation Leaves Less Room for ErrorLH trades at 16.7X forward 12-month earnings, above the Zacks sub-industry multiple of 16.2X and its own five-year median of 14.4X. The current multiple is also closer to the upper end of its five-year range of 10.5X to 17.8X.
Image Source: Zacks Investment Research
That premium raises the bar for execution. Continued earnings growth, margin expansion and delivery against the raised 2026 outlook become more important when investors are paying above the stock’s historical median valuation.
LH Still Faces Reimbursement and Cost RisksReimbursement remains a constraint for Diagnostics. Affordable Care Act-related changes reduced second-quarter diagnostic volume by an estimated 20-30 basis points, and Labcorp continues to assume a 30-basis-point full-year effect. Pressure tied to Protecting Access to Medicare Act reimbursement is another risk.
Cost inflation, tariffs, currency swings and competition add uncertainty. Cost of revenues rose 5.6% year over year in the second quarter, while full-year guidance includes foreign-currency benefits to enterprise and Biopharma Laboratory Services growth. A reversal in exchange rates could make the outlook harder to achieve.
Labcorp’s Ratings Point to a Balanced SetupThe operating picture has improved, but the valuation premium argues against treating the recent momentum as an automatic buy signal. Labcorp currently carries a Zacks Rank #3 (Hold), which is consistent with a more balanced near-term stance than the stronger buy-rated categories.
Its Value Score of B, Growth Score of C and Momentum Score of A produce a VGM Score of B. The A Momentum Score reflects favorable price and estimate-revision characteristics, while the C Growth Score keeps the broader profile mixed. Zacks Style Scores are designed to complement the Zacks Rank, and a #3 ranking can still be held when the overall setup remains acceptable. The combination supports patience rather than chasing the shares at a premium.
You can see the complete list of today’s Zacks #1 Rank stocks here.
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
Key Takeaways Labcorp shares gained 14% in a month as earnings, revenues and operating margins improved. Specialty testing posted double-digit growth in oncology, women's health, autoimmune disease and neurology.Labcorp trades at 16.7X forward earnings, above its 14.4X five-year median but below its 17.8X high. Labcorp Holdings Inc. (LH - Free Report) shares have gained 14% in the past month, sharpening the debate over how much upside remains after a rapid advance. The rally comes as the company is reporting better earnings, expanding margins and growth across both Diagnostics Laboratories and Biopharma Laboratory Services.
The operating picture has improved, but valuation has moved above Labcorp’s longer-term norm. That leaves investors weighing execution and business momentum against a higher bar for future results.
Labcorp’s One-Month Rally Sets a Higher BarLabcorp’s 14% four-week gain stands out against an already stronger operating backdrop. The company’s Diagnostics Laboratories business grew revenues 5.5% year over year in the second quarter, while Biopharma Laboratory Services, or BLS, advanced 6.5%.
The move does not establish that any single development drove the stock higher. It does, however, raise expectations as investors assess whether improving profitability, specialty testing demand and biopharma activity can sustain the recent momentum.
LH’s Q2 Results Add Fundamental SupportSecond-quarter adjusted earnings were $4.99 per share, up 14.9% year over year and 4.2% above the Zacks Consensus Estimate. Revenues increased 5.8% to $3.73 billion and also topped the consensus mark.
Profitability improved with the top line. Adjusted operating income rose to $588.7 million from $531.6 million, while the enterprise adjusted operating margin expanded 70 basis points to 15.8%. The margin gain shows that revenue growth is translating into better operating leverage.
In the past 30 days, Labcorp’s 2026 earnings have moved north by 1.3% to $18.24.
Image Source: Zacks Investment Research
Labcorp’s Growth Drivers Still Have Room to RunSpecialty testing remains a central growth engine. Oncology, women’s health, autoimmune disease and neurology each delivered double-digit revenue growth during the first half of 2026, supporting new health-system and provider wins and a favorable test mix.
BLS adds another source of momentum. Second-quarter revenue rose 6.5% to $836.2 million, Central Laboratories revenue increased 9.8% and the segment’s adjusted operating margin reached 17%. Quest Diagnostics Incorporated (DGX - Free Report) , another large diagnostic testing provider, offers investors a direct industry comparison for laboratory demand and health-system relationships. Thermo Fisher Scientific Inc. (TMO - Free Report) also provides a relevant biopharma-services reference point through its broad pharmaceutical and clinical research capabilities.
LH’s Valuation Raises the Priced-In QuestionLabcorp trades at 16.7X forward 12-month earnings, modestly above the Zacks sub-industry’s 16.2X multiple. It also sits well above its own five-year median of 14.4X, although the current multiple remains below the five-year high of 17.8X.
Image Source: Zacks Investment Research
That premium does not negate the company’s improving results, but it reduces the room for disappointment. Further upside will likely require continued earnings execution, sustained specialty and BLS growth and additional margin progress to justify a valuation already above Labcorp’s longer-term norm.
Labcorp’s Ratings Favor Momentum Over GrowthThe near-term setup is balanced rather than one-sided. Labcorp currently carries a Zacks Rank #3 (Hold), which points to a neutral short-term earnings-revision backdrop rather than a clear buy or sell signal.
The Style Scores tilt more favorably toward momentum and value. Labcorp has a VGM Score of B, Momentum Score of A and Value Score of B, while its Growth Score is C. The mix fits the current tension: price momentum and valuation characteristics are favorable, but the pure-growth profile is less compelling. After the recent rally, execution remains important as investors weigh business progress against a richer valuation.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Labcorp Holdings (LH - Free Report) Headquartered in Burlington, NC, Labcorp Holdings, Inc. or Labcorp, is a leading healthcare diagnostics company, providing comprehensive clinical laboratory services and end-to-end drug development support. In 2015, Labcorp acquired NJ based Covance, a drug development services company providing a wide range of early stage and late-stage product development services on a worldwide basis primarily to the pharmaceutical and biotechnology industries.
LH is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 16.89; value investors should take notice.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.20 to $18.20 per share. LH boasts an average earnings surprise of +3.1%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, LH should be on investors' short list.
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.
L3Harris’ Record Backlog Makes Its Stock Sell-Off Look OverdoneLabcorp NYSE: LH reported second-quarter 2026 revenue growth, margin expansion and higher adjusted earnings, prompting the laboratory services company to raise the midpoint of its full-year revenue and adjusted EPS guidance.
Revenue rose 5.8% year over year to $3.7 billion, while adjusted operating margin expanded 70 basis points to 15.8%, according to Chairman and Chief Executive Officer Adam Schechter. Adjusted earnings per share increased 14.9% to $4.99, and free cash flow was $314 million.
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After 15% L3Harris Price Drop, Is It Time to Buy or Time to Fly?“Labcorp delivered another very strong quarter, driven by solid revenue growth, margin expansion, and progress across our strategic priorities,” Schechter said on the company’s earnings call.
Diagnostics Growth and Specialty Testing The Diagnostics segment generated $2.9 billion in revenue, up 5.5% from a year earlier. Organic revenue grew 3.6%, including 1.8% accession volume growth and 1.8% favorable price mix, while acquisitions contributed 1.9% growth. Segment adjusted operating income rose to $523 million, and adjusted operating margin increased 50 basis points to 18%.
Why This Defense ETF Could Keep Rallying as the Iran Conflict EscalatesSchechter said the company’s specialty testing areas—oncology, neurology, autoimmune disease and women’s health—collectively posted double-digit revenue growth in the first half. He said specialty testing also contributes to higher tests per accession, as patients with complex conditions such as cancer may require multiple types of laboratory testing over time.
During the quarter, Labcorp launched ColoSense nationwide, an FDA-approved RNA-based colorectal cancer screening test with at-home collection. Schechter said the test has Medicare coverage and expanding commercial payer access. The company also expanded its cancer-testing offerings with a clinical trial collaboration with Fox Chase Cancer Center involving its PlasmaDetect genome MRD test for non-small cell lung cancer recurrence, as well as broader access to a Roche companion diagnostic for prostate cancer.
Labcorp also cited expanded access to its myOLARIS-KTdx kidney-transplant surveillance test and said its NASHnext blood-based liver-disease test is scheduled to receive Medicare coverage beginning in mid-August.
On reimbursement and collection trends, Chief Financial Officer Julia Wang said Labcorp continues to assume a 30-basis-point full-year impact to Diagnostics volume from Affordable Care Act-related changes. The affected payer cohort represents less than 4% to 5% of total Diagnostics volume, she said. The second quarter saw a 20- to 30-basis-point headwind to Diagnostics volume from this source.
Wang also said Diagnostics bad debt remained in line with prior-year and historical levels, at less than or around 5% of revenue. Schechter noted that growth in Labcorp OnDemand, where consumers pay upfront for testing, is included in patient-pay revenue and does not increase bad debt.
Biopharma Segment Shows Improved Momentum Biopharma Laboratory Services, or BLS, revenue rose 6.5% to $836 million. On an organic constant-currency basis, Central Laboratory Services revenue grew 7.6%, while Early Development revenue increased 2.7%.
BLS adjusted operating income increased to $142 million, or 17% of segment revenue, from $123 million, or 15.7%, a year earlier. Wang attributed the 130-basis-point margin improvement to organic growth and operating efficiencies from strategic actions in the Early Development business. She said those actions have all been announced and are largely complete.
Schechter said Central Laboratory Services represents about 70% of the BLS segment and remains the primary driver of segment growth. He added that Early Development has seen strong request-for-proposal activity, consistent win rates and study starts occurring more on time than in prior periods.
The BLS segment ended the quarter with an $8.7 billion backlog, with approximately $2.7 billion expected to convert into revenue over the next 12 months. Quarterly book-to-bill was 1.14, bringing the trailing 12-month figure to 1.03.
Capital Deployment and Raised Outlook Labcorp deployed capital through acquisitions, share repurchases and dividends during the quarter. The company invested $226 million in acquisitions, repurchased $354 million of shares and paid $59 million in dividends. After retiring $500 million in senior notes, it ended the quarter with $142 million in cash and $5.9 billion in total debt.
In July, the board increased the company’s share-repurchase authorization by $1 billion, bringing the remaining authorization to $1.4 billion.
For 2026, Labcorp now expects enterprise revenue growth of 5.4% to 6.3%, raising the midpoint by 30 basis points. Diagnostics revenue is projected to grow 5.3% to 6%, a 20-basis-point midpoint increase, while BLS revenue is expected to rise 5.5% to 6.5%, with the midpoint raised by 140 basis points.
Adjusted EPS guidance was raised and narrowed to $18.10 to $18.55, implying growth of more than 11% at the midpoint. Full-year free-cash-flow guidance was maintained at $1.24 billion to $1.36 billion. The company continues to expect capital expenditures of about 4% of revenue. Labcorp expects both Diagnostics and BLS margins to improve in 2026, with BLS margin expansion exceeding that of Diagnostics. Technology, Consumer Testing and Partnerships The company said its consumer business continued to grow at a double-digit rate, supported by demand for consumer-initiated testing and digital tools. Labcorp plans to launch its Marker by Labcorp genetic health offering through Labcorp OnDemand in August, combining biomarker and genetic testing options for consumers.
Schechter said the company is focused on its own consumer-testing platform while remaining selective about partnerships, citing the importance of maintaining a favorable margin profile. Labcorp OnDemand includes more than 200 biomarkers, he said, with offerings across cancer screening, men’s and women’s health, allergies and wellness.
Labcorp also expanded its collaboration with Epic, making more than 6,500 Labcorp diagnostic tests available through Epic’s Aura platform. The company completed acquisitions of select outreach laboratory services from Parkview Health in Indiana and Ohio, as well as Tribal Diagnostics, which serves communities in Oklahoma and Texas.
Looking ahead, Schechter said Labcorp’s pipeline for hospital and laboratory partnership transactions remains strong. He said the company requires acquisitions to be accretive in the first year and to return their cost of capital within two to three years.
About Labcorp (NYSE:LH)Laboratory Corporation of America Holdings, commonly known as Labcorp NYSE: LH, is a global life sciences company that provides comprehensive clinical laboratory and drug development services. The company operates a broad network of laboratories, patient service centers and specialty testing sites to deliver diagnostic information and testing solutions that support patient care, clinical decision-making and population health initiatives.
Labcorp's core businesses encompass clinical laboratory testing and pharmaceutical development services.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Labcorp Holdings Inc. (LH) Q2 2026 Earnings Call July 30, 2026 9:00 AM EDT
Company Participants
Dewey Steadman
Adam Schechter - President, CEO & Chairman
Julia Wang - CFO & Executive VP
Conference Call Participants
Lisa Gill - JPMorgan Chase & Co, Research Division
Kevin Caliendo - UBS Investment Bank, Research Division
Elizabeth Anderson - Evercore ISI Institutional Equities, Research Division
Michael Cherny - Leerink Partners LLC, Research Division
Jack Meehan
Michael Ryskin - BofA Securities, Research Division
David Westenberg - Piper Sandler & Co., Research Division
Pito Chickering - Deutsche Bank AG, Research Division
Erin Wilson Wright - Morgan Stanley, Research Division
Ann Hynes - Mizuho Securities USA LLC, Research Division
Tycho Peterson - Jefferies LLC, Research Division
Anna Kruszenski - Barclays Bank PLC, Research Division
Yujin Park - Robert W. Baird & Co. Incorporated, Research Division
Presentation
Operator
Good day, and thank you for standing by. Welcome to the Q2 2026 Labcorp Holdings Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your first speaker today, Dewey Steadman, Senior Vice President, Investor Relations. Please go ahead.
Dewey Steadman
Good morning, and welcome to Labcorp's Second Quarter 2026 Financial Results Webcast. With me today are Adam Schechter, our Chairman and Chief Executive Officer; and Julia Wang, our Executive Vice President and Chief Financial Officer. This morning, in the Events section of the Labcorp Investor Relations website at ir.labcorp.com, we posted both our press release and a supplemental financial presentation with additional information on our business and operations. We will also post a replay of this webcast on the IR website for 1 year.
On today's webcast, we will focus on our adjusted or non-GAAP results for the second quarter of 2026, our capital allocation strategy and our updated financial guidance for the full year 2026. Our GAAP results
Key Takeaways Labcorp beat Q2 earnings and revenue estimates, while shares fell nearly 6% in pre-market trading.LH expanded gross and adjusted operating margins on organic growth and operating efficiencies.Labcorp raised 2026 revenue and adjusted earnings guidance while maintaining free cash flow outlook. Labcorp Holdings Inc. (LH - Free Report) reported second-quarter 2026 adjusted earnings of $4.99 per share, up 14.9% year over year. The metric beat the Zacks Consensus Estimate by 4.18%.
On a GAAP basis, earnings per share (EPS) came in at $3.64, up 28.5% from the prior-year quarter. Net earnings attributable to Labcorp rose to $298.7 million from $237.9 million.
Revenues rose 5.8% to $3.73 billion and surpassed the Zacks Consensus Estimate by 0.36%. Enterprise revenues increased on 4.2% organic growth, a 1.2% contribution from acquisitions net of divestitures and a 0.4% foreign currency benefit. The mix indicates that underlying business activity accounted for most of the top-line expansion.
Following the announcement, Labcorp shares dipped 5.6% in the pre-market session today.
LH Reports Broad-Based Revenue GrowthDiagnostics Laboratories (Dx) revenues rose 5.5% to $2.90 billion. Organic growth was 3.6%, while acquisitions net of divestitures added 1.9%. Total requisition volume increased 3%, including 1.8% organic growth and a 1.3% acquisition contribution. Price and mix improved 2.5%, with organic price and mix up 1.8%.
Biopharma Laboratory Services (BLS) revenues advanced 6.5% to $836.2 million. Organic growth was 6.2%, and foreign exchange added 1.8%, partly offset by a 1.4% reduction from acquisitions net of divestitures. Central Labs revenues climbed 9.8%, while Early Development revenues declined 1.4%.
Labcorp’s Margins ExpandGross profit increased to $1.11 billion from $1.05 billion a year earlier. Gross margin was 29.8%, up roughly 10 basis points (bps) from the prior-year quarter, as revenue growth outpaced the increase in the cost of revenues.
Adjusted operating income increased to $588.7 million from $531.6 million. The adjusted operating margin widened 70 bps to 15.8%, reflecting organic growth and operating efficiencies.
Reported operating income was $451.6 million compared with $394.5 million. The reported operating margin improved 90 bps to 12.1%, while selling, general and administrative expenses declined to $577.2 million from $579.3 million.
Labcorp’s Cash PositionLabcorp exited the second quarter of 2026 with cash and cash equivalents of $141.8 million compared with $981.1 million at the end of the first quarter. Debt totaled $5.86 billion at quarter-end.
Cumulative net cash provided by operating activities at the end of the second quarter was $637 million compared with $639.1 million a year ago.
LH Deploys Capital Across PrioritiesLabcorp invested $225.7 million in acquisitions, repurchased $353.8 million of stock and paid $58.7 million in dividends during the quarter. It also retired $500 million of senior notes. The board increased the share repurchase authorization by $1 billion, bringing the remaining authorization to $1.4 billion.
Labcorp Updates 2026 OutlookManagement raised full-year enterprise revenue growth guidance to 5.4-6.3% from 5-6.1%. The updated range implies revenues of $14.71-$14.83 billion. Dx growth is now projected at 5.3-6%, while BLS growth is expected at 5.5-6.5%. The Zacks Consensus Estimate for full-year revenues is pegged at $14.71 billion, implying growth of 5.4%.
Adjusted earnings guidance increased to $18.10-$18.55 per share, from the earlier $17.70-$18.35 range. The Zacks Consensus Estimate for the metric is pegged at $18.00.
Free cash flow guidance remained $1.24-$1.36 billion.
Our TakeLabcorp exited the second quarter of 2026 with both earnings and revenues beating estimates. Both segments contributed to the quarter's performance. The company expanded its capabilities in oncology and other high-growth specialty areas, strengthened its position as the partner of choice for health systems, biopharmaceutical companies and regional and local laboratories and advanced the use of technology to improve the experience for consumers and providers. Both gross and operating margins expanded during the quarter, which is highly encouraging.
LH’s Zacks Rank and Other Key PicksLabcorp currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Quest Diagnostics (DGX - Free Report) and Medpace (MEDP - Free Report) .
Intuitive Surgical, carrying a Zacks Rank #2, reported second-quarter 2026 adjusted EPS of $2.80, which surpassed the Zacks Consensus Estimate by 12.9%. Revenues of $2.89 billion beat the Zacks Consensus Estimate by 3.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ISRG has an earnings yield of 3.1% compared to the industry’s negative 3% yield. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 16.53%.
Quest Diagnostics, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $3.12, exceeding the Zacks Consensus Estimate by 11%. Revenues of $3.04 billion topped the Zacks Consensus Estimate by 2.1%.
DGX has an earnings yield of 4.7%, almost in line with the industry’s yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.77%.
Medpace, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $4.25, exceeding the Zacks Consensus Estimate by 4.17%. Revenues of $707.3 million outperformed the consensus mark by 1.12%.
MEDP has an historical five-year earnings growth rate of 30.5% compared with the industry’s 5.6% growth. In the trailing four quarters, the company delivered an average earnings beat of 10.16%.
Labcorp Holdings (LH - Free Report) reported $3.73 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 5.8%. EPS of $4.99 for the same period compares to $4.35 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $3.72 billion, representing a surprise of +0.36%. The company delivered an EPS surprise of +4.18%, with the consensus EPS estimate being $4.79.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Labcorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net book-to-bill Ratio ( TTM Book-to-Bill): 1% versus 1% estimated by two analysts on average.Revenues- Biopharma Laboratory Services: $836.2 million compared to the $806.31 million average estimate based on three analysts. The reported number represents a change of +6.6% year over year.Revenues- Diagnostics Laboratories: $2.9 billion versus $2.92 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +5.5% change.Adjusted Operating Income- Diagnostics Laboratories: $522.6 million versus the two-analyst average estimate of $519.16 million.Adjusted Operating Income- Unallocated corporate expense: $-76.1 million versus $-75.97 million estimated by two analysts on average.Adjusted Operating Income- Biopharma Laboratory Services: $142.2 million versus $128.04 million estimated by two analysts on average.View all Key Company Metrics for Labcorp here>>>
Shares of Labcorp have returned +8.2% over the past month versus the Zacks S&P 500 composite's -1.5% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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.
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.
The logo for Labcorp, Laboratory Corporation of America, a life sciences company is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 22,... Purchase Licensing Rights, opens new tab Read more
CompaniesJuly 30 (Reuters) - Laboratory operator Labcorp (LH.N), opens new tab raised its annual profit forecast and posted better-than-expected second-quarter results on Thursday, as steady demand for diagnostic testing and growth in its drug-development services business boosted performance.
Shares of the company fell about 6% in premarket trading.
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Here are more details:
The company's diagnostics business has benefited from specialty testing and laboratory management agreements, while improved pharmaceutical and biotechnology spending has supported its research services business.
Leerink Partners analyst Michael Cherny said investors were likely focused on softer-than-expected organic growth in Labcorp's Diagnostics Laboratories segment after rival Quest Diagnostics set a higher bar with last week's results.
Revenue at Labcorp's Diagnostics Laboratories segment grew 5.5% to $2.90 billion, slightly below analysts' expectation of $2.91 billion.
Peer Quest Diagnostics (DGX.N), opens new tab last week raised its full-year profit forecast after demand for routine diagnostic testing helped the company beat second-quarter estimates.
Labcorp raised its 2026 adjusted earnings forecast to $18.10 to $18.55 per share from $17.70 to $18.35 previously.
The midpoint of the new range, $18.33, is above analysts' estimate of $18.01 per share, according to data compiled by LSEG.
The company lifted its annual revenue forecast to a range of $14.71 billion to $14.83 billion from its previous projection of $14.65 billion to $14.80 billion. Analysts expect revenue of $14.71 billion.
Revenue at its Biopharma Laboratory Services segment rose 6.5% to $836.2 million, exceeding estimates of $797.3 million.
Overall second-quarter revenue rose 5.8% to $3.73 billion, above estimates of $3.71 billion. Adjusted earnings per share of $4.99 topped expectations of $4.78.
Reporting by Sahil Pandey in Bengaluru; Editing by Tasim Zahid and Diti Pujara
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Labcorp Holdings (LH - Free Report) came out with quarterly earnings of $4.99 per share, beating the Zacks Consensus Estimate of $4.79 per share. This compares to earnings of $4.35 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.18%. A quarter ago, it was expected that this medical laboratory operator would post earnings of $4.09 per share when it actually produced earnings of $4.25, delivering a surprise of +3.91%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Labcorp, which belongs to the Zacks Medical Services industry, posted revenues of $3.73 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.36%. This compares to year-ago revenues of $3.53 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Labcorp shares have added about 22.4% since the beginning of the year versus the S&P 500's gain of 6.9%.
What's Next for Labcorp?While Labcorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Labcorp was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.59 on $3.76 billion in revenues for the coming quarter and $18.00 on $14.71 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Ardent Health, Inc. (ARDT - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 4.
This company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of -67.3%. The consensus EPS estimate for the quarter has been revised 2.1% higher over the last 30 days to the current level.
Ardent Health, Inc.'s revenues are expected to be $1.59 billion, down 3.3% from the year-ago quarter.
