Labcorp Holdings Inc.

What they do

Labcorp operates through two segments: Diagnostics Laboratories (Dx) and Biopharma Laboratory Services (BLS). It offers a broad test portfolio, including specialty testing in oncology, women's health, autoimmune disease, and neurology, and supports clinical trials for pharmaceutical companies. In 2025, the company performed over 750 million tests for patients in approximately 100 countries and supported more than 85% of new drugs approved by the FDA.

Revenue drivers

• Diagnostics Laboratories (Dx) — Core diagnostic testing services for patients and health systems; drives the majority of revenue. In Q2 2026, total company revenue was $3.73 billion, up 5.8% year over year.
• Biopharma Laboratory Services (BLS) — Provides central laboratory and drug development services; specialty testing areas (oncology, women's health, autoimmune, neurology) account for more than half of clinical trials supported by its Central Laboratory business.
• Partnerships and Acquisitions — During 2025, signed or completed 13 collaboration transactions with health systems and local/regional labs; in Q2 2026, acquired select outreach services from Parkview Health and Tribal Diagnostics.

Recent performance

In Q2 2026, revenue rose 5.8% to $3.73 billion from $3.53 billion a year earlier. Diluted EPS increased 28.5% to $3.64, while adjusted EPS grew 14.9% to $4.99. For FY2025, revenue was $13.95 billion and net income was $877 million. Cash flow from operations was $1.64 billion in 2025. The company repurchased $353.8 million of stock and paid $58.7 million in dividends in Q2 2026.

Strategy

Labcorp focuses on two near-term opportunities: being a partner of choice for health systems and local/regional labs, and leading in specialty testing development and scaling. Longer-term priorities include building capabilities in cell and gene therapy and expanding consumer-centric offerings. The company invested $225.7 million in acquisitions in Q2 2026 and raised its share repurchase authorization by $1.0 billion. It also launched new products like Marker by Labcorp and expanded oncology testing offerings.

Risks

• Reimbursement and regulatory changes — Changes in Medicare/Medicaid reimbursement, including PAMA, and FDA oversight of laboratory-developed tests could reduce revenue or increase compliance costs.
• Competition and price pressure — Increased competition and price transparency initiatives could lead to lower testing rates and margin compression.
• Data privacy and security — Failure to comply with HIPAA, GDPR, or other privacy laws could result in fines, penalties, or reputational damage.
• Integration and acquisition risks — Acquisitions and partnerships may fail to meet financial criteria (accretive in first year, cost of capital within three years) or encounter integration difficulties.

Outlook

Management raised full-year 2026 revenue growth guidance to 5.4% to 6.3%, up 30 basis points at the midpoint. Adjusted EPS guidance was raised to a range of $18.10 to $18.55, up 30 cents at the midpoint. The company noted continued momentum across the business and expects sustainable growth from its strategic priorities.