Labcorp (NYSE:LH) Releases Quarterly Earnings Results, Beats Estimates By $0.12 EPS

Labcorp (NYSE:LH) released its quarterly earnings data on Tuesday. The medical research company reported $4.07 earnings per share for the quarter, beating the consensus estimate of $3.95 by $0.12, FiscalAI reports. The business had revenue of $3.52 billion for the quarter, compared to analyst estimates of $3.56 billion. Labcorp had a return on equity of 16.16% and a net margin of 6.28%.The company’s revenue was up 5.6% compared to the same quarter last year. During the same period in the previous year, the company posted $3.45 EPS. Labcorp updated its FY 2026 guidance to 17.550-18.250 EPS.

Here are the key takeaways from Labcorp’s conference call:

• Labcorp reported a strong 2025 with >7% revenue growth, 13% adjusted EPS growth and margin expansion, and gave 2026 guidance of ~4.7%-6% revenue growth with ~9% adjusted EPS growth at the midpoint, supporting continued profitable growth.
• Management highlighted active M&A and partnership activity — including recent acquisitions of select outreach and pathology assets and 13 health‑system deals over three years that it says added >$1 billion of revenue — and described a “robust pipeline” of further opportunities.
• Specialty/esoteric testing and central lab momentum are key growth drivers: esoteric testing grew double digits, the company launched >130 new tests (oncology, neurology, women’s health), completed the Invitae integration, and reported strong central lab book‑to‑bill of 1.16 quarterly / 1.09 TTM.
• Labcorp is streamlining its Early Development (ED) business, expecting to reduce ~<$50 million of annual revenue from scope actions that should boost ED operating income and margins but create near‑term revenue headwinds and timing risk through mid‑2026.
• Capital allocation balances returns and investment — FY2025 free cash flow was ~$1.2B, Q4 buybacks/dividends continued and ~$800M repurchase authorization remains, while debt stood at $5.6B (2.3x leverage) and CapEx is guided higher (~4% of revenue) to fund a new 500,000+ sq ft central lab and kit facility.

Labcorp Trading Up 0.9%

LH opened at $279.10 on Thursday. The firm’s fifty day moving average price is $264.77 and its 200 day moving average price is $268.99. The stock has a market capitalization of $23.14 billion, a PE ratio of 26.68, a P/E/G ratio of 1.72 and a beta of 1.03. Labcorp has a 12-month low of $209.38 and a 12-month high of $293.72. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.42 and a quick ratio of 1.35.

Labcorp Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, March 12th. Investors of record on Friday, February 27th will be paid a $0.72 dividend. This represents a $2.88 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Friday, February 27th. Labcorp’s payout ratio is 28.29%.

Key Stories Impacting Labcorp

Here are the key news stories impacting Labcorp this week:

• Positive Sentiment: Q4 earnings beat and raised FY guidance: LH reported Q4 EPS of $4.07 vs. $3.95 expected and issued FY‑2026 EPS guidance of $17.55–18.25, signaling strong profitability trends and giving investors confidence in cash flow/earnings visibility. Q4 Earnings Surpass Estimates
• Positive Sentiment: Analyst price‑target upgrades: JPMorgan raised its target to $330 (overweight) and Robert W. Baird raised to $326 (outperform), both implying double‑digit upside from recent levels and providing buy‑side momentum. Benzinga
• Positive Sentiment: Company outlook and demand commentary: Management and Reuters coverage highlighted strong demand for diagnostic products and an upbeat annual profit forecast, supporting longer‑term growth expectations. Reuters: Forecasts Upbeat Annual Profit
• Neutral Sentiment: Alzheimer’s blood‑test & neurology hire sparks valuation debate: A Yahoo Finance piece flags a potential long‑term upside catalyst (diagnostic innovation and specialty assets) but also raises questions about how that should be valued today — a mixed signal for short‑term traders. Alzheimer’s Blood Test And Neurology Hire Spark Valuation Debate
• Neutral Sentiment: Positive coverage on value metrics: Zacks and other outlets flagged LH as a strong value/quality stock based on style scores and fundamentals, which can attract longer‑term investors but may not move price immediately. Zacks: Strong Value Stock
• Neutral Sentiment: Operational color: Company presentations and “deep dive” coverage note specialty testing and hospital partnerships helped offset volume headwinds — supportive for margin resilience but showing mixed volume dynamics. Q4 Deep Dive
• Negative Sentiment: Revenue miss and cautious market reaction: Revenue for Q4 came in below consensus, which prompted a cautious investor response and pre‑market weakness despite the EPS beat — the main near‑term drag on the stock. Seeking Alpha: Stock Slips After Revenue Miss

Insider Activity at Labcorp

In other news, EVP Jonathan C. Meltzer sold 87 shares of Labcorp stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $290.42, for a total value of $25,266.54. Following the completion of the transaction, the executive vice president owned 2,782 shares in the company, valued at approximately $807,948.44. This trade represents a 3.03% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Adam H. Schechter sold 5,273 shares of the business’s stock in a transaction that occurred on Wednesday, February 11th. The shares were sold at an average price of $284.38, for a total value of $1,499,535.74. Following the completion of the sale, the chief executive officer owned 87,343 shares of the company’s stock, valued at $24,838,602.34. This trade represents a 5.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.84% of the company’s stock.

Institutional Investors Weigh In On Labcorp

Several large investors have recently added to or reduced their stakes in the stock. Corient Private Wealth LLC boosted its holdings in shares of Labcorp by 242.5% during the fourth quarter. Corient Private Wealth LLC now owns 92,438 shares of the medical research company’s stock valued at $23,191,000 after acquiring an additional 65,451 shares during the period. Vident Advisory LLC increased its holdings in shares of Labcorp by 23.9% in the 4th quarter. Vident Advisory LLC now owns 21,961 shares of the medical research company’s stock worth $5,510,000 after acquiring an additional 4,232 shares during the period. Beacon Pointe Advisors LLC lifted its position in Labcorp by 15.0% in the 4th quarter. Beacon Pointe Advisors LLC now owns 1,812 shares of the medical research company’s stock valued at $455,000 after purchasing an additional 237 shares during the last quarter. EP Wealth Advisors LLC acquired a new position in Labcorp during the 4th quarter valued at about $514,000. Finally, Mackenzie Financial Corp grew its position in Labcorp by 34.8% in the 4th quarter. Mackenzie Financial Corp now owns 19,306 shares of the medical research company’s stock worth $4,876,000 after purchasing an additional 4,987 shares during the last quarter. 95.94% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

LH has been the topic of several recent research reports. UBS Group reduced their target price on shares of Labcorp from $325.00 to $320.00 and set a “buy” rating on the stock in a report on Wednesday, October 29th. Wall Street Zen upgraded Labcorp from a “hold” rating to a “buy” rating in a research note on Friday, January 23rd. Morgan Stanley reiterated an “overweight” rating on shares of Labcorp in a research note on Tuesday. Robert W. Baird raised their target price on Labcorp from $313.00 to $326.00 and gave the company an “outperform” rating in a report on Wednesday. Finally, Weiss Ratings upgraded Labcorp from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, February 10th. Ten equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, Labcorp presently has an average rating of “Moderate Buy” and an average target price of $302.75.

Labcorp Company Profile

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.