Labcorp (NYSE:LH) Releases Quarterly Earnings Results, Beats Estimates By $0.21 EPS

Labcorp (NYSE:LH) released its quarterly earnings results on Thursday. The medical research company reported $4.99 EPS for the quarter, topping analysts’ consensus estimates of $4.78 by $0.21, FiscalAI reports. Labcorp had a net margin of 6.66% and a return on equity of 16.29%. The business had revenue of $3.73 billion for the quarter, compared to analyst estimates of $3.71 billion. During the same period last year, the firm earned $4.35 earnings per share. Labcorp’s revenue for the quarter was up 5.8% compared to the same quarter last year. Labcorp updated its FY 2026 guidance to 18.100-18.550 EPS.

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

• Strong Q2 performance: Revenue rose 5.8% to $3.7 billion, adjusted operating margin expanded 70 basis points to 15.8%, and adjusted EPS increased 14.9% to $4.99. Diagnostics and Biopharma Laboratory Services both delivered revenue growth and margin expansion.
• Full-year guidance was raised: Labcorp increased the midpoint of its 2026 revenue outlook by $42 million and adjusted EPS outlook by $0.30 to $18.10–$18.55, implying more than 11% EPS growth at the midpoint.
• Biopharma momentum improved: BLS revenue increased 6.5%, supported by strong Central Lab growth, a quarterly book-to-bill ratio of 1.14, and improving Early Development trends. The company raised its midpoint outlook for BLS revenue growth and expects continued segment margin expansion.
• Specialty and consumer testing remain growth drivers: Specialty diagnostics grew at double-digit rates in the first half, while Labcorp OnDemand also delivered strong double-digit growth. New offerings include the nationwide ColoSense colorectal cancer screening test and the upcoming Marker by Labcorp biomarker and genetic testing panel.
• Capital deployment and reimbursement risks remain in focus: Labcorp repurchased $354 million of shares, invested $226 million in acquisitions, and received a new $1 billion share-repurchase authorization. Management expects an approximately 30-basis-point 2026 diagnostic-volume headwind from ACA-related changes and continues to monitor potential PAMA reimbursement impacts.

Labcorp Trading Up 2.8%

Shares of Labcorp stock opened at $315.76 on Friday. The company has a market capitalization of $25.89 billion, a price-to-earnings ratio of 27.97, a PEG ratio of 2.04 and a beta of 0.89. The company has a quick ratio of 1.54, a current ratio of 1.73 and a debt-to-equity ratio of 0.68. Labcorp has a 12-month low of $244.52 and a 12-month high of $316.11. The firm’s 50-day moving average price is $273.73 and its two-hundred day moving average price is $270.74.

Labcorp Announces Dividend

The company also recently disclosed 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. This represents a $2.88 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date is Friday, August 28th. Labcorp’s dividend payout ratio is presently 25.51%.

Key Labcorp News

Here are the key news stories impacting Labcorp this week:

• Positive Sentiment: Quarterly results exceeded expectations. Labcorp reported adjusted EPS of $4.99, above the $4.78–$4.79 consensus, while revenue reached $3.73 billion versus an estimate of approximately $3.71 billion. Revenue increased 5.8% year over year, with organic growth of 4.2%. Reuters article
• Positive Sentiment: Both major business segments grew. Diagnostics Laboratories revenue rose 5.5% to $2.90 billion, while Biopharma Laboratory Services revenue increased 6.5% to $836.2 million. Management cited steady diagnostic demand and growth in drug-development services as key drivers. Labcorp second-quarter results
• Positive Sentiment: Labcorp raised its full-year forecast and expanded buybacks. FY 2026 EPS guidance is now $18.10–$18.55, above the roughly $17.99 consensus, with revenue guidance of $14.71–$14.83 billion. The company also authorized an additional $1 billion for share repurchases and bought back $353.8 million of stock during the quarter.
• Neutral Sentiment: The earnings-call commentary highlighted ongoing investments in oncology, consumer health and technology. These initiatives could support longer-term growth, but they may require continued spending before producing material financial benefits. Labcorp Q2 earnings call transcript
• Negative Sentiment: The stock’s initial market reaction was pressured despite the earnings beat, suggesting investors may have been focused on elevated valuation, already-high expectations or profit-taking. In addition, disclosed insider activity showed 14 open-market sales and no purchases over the past six months, a potential—but not necessarily company-specific—sentiment headwind.

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. Weiss Ratings upgraded shares of Labcorp from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, July 24th. Robert W. Baird lifted their price target on shares of Labcorp from $335.00 to $338.00 and gave the company an “outperform” rating in a research report on Monday, July 13th. Barclays set a $320.00 price target on Labcorp in a research note on Thursday. Bank of America increased their price target on Labcorp from $300.00 to $320.00 and gave the stock a “buy” rating in a research report on Monday, July 13th. Finally, Evercore restated an “outperform” rating and set a $300.00 price objective on shares of Labcorp in a research note on Wednesday, April 8th. Eight equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $318.67.

Insider Activity

In other news, EVP Bryan T. Vaughn sold 234 shares of the business’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 value of $66,968.46. Following the completion of the transaction, 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 position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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, EVP Kathryn W. Kyle sold 762 shares of the company’s stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $263.89, for a total transaction of $201,084.18. Following the sale, the executive vice president directly owned 3,813 shares of the company’s stock, valued at approximately $1,006,212.57. This trade represents a 16.66% 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. In the last ninety days, insiders sold 6,991 shares of company stock worth $1,796,696. 0.84% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Labcorp

Several hedge funds and other institutional investors have recently modified their holdings of LH. Invesco Ltd. lifted its position in shares of Labcorp by 7.1% during the 4th quarter. Invesco Ltd. now owns 1,391,978 shares of the medical research company’s stock worth $349,220,000 after buying an additional 91,867 shares during the last quarter. Corient Private Wealth LLC grew its position in Labcorp by 242.5% in 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 last quarter. Vident Advisory LLC grew its position in Labcorp by 23.9% in the fourth quarter. Vident Advisory LLC now owns 21,961 shares of the medical research company’s stock valued at $5,510,000 after acquiring an additional 4,232 shares during the last quarter. Beacon Pointe Advisors LLC raised its stake in Labcorp by 15.0% during the fourth quarter. Beacon Pointe Advisors LLC now owns 1,812 shares of the medical research company’s stock worth $455,000 after acquiring an additional 237 shares in the last quarter. Finally, EP Wealth Advisors LLC acquired a new position in Labcorp during the fourth quarter worth about $514,000. Institutional investors own 95.94% of the company’s stock.

About Labcorp

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.