Labcorp Holdings Inc. (LH)

Labcorp Holdings reported second-quarter 2026 revenue of $3.73 billion, up 5.8 percent from the second quarter of 2025 3.

Adjusted earnings per share, a profit measure that leaves out amortization and one-off charges, rose 14.9 percent to $4.99 3.

Adjusted operating income, profit from running the labs before those items, was 15.8 percent of revenue against 15.1 percent a year earlier, which the company ties to organic growth and operating efficiencies 3.

The company expects 2026 revenue growth of 5.4 percent to 6.3 percent and adjusted earnings per share of $18.10 to $18.55 3.

On September 21 the federal Medicare agency, CMS, released preliminary lab payment rates for 2027 through 2029, which Labcorp says would impose steep annual cuts 5.

Third-quarter 2026 results were scheduled for release before the market opens on 28 October 7.

Labcorp left the drug-trial services business on 30 June 2023, when it completed the spin-off of Fortrea 1.

Since then it has run two segments: Diagnostics Laboratories, which does routine and specialty testing for patients and doctors, and Biopharma Laboratory Services, which tests samples for drug makers 1.

The company has grown partly by buying: it paid about $839 million for several businesses in 2024 and about $582 million in 2025 1.

The 2024 purchases the filing lists include Invitae Corp. and BioReference Health 1.

The company says Invitae helped lift the Diagnostics margin in 2025 1.

Diagnostics revenue grew 7.2 percent in 2025, with 4.1 percent from organic growth and 3.2 percent from purchases, while Biopharma revenue grew 6.0 percent 1.

Fortrea paid Labcorp fees for transition services until that agreement expired on 30 June 2025, which cut Other, net by $76.2 million 1.

Revenue in 2025 was $13,951.7 million, up 7.2 percent from $13,008.9 million in 2024 1.

Organic growth, which leaves out purchases, sales and currency moves, was 4.4 percent, purchases added 2.5 percent and currency added 0.4 percent 1.

Cost of revenues, what it spends to run the labs, fell to 71.2 percent of revenue from 72.1 percent, which the company credits to operational efficiencies and revenue growth 1.

Operating income rose 27.4 percent to $1,384.7 million as corporate expenses fell with lower spin-off and acquisition costs 1.

Labcorp booked $127.2 million of restructuring charges in 2025, $105.5 million of them for restructuring its Early Development research labs 1.

In March 2025 it closed the purchase of a 15 percent minority interest in SYNLAB, a European diagnostics company, for about $151.6 million 1.

Diagnostics Laboratories

Diagnostics Laboratories runs routine and specialty testing through labs across the U.S. and Canada, and it had $10,876.5 million of revenue in 2025 1.

It has more than 2,200 patient service centers, where people give samples, and more than 7,000 phlebotomists, staff who draw blood, working in customer offices 1.

In 2025, third-party health plans were 37 percent of company revenue, clients such as doctors and hospitals 23 percent, patients 10 percent and Medicare and Medicaid 8 percent 1.

In the second quarter of 2026 the segment had revenue of $2,900.7 million, up 5.5 percent, and an adjusted operating margin of 18.0 percent 3.

Biopharma Laboratory Services

Biopharma Laboratory Services tests samples for drug makers during clinical trials and runs early-stage research labs, and it had $3,098.2 million of revenue in 2025 1.

The company says the segment supported about 85 percent of the new drugs and therapeutic products the FDA approved in 2025 1.

In the second quarter of 2026 its revenue was $836.2 million, up 6.5 percent, with a backlog of $8.73 billion 3.

Central lab revenue grew 9.8 percent in that quarter, while Early Development revenue fell 1.4 percent 3.

Specialty testing and consumer health

Labcorp names oncology, women's health, autoimmune disease and neurology as its four main specialty testing areas 1.

In its second-quarter release the company said it launched ColoSense nationwide, which it calls the first FDA-approved, RNA-based colorectal cancer screening test with at-home collection 3.

Its Labcorp OnDemand channel sells more than 100 health and wellness tests directly to consumers 1.

People, labs and workforce

Adam Schechter is chairman and chief executive, and Julia Wang is chief financial officer 34.

On August 11 Megan Bailey said she would resign as head of Central Laboratories and International, effective September 4, and Brian Caveney took over the Biopharma Laboratory Services role from September 1 8.

The company had nearly 71,000 employees serving clients in about 100 countries in 2025 1.

The headquarters is in Burlington, North Carolina, and the biopharma business has principal sites in the U.K., Belgium, Germany, China, India, Singapore and Switzerland, plus owned sites in Bedford, Massachusetts, and Madison, Wisconsin 1.

Rivals and problems

Diagnostics competes with hospital labs, physician-office labs and about 8,500 independent laboratories in the U.S., according to a CMS estimate quoted in the annual report 1.

Labcorp says the CMS rates released on September 21 rest on data not fully representative of the broader commercial laboratory market 5.

The company has received various subpoenas and civil investigative demands related to Medicaid billing 2.

A law enacted on July 4, 2025 could cut insurance coverage and lab use, though the company does not expect a material effect 1.

The umbrella, in words

Patients book visits and see results in the MyLabcorp app, which the company says millions of consumers have downloaded 3.

Exhibit 21.1 to the annual report lists subsidiaries including Dynacare Company, Sequenom, Inc., Medtox Laboratories, Inc., Omniseq, Inc. and Labcorp Early Development Laboratories Inc. 9.

Labcorp owns a 15 percent minority interest in SYNLAB, held as an equity method investment 1.

It agreed to buy select clinical laboratory assets from Empire City Laboratories, Inc. for up to $250.0 million, and the deal closed in the first quarter of 2026 1.

It also agreed to buy select outreach laboratory assets from Parkview Health System, Inc. for about $165.0 million, and the second-quarter release says it completed select outreach services purchases in Indiana and Ohio 13.

Owned Diagnostics sites include Phoenix, Arizona, St. Paul, Minnesota, Raritan, New Jersey and Dublin, Ohio 1.

The company expects 2026 revenue of $14,710 million to $14,827 million, adjusted earnings per share of $18.10 to $18.55 and free cash flow of $1,240 million to $1,360 million 4.

Through 2029 it expects revenue to grow 5 percent to 8 percent a year and adjusted earnings per share 8.5 percent to 11.5 percent 4. It also expects adjusted operating margin to widen by 75 to 150 basis points 4.

A later filing reaffirmed that outlook and said the company expects to say how the CMS rates affect its 2027 guidance in February 2027 5.

The board declared a quarterly cash dividend of $0.72 per share, payable on December 11, 2026, to holders of record on November 24, 2026 6.

The company expects capital spending to rise to 4.0 percent of revenue in 2026 from 3.1 percent in 2025 1.

In July it added $1.0 billion to its share repurchase authorization, leaving $1.4 billion 3.

The company will host a webcast at 9:00 ET on October 28 to discuss those results 7.