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

Labcorp (NYSE:LH) issued its earnings results on Thursday. The medical research company reported $4.99 EPS for the quarter, topping the consensus estimate 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 company had revenue of $3.73 billion for the quarter, compared to the consensus estimate of $3.71 billion. During the same period in the previous year, the firm earned $4.35 earnings per share. The firm’s revenue for the quarter was up 5.8% on a year-over-year basis. 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 Price Performance

LH stock traded up $4.46 during trading on Thursday, reaching $311.61. The company’s stock had a trading volume of 631,594 shares, compared to its average volume of 684,950. The company’s fifty day moving average is $272.53 and its 200-day moving average is $270.29. Labcorp has a 1 year low of $244.52 and a 1 year high of $315.77. The company has a market capitalization of $25.55 billion, a P/E ratio of 27.58, a price-to-earnings-growth ratio of 2.09 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 Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, September 11th. Investors of record on Friday, August 28th will be issued 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 dividend payout ratio is currently 25.51%.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the stock. Robert W. Baird increased their target price on shares of Labcorp from $335.00 to $338.00 and gave the stock an “outperform” rating in a report on Monday, July 13th. Weiss Ratings upgraded Labcorp from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, July 24th. Wall Street Zen raised Labcorp from a “hold” rating to a “buy” rating in a research report on Sunday, July 12th. Evercore reiterated an “outperform” rating and issued a $300.00 price objective on shares of Labcorp in a report on Wednesday, April 8th. Finally, Bank of America boosted their target price on Labcorp from $300.00 to $320.00 and gave the company a “buy” rating in a research note on Monday, July 13th. Eight investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $315.33.

Trending Headlines about Labcorp

Here are the key news stories impacting Labcorp this week:

• Positive Sentiment: Labcorp reported adjusted earnings of $4.99 per share, exceeding the roughly $4.78–$4.79 analyst consensus and rising from $4.35 a year earlier. Revenue increased 5.8% to $3.73 billion, also topping estimates. Labcorp raises annual profit forecast on strong testing demand
• Positive Sentiment: Growth was broad-based: 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-testing demand and continued growth in drug-development services. Labcorp Announces 2026 Second Quarter Results
• Positive Sentiment: Labcorp raised its fiscal 2026 adjusted EPS outlook to $18.10–$18.55, above the approximately $17.99 consensus, and issued revenue guidance of $14.71–$14.83 billion. It also increased its share-repurchase authorization by $1 billion and repurchased $353.8 million of stock during the quarter. Labcorp Holdings Surpasses Q2 Earnings and Revenue Estimates
• Neutral Sentiment: Second-quarter organic revenue growth was 4.2%, indicating solid but moderate underlying expansion. Investors may want additional evidence that the higher forecast can be sustained through the remainder of 2026. Labcorp Reports Q2 CY2026 In Line With Expectations
• Negative Sentiment: Despite the results and guidance increase, LH fell in premarket trading, likely reflecting elevated investor expectations after its strong run and concerns that the earnings beat was not large enough to support the valuation. The stock trades near its 52-week high with a forward earnings multiple in the high teens.
• Negative Sentiment: Reported insider activity was entirely selling over the past six months, with executives including the CEO selling shares. While these transactions may be routine, the absence of insider purchases can weigh modestly on sentiment. Labcorp Q2 Revenue Rises 5.8 Percent

Insider Buying and Selling

In other Labcorp news, EVP Bryan T. Vaughn sold 234 shares of Labcorp stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $286.19, for a total value of $66,968.46. Following the sale, the executive vice president owned 6,746 shares of the company’s stock, valued at $1,930,637.74. The trade was a 3.35% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available 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, EVP Kathryn W. Kyle sold 92 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 $26,329.48. Following the completion of the transaction, the executive vice president directly owned 3,904 shares of the company’s stock, valued at approximately $1,117,285.76. The trade was a 2.30% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 6,991 shares of company stock worth $1,796,696. 0.84% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Labcorp

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Brighton Jones LLC purchased a new position in Labcorp during the fourth quarter worth $991,000. Voleon Capital Management LP bought a new position in Labcorp during the 3rd quarter valued at about $340,000. DRW Securities LLC purchased a new stake in Labcorp in the 4th quarter worth about $335,000. Laird Norton Wetherby Wealth Management LLC lifted its stake in Labcorp by 5.5% in the third quarter. Laird Norton Wetherby Wealth Management LLC now owns 1,148 shares of the medical research company’s stock worth $330,000 after purchasing an additional 60 shares during the last quarter. Finally, First Manhattan CO. LLC. boosted its position in shares of Labcorp by 30.6% during the fourth quarter. First Manhattan CO. LLC. now owns 1,280 shares of the medical research company’s stock valued at $321,000 after buying an additional 300 shares during the period. 95.94% of the stock is currently owned by hedge funds and other institutional investors.

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.