Labcorp (NYSE:LH) Issues Earnings Results

Labcorp (NYSE:LH) issued its quarterly earnings data on Wednesday. The medical research company reported $4.78 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.64 by $0.14, FiscalAI reports. The firm had revenue of $3.81 billion for the quarter, compared to analysts’ expectations of $3.76 billion. The firm’s revenue was up 6.9% on a year-over-year basis. During the same period last year, the company earned $4.18 earnings per share.

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

• Q3 performance exceeded expectations: Revenue grew 6.9% to $3.8 billion, adjusted EPS increased 14.5% to $4.78, adjusted operating margin expanded 60 basis points to 15%, and free cash flow rose to $412 million.
• Labcorp raised its 2026 guidance, increasing the midpoint of its revenue outlook by $65 million and adjusted EPS outlook by $0.18; adjusted EPS is now expected at $18.30–$18.70, representing approximately 12.5% growth at the midpoint.
• Biopharma laboratory services showed strong momentum, with revenue up 8.5%, central laboratory growth of 11.3% on an organic constant-currency basis, a 1.13 quarterly book-to-bill, and $8.9 billion of backlog.
• Labcorp announced acquisitions of BioReference assets, Myriad Genetics’ prenatal testing business, and Millennium Health, each expected to be accretive to adjusted EPS in the first year; management also said its broader M&A pipeline remains strong.
• Proposed PAMA reimbursement changes could reduce 2027 Medicare and Medicaid revenue by approximately $125 million, with some spillover to other payers; management expects to offset only a portion through organic growth, biopharma strength, cost savings, and acquisitions.

Labcorp Price Performance

Shares of LH stock traded up $33.75 during trading hours on Wednesday, reaching $364.92. 266,472 shares of the stock were exchanged, compared to its average volume of 688,592. Labcorp has a 12-month low of $244.52 and a 12-month high of $365.56. The company’s 50-day moving average price is $321.16 and its 200-day moving average price is $285.95.

Labcorp Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, December 11th. Investors of record on Tuesday, November 24th will be paid a dividend of $0.72 per share. The ex-dividend date of this dividend is Tuesday, November 24th. This represents a $2.88 dividend on an annualized basis and a dividend yield of 0.8%.

Key Headlines Impacting Labcorp

Here are the key news stories impacting Labcorp this week:

• Positive Sentiment: Quarterly earnings and revenue topped estimates. Labcorp reported adjusted EPS of $4.78, above the $4.64 consensus, while revenue increased 6.9% year over year to $3.81 billion, exceeding expectations of $3.76 billion. GAAP diluted EPS was $3.22, compared with $3.12 in the prior-year quarter. Labcorp Q3 Adjusted Earnings, Revenue Rise; 2026 Guidance Raised
• Positive Sentiment: Management raised 2026 guidance. Labcorp now expects enterprise revenue growth of approximately 5.9% to 6.7% and adjusted EPS of $18.30 to $18.70, improving the outlook for full-year earnings and signaling confidence in demand. Labcorp Boosts FY26 Outlook
• Positive Sentiment: Growth was broad-based. Diagnostics Laboratories revenue rose 6.5% to $2.95 billion, while Biopharma Laboratory Services revenue increased 8.5% to $866.7 million. The company also announced or completed four transactions, including MLM Medical Labs and agreements involving BioReference Health, Myriad Genetics and Millennium Health.
• Positive Sentiment: Labcorp received FDA approval for its PGDx elio tissue complete CDx companion diagnostic for advanced melanoma. Separately, a partnership with Waters is expected to expand access to FDA-approved HPV screening tests by late 2026, potentially supporting future diagnostics adoption. Waters and Labcorp Expand Access to HPV Screening Tests
• Neutral Sentiment: Labcorp invested $255.5 million in acquisitions and paid $58.2 million in dividends during the quarter, reflecting continued capital deployment but also ongoing acquisition-related spending.
• Negative Sentiment: Insiders reported nine sales and no purchases over the past six months. Institutional positioning was mixed, with some major investors adding shares while others reduced holdings; these signals may temper enthusiasm but do not offset the strong earnings and guidance update.

Insider Buying and Selling

In other Labcorp news, CEO Adam Schechter sold 4,669 shares of the business’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $320.37, for a total transaction of $1,495,807.53. Following the completion of the transaction, the chief executive officer owned 102,565 shares in the company, valued at $32,858,749.05. The trade was a 4.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Kerrii Anderson sold 3,000 shares of the business’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $318.02, for a total value of $954,060.00. Following the transaction, the director owned 6,563 shares of the company’s stock, valued at $2,087,165.26. This trade represents a 31.37% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 8,593 shares of company stock valued at $2,733,295 in the last ninety days. 0.84% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

LH has been the subject of a number of recent research reports. Barclays raised their target price on shares of Labcorp from $320.00 to $330.00 and gave the company an “equal weight” rating in a report on Friday, September 11th. JPMorgan Chase & Co. upped their price target on shares of Labcorp from $330.00 to $360.00 and gave the company an “overweight” rating in a research note on Monday, August 3rd. Piper Sandler increased their price objective on shares of Labcorp from $300.00 to $309.00 and gave the company a “neutral” rating in a research report on Tuesday, August 4th. Wall Street Zen raised shares of Labcorp from a “hold” rating to a “buy” rating in a research note on Sunday, July 12th. Finally, Bank of America lifted their price objective on shares of Labcorp from $300.00 to $320.00 and gave the stock a “buy” rating in a research note on Monday, July 13th. One analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $337.73.

Labcorp Company Profile

Labcorp (NYSE: LH), formally Laboratory Corporation of America Holdings, is a global life sciences and healthcare company headquartered in Burlington, North Carolina. The company provides laboratory testing and diagnostic services to physicians, hospitals, health systems, employers, insurers and consumers.

Through its diagnostics operations, Labcorp offers routine and specialty testing, oncology diagnostics, women’s health testing, genetic testing, pathology services and other laboratory services.