Labcorp (NYSE:LH) Releases 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 earnings per share for the quarter, topping the consensus estimate of $4.78 by $0.21, FiscalAI reports. The business had revenue of $3.73 billion during the quarter, compared to analysts’ expectations of $3.71 billion. Labcorp had a return on equity of 16.29% and a net margin of 6.66%.The business’s revenue for the quarter was up 5.8% compared to the same quarter last year. During the same period in the prior year, the business earned $4.35 EPS. 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

Shares of Labcorp stock traded up $4.87 during trading hours on Thursday, hitting $312.02. The company’s stock had a trading volume of 651,132 shares, compared to its average volume of 685,061. The company has a market cap of $25.59 billion, a PE ratio of 27.64, a PEG ratio of 2.09 and a beta of 0.89. The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.54 and a current ratio of 1.73. The business has a 50 day moving average price of $272.53 and a two-hundred day moving average price of $270.29. Labcorp has a 12-month low of $244.52 and a 12-month high of $315.77.

Labcorp Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 11th. Stockholders of record on Friday, August 28th will be paid a $0.72 dividend. The ex-dividend date of this dividend is Friday, August 28th. This represents a $2.88 dividend on an annualized basis and a dividend yield of 0.9%. Labcorp’s dividend payout ratio is 25.51%.

Wall Street Analyst Weigh In

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

Labcorp News Summary

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

Insiders Place Their Bets

In other news, CEO Adam H. Schechter sold 5,903 shares of the business’s stock in a transaction on Monday, May 11th. The shares were sold at an average price of $254.50, for a total value of $1,502,313.50. Following the transaction, the chief executive officer owned 107,234 shares of the company’s stock, valued at approximately $27,291,053. The trade was a 5.22% decrease in their ownership of the stock. The transaction 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. Also, EVP Kathryn W. Kyle sold 762 shares of Labcorp stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $263.89, for a total value of $201,084.18. Following the completion of the sale, the executive vice president directly owned 3,813 shares in the company, valued at $1,006,212.57. This trade represents a 16.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 6,991 shares of company stock worth $1,796,696 in the last three months. 0.84% of the stock is owned by company insiders.

Institutional Investors Weigh In On Labcorp

A number of hedge funds have recently bought and sold shares of the business. JPL Wealth Management LLC purchased a new stake in Labcorp during the third quarter valued at approximately $28,000. DV Equities LLC purchased a new stake in shares of Labcorp in the fourth quarter valued at about $29,000. Headlands Technologies LLC grew its stake in shares of Labcorp by 300.0% in the second quarter. Headlands Technologies LLC now owns 128 shares of the medical research company’s stock worth $34,000 after acquiring an additional 96 shares in the last quarter. EFG International AG purchased a new stake in shares of Labcorp in the fourth quarter valued at about $33,000. Finally, Larson Financial Group LLC increased its position in Labcorp by 37.5% during the third quarter. Larson Financial Group LLC now owns 154 shares of the medical research company’s stock worth $44,000 after purchasing an additional 42 shares during the last quarter. Hedge funds and other 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.