Labcorp Announces 2025 Third Quarter Results
Labcorp (NYSE: LH) reported third-quarter 2025 results with revenue $3.56B (up 8.6% YoY) and diluted EPS $3.12 versus $2.00 a year ago. Adjusted EPS was $4.18 (up 19.4% YoY). Operating income margin improved to 11.1% and free cash flow for the quarter was $280.5M.
The company updated 2025 guidance: enterprise revenue growth of 7.4%–8.0% (midpoint lowered ~40 bps), adjusted EPS $16.15–$16.50 (midpoint +$0.05) and free cash flow $1.17B–$1.29B (midpoint +$25M). Labcorp announced multiple asset acquisitions, a $0.72 quarterly dividend and $25M of share repurchases in the quarter.
Labcorp (NYSE: LH) ha riportato i risultati del terzo trimestre 2025 con ricavi di $3,56 miliardi (in aumento dell'8,6% su base annua) e utile diluito per azione $3,12 rispetto a $2,00 nello stesso periodo dell'anno precedente. L'EPS rettificato è stato $4,18 (in aumento del 19,4% su base annua). Il margine operativo ha migliorato al 11,1% e il flusso di cassa libero nel trimestre è stato $280,5M.
La società ha rivisto le previsioni per il 2025: una crescita dei ricavi aziendali tra 7,4%–8,0% (il punto medio ridotto di circa 40 bp), EPS rettificato tra $16,15–$16,50 (punto medio +$0,05) e flusso di cassa libero tra $1,17B–$1,29B (punto medio +$25M). Labcorp ha annunciato diverse acquisizioni di asset, un dividendo quadrimestrale di $0,72 e riacquisti di azioni per $25M nel trimestre.
Labcorp (NYSE: LH) informó los resultados del tercer trimestre de 2025 con ingresos de $3.56 mil millones (un aumento del 8.6% interanual) y EPS diluido de $3.12 frente a $2.00 hace un año. EPS ajustado fue de $4.18 (un aumento del 19.4% interanual). El margen de ingresos operativos mejoró al 11.1% y el flujo de efectivo libre del trimestre fue de $280.5M.
La empresa actualizó las perspectivas para 2025: crecimiento de ingresos empresariales de 7.4%–8.0% (el punto medio reducido ~40 pb), EPS ajustado $16.15–$16.50 (punto medio +$0.05) y flujo de efectivo libre de $1.17B–$1.29B (punto medio +$25M). Labcorp anunció varias adquisiciones de activos, un dividendo trimestral de $0.72 y recompras de acciones por $25M en el trimestre.
Labcorp (NYSE: LH)가 2025년 3분기 실적을 발표했으며 매출 $3.56B (전년 동기 대비 8.6% 증가) 및 희석 주당순이익 $3.12를 기록했고 전년 동기 $2.00에서 상승했습니다. 조정된 주당순이익은 $4.18로 전년 대비 19.4% 증가했습니다. 영업이익률은 11.1%로 개선되었고 분기의 자유현금흐름은 $280.5M이었습니다.
회사는 2025년 가이던스를 갱신했습니다: 기업 매출 성장률 7.4%–8.0% (중간값 약 40bp 하향), 조정된 EPS $16.15–$16.50 (중간값 +$0.05), 그리고 자유현금흐름 $1.17B–$1.29B (중간값 +$25M). Labcorp는 다수의 자산 인수, 분기별 배당금 $0.72 및 분기 중 주식 매입 $25M을 발표했습니다.
Labcorp (NYSE: LH) a publié les résultats du troisième trimestre 2025 avec un chiffre d'affaires de 3,56 milliards de dollars (en hausse de 8,6% sur un an) et un bénéfice par action dilué de 3,12 dollars contre 2,00 dollars il y a un an. EPS ajusté était de 4,18 dollars (en hausse de 19,4% sur un an). La marge opérationnelle s'est améliorée à 11,1% et le flux de trésorerie disponible pour le trimestre s'élevait à 280,5 millions de dollars.
La société a mis à jour ses prévisions pour 2025: croissance des revenus d'entreprise entre 7,4%–8,0% (point médian révisé d'environ -40 pb), EPS ajusté 16,15$–16,50$ (point médian +0,05$) et flux de trésorerie disponible entre 1,17–1,29 milliard de dollars (point médian +25 millions). Labcorp a annoncé plusieurs acquisitions d'actifs, un dividende trimestriel de 0,72$ et des rachats d'actions pour 25 millions de dollars au cours du trimestre.
Labcorp (NYSE: LH) berichtete über die Ergebnisse des dritten Quartals 2025 mit Umsatz von 3,56 Milliarden USD (plus 8,6% YoY) und verwässertem Gewinn pro Aktie von 3,12 USD gegenüber 2,00 USD vor einem Jahr. Bereinigter Gewinn je Aktie betrug 4,18 USD (plus 19,4% YoY). Die operative Gewinnmarge verbesserte sich auf 11,1% und der freie Cashflow des Quartals lag bei 280,5 Mio. USD.
Das Unternehmen hob die Guidance für 2025 an: Unternehmensumsatzwachstum von 7,4%–8,0% (Mittlerer Wert ca. 40 Basispunkte reduziert), bereinigter EPS 16,15–16,50 USD (Mittlerer Wert +0,05 USD) und freier Cashflow von 1,17–1,29 Milliarden USD (Mittlerer Wert +25 Mio.). Labcorp kündigte mehrere Asset-Akquisitionen, eine vierteljährliche Dividende von 0,72 USD und Aktienrückkäufe im Wert von 25 Mio. USD im Quartal an.
Labcorp (NYSE: LH) أصدرت نتائج الربع الثالث من 2025 مع إيرادات تبلغ 3.56 مليار دولار (بنسبة ارتفاع 8.6% على أساس سنوي) و هامش ربح السهم المخفف 3.12 دولار مقارنة بـ 2.00 دولار قبل عام. الأرباح المعدلة للسهم كانت 4.18 دولار (ارتفاع 19.4% على أساس سنوي). هامش الربح التشغيلي تحسن إلى 11.1% وتدفق النقد الحر للربع كان 280.5 مليون دولار.
حدّثت الشركة توقعاتها لعام 2025: نمو الإيرادات للشركة بين 7.4%–8.0% (المتوسط المعدل نحو ~40 نقطة أساس)، EPS المعدل $16.15–$16.50 (المتوسط +0.05 دولار) وتدفق النقد الحر بين $1.17B–$1.29B (المتوسط +$25M). أعلنت Labcorp عن عدة استحواذات أصول، وتوزيع ربع سنوي قدره $0.72 وعمليات إعادة شراء أسهم بقيمة $25M في الربع.
Labcorp (NYSE: LH) 公布了2025年第三季度业绩，收入为56亿美元（同比增长8.6%），摊薄后每股收益为3.12美元，去年同期为2.00美元。调整后每股收益为4.18美元（同比上涨19.4%）。营业利润率改善至11.1%，本季度自由现金流为2.805亿美元。
公司更新了2025年指引：企业收入增长在7.4%–8.0%之间（中点下调约40个基点），调整后EPS在16.15–16.50美元之间（中点+0.05美元），自由现金流在11.7–12.9亿美元之间（中点增加约2500万美元）。 Labcorp宣布多项资产并购、季度股息0.72美元以及本季度的回购计划为2500万美元。
- Revenue +8.6% YoY to $3.56B
- Adjusted EPS $4.18, +19.4% YoY
- Operating margin improved to 11.1%
- Free cash flow $280.5M in Q3; nine-month FCF $715.7M
- Adjusted EPS guidance midpoint raised by $0.05
- Total debt $5.58B at quarter end
- Revenue midpoint lowered ~40 bps to reflect FX and acquisition timing
- $268.4M invested in acquisitions and partnerships in the quarter
- Plan to divest or restructure ~$50M of Early Development annual revenue
Insights
Strong quarter: revenue, adjusted EPS, margins and free cash flow improved; guidance largely affirmed with modest midpoint tweaks.
Labcorp delivered
Key business drivers are clear in the results: organic revenue growth (
Updates Full-Year Guidance
- Financial results from Operations for third quarter 2025 versus third quarter 2024:
- Revenue:
$3.56 billion $3.28 billion - Diluted EPS:
$3.12 $2.00 - Adjusted EPS:
$4.18 $3.50
- Revenue:
- Updated Full-Year Enterprise Revenue, Adjusted EPS and Free Cash Flow guidance:
- Revenue guidance of
7.4% to8.0% ; midpoint lowered 40 bps due to currency and acquisition timing - Adjusted EPS range of
$16.15 $16.50 $0.05 - Free Cash Flow range of
$1.17 billion $1.29 billion $25 million
- Revenue guidance of
- Signed several strategic agreements with health systems and regional/local laboratories
- Advanced business in high-growth specialty testing areas, including oncology and neurology
- Introduced Labcorp Test Finder and new digital pathology, cytology and microbiology capabilities
"Labcorp's third-quarter performance reflects continued momentum in our Diagnostics and Central Laboratory businesses, resulting in strong revenue growth and margin improvement," said Adam Schechter, Chairman and CEO of Labcorp. "We advanced our strategy by forming new partnerships with health systems and regional laboratories, introducing innovative tests in key specialty areas and leveraging science and technology to improve customer experience and operational efficiency. Our performance led to double-digit adjusted EPS growth and strong cash flow in the quarter. We expect to finish the year strong as we remain focused on delivering value to our customers and shareholders."
Labcorp advanced its position as a partner of choice for health systems and regional/local laboratories. In the quarter, Labcorp:
- Signed an agreement to acquire select assets of Empire City Laboratories, which serves the New York Tri-State area.
- Signed an agreement to acquire select assets of Laboratory Alliance of
Central New York , a pathology reference laboratory, and signed an agreement with Crouse Health to manage its inpatient labs. - Continued to progress the acquisition of select assets of the outreach business from Community Health Systems across 13 states.
- Completed the acquisition of select oncology and clinical testing assets from BioReference Health, further solidifying Labcorp's position as an industry leader in oncology.
The company also continued to incorporate the power of science, technology and innovation across the organization. In the quarter, Labcorp:
- Expanded its leading oncology and genetic testing portfolio.
- Labcorp expanded the use of OmniSeq® INSIGHT, which now evaluates ovarian tumors for homologous recombination deficiency.
- PGDx elio™ tissue complete became the first and remains the only tissue-based tumor profiling test with CE-marking under the European Union's In Vitro Diagnostic Regulation.
- Geneoscopy received FDA approval for a simplified at-home collection method for ColoSense®, its RNA-based colorectal cancer screening test that Labcorp will make available to patients and providers.
- The company expanded access to its Invitae genetic tests through Epic Aura, enabling streamlined ordering and results delivery for Epic customers.
- Expanded its leadership in neurology with two new Alzheimer's tests to be used in the specialty and primary care settings.
- Demonstrated strong momentum in its consumer business with the introduction of several new tests through Labcorp OnDemand.
- Accelerated growth, enhanced the customer experience and improved operational efficiency through the launch of Labcorp Test Finder and investments in digital and AI capabilities to enhance areas such as pathology, cytology and microbiology.
On October 8, 2025, the company announced a quarterly cash dividend of
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LABCORP HOLDINGS INC. AND SUBSIDIARIES |
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CONSOLIDATED RESULTS |
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
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2025 |
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2024 |
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Delta |
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2025 |
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2024 |
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Delta |
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Revenue Summary (Dollars in billions) |
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Total Revenue |
$ 3.56 |
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$ 3.28 |
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8.6 % |
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$ 10.44 |
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$ 9.68 |
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7.8 % |
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Organic(1) |
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6.2 % |
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4.6 % |
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Acquisitions, net of Divestitures |
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1.7 % |
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3.0 % |
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Foreign Exchange |
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0.7 % |
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0.3 % |
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(1) Organic revenue is no longer separated between the Base Business and COVID-19 Testing. |
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Earnings Summary (Dollars in millions, except per share data) |
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Operating Income ("OI") |
$ 396.6 |
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$ 254.1 |
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$ 1,117.1 |
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$ 870.2 |
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OI as % of Revenue |
11.1 % |
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7.7 % |
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340 bps |
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10.7 % |
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9.0 % |
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170 bps |
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Adjustments (2) |
$ 116.7 |
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$ 187.0 |
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$ 396.8 |
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$ 503.6 |
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Adjusted Operating Income ("AOI") (3) |
$ 513.3 |
(4) |
$ 441.1 |
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$ 1,513.9 |
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$ 1,373.8 |
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AOI as % of Revenue |
14.4 % |
(4) |
13.4 % |
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100 bps |
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14.5 % |
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14.2 % |
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30 bps |
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Net Earnings Attributable to Labcorp |
$ 261.1 |
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$ 169.3 |
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$ 711.8 |
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$ 602.6 |
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Diluted EPS |
$ 3.12 |
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$ 2.00 |
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$ 8.48 |
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$ 7.13 |
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Adjusted EPS (3) |
$ 4.18 |
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$ 3.50 |
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19.4 % |
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$ 12.37 |
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$ 11.12 |
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11.2 % |
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(2) Adjustments include amortization, impairment charges, restructuring charges, and special items. |
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(3) Non-GAAP financial measure. See "Reconciliation of Non-GAAP Measures" for additional information. |
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(4) The increase in adjusted operating income and margin was primarily driven by organic demand, including the strong performance of Invitae. |
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CONSOLIDATED RESULTS |
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Three Months Ended |
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Nine Months Ended |
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2025 |
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2024 |
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2025 |
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2024 |
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Cash Flow Summary (Dollars in millions) |
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Operating Cash Flow |
$ 387.2 |
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$ 277.3 |
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$ 1,026.3 |
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$ 808.6 |
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Capital Expenditures |
106.7 |
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115.8 |
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310.6 |
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377.8 |
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Free Cash Flow |
$ 280.5 |
(1) |
$ 161.5 |
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$ 715.7 |
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$ 430.8 |
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(1) The increase in free cash flow was primarily driven by higher cash earnings. |
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Capital Allocation Summary
- At the end of the quarter, Labcorp's cash and cash equivalents balance was
$598 million $5.58 billion - During the quarter, the company invested
$268.4 million $59.9 million $25.0 million
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Diagnostics Laboratories Segment Summary |
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Three Months Ended September 30, |
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2025 |
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2024 |
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Delta |
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Revenue Summary (Dollars in billions) |
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Total Revenue |
$ 2.77 |
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$ 2.55 |
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8.5 % |
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Organic(1) |
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6.3 % |
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Acquisitions, net of Divestitures |
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2.2 % |
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(1) Organic revenue is no longer separated between the Base Business and COVID-19 Testing. |
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Earnings Summary (2) (Dollars in millions) |
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Adjusted Operating Income ("AOI") (3) |
$ 450.4 |
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$ 387.4 |
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AOI as % of Revenue |
16.3 % |
(4) |
15.2 % |
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110 bps |
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(2) Non-GAAP financial measure. See "Reconciliation of Non-GAAP Measures" for additional information. |
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(3) Excludes amortization, restructuring charges, special items, and unallocated corporate expenses. |
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(4) Adjusted operating income and margin increased primarily driven by organic demand, including the strong performance of |
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Three Months Ended |
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Requisition |
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Price/Mix |
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Volume |
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Delta (5) |
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Metrics Summary |
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Total |
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4.7 % |
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3.7 % |
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Organic (6) |
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3.5 % |
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2.8 % |
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Acquisitions, net of Divestitures |
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1.2 % |
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1.0 % |
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Foreign Exchange |
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— % |
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— % |
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(5) Column shows changes versus the three months ended September 30, 2024. |
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(6) Organic price/mix includes lab management agreements. |
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Biopharma Laboratory Services Segment Summary |
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Three Months Ended September 30, |
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2025 |
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2024 |
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Delta |
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Revenue Summary (Dollars in millions) |
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Total Revenue |
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$ 799.1 |
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$ 737.7 |
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8.3 % |
(1) |
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Organic |
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5.3 % |
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Foreign Exchange |
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3.0 % |
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(1) Central Labs revenue growth of |
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Earnings Summary (2) (Dollars in millions) |
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Adjusted Operating Income ("AOI") (3) |
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$ 132.2 |
(4) |
$ 120.9 |
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AOI as % of Revenue |
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16.5 % |
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16.4 % |
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20 bps |
(4) |
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(2) Non-GAAP financial measure. See "Reconciliation of Non-GAAP Measures" for additional information. |
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(3) Excludes amortization, restructuring charges, special items, and unallocated corporate expenses. |
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(4) Adjusted Operating Income grew |
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As of |
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September 30, |
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Metrics Summary (Dollars in billions) |
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TTM Net Orders |
$ 3.34 |
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TTM Book to Bill |
1.09 |
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Backlog |
$ 8.58 |
(5) |
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Next Twelve Months Forecast Backlog Conversion |
$ 2.66 |
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(5) Backlog increased |
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Guidance for 2025
Labcorp is updating 2025 full year guidance to reflect its third quarter performance and full year outlook. The following guidance assumes foreign exchange rates effective as of September 30, 2025, for the remainder of the year. Enterprise level guidance includes the estimated impact from currently anticipated capital allocation, including acquisitions, share repurchases and dividends.
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(Dollars in billions, except per share data) |
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Previous |
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Updated |
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Results |
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2025 Guidance |
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2025 Guidance |
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2024 |
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Low |
High |
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Low |
High |
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Revenue |
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Labcorp Enterprise (1)(2) |
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7.5 % |
8.6 % |
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7.4 % |
8.0 % |
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Diagnostics Laboratories(3) |
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7.0 % |
8.0 % |
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7.2 % |
7.8 % |
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Biopharma Laboratory Services (4) |
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6.1 % |
7.5 % |
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5.7 % |
7.1 % |
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Adjusted EPS |
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Free Cash Flow |
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(1) 2025 Updated guidance includes an impact from foreign currency translation of |
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(2) Enterprise level revenue is presented net of intersegment transaction eliminations. |
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(3) 2025 Updated guidance includes an impact from foreign currency translation of ( |
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(4) 2025 Updated guidance includes an impact from foreign currency translation of |
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Use of Adjusted Measures
The company has provided in this press release and accompanying tables "adjusted" financial information that has not been prepared in accordance with GAAP, including adjusted net income, adjusted EPS (or adjusted net income per share), adjusted operating income, adjusted operating margin, free cash flow, and certain segment information. The company believes these adjusted measures are useful to investors as a supplement to, but not as a substitute for, GAAP measures, in evaluating the company's operational performance. The company further believes that the use of these non-GAAP financial measures provides an additional tool for investors in evaluating operating results and trends, and growth and shareholder returns, as well as in comparing the company's financial results with the financial results of other companies. However, the company notes that these adjusted measures may be different from and not directly comparable to the measures presented by other companies. Reconciliations of these non-GAAP measures to the most comparable GAAP measures and an identification of the components that comprise "special items" used for certain adjusted financial information are included in the tables accompanying this press release.
The company today is providing an investor relations presentation with additional information on its business and operations, which is available in the investor relations section of the company's website at www.Labcorp.com. Analysts and investors are directed to the website to review this supplemental information.
A conference call discussing Labcorp's quarterly results will be held today at 9:00 a.m. ET and is available by registering at this link, which will provide a dial-in number and unique PIN to access the call. It is recommended that participants join 10 minutes prior to the start of the call, although participants may register and join at any time during the call. A live webcast of Labcorp's quarterly conference call on October 28, 2025, will be available at the Labcorp Investor Relations website beginning at 9:00 a.m. ET. This webcast will be archived and accessible through October 15, 2026.
About Labcorp
Labcorp (NYSE: LH) is a global leader of innovative and comprehensive laboratory services that helps doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. We provide insights and advance science to improve health and improve lives through our unparalleled diagnostics and drug development laboratory capabilities. The company's nearly 70,000 employees serve clients in approximately 100 countries, provided support for
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements, including, but not limited to, statements with respect to (i) the estimated 2025 guidance and related assumptions, (ii) the impact of various factors on operating and financial results, including the projected impact of global economic and market conditions on the company's businesses, operating results, cash flows and/or financial condition, (iii) future business strategies, (iv) expected savings, synergies and other benefits to the Company, customers or patients from acquisitions and other transactions and partnerships, and (v) opportunities for future growth.
Each of the forward-looking statements is subject to change based on various important factors, many of which are beyond the company's control, including without limitation: (i) the effect of the holding company reorganization on the company's business generally; (ii) the failure to receive tax-free treatment with respect to the spin-off of the company's Clinical Development and Commercialization Services business, now Fortrea Holdings Inc. for
The company has no obligation to provide any updates to these forward-looking statements even if its expectations change. All forward-looking statements are expressly qualified in their entirety by this cautionary statement. Further information on potential factors, risks and uncertainties that could affect operating and financial results is included in the company's most recent Annual Report on Form 10-K under the heading RISK FACTORS and in the company's other filings with the SEC. The information in this press release should be read in conjunction with a review of the company's filings with the SEC including the information in the company's most recent Annual Report on Form 10-K under the heading "MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS".
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LABCORP HOLDINGS INC. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(In Millions, Except Per Share Data) |
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Three Months Ended |
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Nine Months Ended |
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|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Revenues |
$ 3,563.5 |
|
$ 3,282.0 |
|
$ 10,435.9 |
|
$ 9,679.5 |
|
Cost of revenues |
2,538.4 |
|
2,377.6 |
|
7,416.6 |
|
6,951.4 |
|
Gross profit |
1,025.1 |
|
904.4 |
|
3,019.3 |
|
2,728.1 |
|
Selling, general, and administrative expenses |
552.4 |
|
568.6 |
|
1,677.7 |
|
1,634.8 |
|
Amortization of intangibles and other assets |
69.5 |
|
63.7 |
|
207.4 |
|
186.0 |
|
Goodwill and other asset impairments |
0.7 |
|
— |
|
0.7 |
|
2.5 |
|
Restructuring and other charges |
5.9 |
|
18.0 |
|
16.4 |
|
34.6 |
|
Operating income |
396.6 |
|
254.1 |
|
1,117.1 |
|
870.2 |
|
Other (expense) income: |
|
|
|
|
|
|
|
|
Interest expense |
(56.0) |
|
(50.4) |
|
(169.1) |
|
(144.9) |
|
Investment income |
3.5 |
|
3.1 |
|
11.7 |
|
7.3 |
|
Equity method loss, net |
(5.2) |
|
(0.5) |
|
(7.2) |
|
(0.7) |
|
Other, net |
(1.9) |
|
4.3 |
|
(35.6) |
|
43.8 |
|
Earnings from operations before income taxes |
337.0 |
|
210.6 |
|
916.9 |
|
775.7 |
|
Provision for income taxes |
75.5 |
|
41.0 |
|
204.1 |
|
172.2 |
|
Net earnings |
261.5 |
|
169.6 |
|
712.8 |
|
603.5 |
|
Less: Net earnings attributable to the noncontrolling interest |
(0.4) |
|
(0.3) |
|
(1.0) |
|
(0.9) |
|
Net earnings attributable to Labcorp Holdings Inc. |
$ 261.1 |
|
$ 169.3 |
|
$ 711.8 |
|
$ 602.6 |
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|
|
|
|
|
|
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Earnings per common share: |
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|
|
|
|
|
|
|
Basic earnings per common share |
$ 3.14 |
|
$ 2.02 |
|
$ 8.54 |
|
$ 7.17 |
|
Diluted earnings per common share |
$ 3.12 |
|
$ 2.00 |
|
$ 8.48 |
|
$ 7.13 |
|
|
|
|
|
|
|
|
|
|
Weighted-average basic common shares outstanding |
83.1 |
|
84.0 |
|
83.4 |
|
84.0 |
|
Weighted-average diluted common shares outstanding |
83.7 |
|
84.4 |
|
84.0 |
|
84.5 |
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LABCORP HOLDINGS INC. AND SUBSIDIARIES |
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CONSOLIDATED BALANCE SHEETS |
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(In Millions) |
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|
September 30, 2025 |
|
December 31, 2024 |
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ASSETS |
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Current assets: |
|
|
|
|
Cash and cash equivalents |
$ 598.1 |
|
$ 1,518.7 |
|
Accounts receivable, net |
2,109.1 |
|
1,944.1 |
|
Unbilled services, net |
156.1 |
|
152.9 |
|
Supplies inventory |
521.5 |
|
493.2 |
|
Prepaid expenses and other |
694.0 |
|
697.6 |
|
Total current assets |
4,078.8 |
|
4,806.5 |
|
Property, plant, and equipment, net |
3,112.8 |
|
3,045.4 |
|
Goodwill, net |
6,682.3 |
|
6,369.7 |
|
Intangible assets, net |
3,571.4 |
|
3,488.9 |
|
Joint venture partnerships and equity method investments |
168.2 |
|
16.3 |
|
Other assets, net |
648.1 |
|
652.2 |
|
Total assets |
$ 18,261.6 |
|
$ 18,379.0 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
$ 668.5 |
|
$ 875.8 |
|
Accrued expenses and other |
878.0 |
|
871.2 |
|
Unearned revenue |
391.6 |
|
392.2 |
|
Short-term operating lease liabilities |
186.7 |
|
184.6 |
|
Short-term finance lease liabilities |
4.5 |
|
6.1 |
|
Short-term borrowings and current portion of long-term debt |
499.9 |
|
1,000.3 |
|
Total current liabilities |
2,629.2 |
|
3,330.2 |
|
Long-term debt |
5,082.5 |
|
5,331.2 |
|
Operating lease liabilities |
692.0 |
|
676.3 |
|
Financing lease liabilities |
64.3 |
|
74.3 |
|
Deferred income taxes and other tax liabilities |
441.5 |
|
383.1 |
|
Other liabilities |
639.1 |
|
517.4 |
|
Total liabilities |
9,548.6 |
|
10,312.5 |
|
Commitments and contingent liabilities |
|
|
|
|
Noncontrolling interest |
16.1 |
|
14.3 |
|
Shareholders' equity: |
|
|
|
|
Common stock, 83.0 and 83.4 shares outstanding at September 30, 2025, |
7.5 |
|
7.6 |
|
Additional paid-in capital |
33.0 |
|
2.8 |
|
Retained earnings |
8,698.4 |
|
8,303.4 |
|
Accumulated other comprehensive loss |
(42.0) |
|
(261.6) |
|
Total shareholders' equity |
8,696.9 |
|
8,052.2 |
|
Total liabilities and shareholders' equity |
$ 18,261.6 |
|
$ 18,379.0 |
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LABCORP HOLDINGS INC. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(In Millions) |
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Three Months Ended |
|
Nine Months Ended |
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|
2025 |
|
2024 |
|
2025 |
|
2024 |
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CASH FLOWS FROM OPERATING ACTIVITIES: |
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|
|
|
|
|
|
|
Net earnings |
$ 261.5 |
|
$ 169.6 |
|
$ 712.8 |
|
$ 603.5 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities: |
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|
|
|
|
|
|
|
Depreciation and amortization |
171.0 |
|
161.5 |
|
508.1 |
|
472.9 |
|
Stock compensation |
29.2 |
|
27.0 |
|
96.1 |
|
89.4 |
|
Operating lease right-of-use asset expense |
49.7 |
|
48.1 |
|
149.1 |
|
136.7 |
|
Goodwill and other asset impairments |
0.7 |
|
— |
|
0.7 |
|
2.5 |
|
Deferred income taxes |
88.6 |
|
(19.5) |
|
76.4 |
|
(58.6) |
|
Other, net |
5.6 |
|
9.4 |
|
51.7 |
|
46.0 |
|
Change in assets and liabilities (net of effects of acquisitions and divestitures): |
|
|
|
|
|
|
|
|
Decrease (increase) in accounts receivable |
9.5 |
|
49.0 |
|
(130.4) |
|
(143.2) |
|
(Increase) decrease in unbilled services |
(0.9) |
|
(4.0) |
|
3.9 |
|
22.8 |
|
(Increase) decrease in supplies inventory |
(14.4) |
|
(25.7) |
|
(17.9) |
|
2.0 |
|
(Increase) decrease in prepaid expenses and other |
(42.0) |
|
(61.4) |
|
15.8 |
|
(39.8) |
|
Decrease in accounts payable |
(123.8) |
|
(86.5) |
|
(204.4) |
|
(138.2) |
|
(Decrease) increase in unearned revenue |
(3.9) |
|
2.9 |
|
(12.6) |
|
(27.9) |
|
(Decrease) increase in accrued expenses and other |
(43.6) |
|
6.9 |
|
(223.0) |
|
(159.5) |
|
Net cash provided by operating activities |
387.2 |
|
277.3 |
|
1,026.3 |
|
808.6 |
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Capital expenditures |
(106.7) |
|
(115.8) |
|
(310.6) |
|
(377.8) |
|
Proceeds from sale of assets |
1.1 |
|
0.4 |
|
3.5 |
|
0.6 |
|
Proceeds from sale or distribution of equity affiliates or other investments |
— |
|
— |
|
6.9 |
|
— |
|
Proceeds from sale of business |
— |
|
— |
|
— |
|
13.5 |
|
Purchase of equity affiliates or other investments |
(7.9) |
|
(5.6) |
|
(179.9) |
|
(42.3) |
|
Acquisition of businesses, net of cash acquired |
(260.5) |
|
(458.1) |
|
(324.0) |
|
(751.2) |
|
Net cash used for investing activities |
(374.0) |
|
(579.1) |
|
(804.1) |
|
(1,157.2) |
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Payments on senior notes |
— |
|
(600.0) |
|
(1,000.0) |
|
(600.0) |
|
Proceeds from revolving credit facilities |
— |
|
1,511.8 |
|
64.8 |
|
2,463.7 |
|
Payments on revolving credit facilities |
— |
|
(1,531.6) |
|
(64.8) |
|
(2,463.7) |
|
Proceeds from accounts receivable securitization |
— |
|
300.0 |
|
225.0 |
|
300.0 |
|
Proceeds from issuance of senior notes |
— |
|
2,000.0 |
|
— |
|
2,000.0 |
|
Net share settlement tax payments from issuance of stock to employees |
(1.6) |
|
(0.9) |
|
(30.6) |
|
(38.7) |
|
Net proceeds from issuance of stock to employees |
28.6 |
|
26.3 |
|
54.3 |
|
53.0 |
|
Dividends paid |
(59.9) |
|
(60.5) |
|
(181.4) |
|
(183.0) |
|
Purchase of common stock |
(25.0) |
|
(75.0) |
|
(225.0) |
|
(175.0) |
|
Other, net |
(1.6) |
|
(21.8) |
|
(8.9) |
|
(29.7) |
|
Net cash (used for) provided by financing activities |
(59.5) |
|
1,548.3 |
|
(1,166.6) |
|
1,326.6 |
|
Effect of exchange rate changes on Cash and cash equivalents |
(2.9) |
|
5.7 |
|
23.8 |
|
2.5 |
|
Net (decrease) increase in Cash and cash equivalents |
(49.2) |
|
1,252.2 |
|
(920.6) |
|
980.5 |
|
Cash and cash equivalents at beginning of period |
647.3 |
|
265.1 |
|
1,518.7 |
|
536.8 |
|
Cash and cash equivalents at end of period |
$ 598.1 |
|
$ 1,517.3 |
|
$ 598.1 |
|
|
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LABCORP HOLDINGS INC. AND SUBSIDIARIES |
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Condensed Combined Non-GAAP Segment Information |
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(Dollars in Millions) |
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Three Months Ended |
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Nine Months Ended |
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|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Diagnostics Laboratories |
|
|
|
|
|
|
|
|
Revenues |
$ 2,769.6 |
|
$ 2,553.5 |
|
$ 8,148.0 |
|
$ 7,558.1 |
|
|
|
|
|
|
|
|
|
|
Adjusted operating income |
$ 450.4 |
|
$ 387.4 |
|
$ 1,360.7 |
|
$ 1,246.8 |
|
Adjusted operating margin |
16.3 % |
|
15.2 % |
|
16.7 % |
|
16.5 % |
|
|
|
|
|
|
|
|
|
|
Biopharma Laboratory Services |
|
|
|
|
|
|
|
|
Revenues |
$ 799.1 |
|
$ 737.7 |
|
$ 2,305.2 |
|
$ 2,155.6 |
|
|
|
|
|
|
|
|
|
|
Adjusted operating income |
$ 132.2 |
|
$ 120.9 |
|
$ 362.4 |
|
$ 328.2 |
|
Adjusted operating margin |
16.5 % |
|
16.4 % |
|
15.7 % |
|
15.2 % |
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
Revenues |
$ 3,563.5 |
|
$ 3,282.0 |
|
$ 10,435.9 |
|
$ 9,679.5 |
|
|
|
|
|
|
|
|
|
|
Adjusted segment operating income |
$ 582.6 |
|
$ 508.3 |
|
$ 1,723.1 |
|
$ 1,575.0 |
|
Unallocated corporate expense |
(69.3) |
|
(67.2) |
|
(209.2) |
|
(201.2) |
|
Consolidated adjusted operating income |
$ 513.3 |
|
$ 441.1 |
|
$ 1,513.9 |
|
$ 1,373.8 |
|
Adjusted operating margin |
14.4 % |
|
13.4 % |
|
14.5 % |
|
14.2 % |
The consolidated revenue and adjusted segment operating income are presented net of intersegment transaction eliminations and other amounts not used in determining segment performance. Adjusted operating income and adjusted operating margin are non-GAAP measures. See the subsequent reconciliation of non-GAAP financial measures.
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LABCORP HOLDINGS INC. AND SUBSIDIARIES |
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Reconciliation of Non-GAAP Measures |
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(Dollars and Shares in Millions, Except Per Share Data) |
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Three Months Ended |
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Nine Months Ended |
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|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income |
|
|
|
|
|
|
|
|
|
Operating income |
|
$ 396.6 |
|
$ 254.1 |
|
$ 1,117.1 |
|
$ 870.2 |
|
Amortization of intangibles and other assets (a) |
|
69.5 |
|
63.7 |
|
207.4 |
|
186.0 |
|
Restructuring and other charges (b) |
|
5.9 |
|
18.0 |
|
16.4 |
|
34.6 |
|
Acquisition and disposition-related costs (c) |
|
10.8 |
|
49.1 |
|
55.0 |
|
95.1 |
|
Launchpad costs (d) |
|
13.7 |
|
18.3 |
|
51.0 |
|
58.7 |
|
Asset impairments (e) |
|
0.7 |
|
— |
|
0.7 |
|
2.5 |
|
Other |
|
16.1 |
|
19.5 |
|
62.5 |
|
63.0 |
|
TSA reimbursement (f) |
|
— |
|
18.4 |
|
3.8 |
|
63.7 |
|
Adjusted operating income |
|
$ 513.3 |
|
$ 441.1 |
|
$ 1,513.9 |
|
$ 1,373.8 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating profit margin |
|
14.4 % |
|
13.4 % |
|
14.5 % |
|
14.2 % |
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income |
|
|
|
|
|
|
|
|
|
Net income |
|
$ 261.1 |
|
$ 169.3 |
|
$ 711.8 |
|
$ 602.6 |
|
Impact of adjustments to operating income |
|
116.7 |
|
187.0 |
|
396.8 |
|
503.6 |
|
(Gain) loss on venture fund investments, net (g) |
|
(2.2) |
|
1.6 |
|
33.9 |
|
7.3 |
|
Equity method loss from SYNLAB investment |
|
5.0 |
|
— |
|
5.0 |
|
— |
|
Gain on sale of business (h) |
|
— |
|
— |
|
— |
|
(4.9) |
|
Pension settlement (i) |
|
— |
|
2.3 |
|
— |
|
2.3 |
|
TSA reimbursement (f) |
|
— |
|
(18.4) |
|
(3.8) |
|
(63.7) |
|
Other |
|
0.1 |
|
— |
|
0.8 |
|
0.3 |
|
Income tax impact of adjustments (j) |
|
(30.9) |
|
(46.1) |
|
(106.2) |
|
(107.6) |
|
Adjusted net income |
|
$ 349.8 |
|
$ 295.7 |
|
$ 1,038.3 |
|
$ 939.9 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average diluted common shares outstanding |
|
83.7 |
|
84.4 |
|
84.0 |
|
84.5 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per share |
|
$ 4.18 |
|
$ 3.50 |
|
$ 12.37 |
|
$ 11.12 |
|
|
|
|
(a) |
Amortization of intangible assets acquired as part of business acquisitions. |
|
(b) |
Restructuring and other charges represent amounts incurred in connection with the elimination of redundant positions and facilities and contract termination costs within the organization in connection with our LaunchPad initiatives, and acquisitions or dispositions of businesses by the company. |
|
(c) |
Acquisition and disposition-related costs include due-diligence legal and advisory fees, retention bonuses, impact of delayed contract or license transfers, and other integration or disposition related activities. |
|
(d) |
LaunchPad costs include non-capitalized costs associated with the implementation of systems, consolidation of processes, and consulting costs incurred as part of various business process improvement initiatives. |
|
(e) |
The company impaired certain fixed assets which are no longer realizable by the business. |
|
(f) |
Represents transition services fees charged to Fortrea Holdings Inc. related to administrative and IT systems support. The costs to provide these services are included in operating income but the service fees are included in other income. |
|
(g) |
The company makes investments in companies or investment funds developing promising technology related to its operations. The company recorded net gains and losses related to several distributions from venture funds, increases in the market value of investments, and impairments of other investments due to the underlying performance of the investments. |
|
(h) |
The company recorded a gain on the disposition of the Beacon Laboratory Benefits Solutions business. |
|
(i) |
The company incurred a charge related to the US pension plan due to settlement of certain obligations to retired employees. |
|
(j) |
Income tax impact of adjustments calculated based on the tax rate applicable to each item. |
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SOURCE Labcorp Holdings Inc
FAQ
What were Labcorp (LH) Q3 2025 revenue and EPS results?
How did Labcorp (LH) adjusted EPS perform in Q3 2025 and year-to-date?
What is Labcorp's updated full-year 2025 guidance for revenue and adjusted EPS?
What did Labcorp (LH) report for free cash flow and capital allocation in Q3 2025?
Which acquisitions or asset deals did Labcorp announce in Q3 2025?
How did Labcorp (LH) say currency and acquisitions affected 2025 guidance?
