Labcorp (NYSE: LH) lifts 2026 outlook after Q1 EPS and cash flow grow
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Labcorp Holdings reported solid growth for the first quarter ended March 31, 2026 and raised its full‑year 2026 outlook. Revenue reached $3.54 billion, up 5.8% from $3.35 billion a year ago, driven by both Diagnostics Laboratories and Biopharma Laboratory Services.
Diluted EPS rose to $3.35 from $2.52, while Adjusted EPS increased 10.6% to $4.25. Operating income improved to $380.8 million and adjusted operating margin expanded to 14.4% from 14.0%. Free cash flow swung to $70.5 million from negative $107.5 million, helped by higher cash earnings.
Diagnostics revenue grew 5.0% to $2.76 billion with adjusted margin of 16.6%, and Biopharma revenue grew 8.2% to $780.6 million with a 15.5% adjusted margin. Labcorp invested $202.2 million in acquisitions, repurchased $98.0 million of stock, and paid $61.2 million in dividends.
For 2026, the company now targets enterprise revenue of $14.65–$14.80 billion (5.0–6.1% growth) and Adjusted EPS of $17.70–$18.35, modestly above its prior ranges.
Positive
- Stronger profitability and cash generation: Q1 2026 diluted EPS rose to $3.35 from $2.52 and Adjusted EPS to $4.25 from $3.84, while free cash flow improved to $70.5 million from negative $107.5 million, indicating materially better earnings quality and cash conversion.
- Guidance raised for 2026: Management increased enterprise revenue growth guidance to 5.0–6.1% and lifted the Adjusted EPS range to $17.70–$18.35, signaling improved confidence in the full‑year outlook.
Negative
- None.
Insights
Labcorp delivered broad-based Q1 growth and nudged 2026 guidance higher.
Labcorp posted Q1 2026 revenue of $3.54 billion, up 5.8%, with strength across Diagnostics and Biopharma. Diluted EPS increased to $3.35 and Adjusted EPS to $4.25, a 10.6% gain, while adjusted operating margin expanded to 14.4%.
Cash generation improved meaningfully: operating cash flow rose to $191.5 million and free cash flow to $70.5 million versus a negative figure a year earlier. Management continued capital deployment with $202.2 million in acquisitions, $98.0 million of share repurchases and $61.2 million in dividends.
Updated 2026 guidance now calls for enterprise revenue of $14.65–$14.80 billion and Adjusted EPS of $17.70–$18.35, slightly above prior ranges. Segment data show Diagnostics growing 5.0% and Biopharma 8.2%, with both improving margins, suggesting balanced momentum entering the rest of 2026.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Revenue: $3.54 billion
Q1 2026 Diluted EPS: $3.35
Q1 2026 Adjusted EPS: $4.25
+5 more
8 metrics
Q1 2026 Revenue
$3.54 billion
Total revenue, up 5.8% vs Q1 2025
Q1 2026 Diluted EPS
$3.35
Up from $2.52 in Q1 2025 (32.8% increase)
Q1 2026 Adjusted EPS
$4.25
Up from $3.84 in Q1 2025 (10.6% increase)
Q1 2026 Free Cash Flow
$70.5 million
Versus negative $107.5 million in Q1 2025
Acquisition Spend Q1 2026
$202.2 million
Cash invested in acquisitions during the quarter
Share Repurchases Q1 2026
$98.0 million
Common stock repurchased in the quarter
2026 Adjusted EPS Guidance
$17.70–$18.35
Updated full-year 2026 Adjusted EPS range
Biopharma Backlog
$8.64 billion
Backlog as of March 31, 2026, up 5.6% year over year
Key Terms
Adjusted EPS, free cash flow, TTM Book to Bill, backlog, +2 more
6 terms
Adjusted EPS financial
"Adjusted EPS: $4.25 vs. $3.84, up 10.6%"
Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.
free cash flow financial
"Free Cash Flow $70.5 (1) $ (107.5)"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
TTM Book to Bill financial
"TTM Book to Bill 1.04"
backlog financial
"Backlog $ 8.64 (7)"
A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.
LaunchPad costs financial
"Launchpad costs (d) 13.0 20.1"
non-GAAP financial measure financial
"Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures”"
A non-GAAP financial measure is a way companies present their financial results that excludes certain expenses or income to show how they believe their core business is performing. It matters because it can give a clearer picture of how the company is really doing, but it can also be used to make results look better than they actually are.
Earnings Snapshot
Revenue: $3.54 billion · Guidance included
Q1 2026
Revenue
$3.54 billion
+5.8% vs Q1 2025
Diluted EPS
$3.35
up from $2.52 (32.8%)
Adjusted EPS
$4.25
up from $3.84 (10.6%)
Diagnostics revenue
$2.76 billion
+5.0% vs Q1 2025
Biopharma revenue
$780.6 million
+8.2% vs Q1 2025
Guidance
2026 enterprise revenue guidance updated to $14.65–$14.80 billion (5.0–6.1% growth) and Adjusted EPS to $17.70–$18.35.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
(Date of earliest event reported)
(Exact Name of Registrant as Specified in its Charter)
| (State or other jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| , | ||||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
(Registrant’s telephone number including area code) 336 -229-1127
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Exchange Act:
| Title of each class | Trading Symbol | Name of exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02. | Results of Operations and Financial Condition. | ||||
| Item 9.01. | Financial Statements and Exhibits. | |||||||
| Exhibit | Exhibit Name | |||||||
| Exhibit 99.1 | Press Release dated April 30, 2026 issued by Labcorp titled “Labcorp Announces 2026 First Quarter Results” | |||||||
| Exhibit 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
LABCORP HOLDINGS INC.
Registrant
| Date: April 30, 2026 | By: | /s/ KATHRYN W. KYLE | ||||||
| Kathryn W. Kyle | ||||||||
| Executive Vice President, Chief Legal Officer and Corporate Secretary | ||||||||
FOR IMMEDIATE RELEASE
| Contact: | Dewey Steadman - Investors | Racquel White - Media | |||||||||
| Investor@labcorp.com | Media@labcorp.com | ||||||||||
Labcorp Announces 2026 First Quarter Results; Raises Full Year 2026 Guidance
•Results from Operations for first quarter 2026 versus first quarter 2025:
◦Revenue: $3.54 billion vs. $3.35 billion, up 5.8%
◦Diluted EPS: $3.35 vs. $2.52, up 32.8%
◦Adjusted EPS: $4.25 vs. $3.84, up 10.6%
•Raised Full-Year Enterprise Revenue and Adjusted EPS guidance:
◦Revenue guidance of 5.0% to 6.1%; up 20 basis points at the midpoint
◦Adjusted EPS range of $17.70 to $18.35; up 13 cents at the midpoint
•Advanced leadership in specialty and companion diagnostics and expanded strategic health systems collaborations
•Collaborated with Optum.ai to enhance patient and provider experience
BURLINGTON, N.C., April 30, 2026 – Labcorp Holdings Inc. (NYSE: LH), a global leader of innovative and comprehensive laboratory services, today announced results for the first quarter ended March 31, 2026 and updated full-year guidance.
“Labcorp delivered another quarter of strong results, with robust growth and double-digit Adjusted EPS growth driven by continued momentum across our Diagnostics and Central Laboratory businesses,” said Adam Schechter, Chairman and CEO of Labcorp. “Health systems, providers, consumers, and biopharmaceutical customers are increasingly turning to Labcorp as their partner of choice for their complex, innovative testing needs. Our investments in advanced technologies, including robotics and AI, are improving the customer experience and transforming the way we operate. Driven by continued progress across our strategic priorities, we are raising our full year Adjusted EPS guidance to $18.03 at the midpoint of the range, an increase of $0.13.”
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Labcorp continues to advance its strategic priorities:
Be a partner of choice for health systems and regional and local laboratories:
•Announced a nationwide strategic collaboration with Children’s Hospital of Philadelphia (CHOP) to expand access to cutting-edge diagnostics for pediatric patients.
•Completed the acquisition of select assets of Crouse Health’s Laboratory Alliance of Central New York and executed an agreement with Crouse Health to manage their inpatient labs.
Lead in specialty testing:
•Announced a collaboration with Illumina to expand access to advanced genomic testing in oncology to deliver more precise biomarker insights.
•Expanded nationwide access to the first FDA-approved companion diagnostic that helps identify patients with platinum‑resistant ovarian cancer who may benefit from Merck’s KEYTRUDA® and KEYTRUDA QLEX™.
•Launched the Labcorp Fentanyl Visual Urine Test, an FDA‑cleared rapid screening test that delivers results in just 10 minutes and assesses possible fentanyl exposure for up to 48 hours.
Shape our future through technology and innovation:
•Launched an AI-powered, real-world data platform with Amazon Web Services (AWS) and Datavant to accelerate Alzheimer’s research.
•Expanded a collaboration with PathAI to deploy AISight® Dx, an FDA-cleared digital pathology platform.
•Announced a collaboration with Optum.ai to apply AI capabilities to streamline laboratory operations, improve efficiency, and enhance the patient and provider experience.
Drive personalized health solutions:
•Grew Consumer Health and expanded the Labcorp OnDemand test portfolio with new tests for insulin resistance and pancreatic function, as well as customizable men’s and women’s health tests.
•In May, the company will launch MyLabcorp, a secure, AI-powered mobile app that brings an individual’s test results and health data together with clinical guidance to help consumers better understand their test results.
Labcorp also remains committed to a disciplined allocation of capital. In the first quarter of 2026, the company invested $202.2 million in acquisitions, repurchased $98.0 million of stock, and paid out $61.2 million in dividends. On April 9, 2026, the company announced a quarterly cash dividend of $0.72 per share of common stock, payable on June 11, 2026, to stockholders of record at the close of business on May 29, 2026.
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LABCORP HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED RESULTS
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | Delta | |||||||||||||||
Revenue Summary (Dollars in billions) | |||||||||||||||||
| Total Revenue | $ | 3.54 | $ | 3.35 | 5.8 | % | |||||||||||
Organic(1) | 3.1 | % | |||||||||||||||
Acquisitions, net of Divestitures(2) | 1.4 | % | |||||||||||||||
| Foreign Exchange | 1.3 | % | |||||||||||||||
(1) Excludes the impact from acquisitions, divestitures, and currency, as well as other strategic actions taken in Early Development. | |||||||||||||||||
(2) Includes the impact from strategic actions taken in Early Development. | |||||||||||||||||
Earnings Summary (Dollars in millions, except per share data) | |||||||||||||||||
| Operating Income (“OI”) | $ | 380.8 | $ | 326.0 | |||||||||||||
| OI as % of Revenue | 10.8 | % | 9.7 | % | 100 bps | ||||||||||||
Adjustments (3) | $ | 127.1 | $ | 143.0 | |||||||||||||
Adjusted Operating Income (“AOI”) (4) | $ | 507.9 | (5) | $ | 469.0 | ||||||||||||
| AOI as % of Revenue | 14.4 | % | (5) | 14.0 | % | 30 bps | |||||||||||
| Net Earnings Attributable to Labcorp Holdings Inc. | $ | 277.8 | $ | 212.8 | |||||||||||||
| Diluted EPS | $ | 3.35 | $ | 2.52 | |||||||||||||
Adjusted EPS (4) | $ | 4.25 | $ | 3.84 | 10.6 | % | |||||||||||
(3) Adjustments include amortization, impairment charges, restructuring charges, and special items. | |||||||||||||||||
(4) Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures” for additional information. | |||||||||||||||||
(5) The increase in adjusted operating income and margin was primarily driven by organic growth. | |||||||||||||||||
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LABCORP HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED RESULTS
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
Cash Flow Summary (Dollars in millions) | |||||||||||
| Operating Cash Flow | $ | 191.5 | $ | 18.5 | |||||||
| Capital Expenditures | 121.0 | 126.0 | |||||||||
| Free Cash Flow | $ | 70.5 | (1) | $ | (107.5) | ||||||
(1) The increase in free cash flow was primarily driven by higher cash earnings. | |||||||||||
Capital Allocation Summary
•At the end of the quarter, Labcorp's cash and cash equivalents balance was $981.1 million and total debt was $6.33 billion. These higher cash and debt balances are due to the pre-funding of maturing debt.
•During the quarter, the company invested $202.2 million in acquisitions, repurchased $98.0 million of stock, and paid out $61.2 million in dividends.
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LABCORP HOLDINGS INC. AND SUBSIDIARIES
Diagnostics Laboratories Segment Summary
| Three Months Ended March 31, | |||||||||||||||||
| 2026 | 2025 | Delta | |||||||||||||||
Revenue Summary (Dollars in billions) | |||||||||||||||||
| Total Revenue | $ | 2.76 | $ | 2.63 | 5.0 | % | |||||||||||
| Organic | 2.9 | % | |||||||||||||||
| Acquisitions, net of Divestitures | 2.0 | % | |||||||||||||||
| Foreign Exchange | 0.2 | % | |||||||||||||||
Earnings Summary (1) (Dollars in millions) | |||||||||||||||||
Adjusted Operating Income (“AOI”) (2) | $ | 458.7 | (3) | $ | 427.5 | ||||||||||||
| AOI as % of Revenue | 16.6 | % | (3) | 16.3 | % | 30 bps | |||||||||||
(1) Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures” for additional information. | |||||||||||||||||
(2) Excludes amortization, restructuring charges, special items, and unallocated corporate expenses. | |||||||||||||||||
(3) Adjusted operating income and margin increased primarily driven by organic growth, despite the impact from adverse weather. | |||||||||||||||||
| Three Months Ended March 31, 2026 | ||||||||||||||
| Requisition | Price/Mix | |||||||||||||
Volume Delta (4) | Delta (4) | |||||||||||||
| Metrics Summary | ||||||||||||||
| Total | 2.5 | % | 2.6 | % | ||||||||||
Organic (5) | 1.1 | % | (6) | 1.8 | % | |||||||||
| Acquisitions, net of Divestitures | 1.4 | % | 0.6 | % | ||||||||||
| Foreign Exchange | — | % | 0.2 | % | ||||||||||
(4) Column shows changes versus the three months ended March 31, 2025. | ||||||||||||||
(5) Organic price/mix includes lab management agreements. | ||||||||||||||
(6) Includes the impact from adverse weather. | ||||||||||||||
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LABCORP HOLDINGS INC. AND SUBSIDIARIES
Biopharma Laboratory Services Segment Summary
| Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | Delta | |||||||||||||||||||||
Revenue Summary (Dollars in millions) | |||||||||||||||||||||||
| Total Revenue | $ | 780.6 | $ | 721.3 | 8.2 | % | (1) | ||||||||||||||||
Organic(2) | 3.7 | % | |||||||||||||||||||||
Acquisitions, net of Divestitures(3) | (1.0) | % | |||||||||||||||||||||
| Foreign Exchange | 5.5 | % | |||||||||||||||||||||
(1) Central Labs revenue growth of 11.3% and Early Development revenue growth of 0.6%. | |||||||||||||||||||||||
(2) Excludes the impact from acquisitions, divestitures, and currency, as well as other strategic actions taken in Early Development. | |||||||||||||||||||||||
(3) Includes the impact from strategic actions taken in Early Development. | |||||||||||||||||||||||
Earnings Summary (4) (Dollars in millions) | |||||||||||||||||||||||
Adjusted Operating Income (“AOI”) (5) | $ | 120.7 | (6) | $ | 106.9 | ||||||||||||||||||
| AOI as % of Revenue | 15.5 | % | (6) | 14.8 | % | 60 bps | |||||||||||||||||
(4) Non-GAAP financial measure. See “Reconciliation of Non-GAAP Measures” for additional information. | |||||||||||||||||||||||
(5) Excludes amortization, restructuring charges, special items, and unallocated corporate expenses. | |||||||||||||||||||||||
(6) Adjusted Operating Income and margin increased driven by growth in Central Labs. | |||||||||||||||||||||||
| As of | ||||||||
| March 31, 2026 | ||||||||
Metrics Summary (Dollars in billions) | ||||||||
| TTM Net Orders | $ | 3.29 | ||||||
| TTM Book to Bill | 1.04 | |||||||
| Backlog | $ | 8.64 | (7) | |||||
| Next Twelve Months Forecast Backlog Conversion | $ | 2.69 | ||||||
(7) Backlog increased 5.6% compared to this period last year. | ||||||||
6
Guidance for 2026
Labcorp is updating 2026 full year guidance to reflect its first quarter performance and full year outlook. The following guidance assumes foreign exchange rates effective as of March 31, 2026. Enterprise level guidance includes the estimated impact from currently anticipated capital allocation, including acquisitions, share repurchases, and dividends.
| (Dollars in billions, except per share data) | ||||||||||||||||||||||||||
| Previous | Updated | |||||||||||||||||||||||||
2026 Guidance | 2026 Guidance | |||||||||||||||||||||||||
| Low | High | Low | High | |||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||
Labcorp Enterprise (1)(2) | $14.61 | $14.79 | $14.65 | $14.80 | ||||||||||||||||||||||
Growth (3) | 4.7% | 6.0% | 5.0% | 6.1% | ||||||||||||||||||||||
| Diagnostics Laboratories | $11.42 | $11.53 | $11.43 | $11.52 | ||||||||||||||||||||||
Growth (3) | 5.0% | 6.0% | 5.1% | 5.9% | ||||||||||||||||||||||
Biopharma Laboratory Services (4) | $3.19 | $3.25 | $3.22 | $3.27 | ||||||||||||||||||||||
Growth (3) | 3.0% | 5.0% | 3.8% | 5.4% | ||||||||||||||||||||||
| Adjusted EPS | $17.55 | $18.25 | $17.70 | $18.35 | ||||||||||||||||||||||
| Free Cash Flow | $1.24 | $1.36 | $1.24 | $1.36 | ||||||||||||||||||||||
| (1) 2026 Updated guidance includes an impact from foreign currency translation of 0.4%. | ||||||||||||||||||||||||||
| (2) Enterprise level revenue is presented net of intercompany transaction eliminations. | ||||||||||||||||||||||||||
| (3) Growth based on 2025 Enterprise revenue of $14.0 billion, Diagnostics revenue of $10.9 billion, and Biopharma Laboratory Services revenue of $3.1 billion. | ||||||||||||||||||||||||||
(4) 2026 Updated guidance includes an impact from foreign currency translation of 1.5%. | ||||||||||||||||||||||||||
7
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 https://ir.labcorp.com. Analysts and investors are directed to the website to review this supplemental information.
A webcast discussing Labcorp's quarterly results will be held today at 9:00 a.m. ET and is available by accessing the Labcorp investor relations website and navigating to the “Events” section. Alternatively, the live webcast can be accessed on this link. This webcast will be archived and accessible for one year.
8
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 71,000 employees serve clients in approximately 100 countries, provided support for more than 85% of the new drugs and therapeutic products approved by the FDA in 2025, and performed more than 750 million tests for patients around the world. Learn more at www.labcorp.com.
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 2026 guidance and related assumptions, (ii) the impact of various factors on operating and financial results, including 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 failure to receive tax-free treatment with respect to the spin-off of the company’s former Clinical Development and Commercialization Services business for U.S. federal income purposes; (ii) the impact of spin-off related items; (iii) personnel costs and potential difficulties with employee relations and retention; (iv) the trading price of the company's stock, competitive actions and other unforeseen changes and general uncertainties in the marketplace; (v) the impact of changes to existing or adoption of new laws and regulations applicable to the company, including healthcare reform, or changes to the interpretation and application of such laws and regulations; (vi) customer purchasing decisions, including changes in payer regulations or policies; (vii) adverse actions of governmental and third-party payers; (viii) changes in testing guidelines or recommendations; (ix) the impact of global geopolitical events; (x) the effect of public opinion on the company's reputation; (xi) adverse results in material litigation matters; (xii) failure to maintain or develop customer relationships; (xiii) the company's ability to develop or acquire new products and adapt to technological changes; (xiv) failure of the company’s information technology, systems, or data security; (xv) the impact of potential losses under repurchase agreements; (xvi) adverse weather conditions; (xvii) the number of revenue days in a financial period; (xviii) inflation; (xix) increased competition; and (xx) the effect of exchange rate fluctuations. These factors, in some cases, have affected and in the future (together with other factors) could affect the company's ability to implement the company's business strategy, and actual results could differ materially from those suggested by these forward-looking statements. As a result, readers are cautioned not to place undue reliance on any of the forward- looking statements.
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 and subsequent Forms 10-Q, including in each case 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, and subsequent Forms 10-Q, under the heading “MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS”.
- End of Text -
- Tables to Follow -
9
LABCORP HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In Millions, Except Per Share Data)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenues | $ | 3,537.6 | $ | 3,345.1 | |||||||
| Cost of revenues | 2,523.8 | 2,397.1 | |||||||||
| Gross profit | 1,013.8 | 948.0 | |||||||||
| Selling, general, and administrative expenses | 551.0 | 546.0 | |||||||||
| Amortization of intangibles and other assets | 75.6 | 69.6 | |||||||||
| Restructuring and other charges | 6.4 | 6.4 | |||||||||
| Operating income | 380.8 | 326.0 | |||||||||
| Other (expense) income: | |||||||||||
| Interest expense | (55.1) | (56.0) | |||||||||
| Investment income | 12.2 | 6.5 | |||||||||
| Equity method loss, net | (5.1) | (0.3) | |||||||||
| Other, net | (13.1) | (1.0) | |||||||||
| Earnings from operations before income taxes | 319.7 | 275.2 | |||||||||
| Provision for income taxes | 41.7 | 62.2 | |||||||||
| Net earnings | 278.0 | 213.0 | |||||||||
| Less: Net earnings attributable to the noncontrolling interest | (0.2) | (0.2) | |||||||||
| Net earnings attributable to Labcorp Holdings Inc. | $ | 277.8 | $ | 212.8 | |||||||
| Earnings per common share: | |||||||||||
| Basic earnings per common share | $ | 3.37 | $ | 2.54 | |||||||
| Diluted earnings per common share | $ | 3.35 | $ | 2.52 | |||||||
| Weighted-average basic common shares outstanding | 82.3 | 83.6 | |||||||||
| Weighted-average diluted common shares outstanding | 82.9 | 84.3 | |||||||||
10
LABCORP HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In Millions)
| March 31, 2026 | December 31, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 981.1 | $ | 532.3 | |||||||
| Accounts receivable, net | 2,288.6 | 2,103.8 | |||||||||
| Unbilled services, net | 161.9 | 156.9 | |||||||||
| Supplies inventory | 497.7 | 534.7 | |||||||||
| Prepaid expenses and other | 629.5 | 692.8 | |||||||||
| Total current assets | 4,558.8 | 4,020.5 | |||||||||
| Property, plant, and equipment, net | 3,065.5 | 3,081.5 | |||||||||
| Goodwill, net | 6,955.2 | 6,789.5 | |||||||||
| Intangible assets, net | 3,636.1 | 3,596.0 | |||||||||
| Joint venture partnerships and equity method investments | 146.6 | 153.9 | |||||||||
| Other assets, net | 724.9 | 751.3 | |||||||||
| Total assets | $ | 19,087.1 | $ | 18,392.7 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 695.7 | $ | 840.8 | |||||||
| Accrued expenses and other | 851.9 | 847.8 | |||||||||
| Unearned revenue | 405.2 | 439.1 | |||||||||
| Short-term operating lease liabilities | 183.2 | 191.1 | |||||||||
| Short-term finance lease liabilities | 4.6 | 4.6 | |||||||||
| Short-term borrowings and current portion of long-term debt | 500.4 | 500.1 | |||||||||
| Total current liabilities | 2,641.0 | 2,823.5 | |||||||||
| Long-term debt | 5,833.7 | 5,084.6 | |||||||||
| Operating lease liabilities | 656.5 | 682.6 | |||||||||
| Finance lease liabilities | 62.2 | 63.0 | |||||||||
| Deferred income taxes and other tax liabilities | 456.4 | 454.5 | |||||||||
| Other liabilities | 691.8 | 647.8 | |||||||||
| Total liabilities | 10,341.6 | 9,756.0 | |||||||||
| Commitments and contingent liabilities | |||||||||||
| Noncontrolling interest | 16.9 | 16.9 | |||||||||
| Shareholders’ equity: | |||||||||||
| Common stock, 82.3 and 82.2 shares outstanding at March 31, 2026, and December 31, 2025, respectively | 7.4 | 7.5 | |||||||||
| Additional paid-in capital | — | — | |||||||||
| Retained earnings | 8,784.4 | 8,639.9 | |||||||||
| Accumulated other comprehensive loss | (63.2) | (27.6) | |||||||||
| Total shareholders’ equity | 8,728.6 | 8,619.8 | |||||||||
| Total liabilities and shareholders’ equity | $ | 19,087.1 | $ | 18,392.7 | |||||||
11
LABCORP HOLDINGS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
| Net earnings | $ | 278.0 | $ | 213.0 | |||||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 173.3 | 166.8 | |||||||||
| Stock compensation | 31.7 | 32.8 | |||||||||
| Operating lease right-of-use asset expense | 48.0 | 48.6 | |||||||||
| Deferred income taxes | 2.0 | (6.1) | |||||||||
| Other, net | 11.4 | 8.1 | |||||||||
| Change in assets and liabilities (net of effects of acquisitions and divestitures): | |||||||||||
| Increase in accounts receivable | (187.9) | (170.8) | |||||||||
| (Increase) decrease in unbilled services | (6.2) | 3.9 | |||||||||
| Decrease in supplies inventory | 35.4 | 8.4 | |||||||||
| Decrease in prepaid expenses and other | 4.0 | 45.0 | |||||||||
| Decrease in accounts payable | (138.7) | (147.6) | |||||||||
| Decrease in unearned revenue | (32.1) | (8.9) | |||||||||
| Decrease in accrued expenses and other | (27.4) | (174.7) | |||||||||
| Net cash provided by operating activities | 191.5 | 18.5 | |||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
| Capital expenditures | (121.0) | (126.0) | |||||||||
| Proceeds from sale of assets | 7.8 | 0.5 | |||||||||
| Purchase of equity affiliates or other investments | (6.7) | (157.0) | |||||||||
| Acquisition of businesses, net of cash acquired | (202.2) | (53.5) | |||||||||
| Net cash used for investing activities | (322.1) | (336.0) | |||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
| Proceeds from term loan | 750.0 | — | |||||||||
| Payments on senior notes | — | (1,000.0) | |||||||||
| Proceeds from accounts receivable securitization | — | 225.0 | |||||||||
| Proceeds from revolving credit facilities | — | 64.8 | |||||||||
| Payments on revolving credit facilities | — | (64.8) | |||||||||
| Net share settlement tax payments from issuance of stock to employees | (39.8) | (25.5) | |||||||||
| Net proceeds from issuance of stock to employees | 32.9 | 25.7 | |||||||||
| Dividends paid | (61.2) | (61.6) | |||||||||
| Purchase of common stock | (98.0) | — | |||||||||
| Other, net | (3.4) | (3.3) | |||||||||
| Net cash provided by (used for) financing activities | 580.5 | (839.7) | |||||||||
| Effect of exchange rate on changes in Cash and cash equivalents | (1.1) | 7.9 | |||||||||
| Net increase (decrease) in Cash and cash equivalents | 448.8 | (1,149.3) | |||||||||
| Cash and cash equivalents at beginning of period | 532.3 | 1,518.7 | |||||||||
| Cash and cash equivalents at end of period | $ | 981.1 | $ | 369.4 | |||||||
12
LABCORP HOLDINGS INC. AND SUBSIDIARIES
Condensed Combined Non-GAAP Segment Information
(Dollars in Millions)
| Three Months Ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Diagnostics Laboratories | |||||||||||
| Revenues | $ | 2,762.1 | $ | 2,629.6 | |||||||
| Adjusted operating income | $ | 458.7 | $ | 427.5 | |||||||
| Adjusted operating margin | 16.6 | % | 16.3 | % | |||||||
| Biopharma Laboratory Services | |||||||||||
| Revenues | $ | 780.6 | $ | 721.3 | |||||||
| Adjusted operating income | $ | 120.7 | $ | 106.9 | |||||||
| Adjusted operating margin | 15.5 | % | 14.8 | % | |||||||
| Consolidated | |||||||||||
| Revenues | $ | 3,537.6 | $ | 3,345.1 | |||||||
| Adjusted segment operating income | $ | 579.4 | $ | 534.4 | |||||||
| Unallocated corporate expense | (71.5) | (65.4) | |||||||||
| Consolidated adjusted operating income | $ | 507.9 | $ | 469.0 | |||||||
| Adjusted operating margin | 14.4 | % | 14.0 | % | |||||||
The consolidated revenue and adjusted segment operating income are presented net of intercompany 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.
13
LABCORP HOLDINGS INC. AND SUBSIDIARIES
Reconciliation of Non-GAAP Measures
(Dollars and Shares in Millions, Except Per Share Data)
| Three Months Ended March 31, | ||||||||||||||
| 2026 | 2025 | |||||||||||||
| Adjusted Operating Income | ||||||||||||||
| Operating income | $ | 380.8 | $ | 326.0 | ||||||||||
Amortization of intangibles and other assets (a) | 75.6 | 69.6 | ||||||||||||
Restructuring and other charges (b) | 6.4 | 6.4 | ||||||||||||
Acquisition and disposition-related costs (c) | 9.9 | 29.1 | ||||||||||||
Launchpad costs (d) | 13.0 | 20.1 | ||||||||||||
| Other | 22.2 | 14.5 | ||||||||||||
TSA reimbursement (e) | — | 3.3 | ||||||||||||
| Adjusted operating income | $ | 507.9 | $ | 469.0 | ||||||||||
| Adjusted operating profit margin | 14.4 | % | 14.0 | % | ||||||||||
| Adjusted Net Income | ||||||||||||||
| Net income | $ | 277.8 | $ | 212.8 | ||||||||||
| Impact of adjustments to operating income | 127.1 | 143.0 | ||||||||||||
Loss on venture fund investments, net (f) | 7.1 | 3.4 | ||||||||||||
Equity method loss from SYNLAB investment (g) | 5.0 | — | ||||||||||||
TSA reimbursement (e) | — | (3.3) | ||||||||||||
| Other | (8.5) | — | ||||||||||||
Income tax impact of adjustments (h) | (56.1) | (31.9) | ||||||||||||
| Adjusted net income | $ | 352.4 | $ | 324.0 | ||||||||||
| Weighted-average diluted common shares outstanding | 82.9 | 84.3 | ||||||||||||
| Adjusted net income per share | $ | 4.25 | $ | 3.84 | ||||||||||
| (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) | 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. | ||||
| (f) | 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. | ||||
| (g) | Adjustment removes the impact of the equity method income from the Company's minority investment in SYNLAB. | ||||
| (h) | Income tax impact of adjustments calculated based on the tax rate applicable to each item. | ||||
14
FAQ
How did Labcorp (LH) perform financially in Q1 2026?
Labcorp reported solid Q1 2026 results, with revenue of $3.54 billion, up 5.8% from $3.35 billion a year earlier. Diluted EPS increased to $3.35 from $2.52, and Adjusted EPS rose to $4.25 from $3.84, reflecting stronger profitability.
What were Labcorp’s Q1 2026 segment results for Diagnostics and Biopharma?
In Q1 2026, Labcorp’s Diagnostics Laboratories revenue grew to $2.76 billion, up 5.0%, with a 16.6% adjusted margin. Biopharma Laboratory Services revenue reached $780.6 million, up 8.2%, and delivered a 15.5% adjusted operating margin, both improving versus 2025.
Did Labcorp (LH) raise its full-year 2026 guidance?
Yes. Labcorp raised its 2026 enterprise revenue guidance to $14.65–$14.80 billion, implying 5.0–6.1% growth. It also increased its Adjusted EPS outlook to a range of $17.70–$18.35, modestly above previous targets based on Q1 performance and outlook.
How strong was Labcorp’s cash flow in Q1 2026?
Labcorp’s cash generation improved notably in Q1 2026. Operating cash flow was $191.5 million, compared with $18.5 million a year earlier. Free cash flow turned positive at $70.5 million, versus negative $107.5 million in Q1 2025, primarily due to higher cash earnings.
What capital allocation actions did Labcorp take in Q1 2026?
In Q1 2026, Labcorp invested $202.2 million in acquisitions, repurchased $98.0 million of common stock, and paid $61.2 million in dividends. It also announced a quarterly cash dividend of $0.72 per share, payable on June 11, 2026 to stockholders of record May 29, 2026.
How is Labcorp (LH) positioning for growth in diagnostics and biopharma services?
Labcorp highlighted continued progress on strategic priorities, including collaborations with CHOP, Illumina and Optum.ai, and expansions in specialty and companion diagnostics. Biopharma metrics showed TTM net orders of $3.29 billion and backlog of $8.64 billion, supporting its laboratory services growth pipeline.