Labcorp (NYSE:LH) Posts Earnings Results, Beats Estimates By $0.14 EPS

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

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

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

Labcorp Trading Up 10.2%

Shares of Labcorp stock traded up $33.75 on Wednesday, hitting $364.92. 266,472 shares of the company traded hands, compared to its average volume of 688,592. Labcorp has a 52 week low of $244.52 and a 52 week high of $365.56. The business has a 50-day simple moving average of $321.16 and a 200 day simple moving average of $285.95.

Labcorp Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 11th. Stockholders of record on Tuesday, November 24th will be given a dividend of $0.72 per share. The ex-dividend date is Tuesday, November 24th. This represents a $2.88 annualized dividend and a dividend yield of 0.8%.

Insider Transactions at Labcorp

In related news, EVP Amy B. Summy sold 924 shares of the firm’s stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $306.74, for a total transaction of $283,427.76. Following the completion of the transaction, the executive vice president directly owned 6,956 shares of the company’s stock, valued at approximately $2,133,683.44. This trade represents a 11.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Adam H. Schechter sold 4,669 shares of Labcorp stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $320.37, for a total transaction of $1,495,807.53. Following the completion of the sale, the chief executive officer owned 102,565 shares in the company, valued at approximately $32,858,749.05. This represents a 4.35% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 8,593 shares of company stock valued at $2,733,295. 0.84% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on LH shares. Barclays upped their price target on shares of Labcorp from $320.00 to $330.00 and gave the stock an “equal weight” rating in a research report on Friday, September 11th. Weiss Ratings upgraded shares of Labcorp from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Wednesday, October 21st. Truist Financial raised their price objective on shares of Labcorp from $350.00 to $365.00 and gave the company a “buy” rating in a research report on Monday, September 21st. Wall Street Zen upgraded shares of Labcorp from a “hold” rating to a “buy” rating in a research note on Sunday, July 12th. Finally, JPMorgan Chase & Co. upped their target price on shares of Labcorp from $330.00 to $360.00 and gave the stock an “overweight” rating in a report on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $337.73.

More Labcorp News

Here are the key news stories impacting Labcorp this week:

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

About Labcorp

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

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