Labcorp Raises 2026 Profit Outlook To $18.30–$18.70 A Share After Third-Quarter Adjusted EPS Climbs 14.5%
Revenue rose 6.9% to $3.81 billion, and the lab company announced or closed four deals while lifting its full-year forecast.
Labcorp, which runs laboratories that test patient samples and support drug development, lifted its 2026 forecast after third-quarter adjusted earnings per share rose 14.5% to $4.78 from $4.18, the company said in an 8-K filed Wednesday. Revenue grew 6.9% to $3.81 billion, from $3.56 billion a year earlier.
Guidance moves up
Labcorp now expects 2026 revenue growth of 5.9% to 6.7%, up from 5.4% to 6.3%. Adjusted earnings per share are forecast at $18.30 to $18.70, versus $18.10 to $18.55 before. Free cash flow guidance is unchanged at $1.24 billion to $1.36 billion.
Standard diluted earnings per share rose 3.3% to $3.22 from $3.12. Operating income slipped to 10.6% of revenue from 11.1%, while adjusted operating margin improved to 15.0% from 14.4%. The company tied the adjusted gain to organic growth and operating efficiencies.
Organic revenue growth was 5.5% and acquisitions added 1.5%. Free cash flow reached $412.2 million, against $280.5 million a year earlier, driven mainly by better working capital.
Both segments grow
Diagnostics, the larger unit, posted revenue of $2.95 billion, up 6.5%, with adjusted operating margin of 16.7% against 16.3%. Biopharma Laboratory Services, which supports drug developers, grew revenue 8.5% to $866.7 million, with central labs up 11.5% and early development up 0.4%. Its adjusted margin rose to 18.3% from 16.5%.
Biopharma backlog stood at $8.92 billion at September 30, up 3.9% from a year earlier. Full-year guidance for the unit now calls for revenue growth of 7.4% to 8.4%, up from 5.5% to 6.5%.
Four deals and a melanoma test
Labcorp bought MLM Medical Labs during the quarter and spent $255.5 million on acquisitions. After quarter end it signed agreements for select BioReference Health assets, Myriad Genetics' prenatal testing business and Millennium Health, each subject to regulatory approvals. The company said the four transactions announced or closed are each expected to add to adjusted earnings per share in year one and return their cost of capital by year three.
The FDA also approved the PGDx elio tissue complete CDx as a companion diagnostic to help identify patients with advanced melanoma. "Labcorp delivered another strong quarter," Chairman and CEO Adam Schechter said.
The company paid $58.2 million in dividends in the quarter and has $1.4 billion left on its buyback authorization. Cash stood at $261.8 million and total debt at $5.85 billion.
A quarterly dividend of $0.72 per share is payable December 11 to holders of record on November 24.
Sources
- 8-K Filing — LABCORP HOLDINGS INC. (LH) — SEC EDGAR
- Exhibit form8-kexhibit9913q26.htm — LABCORP HOLDINGS INC. 8-K exhibit — SEC EDGAR
- Labcorp Reports Strong 2026 Third Quarter Results; Raises Full Year 2026 Guidance — prnewswire.com
