Labcorp Shares Jump 10% As Lab Operator Lifts Earnings Forecast
Labcorp now expects $18.30 to $18.70 in adjusted earnings per share for the year, while its CEO flagged a $125 million Medicare fee-cut hit.
Labcorp, which runs laboratories that test patient samples and support drug development, saw its shares climb 9.52% to $362.71 in Wednesday trading as of 10:25 a.m. ET, adding $2.6 billion in market value. The jump came on the day it reported third-quarter revenue of $3.81 billion and raised its full-year profit outlook.
Raised guidance, adjusted EPS of $4.78
Adjusted earnings came to $4.78 a share in the quarter. Full-year guidance now spans $18.30 to $18.70 a share.
The stock was on pace for its biggest one-day gain in at least 275 trading sessions and its third straight daily gain. Its market value stood at $29.4 billion at the intraday reading.
A $125 million Medicare warning
On the earnings call, CEO Adam Schechter said proposed Medicare cuts to lab fees endanger patient access. The company sized the hit at $125 million.
A lab giant already up 32%
Labcorp has two segments. Diagnostics, which tests for physicians, hospitals, health plans and patients, produced $10,876.5 million of its $13,951.7 million in 2025 revenue, or 78%. Biopharma Laboratory Services, which supports drug developers, produced $3,098.2 million.
The shares were up about 32% year to date as of Tuesday's close, against about 13% for the S&P 500, and sat within 3% of their highest close of the past year, set on Aug. 24. The prior quarter's 10-Q showed revenue of $3.7 billion, up 5.8% from a year earlier, and net income of $298.7 million.
The $125 million Medicare fee-cut estimate is the number the CEO attached to the risk, set against a guidance range that was just raised.
Sources
- Labcorp’s (NYSE:LH) Q3 2026 sales beat estimates — Yahoo Finance
- Waters & Labcorp Expand Access to FDA-Approved HPV Screening Tests — Yahoo Finance
- Labcorp Holdings (LH) Q3 Earnings and Revenues Surpass Estimates — Yahoo Finance
- Healthcare Authority Deals & Corporate Governance : Law360 Healthcare Authority : Legal News & Analysis — law360.com
- Labcorp Holdings Inc. (NYSE:LH) : Cases :: Law360 — law360.com
- Labcorp Lifts Full-Year Profit Outlook As Lab Testing And Drug-Trial Businesses Both Grow — SEC filing
- Labcorp Holdings — Form 10-Q for the quarter ended 2026-06-30 (quarterly results) — SEC EDGAR
