Labcorp (NYSE:LH) Issues Earnings Results, Beats Estimates By $0.21 EPS

Labcorp (NYSE:LH) announced its quarterly earnings data on Thursday. The medical research company reported $4.99 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.78 by $0.21, FiscalAI reports. Labcorp had a net margin of 6.99% and a return on equity of 16.74%. The business had revenue of $3.73 billion for the quarter, compared to analysts’ expectations of $3.71 billion. During the same period last year, the firm posted $4.35 earnings per share. The firm’s quarterly revenue was up 5.8% compared to the same quarter last year. Labcorp updated its FY 2026 guidance to 18.100-18.550 EPS.

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

• Strong Q2 performance: Revenue rose 5.8% to $3.7 billion, adjusted operating margin expanded 70 basis points to 15.8%, and adjusted EPS increased 14.9% to $4.99. Diagnostics and Biopharma Laboratory Services both delivered revenue growth and margin expansion.
• Full-year guidance was raised: Labcorp increased the midpoint of its 2026 revenue outlook by $42 million and adjusted EPS outlook by $0.30 to $18.10–$18.55, implying more than 11% EPS growth at the midpoint.
• Biopharma momentum improved: BLS revenue increased 6.5%, supported by strong Central Lab growth, a quarterly book-to-bill ratio of 1.14, and improving Early Development trends. The company raised its midpoint outlook for BLS revenue growth and expects continued segment margin expansion.
• Specialty and consumer testing remain growth drivers: Specialty diagnostics grew at double-digit rates in the first half, while Labcorp OnDemand also delivered strong double-digit growth. New offerings include the nationwide ColoSense colorectal cancer screening test and the upcoming Marker by Labcorp biomarker and genetic testing panel.
• Capital deployment and reimbursement risks remain in focus: Labcorp repurchased $354 million of shares, invested $226 million in acquisitions, and received a new $1 billion share-repurchase authorization. Management expects an approximately 30-basis-point 2026 diagnostic-volume headwind from ACA-related changes and continues to monitor potential PAMA reimbursement impacts.

Labcorp Stock Performance

Labcorp stock opened at $309.47 on Friday. The business has a 50 day moving average of $274.71 and a 200-day moving average of $271.01. The company has a market capitalization of $25.38 billion, a P/E ratio of 25.60, a P/E/G ratio of 2.09 and a beta of 0.89. Labcorp has a 1 year low of $244.52 and a 1 year high of $316.11. The company has a debt-to-equity ratio of 0.69, a current ratio of 1.80 and a quick ratio of 1.54.

Labcorp Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 11th. Stockholders of record on Friday, August 28th will be paid a $0.72 dividend. The ex-dividend date of this dividend is Friday, August 28th. This represents a $2.88 annualized dividend and a dividend yield of 0.9%. Labcorp’s dividend payout ratio is currently 25.51%.

Insider Buying and Selling

In other Labcorp news, CEO Adam H. Schechter sold 5,903 shares of the business’s stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $254.50, for a total transaction of $1,502,313.50. Following the sale, the chief executive officer directly owned 107,234 shares of the company’s stock, valued at $27,291,053. The trade was a 5.22% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Kathryn W. Kyle sold 92 shares of the company’s stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $286.19, for a total transaction of $26,329.48. Following the completion of the transaction, the executive vice president owned 3,904 shares of the company’s stock, valued at approximately $1,117,285.76. This trade represents a 2.30% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 6,991 shares of company stock worth $1,796,696 in the last ninety days. Company insiders own 0.84% of the company’s stock.

Institutional Trading of Labcorp

Institutional investors and hedge funds have recently bought and sold shares of the stock. JPL Wealth Management LLC bought a new stake in shares of Labcorp in the 3rd quarter valued at about $28,000. DV Equities LLC bought a new position in shares of Labcorp during the fourth quarter worth about $29,000. EFG International AG acquired a new position in shares of Labcorp in the fourth quarter worth approximately $33,000. Headlands Technologies LLC lifted its stake in shares of Labcorp by 300.0% in the second quarter. Headlands Technologies LLC now owns 128 shares of the medical research company’s stock worth $34,000 after acquiring an additional 96 shares during the period. Finally, Caitong International Asset Management Co. Ltd boosted its holdings in Labcorp by 575.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 162 shares of the medical research company’s stock valued at $41,000 after acquiring an additional 138 shares during the last quarter. 95.94% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Truist Financial lifted their price target on Labcorp from $320.00 to $350.00 and gave the company a “buy” rating in a research note on Friday. Morgan Stanley upped their price objective on Labcorp from $308.00 to $338.00 and gave the stock an “overweight” rating in a research report on Friday. Evercore reaffirmed an “outperform” rating and issued a $300.00 price objective on shares of Labcorp in a research note on Wednesday, April 8th. Bank of America lifted their target price on Labcorp from $300.00 to $320.00 and gave the company a “buy” rating in a research report on Monday, July 13th. Finally, Robert W. Baird set a $352.00 target price on Labcorp in a research note on Friday. Nine analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $323.27.

Labcorp News Summary

Here are the key news stories impacting Labcorp this week:

• Positive Sentiment: Labcorp exceeded expectations in the second quarter, reporting adjusted EPS of $4.99 versus the $4.78 analyst consensus and revenue of $3.73 billion versus estimates of $3.71 billion. Revenue increased 5.8% year over year, supported by steady diagnostic-testing demand and growth in drug-development services. Reuters article
• Positive Sentiment: The company raised its 2026 adjusted EPS guidance to $18.10-$18.55, above the roughly $17.99-$18.00 consensus, while forecasting revenue of approximately $14.71 billion-$14.83 billion. Diagnostics Laboratories revenue rose 5.5%, and Biopharma Laboratory Services revenue increased 6.5%. Labcorp second-quarter results
• Positive Sentiment: Labcorp expanded its share-repurchase authorization by $1 billion, repurchased $353.8 million of stock during the quarter and paid $58.7 million in dividends. Truist Financial also raised its price target from $320 to $350 and assigned a “buy” rating, implying further upside from recent levels. Benzinga reference
• Neutral Sentiment: Management highlighted continued investment in oncology, consumer health and technology initiatives. The earnings call transcripts provide additional detail on demand trends, margins and the updated outlook. Labcorp Q2 earnings call transcript
• Negative Sentiment: Despite the earnings and revenue beats, LH shares fell in premarket trading and remain lower in active trading. The reaction indicates that investors may have viewed the results and raised outlook as insufficient relative to elevated expectations and the stock’s recent rally toward its 52-week high. Zacks market reaction
• Negative Sentiment: Recent insider-trading data shows company insiders made multiple sales and no purchases over the past six months, a potential sentiment headwind, although the transactions do not necessarily reflect management’s outlook. Quiver Quantitative report

About Labcorp

Laboratory Corporation of America Holdings, commonly known as Labcorp (NYSE: LH), is a global life sciences company that provides comprehensive clinical laboratory and drug development services. The company operates a broad network of laboratories, patient service centers and specialty testing sites to deliver diagnostic information and testing solutions that support patient care, clinical decision-making and population health initiatives.

Labcorp’s core businesses encompass clinical laboratory testing and pharmaceutical development services.