Labcorp (NYSE:LH) Announces Quarterly Earnings Results

Labcorp (NYSE:LH) announced its quarterly earnings results on Tuesday. The medical research company reported $4.07 earnings per share for the quarter, beating analysts’ consensus estimates of $3.95 by $0.12, FiscalAI reports. The business had revenue of $3.52 billion during the quarter, compared to analysts’ expectations of $3.56 billion. Labcorp had a net margin of 6.21% and a return on equity of 15.85%. The business’s revenue for the quarter was up 5.6% on a year-over-year basis. During the same period last year, the business earned $3.45 earnings per share. Labcorp updated its FY 2026 guidance to 17.550-18.250 EPS.

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

• Labcorp reported a strong 2025 with >7% revenue growth, 13% adjusted EPS growth and margin expansion, and gave 2026 guidance of ~4.7%-6% revenue growth with ~9% adjusted EPS growth at the midpoint, supporting continued profitable growth.
• Management highlighted active M&A and partnership activity — including recent acquisitions of select outreach and pathology assets and 13 health‑system deals over three years that it says added >$1 billion of revenue — and described a “robust pipeline” of further opportunities.
• Specialty/esoteric testing and central lab momentum are key growth drivers: esoteric testing grew double digits, the company launched >130 new tests (oncology, neurology, women’s health), completed the Invitae integration, and reported strong central lab book‑to‑bill of 1.16 quarterly / 1.09 TTM.
• Labcorp is streamlining its Early Development (ED) business, expecting to reduce ~<$50 million of annual revenue from scope actions that should boost ED operating income and margins but create near‑term revenue headwinds and timing risk through mid‑2026.
• Capital allocation balances returns and investment — FY2025 free cash flow was ~$1.2B, Q4 buybacks/dividends continued and ~$800M repurchase authorization remains, while debt stood at $5.6B (2.3x leverage) and CapEx is guided higher (~4% of revenue) to fund a new 500,000+ sq ft central lab and kit facility.

Labcorp Price Performance

Shares of LH opened at $276.53 on Wednesday. The firm has a market capitalization of $22.92 billion, a price-to-earnings ratio of 27.16, a PEG ratio of 1.78 and a beta of 1.03. The firm’s fifty day simple moving average is $264.43 and its 200-day simple moving average is $268.92. Labcorp has a twelve month low of $209.38 and a twelve month high of $293.72. The company has a current ratio of 1.55, a quick ratio of 1.35 and a debt-to-equity ratio of 0.59.

Labcorp Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, March 12th. Shareholders of record on Friday, February 27th will be given a $0.72 dividend. The ex-dividend date of this dividend is Friday, February 27th. This represents a $2.88 dividend on an annualized basis and a dividend yield of 1.0%. Labcorp’s dividend payout ratio is currently 28.29%.

Wall Street Analysts Forecast Growth

LH has been the topic of a number of research reports. UBS Group decreased their price target on Labcorp from $325.00 to $320.00 and set a “buy” rating on the stock in a research note on Wednesday, October 29th. Weiss Ratings raised Labcorp from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Tuesday, February 10th. Morgan Stanley reaffirmed an “overweight” rating on shares of Labcorp in a research report on Tuesday. JPMorgan Chase & Co. boosted their price target on shares of Labcorp from $317.00 to $319.00 and gave the stock an “overweight” rating in a research note on Friday, February 6th. Finally, Wall Street Zen raised shares of Labcorp from a “hold” rating to a “buy” rating in a research note on Friday, January 23rd. Ten equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, Labcorp has an average rating of “Moderate Buy” and an average price target of $300.75.

Trending Headlines about Labcorp

Here are the key news stories impacting Labcorp this week:

• Positive Sentiment: Q4 adjusted EPS beat expectations ($4.07 vs. $3.95 consensus) and EPS grew ~18% year-over-year, showing solid profitability improvement — a key reason investors had some support for the stock. Labcorp Holdings (LH) Q4 Earnings Surpass Estimates
• Positive Sentiment: Management set FY2026 adjusted EPS guidance of $17.55–$18.25 (midpoint roughly in line with consensus) and projected free cash flow growth, signaling confidence in margins and cash generation for the year. Labcorp Announces 2025 Fourth Quarter and Full Year Results
• Positive Sentiment: Company highlighted commercial progress — 13 partner transactions in 2025, >130 new specialty tests launched, and a planned 500k sq. ft. central lab investment — supporting medium-term growth potential. Labcorp Announces 2025 Fourth Quarter and Full Year Results
• Positive Sentiment: Several brokerages maintain a constructive view (consensus “Moderate Buy”), providing analyst support that may limit downside after the print. Labcorp Holdings Inc. (NYSE:LH) Given Consensus Recommendation of “Moderate Buy” by Brokerages
• Neutral Sentiment: Full earnings call transcript and management commentary are available for investors to parse execution details and guidance nuance; the call contains more color on test demand and margin drivers. Labcorp (LH) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Revenue missed expectations (Q4 revenue $3.52B vs. ~$3.56B consensus), prompting investor caution and an intra-session share pullback — the primary driver of the stock weakness today. Labcorp slips after Q4 revenue miss
• Negative Sentiment: Pre-market reaction was negative as some investors focused on the revenue shortfall and slightly mixed guidance tone despite EPS beat, amplifying near-term volatility. Labcorp Q4 Earnings Beat, Revenues Miss, Stock Down in Pre-Market

Insiders Place Their Bets

In other Labcorp news, EVP Jonathan C. Meltzer sold 87 shares of Labcorp stock in a transaction dated Thursday, February 12th. The stock was sold at an average price of $290.42, for a total transaction of $25,266.54. Following the completion of the sale, the executive vice president directly owned 2,782 shares of the company’s stock, valued at $807,948.44. The trade was a 3.03% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Adam H. Schechter sold 5,273 shares of the company’s stock in a transaction dated Wednesday, February 11th. The stock was sold at an average price of $284.38, for a total value of $1,499,535.74. Following the transaction, the chief executive officer directly owned 87,343 shares of the company’s stock, valued at approximately $24,838,602.34. This represents a 5.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.84% of the company’s stock.

Institutional Trading of Labcorp

Several institutional investors have recently modified their holdings of the stock. Brighton Jones LLC purchased a new position in shares of Labcorp in the 4th quarter valued at $991,000. Integrated Wealth Concepts LLC grew its holdings in shares of Labcorp by 7.9% during the first quarter. Integrated Wealth Concepts LLC now owns 2,427 shares of the medical research company’s stock worth $565,000 after purchasing an additional 177 shares during the last quarter. Goldman Sachs Group Inc. increased its position in shares of Labcorp by 52.2% during the first quarter. Goldman Sachs Group Inc. now owns 353,843 shares of the medical research company’s stock worth $82,353,000 after purchasing an additional 121,304 shares in the last quarter. Arrowstreet Capital Limited Partnership purchased a new stake in shares of Labcorp in the 2nd quarter valued at about $5,873,000. Finally, First Trust Advisors LP boosted its position in shares of Labcorp by 83.2% in the 2nd quarter. First Trust Advisors LP now owns 86,046 shares of the medical research company’s stock valued at $22,588,000 after purchasing an additional 39,087 shares during the period. Hedge funds and other institutional investors own 95.94% of the company’s stock.

Labcorp Company Profile

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.