LABCORP HOLDINGS INC. (LH): Results of Operations and Financial Condition
LABCORP HOLDINGS INC. (LH) filed an SEC Form 8-K — Results of Operations and Financial Condition. FOR IMMEDIATE RELEASE Contact: Dewey Steadman - Investors Racquel White - Media Investor@labcorp.com Media@labcorp.com Labcorp Announces 2026 Second Quarter Results; Raises Full Year 2026 Guidance • Results from operations for second quarter 2026 versus second quarter 2025: ◦ Rev
How this was made
The 30-second read
Why it matters
The key tradable inputs are the raised FY 2026 revenue growth and adjusted EPS ranges, the incremental $1.0B share repurchase authorization (remaining authorization $1.4B), and the detailed oncology and consumer health product/test launches that support the guidance narrative.
Market read
Traders can update FY 2026 earnings expectations immediately based on the raised guidance and capital return increase disclosed in the filing.
What to watch
Free cash flow is lower in the quarter versus prior period due to working capital timing and planned capex increases, which could temper enthusiasm despite EPS strength.
Labcorp Announces 2026 Second Quarter Results; Raises Full Year 2026 Guidance
Second-quarter revenue grew 5.8%, GAAP diluted EPS rose 28.5%, adjusted EPS increased 14.9%, and adjusted operating margin expanded 70 bps. Labcorp raised full-year enterprise revenue growth and adjusted EPS guidance while returning capital through repurchases, dividends, acquisitions, and debt retirement.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total Revenue (Three Months Ended June 30, 2026; Dollars in millions)GAAP | $ 3,731.1 | – | 5.8 % |
| Organic revenue growth (Three Months Ended June 30, 2026)other | 4.2 % | – | – |
| Revenue contribution from Acquisitions, net of Divestitures (Three Months Ended June 30, 2026)other | 1.2 % | – | – |
| Foreign Exchange revenue contribution (Three Months Ended June 30, 2026)other | 0.4 % | – | – |
| Operating Income (Three Months Ended June 30, 2026; Dollars in millions)GAAP | $ 451.6 | – | – |
| Operating Income as % of Revenue (Three Months Ended June 30, 2026)GAAP | 12.1 % | – | 90 bps |
| Adjustments (Three Months Ended June 30, 2026; Dollars in millions)non-GAAP | $ 137.1 | – | – |
| Adjusted Operating Income (Three Months Ended June 30, 2026; Dollars in millions)non-GAAP | $ 588.7 | – | – |
| Adjusted Operating Income as % of Revenue (Three Months Ended June 30, 2026)non-GAAP | 15.8 % | – | 70 bps |
| Net Earnings Attributable to Labcorp Holdings Inc. (Three Months Ended June 30, 2026; Dollars in millions)GAAP | $ 298.7 | – | – |
| Diluted EPS (Three Months Ended June 30, 2026)GAAP | $ 3.64 | – | 28.5% |
| Adjusted EPS (Three Months Ended June 30, 2026)non-GAAP | $ 4.99 | – | 14.9 % |
| Total Revenue (Six Months Ended June 30, 2026; Dollars in millions)GAAP | $ 7,268.7 | – | 5.8 % |
| Organic revenue growth (Six Months Ended June 30, 2026)other | 4.2 % | – | – |
| Revenue contribution from Acquisitions, net of Divestitures (Six Months Ended June 30, 2026)other | 1.2 % | – | – |
| Foreign Exchange revenue contribution (Six Months Ended June 30, 2026)other | 0.4 % | – | – |
| Operating Income (Six Months Ended June 30, 2026; Dollars in millions)GAAP | $ 832.4 | – | – |
| Operating Income as % of Revenue (Six Months Ended June 30, 2026)GAAP | 11.5 % | – | 100 bps |
| Adjustments (Six Months Ended June 30, 2026; Dollars in millions)non-GAAP | $ 264.2 | – | – |
| Adjusted Operating Income (Six Months Ended June 30, 2026; Dollars in millions)non-GAAP | $ 1,096.6 | – | – |
| Adjusted Operating Income as % of Revenue (Six Months Ended June 30, 2026)non-GAAP | 15.1 % | – | 50 bps |
| Net Earnings Attributable to Labcorp Holdings Inc. (Six Months Ended June 30, 2026; Dollars in millions)GAAP | $ 576.5 | – | – |
| Diluted EPS (Six Months Ended June 30, 2026)GAAP | $ 6.99 | – | – |
| Adjusted EPS (Six Months Ended June 30, 2026)non-GAAP | $ 9.24 | – | 12.8 % |
| Operating Cash Flow (Three Months Ended June 30, 2026; Dollars in millions)GAAP | $ 445.5 | – | – |
| Capital Expenditures (Three Months Ended June 30, 2026; Dollars in millions)other | 131.6 | – | – |
| Free Cash Flow (Three Months Ended June 30, 2026; Dollars in millions)non-GAAP | $ 313.9 | – | – |
| Operating Cash Flow (Six Months Ended June 30, 2026; Dollars in millions)GAAP | $ 637.0 | – | – |
| Capital Expenditures (Six Months Ended June 30, 2026; Dollars in millions)other | 252.6 | – | – |
| Free Cash Flow (Six Months Ended June 30, 2026; Dollars in millions)non-GAAP | $ 384.4 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Diagnostics LaboratoriesOrganic revenue growth was 3.6 % and Acquisitions, net of Divestitures contributed 1.9 %. Adjusted Operating Income and margin increased due to organic growth and operating efficiencies. | $ 2,900.7 | – | 5.5 % |
| Biopharma Laboratory ServicesCentral Labs revenue growth of 9.8%; Early Development revenue was down 1.4%. Organic growth was 6.2 %, Acquisitions, net of Divestitures was (1.4) %, and Foreign Exchange was 1.8 %. | $ 836.2 | – | 6.5 % |
2026 full year outlook
- RevenueLabcorp Enterprise: $14,710 to $14,827; Growth: 5.4% to 6.3%
- NoteDiagnostics Laboratories revenue: $11,450 to $11,532; Growth: 5.3% to 6.0%
- NoteBiopharma Laboratory Services revenue: $3,269 to $3,300; Growth: 5.5% to 6.5%
- NoteAdjusted EPS: $18.10 to $18.55
- NoteFree Cash Flow: $1,240 to $1,360
- Note2026 Updated Enterprise guidance includes an impact from foreign currency translation of 0.4%.
- Note2026 Updated Biopharma Laboratory Services guidance includes an impact from foreign currency translation of 1.5%.
Capital returns
- During the quarter, the company invested $225.7 million in acquisitions.
- During the quarter, the company repurchased $353.8 million of stock.
- During the quarter, the company paid out $58.7 million in dividends.
- In June, we retired $500.0 million in senior notes.
- On July 9, 2026, the company announced a quarterly cash dividend of $0.72 per share of common stock, payable on September 11, 2026, to stockholders of record at the close of business on August 28, 2026.
- In July, the Board of Directors approved an increase of $1.0 billion in the company's share repurchase authorization, bringing the remaining total authorization to $1.4 billion.
What drove it
- Enterprise organic revenue growth was 4.2 % in the second quarter.
- Diagnostics Laboratories reported 3.0 % requisition growth and 2.5 % price/mix growth. Organic requisition growth was 1.8 % and organic price/mix growth was 1.8 %.
- Diagnostics Laboratories adjusted operating income was $ 522.6 and adjusted operating margin was 18.0 %.
- Biopharma Laboratory Services adjusted operating income was $ 142.2 and adjusted operating margin was 17.0 %.
- Biopharma adjusted operating income and margin increased, driven by organic growth and operating efficiencies from the strategic actions taken in Early Development.
- Biopharma Laboratory Services reported TTM Net Orders of $ 3.32, TTM Book to Bill of 1.03, Backlog of $ 8.73, and Next Twelve Months Forecast Backlog Conversion of $ 2.75.
- Backlog increased 0.2% compared to this period last year.
Concerns
- Early Development revenue was down 1.4%.
- Free Cash Flow was $ 313.9 for the Three Months Ended June 30, 2026, compared with $ 542.7 for the Three Months Ended June 30, 2025.
- The difference in free cash flow was primarily due to working capital timing and planned increases in capital expenditures.
- Total debt was $5.86 billion at the end of the quarter.
What to watch
- Execution against updated 2026 Labcorp Enterprise revenue guidance of $14,710 to $14,827 and growth of 5.4% to 6.3%.
- Execution against updated Biopharma Laboratory Services revenue guidance of $3,269 to $3,300 and growth of 5.5% to 6.5%.
- Central Labs revenue growth of 9.8% and Early Development revenue, which was down 1.4%.
- Conversion of Biopharma Laboratory Services backlog, including Next Twelve Months Forecast Backlog Conversion of $ 2.75.
- Free Cash Flow performance versus full-year guidance of $1,240 to $1,360.
- Use of the remaining total share repurchase authorization of $1.4 billion.
Balance sheet and cash flow
- At the end of the quarter, Labcorp's cash and cash equivalents balance was $141.8 million and total debt was $5.86 billion.
- Operating Cash Flow was $ 445.5 for the Three Months Ended June 30, 2026, compared with $ 620.6 for the Three Months Ended June 30, 2025.
- Free Cash Flow was $ 313.9 for the Three Months Ended June 30, 2026, compared with $ 542.7 for the Three Months Ended June 30, 2025.
- The difference in free cash flow was primarily due to working capital timing and planned increases in capital expenditures.
Analysis
Labcorp reported second-quarter total revenue of $ 3,731.1, up 5.8 % from $ 3,527.3. Organic growth was 4.2 %, acquisitions net of divestitures contributed 1.2 %, and foreign exchange contributed 0.4 %. GAAP operating income was $ 451.6 and operating income as a percentage of revenue expanded 90 bps to 12.1 %. Net earnings attributable to Labcorp Holdings Inc. were $ 298.7, while diluted EPS rose 28.5% to $ 3.64.
Non-GAAP profitability also advanced. Adjusted operating income was $ 588.7 versus $ 531.6, and adjusted operating margin improved 70 bps to 15.8 %. The company attributed the adjusted operating income and margin increase to organic growth and operating efficiencies. Adjusted EPS was $ 4.99, up 14.9 % from $ 4.35. For the six months ended June 30, 2026, revenue was $ 7,268.7, adjusted operating income was $ 1,096.6, and adjusted EPS was $ 9.24.
Both operating segments grew revenue. Diagnostics Laboratories revenue was $ 2,900.7, up 5.5 %, with 3.0 % requisition growth and 2.5 % price/mix growth. Its adjusted operating margin increased 50 bps to 18.0 %. Biopharma Laboratory Services revenue was $ 836.2, up 6.5 %, led by Central Labs revenue growth of 9.8%; Early Development revenue was down 1.4%. Biopharma adjusted operating margin expanded 130 bps to 17.0 %, with the company citing organic growth and operating efficiencies from strategic actions in Early Development.
Cash generation was lower in the quarter. Operating cash flow was $ 445.5 and free cash flow was $ 313.9, compared with $ 620.6 and $ 542.7, respectively. Labcorp said the free-cash-flow difference was primarily due to working capital timing and planned increases in capital expenditures. The company ended the quarter with $141.8 million of cash and cash equivalents and $5.86 billion of total debt, after retiring $500.0 million in senior notes in June.
Capital allocation included $225.7 million of acquisitions, $353.8 million of stock repurchases, and $58.7 million of dividends during the quarter. The board added $1.0 billion to the share repurchase authorization, bringing remaining authorization to $1.4 billion. Updated full-year guidance calls for Labcorp Enterprise revenue of $14,710 to $14,827, growth of 5.4% to 6.3%, adjusted EPS of $18.10 to $18.55, and free cash flow of $1,240 to $1,360. The guide reflects the second-quarter performance and the full-year outlook, according to the release.
Management, verbatim
Labcorp delivered another very strong quarter, with 6% revenue growth, significant margin expansion, and double-digit adjusted EPS growth reflecting continued momentum across the business.
Adam Schechter, Chairman and CEO
Our performance and continued execution position us well to deliver sustainable growth and long-term value for customers and shareholders.
Adam Schechter, Chairman and CEO
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported in the provided filing text.
- Operating expenses were not reported in the provided filing text.
- Income tax expense and tax rate were not reported in the provided filing text.
- GAAP net income was not separately reported; the filing reported Net Earnings Attributable to Labcorp Holdings Inc.
- Adjusted net income was not reported in the provided filing text.
- Prior-quarter comparisons for revenue, earnings, margins, cash flow, and segment results were not reported in the provided filing text.
- GAAP operating income and GAAP operating margin by segment were not reported in the provided filing text.
- Diagnostics Laboratories foreign-exchange revenue contribution was not reported in the provided filing text.
- Balance-sheet comparison figures for cash and total debt were not reported in the provided filing text.
- Prior-release outlook section was not provided; therefore no actual-versus-prior-guidance comparison is included.
- Guidance for gross margin, operating expenses, and tax rate was not reported in the provided filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is Labcorp’s SEC Form 8-K (Item 2.02) with Q2 2026 operating results and updated full-year 2026 guidance, plus capital allocation updates and business segment initiatives.
Ticker impact
Labcorp reported Q2 results and raised full-year 2026 enterprise revenue growth and adjusted EPS guidance, plus increased its $1.0B buyback authorization.
Moderately positive bias for the next several sessions as traders reprice FY 2026 EPS and capital return expectations.
The filing includes explicit Q2 beats (revenue, diluted EPS, adjusted EPS) and a quantified FY guidance increase, alongside a concrete incremental repurchase authorization.
Market effects
Strength in specialty diagnostics and oncology testing demand could reinforce positive read-through for large lab services peers, though this is company-specific guidance.
Limited direct regional impact; includes Canada consumer test launch and U.S. Medicare coverage expansion for ColoSense.
Global lab services demand and specialty testing momentum may support broader investor appetite for healthcare diagnostics.
Counterpoint
Higher guidance may already be partially anticipated; the market may focus on free cash flow softness and working-capital timing rather than EPS growth.
Key entities
- companyLabcorp Holdings Inc.
Global laboratory services provider reporting Q2 2026 results and raising FY 2026 guidance, alongside increased share repurchase authorization.
- partnerFox Chase Cancer Center
Clinical trial collaboration referenced for evaluating Labcorp’s Plasma Detect Genome MRD in early-stage non-small cell lung cancer recurrence risk.
- technology_partnerEpic
Collaboration to place 6,500-plus diagnostic tests on Epic’s Aura platform.
- partnerRoche
VENTANA PTEN (SP218) companion diagnostic expansion referenced for prostate cancer combination treatment eligibility.
- partnerAstraZeneca
Targeted therapy TRUQAP referenced in connection with expanded access to Roche’s PTEN companion diagnostic.
