third quarter 2026
Filed Oct 28, 2026Labcorp Reports Strong 2026 Third Quarter Results; Raises Full Year 2026 Guidance
Third-quarter revenue increased 6.9%, adjusted EPS increased 14.5%, both operating segments expanded adjusted operating margin, and Labcorp raised full-year enterprise revenue growth and adjusted EPS guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, three months ended September 30GAAP | $3.81B | – | 6.9% |
| Total revenue, nine months ended September 30GAAP | $11.08B | – | 6.2% |
| Organic revenue growth, three months ended September 30other | 5.5% | – | – |
| Acquisitions, net of divestitures revenue contribution, three months ended September 30other | 1.5% | – | – |
| Foreign exchange revenue contribution, three months ended September 30other | (0.1%) | – | – |
| Gross profit, three months ended September 30GAAP | $1.11B | – | – |
| Cost of revenues, three months ended September 30GAAP | $2.70B | – | – |
| Selling, general, and administrative expenses, three months ended September 30GAAP | $611.4M | – | – |
| Amortization of intangibles and other assets, three months ended September 30GAAP | $78.7M | – | – |
| Restructuring and other charges, three months ended September 30GAAP | $15.9M | – | – |
| Operating income, three months ended September 30GAAP | $402.1M | – | – |
| Operating income as % of revenue, three months ended September 30GAAP | 10.6% | – | (60) bps |
| Adjusted operating income, three months ended September 30non-GAAP | $570M | – | – |
| Adjusted operating income as % of revenue, three months ended September 30non-GAAP | 15.0% | – | 60 bps |
| Net earnings attributable to Labcorp Holdings Inc., three months ended September 30GAAP | $262.8M | – | – |
| Diluted EPS, three months ended September 30GAAP | $3.22 | – | 3.3% |
| Adjusted net income, three months ended September 30non-GAAP | $390.3M | – | – |
| Adjusted EPS, three months ended September 30non-GAAP | $4.78 | – | 14.5% |
| Operating income, nine months ended September 30GAAP | $1.23B | – | – |
| Adjusted operating income, nine months ended September 30non-GAAP | $1.67B | – | – |
| Net earnings attributable to Labcorp Holdings Inc., nine months ended September 30GAAP | $839.3M | – | – |
| Diluted EPS, nine months ended September 30GAAP | $10.22 | – | – |
| Adjusted EPS, nine months ended September 30non-GAAP | $14.02 | – | 13.4% |
| Net cash provided by operating activities, three months ended September 30GAAP | $563.8M | – | – |
| Capital expenditures, three months ended September 30GAAP | $151.6M | – | – |
| Free cash flow, three months ended September 30non-GAAP | $412.2M | – | – |
| Net cash provided by operating activities, nine months ended September 30GAAP | $1.20B | – | – |
| Capital expenditures, nine months ended September 30GAAP | $404.2M | – | – |
| Free cash flow, nine months ended September 30non-GAAP | $796.6M | – | – |
| Diagnostics Laboratories adjusted operating income, nine months ended September 30non-GAAP | $1.47B | – | – |
| Biopharma Laboratory Services adjusted operating income, nine months ended September 30non-GAAP | $421.9M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Diagnostics LaboratoriesOrganic revenue contributed 4.4%, acquisitions, net of divestitures contributed 2.2%, and foreign exchange contributed (0.1)%. Adjusted operating income was $491.6 million and adjusted operating margin was 16.7%, compared with $450.4 million and 16.3%. | $2.95B | – | 6.5% |
| Biopharma Laboratory ServicesOrganic revenue contributed 9.6%, acquisitions, net of divestitures contributed (0.8)%, and foreign exchange contributed (0.3)%. Central Labs revenue growth was 11.5% and Early Development revenue growth was 0.4%. Adjusted operating income was $159.0 million and adjusted operating margin was 18.3%, compared with $132.2 million and 16.5%. | $866.7M | – | 8.5% |
| Diagnostics Laboratories, nine months ended September 30Adjusted operating income was $1,472.9 million and adjusted operating margin was 17.1%, compared with $1,360.7 million and 16.7%. | $8.61B | – | – |
| Biopharma Laboratory Services, nine months ended September 30Adjusted operating income was $421.9 million and adjusted operating margin was 17.0%, compared with $362.4 million and 15.7%. | $2.48B | – | – |
Full year 2026 updated guidance outlook
- RevenueLabcorp Enterprise: $14,779 million to $14,887 million; growth: 5.9% to 6.7%
- NoteDiagnostics Laboratories revenue: $11,475 million to $11,551 million; growth: 5.5% to 6.2%.
- NoteBiopharma Laboratory Services revenue: $3,328 million to $3,358 million; growth: 7.4% to 8.4%.
- NoteAdjusted EPS: $18.30 to $18.70.
- NoteFree Cash Flow: $1,240 million to $1,360 million.
- Note2026 Updated Enterprise guidance includes an impact from foreign currency translation of 0.3%.
- Note2026 Updated Biopharma Laboratory Services guidance includes an impact from foreign currency translation of 1.3%.
Capital returns
- During the quarter, the company invested $255.5 million in acquisitions and paid out $58.2 million in dividends.
- On October 21, 2026, the company announced a quarterly cash dividend of $0.72 per share of common stock, payable on December 11, 2026, to stockholders of record at the close of business on November 24, 2026.
- The company has $1.4 billion remaining under its board-authorized share repurchase program.
- Purchase of common stock was $451.8 million for the nine months ended September 30, 2026.
What drove it
- Enterprise revenue growth reflected 5.5% organic growth, 1.5% acquisitions, net of divestitures, and (0.1%) foreign exchange.
- The increase in consolidated adjusted operating income and margin was due to organic growth and operating efficiencies.
- Diagnostics Laboratories adjusted operating income and margin increased due to organic growth and operating efficiencies.
- Biopharma Laboratory Services adjusted operating income and margin increased due to organic growth and operating efficiencies from the strategic actions taken in Early Development.
- Labcorp acquired MLM Medical Labs and announced or signed three additional acquisition agreements subsequent to quarter end involving select BioReference Health assets, Myriad Genetics' Prenatal Health testing business, and Millennium Health.
- The company received FDA approval of PGDx elio® tissue complete CDx as a companion diagnostic to help identify patients with advanced melanoma.
Concerns
- GAAP operating income as a percentage of revenue was 10.6%, compared with 11.1%, a decline of (60) bps.
- Restructuring and other charges were $15.9 million, compared with $5.9 million.
- Acquisition and disposition-related costs were $23.0 million, compared with $10.8 million.
- Capital expenditures were $151.6 million, compared with $106.7 million.
- Interest expense was $59.1 million, compared with $56.0 million.
- The timing of the three acquisition agreements signed subsequent to quarter end is subject to regulatory approvals and customary closing conditions.
What to watch
- Delivery against updated enterprise revenue guidance of $14,779 million to $14,887 million and adjusted EPS guidance of $18.30 to $18.70.
- Diagnostics Laboratories growth guidance of 5.5% to 6.2% and Biopharma Laboratory Services growth guidance of 7.4% to 8.4%.
- Realization of expected accretion to adjusted EPS in year one and return of cost of capital by year three from the four announced or closed transactions.
- Biopharma Laboratory Services backlog conversion of $2.82 billion over the next twelve months.
- Free cash flow delivery within the $1,240 million to $1,360 million guidance range amid planned capital expenditure increases and acquisition activity.
Balance sheet and cash flow
- Cash and cash equivalents were $261.8 million at September 30, 2026, compared with $532.3 million at December 31, 2025.
- Total debt was $5.85 billion at the end of the quarter.
- Short-term borrowings and current portion of long-term debt were $601.2 million and long-term debt was $5,250.7 million at September 30, 2026.
- Net cash used for investing activities was $433.7 million for the three months ended September 30, 2026, including acquisition of businesses, net of cash acquired of $255.5 million.
- Free cash flow increased primarily due to improvement in working capital, partially offset by planned increases in capital expenditures.
- TTM Net Orders were $3.59 billion, TTM Book to Bill was 1.10, Backlog was $8.92 billion, and Next Twelve Months Forecast Backlog Conversion was $2.82 billion. Backlog increased 3.9% compared to this period last year.
Analysis
Labcorp reported a strong third quarter, with total revenue of $3,810.0 million versus $3,563.5 million and growth of 6.9%. Organic growth contributed 5.5%, while acquisitions, net of divestitures, added 1.5% and foreign exchange reduced revenue by (0.1%). Nine-month revenue was $11,078.7 million compared with $10,435.9 million.
Both operating segments expanded. Diagnostics Laboratories revenue was $2,948.9 million, up 6.5%, with 4.4% organic growth. Biopharma Laboratory Services revenue was $866.7 million, up 8.5%, driven by 9.6% organic growth; Central Labs growth was 11.5%, while Early Development growth was 0.4%. Biopharma also reported $8.92 billion of backlog, a 1.10 TTM book-to-bill ratio, and $2.82 billion of next-twelve-month forecast backlog conversion.
Profitability was stronger on an adjusted basis but mixed on a GAAP margin basis. Adjusted operating income increased to $570.0 million from $513.3 million and adjusted operating margin rose to 15.0% from 14.4%, with management attributing the increase to organic growth and operating efficiencies. Diagnostics adjusted operating margin increased to 16.7% from 16.3%, while Biopharma adjusted operating margin increased to 18.3% from 16.5%. GAAP operating income was $402.1 million versus $396.6 million, but GAAP operating income as a percentage of revenue declined to 10.6% from 11.1%.
Diluted EPS was $3.22 compared with $3.12, while adjusted EPS increased 14.5% to $4.78 from $4.18. Operating cash flow was $563.8 million and free cash flow was $412.2 million, with the increase in free cash flow attributed primarily to working-capital improvement, partly offset by planned capital expenditure increases. The company invested $255.5 million in acquisitions, paid $58.2 million in dividends, and had $1.4 billion remaining under its share repurchase authorization.
The company raised full-year enterprise revenue guidance to $14,779 million to $14,887 million, or 5.9% to 6.7% growth, and raised adjusted EPS guidance to $18.30 to $18.70. Free cash flow guidance was maintained at $1,240 million to $1,360 million. The outlook incorporates currently anticipated capital allocation, including acquisitions, share repurchases, and dividends, while the announced acquisition agreements remain subject to regulatory approvals and customary closing conditions.
Management, verbatim
Labcorp delivered another strong quarter with 7% revenue growth, continued margin expansion and 14.5% adjusted EPS growth, leading to a raise in our full-year guidance.
Adam Schechter, Chairman and CEO
We furthered our leadership in specialty testing by launching innovative tests for advanced melanoma, Alzheimer’s disease, and hepatitis D, while expanding access through strategic acquisitions across our Diagnostics and Biopharma Laboratory Services businesses.
Adam Schechter, Chairman and CEO
Not in the filing
stated, not guessed- Gross margin for the third quarter and nine months ended September 30, 2026.
- Gross margin guidance.
- Operating expenses guidance.
- Tax rate guidance.
- Prior-quarter comparisons for reported operating metrics.
- Full-year 2026 actual results, which are not yet reported.
- A separately provided previous-release outlook for comparison of reported results against prior guidance.
AlphAI 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.