second quarter 2026
Filed Jul 30, 2026Labcorp 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.