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Labcorp Holdings
(NYSE:LH)
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Rating:68Neutral
Price Target:
$313.00
▲(15.63% Upside)
Action:Reiterated
Date:05/27/26
The score is supported by improving fundamentals and cash flow plus a positive, raised outlook from the latest earnings call. These strengths are tempered by below-trend technicals (price under key moving averages) and only moderate valuation support given a ~19.8 P/E and ~1.1% yield.
Positive Factors
Improving free cash flow
Sustained, improving FCF and higher operating cash flow provide durable funding for capital spending, dividends, M&A and buybacks. This strengthens financial optionality and supports reinvestment into specialty tests and drug‑development capabilities over the next several quarters.
Negative Factors
Profitability below pre‑pandemic peaks
A substantial step‑down from 2021 margins indicates structural headwinds: shifted test mix, pricing pressure and lost pandemic tailwinds. Although margins are improving, recovering to prior peak profitability will likely require sustained pricing, higher specialty mix, or outsized efficiency gains.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving free cash flow
Sustained, improving FCF and higher operating cash flow provide durable funding for capital spending, dividends, M&A and buybacks. This strengthens financial optionality and supports reinvestment into specialty tests and drug‑development capabilities over the next several quarters.
Read all positive factors
Labcorp Holdings Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows profitability across different business units, highlighting which areas drive earnings and where there might be challenges or opportunities for growth.
Shows profitability across different business units, highlighting which areas drive earnings and where there might be challenges or opportunities for growth.
Data provided by:
The Fly
The FlyLabcorp Holdings (LH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.53B
Dividend Yield1.14%
Average Volume (3M)572.17K
Price to Earnings (P/E)25.2
Beta (1Y)0.29
Revenue Growth7.34%
EPS Growth30.39%
CountryUS
Employees60,900
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)11.37
Shares Outstanding82,000,000
10 Day Avg. Volume605,257
30 Day Avg. Volume572,167
Financial Highlights & Ratios
PEG Ratio1.28
Price to Book (P/B)2.42
Price to Sales (P/S)1.50
P/FCF Ratio17.31
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue1.95
Enterprise Value/Gross Profit7.01
Enterprise Value/Ebitda13.35
Forecast
1Y Price Target
$309.86Price Target Upside14.47% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)18.02
Revenue Forecast (FY)$14.69B
Labcorp Holdings Business Overview & Revenue Model
Company Description
Labcorp Holdings, Inc. offers vital diagnostic laboratory services, enabling medical professionals, healthcare facilities, pharmaceutical firms, scientific investigators, and patients to make well-informed and confident choices. The company commen...
How the Company Makes Money
Labcorp makes money primarily by charging fees for services delivered through its two main operating segments.
1) Diagnostics (clinical laboratory services)
- Fee-for-service testing: The Diagnostics segment generates revenue when Labcorp perform...
Labcorp Holdings Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presented a predominately positive picture: solid top-line growth, double-digit EPS improvement, margin expansion, healthy BLS backlog and raised/narrowed guidance. Management highlighted strong progress on strategic partnerships, product launches and AI/technology initiatives. Key challenges include weather-driven volume disruption, Early Development transitional actions, regulatory/reimbursement uncertainty (CRUSH, PAMA/RESULTS Act), and modest short-term cash flow/leverage considerations. Overall, positives around organic growth, profitability and a robust deal/product pipeline outweigh the identified headwinds.Positive Updates
Enterprise Revenue Growth
Q1 enterprise revenue of $3.5 billion, up ~5.8% year-over-year (management cited ~6%), driven primarily by organic growth in Diagnostics and Central Labs.
Negative Updates
Weather-Related Volume Disruption
Adverse weather estimated to have reduced Q1 revenue by about $15 million; management noted organic Dx volume would have been closer to ~2% without the weather impact and that weather remains difficult to predict and not explicitly baked into forecasts.
Read all updates
Q1-2026 Updates
Positive
Negative
Enterprise Revenue Growth
Q1 enterprise revenue of $3.5 billion, up ~5.8% year-over-year (management cited ~6%), driven primarily by organic growth in Diagnostics and Central Labs.
Read all positive updates
Company Guidance
Labcorp updated its full‑year 2026 outlook, raising the midpoint of enterprise revenue by about $30 million and EPS midpoint by $0.13 while narrowing the EPS range; enterprise revenue is now guided to grow 5.0%–6.1% (FX assumed at March 31, 2026, with ~40 bps FX tailwind), Diagnostics revenue 5.1%–5.9% (midpoint ~5.5%), and Biopharma Lab Services (BLS) revenue 3.8%–5.4% (including ~150 bps FX tailwind); on an organic constant‑currency basis Central Labs are expected to grow mid‑single digits while Early Development is expected to be roughly flat with a stronger H2. Adjusted EPS is guided to $17.70–$18.35 (midpoint implying ~10% growth), adjusted tax rate around 23% for the year, free cash flow $1.24B–$1.36B (weighted to the second half), capital expenditures ~4% of revenue, and continued enterprise margin expansion (with BLS margin expected to expand more than Diagnostics); guidance reflects continued use of free cash flow for acquisitions, share repurchases and dividends and assumes the company’s stated M&A pipeline and launchpad initiatives.Labcorp Holdings Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
68
Positive
Cash Flow
73
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.14B | 13.95B | 13.01B | 12.16B | 11.86B | 13.14B |
| Gross Profit | 3.93B | 3.73B | 3.62B | 3.36B | 3.71B | 4.99B |
| EBITDA | 2.06B | 2.01B | 1.81B | 1.35B | 1.95B | 3.68B |
| Net Income | 941.50M | 876.50M | 746.00M | 418.00M | 1.28B | 2.38B |
Balance Sheet | ||||||
| Total Assets | 19.09B | 18.39B | 18.38B | 16.73B | 20.16B | 20.39B |
| Cash, Cash Equivalents and Short-Term Investments | 981.10M | 532.30M | 1.52B | 536.80M | 320.60M | 1.47B |
| Total Debt | 7.24B | 7.20B | 7.27B | 5.95B | 6.25B | 6.34B |
| Total Liabilities | 10.34B | 9.76B | 10.31B | 8.83B | 10.04B | 10.09B |
| Stockholders Equity | 8.73B | 8.62B | 8.05B | 7.88B | 10.10B | 10.27B |
Cash Flow | ||||||
| Free Cash Flow | 1.38B | 1.21B | 1.10B | 874.10M | 1.47B | 2.65B |
| Operating Cash Flow | 1.81B | 1.64B | 1.59B | 1.33B | 1.96B | 3.11B |
| Investing Cash Flow | -1.18B | -1.19B | -1.37B | -1.17B | -1.65B | -884.60M |
| Financing Cash Flow | -36.80M | -1.46B | 779.90M | -59.30M | -1.32B | -2.07B |
Labcorp Holdings Technical Analysis
Positive
270.68
Price Trends
261.45
Positive
266.91
Positive
266.06
Positive
Market Momentum
5.45
Negative
72.93
Negative
94.59
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LH, the sentiment is Positive. The current price of 270.68 is above the 20-day moving average (MA) of 267.55, above the 50-day MA of 261.45, and above the 200-day MA of 266.06, indicating a bullish trend. The MACD of 5.45 indicates Negative momentum. The RSI at 72.93 is Negative, neither overbought nor oversold. The STOCH value of 94.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LH.
Labcorp Holdings Risk Analysis
Labcorp Holdings disclosed 45 risk factors in its most recent earnings report. Labcorp Holdings reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Labcorp Holdings Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $21.27B | 27.45 | 11.05% | 0.94% | 8.73% | 26.55% | |
73 Outperform | $31.91B | 23.07 | 7.55% | ― | 2.11% | -7.88% | |
72 Outperform | $11.39B | 38.16 | 21.38% | ― | 31.93% | -24.86% | |
70 Outperform | $23.88B | 23.52 | 14.11% | 1.80% | 11.03% | 14.34% | |
68 Neutral | $23.53B | 25.24 | 10.91% | 1.14% | 7.34% | 30.39% | |
68 Neutral | $34.55B | 25.43 | 22.46% | ― | 7.33% | 9.79% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
LH
Labcorp Holdings
286.98
31.81
12.46%
BIIB
Biogen
216.12
85.99
66.08%
PODD
Insulet
164.48
-136.22
-45.30%
DGX
Quest Diagnostics
215.72
44.06
25.66%
STE
Steris
218.20
-12.67
-5.49%
IQV
IQVIA Holdings
207.04
44.59
27.45%
Labcorp Holdings Corporate Events
Business Operations and StrategyFinancial Disclosures
Labcorp Schedules Release of Second-Quarter 2026 Results
Neutral
Jun 30, 2026
On June 30, 2026, Labcorp Holdings Inc. announced that it will release its financial results for the second quarter of 2026 before the market opens on Thursday, July 30, 2026. The company will host a webcast at 9:00 a.m. ET that day to discuss the...
Business Operations and Strategy
Labcorp to Present at 2026 Jefferies Healthcare Conference
Neutral
May 27, 2026
Labcorp Holdings Inc., a major global laboratory services provider specializing in diagnostics and drug development support for healthcare providers and pharmaceutical companies, operates in roughly 100 countries with a workforce of nearly 71,000....
Executive/Board ChangesShareholder Meetings
Labcorp Shareholders Approve Directors, Executive Pay and Auditor
Positive
May 26, 2026
At its 2026 Annual Meeting of Shareholders, held after a March 26, 2026 record date, Labcorp reported that holders of 76.4 million shares were present in person or by proxy, representing a quorum out of 82.2 million shares outstanding and entitled...
Dividends
Labcorp Declares Quarterly Cash Dividend, Signals Ongoing Confidence
Positive
Apr 9, 2026
Labcorp Holdings Inc., a global leader in laboratory diagnostics and drug development services, provides testing and scientific insights to healthcare providers, pharmaceutical firms, researchers and patients in roughly 100 countries, with nearly ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.