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Labcorp Holdings
(NYSE:LH)
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Rating:71Outperform
Price Target:
$357.00
▲(6.08% Upside)
Action:Upgraded
Date:10/21/26
LH scores well due to improving financial performance (rebounding revenue/profitability, better ROE, solid absolute cash generation) and constructive technical momentum (price above key moving averages with supportive momentum readings). The latest earnings call further boosts the score with raised/narrowed guidance and strong BLS visibility, while the main offset is valuation (P/E ~26.6 with a sub-1% dividend yield) alongside noted risks around free-cash-flow volatility, leverage, and regulatory uncertainty.
Positive Factors
Improving Growth and Margins
Labcorp is delivering revenue growth alongside operating-margin expansion and 14.9% adjusted EPS growth, indicating improving operating leverage rather than growth at any cost. If sustained, this combination can strengthen earnings power and support reinvestment across diagnostics and biopharma services.
Negative Factors
Regulatory Reimbursement Risk
Potential Medicare fee-schedule reductions could pressure diagnostic reimbursement, revenue growth, and margins across a meaningful business line. Uncertainty around PAMA reform and implementation also complicates planning, because the timing and eventual pricing framework may affect future economics and patient access.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving Growth and Margins
Labcorp is delivering revenue growth alongside operating-margin expansion and 14.9% adjusted EPS growth, indicating improving operating leverage rather than growth at any cost. If sustained, this combination can strengthen earnings power and support reinvestment across diagnostics and biopharma services.
Read all positive factors
Labcorp Holdings Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across various business divisions, revealing which segments are contributing most to the top line and where there might be potential for expansion or risk.
Breaks down sales across various business divisions, revealing which segments are contributing most to the top line and where there might be potential for expansion or risk.
Data provided by:
The Fly
The FlyLabcorp Holdings (LH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.21B
Dividend Yield0.89%
Average Volume (3M)768.47K
Price to Earnings (P/E)26.6
Beta (1Y)0.34
Revenue Growth6.41%
EPS Growth33.31%
CountryUS
Employees71,000
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)12.17
Shares Outstanding81,100,000
10 Day Avg. Volume578,088
30 Day Avg. Volume768,470
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 Cap1.13
Enterprise Value/Revenue2.06
Enterprise Value/Gross Profit7.41
Enterprise Value/Ebitda13.76
Forecast
1Y Price Target
$343.50Price Target Upside2.07% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)18.35
Revenue Forecast (FY)$14.75B
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 selling services in two main areas: (1) clinical diagnostics and (2) drug development services. In its Diagnostics Laboratories segment, revenue is generated when Labcorp performs laboratory tests on patient specim...
Labcorp Holdings Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and financial quarter: revenue growth, margin expansion, double-digit adjusted EPS growth, raised guidance, robust BLS backlog and book-to-bill, and multiple product/partnership launches. Headwinds highlighted were a meaningful quarter-over-quarter drop in free cash flow (timing and capex), a modest ACA-related volume headwind (~30 bps), prior and improving Early Development softness, higher patient-pay mix, and elevated absolute debt with relatively low cash on hand. On balance the positives around revenue, margins, guidance increases, product/market progress, and capital returns materially outweigh the cited challenges.Positive Updates
Enterprise Revenue Growth
Revenue grew 5.8% year-over-year to $3.7 billion ($3.7B reported; CEO cited 6%), with organic revenue growth of 4.2%, net acquisitions contributing 1.2%, and foreign currency adding 0.4%.
Negative Updates
Free Cash Flow Decline
Free cash flow was $314 million in Q2 versus $543 million year-ago (decline of ~$229M), primarily attributed to working capital timing and planned increases in capital expenditures. Full-year FCF guidance remains $1.24B–$1.36B.
Read all updates
Q2-2026 Updates
Positive
Negative
Enterprise Revenue Growth
Revenue grew 5.8% year-over-year to $3.7 billion ($3.7B reported; CEO cited 6%), with organic revenue growth of 4.2%, net acquisitions contributing 1.2%, and foreign currency adding 0.4%.
Read all positive updates
Company Guidance
Labcorp raised and narrowed its 2026 guidance, increasing the midpoint of enterprise revenue by $42 million and adjusted EPS midpoint by $0.30; enterprise revenue is now expected to grow 5.4%–6.3% (a 30‑bp midpoint increase) including a ~40‑bp FX benefit, with Diagnostics revenue expected to grow 5.3%–6.0% (20‑bp midpoint increase) and BLS revenue 5.5%–6.5% (midpoint raised 140 bps, including a ~150‑bp FX tailwind). Adjusted EPS guidance is $18.10–$18.55 (implying >11% growth at the midpoint), the adjusted tax rate is expected to be ~23%, free cash flow guidance remains $1.24–$1.36 billion, capital expenditures are expected to be ~4% of revenue, and the BLS backlog of $8.7 billion is expected to convert roughly $2.7 billion to revenue over the next 12 months (BLS book‑to‑bill 1.14 this quarter, 1.03 trailing 12 months); Central Labs is expected to grow mid‑single digits (organic, constant currency) and Early Development low single digits.Labcorp Holdings Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
68
Positive
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.35B | 13.95B | 13.01B | 12.16B | 11.86B | 13.14B |
| Gross Profit | 4.00B | 3.73B | 3.62B | 3.36B | 3.71B | 4.99B |
| EBITDA | 2.15B | 2.01B | 1.81B | 1.35B | 1.95B | 3.68B |
| Net Income | 1.00B | 876.50M | 746.00M | 418.00M | 1.28B | 2.38B |
Balance Sheet | ||||||
| Total Assets | 18.53B | 18.39B | 18.38B | 16.73B | 20.16B | 20.39B |
| Cash, Cash Equivalents and Short-Term Investments | 141.80M | 532.30M | 1.52B | 536.80M | 320.60M | 1.47B |
| Total Debt | 6.77B | 7.20B | 7.27B | 5.95B | 6.25B | 6.34B |
| Total Liabilities | 9.91B | 9.76B | 10.31B | 8.83B | 10.04B | 10.09B |
| Stockholders Equity | 8.61B | 8.62B | 8.05B | 7.88B | 10.10B | 10.27B |
Cash Flow | ||||||
| Free Cash Flow | 1.16B | 1.21B | 1.10B | 874.10M | 1.47B | 2.65B |
| Operating Cash Flow | 1.64B | 1.64B | 1.59B | 1.33B | 1.96B | 3.11B |
| Investing Cash Flow | -1.45B | -1.19B | -1.37B | -1.17B | -1.65B | -884.60M |
| Financing Cash Flow | -689.30M | -1.46B | 779.90M | -59.30M | -1.32B | -2.07B |
Labcorp Holdings Technical Analysis
Positive
336.54
Price Trends
320.46
Positive
301.64
Positive
283.83
Positive
Market Momentum
2.37
Negative
64.21
Neutral
82.17
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 336.54 is above the 20-day moving average (MA) of 314.65, above the 50-day MA of 320.46, and above the 200-day MA of 283.83, indicating a bullish trend. The MACD of 2.37 indicates Negative momentum. The RSI at 64.21 is Neutral, neither overbought nor oversold. The STOCH value of 82.17 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 | $44.09B | 34.03 | 21.95% | ― | 8.22% | 16.68% | |
73 Outperform | $13.44B | 43.18 | 3.54% | ― | 2.08% | -94.18% | |
71 Outperform | $26.21B | 26.60 | 11.57% | 0.89% | 6.41% | 33.31% | |
71 Outperform | $26.17B | 25.02 | 15.21% | 1.41% | 9.87% | 12.51% | |
67 Neutral | $58.51B | -303.96 | -11.73% | ― | 37.82% | 28.02% | |
57 Neutral | $16.46B | -71.25 | -7.72% | ― | -0.74% | -268.79% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
LH
Labcorp Holdings
329.93
48.77
17.35%
CRL
Charles River Labs
339.66
148.69
77.86%
ICLR
Icon
185.43
5.43
3.02%
DGX
Quest Diagnostics
243.28
63.08
35.01%
IQV
IQVIA Holdings
278.32
58.41
26.56%
NTRA
Natera
401.37
206.37
105.83%
Labcorp Holdings Corporate Events
Business Operations and StrategyDividends
Labcorp Declares Quarterly Cash Dividend to Shareholders
Positive
Oct 21, 2026
On October 21, 2026, Labcorp’s Board of Directors declared a quarterly cash dividend of $0.72 per share on its common stock, reinforcing the company’s capital-return policy to shareholders. The dividend is scheduled to be paid on Decem...
Financial Disclosures
Labcorp to Report Third-Quarter 2026 Financial Results
Neutral
Sep 30, 2026
Labcorp Holdings Inc., a global leader in diagnostic and drug development laboratory services, operates across roughly 100 countries, supporting physicians, hospitals, pharmaceutical firms, and researchers with high-volume testing and scientific i...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Labcorp Addresses New CMS Lab Fee Schedule Cuts
Negative
Sep 22, 2026
Labcorp Holdings said new preliminary Medicare Clinical Laboratory Fee Schedule rates released by CMS on September 21, 2026, for 2027-2029 appear to rely on market data that it views as unrepresentative and would result in steep annual cuts that c...
Business Operations and StrategyFinancial Disclosures
Labcorp Highlights Growth Strategy at 2026 Investor Day
Positive
Sep 10, 2026
On Sept. 10, 2026, Labcorp hosted its 2026 Investor Day in Burlington, N.C., presenting an in-depth review of its growth strategy, innovation roadmap and long-term financial outlook through 2029. Management highlighted Labcorp’s position at ...
Business Operations and Strategy
Labcorp to Present at Morgan Stanley Healthcare Conference
Positive
Aug 28, 2026
Labcorp Holdings Inc., a global leader in diagnostics and drug development laboratory services, serves healthcare providers, biopharma and patients across roughly 100 countries, leveraging nearly 71,000 employees to support a large share of new FD...
Business Operations and Strategy
Labcorp Holdings Announces Investor Day to Outline Strategy
Positive
Aug 17, 2026
Labcorp Holdings Inc., a major global laboratory services company, announced on August 17, 2026, that it will hold an Investor Day event on Thursday, September 10, 2026, from 9 a.m. to noon ET. The event will feature Chairman and CEO Adam Schechte...
Business Operations and StrategyExecutive/Board Changes
Labcorp Announces Leadership Realignment in Biopharma Labs
Neutral
Aug 14, 2026
On August 11, 2026, Labcorp reported that Megan D. Bailey had notified the company of her decision to resign as Executive Vice President and President, Central Laboratories and International, effective September 4, 2026. The move affects leadershi...
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.