Labcorp (NYSE:LH) Announces Earnings Results

Labcorp (NYSE:LH) posted its quarterly earnings results on Wednesday. The medical research company reported $4.78 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.64 by $0.14, FiscalAI reports. The business had revenue of $3.81 billion during the quarter, compared to analysts’ expectations of $3.76 billion. Labcorp had a net margin of 6.88% and a return on equity of 17.13%. The business’s quarterly revenue was up 6.9% on a year-over-year basis. During the same quarter last year, the company posted $4.18 earnings per share.

Here are the key takeaways from Labcorp’s conference call:

• Q3 performance exceeded expectations: Revenue grew 6.9% to $3.8 billion, adjusted EPS increased 14.5% to $4.78, adjusted operating margin expanded 60 basis points to 15%, and free cash flow rose to $412 million.
• Labcorp raised its 2026 guidance, increasing the midpoint of its revenue outlook by $65 million and adjusted EPS outlook by $0.18; adjusted EPS is now expected at $18.30–$18.70, representing approximately 12.5% growth at the midpoint.
• Biopharma laboratory services showed strong momentum, with revenue up 8.5%, central laboratory growth of 11.3% on an organic constant-currency basis, a 1.13 quarterly book-to-bill, and $8.9 billion of backlog.
• Labcorp announced acquisitions of BioReference assets, Myriad Genetics’ prenatal testing business, and Millennium Health, each expected to be accretive to adjusted EPS in the first year; management also said its broader M&A pipeline remains strong.
• Proposed PAMA reimbursement changes could reduce 2027 Medicare and Medicaid revenue by approximately $125 million, with some spillover to other payers; management expects to offset only a portion through organic growth, biopharma strength, cost savings, and acquisitions.

Labcorp Stock Performance

LH opened at $367.49 on Friday. The firm’s fifty day simple moving average is $322.64 and its two-hundred day simple moving average is $287.05. Labcorp has a 52-week low of $244.52 and a 52-week high of $371.00. The company has a market cap of $29.80 billion, a price-to-earnings ratio of 30.15, a PEG ratio of 2.05 and a beta of 0.87. The company has a quick ratio of 1.53, a current ratio of 1.41 and a debt-to-equity ratio of 0.60.

Labcorp Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 11th. Shareholders of record on Tuesday, November 24th will be given a dividend of $0.72 per share. The ex-dividend date is Tuesday, November 24th. This represents a $2.88 dividend on an annualized basis and a yield of 0.8%. Labcorp’s dividend payout ratio is currently 23.63%.

Analyst Upgrades and Downgrades

LH has been the subject of a number of research analyst reports. Mizuho set a $355.00 target price on Labcorp in a research note on Monday, August 10th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $355.00 price objective on shares of Labcorp in a report on Thursday. Barclays raised their price objective on Labcorp from $330.00 to $380.00 and gave the stock an “equal weight” rating in a research note on Wednesday. Weiss Ratings raised Labcorp from a “buy (b+)” rating to a “buy (a-)” rating in a report on Wednesday, October 21st. Finally, Robert W. Baird upped their target price on Labcorp from $361.00 to $396.00 and gave the company an “outperform” rating in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $365.67.

Insider Transactions at Labcorp

In other news, EVP Amy B. Summy sold 924 shares of the stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $306.74, for a total transaction of $283,427.76. Following the completion of the transaction, the executive vice president directly owned 6,956 shares in the company, valued at approximately $2,133,683.44. This represents a 11.73% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Kerrii B. Anderson sold 3,000 shares of the business’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $318.02, for a total transaction of $954,060.00. Following the completion of the sale, the director directly owned 6,563 shares in the company, valued at $2,087,165.26. This trade represents a 31.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 8,593 shares of company stock valued at $2,733,295 over the last 90 days. 0.84% of the stock is currently owned by corporate insiders.

Key Stories Impacting Labcorp

Here are the key news stories impacting Labcorp this week:

• Positive Sentiment: Labcorp reported third-quarter adjusted earnings of $4.78 per share, above the roughly $4.64–$4.65 analyst consensus, while revenue rose 6.9% year over year to $3.81 billion and also exceeded expectations. Both major business segments grew, margins expanded and the company raised its 2026 outlook. Labcorp Holdings Q3 Earnings and Revenues Surpass Estimates
• Positive Sentiment: The stronger results and raised guidance have driven positive analyst revisions. Truist lifted its price target from $365 to $395 and maintained a Buy rating, while Robert W. Baird raised its target from $361 to $396 and kept an Outperform rating. Truist Raises Labcorp Price Target
• Positive Sentiment: Investors have pushed LH to a new 52-week high following the earnings beat, reflecting optimism about revenue growth, improved profitability and the upgraded 2026 financial outlook. Labcorp Sets New 52-Week High Following Better-Than-Expected Earnings
• Neutral Sentiment: Deutsche Bank raised its price target from $306 to $355 but retained a Hold rating, suggesting that much of the improved outlook may already be reflected in the stock’s valuation. Deutsche Bank Adjusts Labcorp Price Target
• Negative Sentiment: Some analysts caution that investor optimism may be excessive at the current valuation, while potential changes to Medicare laboratory reimbursement under PAMA could pressure future pricing and earnings. Labcorp Stock Shrugs Off Q3 Earnings as PAMA Risk Looms

About Labcorp

Labcorp (NYSE: LH), formally Laboratory Corporation of America Holdings, is a global life sciences and healthcare company headquartered in Burlington, North Carolina. The company provides laboratory testing and diagnostic services to physicians, hospitals, health systems, employers, insurers and consumers.

Through its diagnostics operations, Labcorp offers routine and specialty testing, oncology diagnostics, women’s health testing, genetic testing, pathology services and other laboratory services.