Labcorp Raises 2026 Outlook as Adjusted EPS Grows 14.5%

Labcorp raised its 2026 revenue and profit outlook on Wednesday after third-quarter adjusted earnings per share jumped 14.5% to $4.78 on 6.9% revenue growth, and the lab testing company said it had announced or closed four acquisitions.

Labcorp now expects 2026 adjusted EPS of $18.30 to $18.70, up from $18.10 to $18.55, and enterprise revenue growth of 5.9% to 6.7%, up from 5.4% to 6.3%, according to the earnings release it filed with an 8-K on Wednesday.

Steady growth, wider margins

Third-quarter revenue rose to $3.81 billion from $3.56 billion. Organic growth contributed 5.5%, and acquisitions net of divestitures added 1.5%.

GAAP diluted EPS rose 3.3% to $3.22. Adjusted operating income increased to $570.0 million, lifting the adjusted operating margin 60 basis points to 15.0%, which Labcorp attributed to organic growth and operating efficiencies.

"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," Chairman and CEO Adam Schechter said in the release.

Biopharma outpaces Diagnostics

Diagnostics Laboratories revenue rose 6.5% to $2.95 billion, with organic growth of 4.4%. Requisition volume increased 4.8%, and the segment's adjusted operating margin rose 40 basis points to 16.7%.

Biopharma Laboratory Services grew faster. Revenue climbed 8.5% to $866.7 million, or 9.6% organically, led by Central Labs revenue growth of 11.5%. The segment's adjusted operating margin widened 180 basis points to 18.3%. Backlog stood at $8.92 billion, up 3.9% from a year earlier, with a trailing 12-month book-to-bill ratio of 1.10.

Labcorp raised its Biopharma revenue growth outlook to 7.4% to 8.4% from 5.5% to 6.5%, and its Diagnostics outlook to 5.5% to 6.2% from 5.3% to 6.0%. Its free cash flow guidance of $1.24 billion to $1.36 billion was unchanged.

Deal spree

During the quarter, Labcorp acquired MLM Medical Labs, a central and specialty laboratory provider with operations in the United States, Germany and South Africa. After the quarter ended, it signed three more acquisition agreements: for select assets of BioReference Health's laboratory testing businesses, for Myriad Genetics' Prenatal Health testing business, and for specialty drug-testing lab Millennium Health. Each is subject to regulatory approvals and customary closing conditions.

The company said it expects each of the four transactions to add to adjusted EPS in the first year and return its cost of capital by year three.

Cash and capital

Operating cash flow rose to $563.8 million from $387.2 million, and free cash flow increased to $412.2 million from $280.5 million, mainly on improved working capital. Labcorp invested $255.5 million in acquisitions and paid $58.2 million in dividends during the quarter.

On Oct. 21, the company declared a quarterly dividend of $0.72 per share, payable Dec. 11. It has $1.4 billion remaining under its share repurchase authorization. Labcorp ended the quarter with $261.8 million in cash and $5.85 billion of total debt.

Sources

1. Labcorp Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0000920148-26-000213)

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