Labcorp Raises 2026 Outlook After Adjusted Earnings Grow 14.5% in Third Quarter

Key Facts

Labcorp reported revenue of $3.81 billion and adjusted earnings per share of $4.78 for the third quarter ended September 30, 2026, topping analyst estimates, and raised its full-year revenue and adjusted earnings outlook ranges. According to a report published by Investing.com and attributed to Reuters, shares rose 1.46% in premarket trading after the results were announced on the morning of October 28. The company reported revenue of $3.56 billion in the year-earlier quarter, while adjusted earnings per share were $4.18. The company said diluted earnings per share reached $3.22, compared with $3.12 a year earlier. Shares closed at $331.17 on October 27, before the premarket reaction.

Adjusted earnings per share of $4.78 topped the analyst consensus of $4.65, while revenue of $3.81 billion exceeded an estimate of $3.76 billion. Year over year, revenue rose 6.9%, adjusted earnings per share increased 14.5%, and diluted earnings per share climbed 3.3%. The differing growth rates in adjusted and diluted earnings per share stand out in the quarterly results, alongside both key measures topping market estimates. For the nine months ended September 30, revenue was $11.08 billion, up 6.2% from the corresponding period in 2025, with organic growth of 4.3%. Third-quarter 2025 revenue had risen 8.6% to $3.56 billion, while adjusted earnings per share increased 19.4% to $4.18.

Labcorp raised its 2026 revenue growth outlook range to 5.9%–6.7%, an increase of 50 basis points at the midpoint, and lifted its adjusted earnings per share range to $18.30–$18.70, an increase of 18 cents at the midpoint. Quarterly revenue growth was underpinned by organic growth of 5.5% and a net contribution of 1.5% from acquisitions and divestitures, while foreign exchange rates reduced reported growth by 0.1%. In the company statement, Chief Executive Adam Schechter said Labcorp delivered revenue growth of about 7% and a 14.5% increase in adjusted earnings per share, adding that the expansion was tied to specialty testing and strategic acquisitions. The company's adjusted operating income margin was 15.0%, compared with 14.4% a year earlier, an increase of 60 basis points. The company attributed the margin improvement to organic growth and operating efficiency.

Results in the two segments showed different sources of growth. Diagnostics Laboratories generated revenue of $2,948.9 million, up 6.5% year over year, with organic test volume growth of 3.1%. The segment's adjusted operating income margin rose to 16.7% from 16.3%, an increase of 40 basis points. Biopharma Laboratory Services reported revenue of $866.7 million, up 8.5%, while its organic growth reached 9.6%. The segment's adjusted operating income margin widened to 18.3% from 16.5%, an increase of 180 basis points. Within Biopharma, Central Labs revenue rose 11.5%, compared with 0.4% for Early Development.

Operating cash flow improved to $563.8 million in the quarter, compared with $387.2 million a year earlier, while free cash flow was $412.2 million versus $280.5 million. The company said improved working capital was the main driver of the increase in free cash flow, partly offset by a planned rise in capital spending. Labcorp spent $255.5 million on acquisitions during the quarter and paid $58.2 million in dividends. On expansion, the company announced or closed four deals and said it expects each to boost adjusted earnings per share in its first year and recover its cost of capital by the third year. These are the deals' targeted outcomes as presented by the company.

After the quarter ended, the company signed agreements to acquire assets from BioReference Health, Myriad Genetics' prenatal testing business and Millennium Health's laboratory, subject to regulatory approvals and customary closing conditions. It also said it launched the U.S. Food and Drug Administration-cleared Elecsys pTau-217 blood test to expand access to Alzheimer's testing in primary and specialty care. The company had also received the agency's approval for the PGDx elio tissue complete CDx test as a companion diagnostic to help identify patients with advanced melanoma. On October 21, Labcorp announced a quarterly cash dividend of $0.72 per share, payable on December 11 to shareholders of record on November 24. The company had $1.4 billion remaining under its share repurchase authorization, and a webcast to discuss the results was scheduled for October 28 at 9:00 a.m. Eastern Time.