| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 53 | 25.7x | 17.8x | Around median | |
Growth | 74 | 6.4% | 7.1% | Top tier | |
Quality | 59 | 8.5% | 4.5% | Around median | |
Safety | 64 | 2.9x | 2.6x | Around median | |
Capital Return | 53 | 0.93% | 2.12% | Around median | |
Momentum | 79 | 15.9% | 2.9% | Top tier | |
Sentiment | 41 | 12 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Labcorp Holdings Inc. operates in medical laboratory services through two main segments: Diagnostics, which performs routine and specialized testing for patients, healthcare providers, and health systems, and Biopharma Laboratory Services, which supports biopharmaceutical companies through central laboratories and early development services. Its revenue-generating capacity is based on testing volume, the mix of higher-value specialized tests, partnerships with health systems and laboratories, and drug study services; the number of available tests exceeded 6,500, while the company performs approximately 750 million tests annually.
In Q2 of fiscal year 2026, revenue according to EDGAR was approximately $3.7 billion, gross profit was $1.1 billion, net income was $298.7 million, and earnings per share were $3.64. According to the adjusted results presented in the July 30, 2026 call, revenue grew 5.8% year over year, adjusted operating margin increased 70 basis points to 15.8%, adjusted earnings per share rose 14.9% to $4.99, while free cash flow was $314 million.
Diagnostics was the largest driver in Q2 of fiscal year 2026, with revenue of $2.9 billion, up 5.5%, and an adjusted operating margin of 18% versus 17.6% a year earlier. Biopharma Laboratory Services generated revenue of $836 million, up 6.5%, and an adjusted margin of 17% versus 15.7%; within this segment, Central Laboratories represented approximately 70% of revenue, while backlog reached $8.7 billion, of which the company expects to convert approximately $2.7 billion into revenue during the twelve months following the quarter.
The analyst consensus is “Buy,” with an average price target of $328.5, within a wide range of $300 to $355. The average target falls within the 52-week range of $244.52–$341.8 and below its high, while the highest target exceeds that high; the provided data do not include a valid price-to-earnings ratio for an additional comparison, so the valuation here is based primarily on the target range and the company’s ability to achieve its fiscal year 2026 guidance.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
Revenue was $3.7 billion according to EDGAR, with gross profit of $1.1 billion, net income of $298.7 million, and earnings per share of $3.64. On the adjusted basis presented in the July 30, 2026 call, operating margin was 15.8% and earnings per share were $4.99. The improvement came from growth in Diagnostics and Biopharma Laboratory Services, along with organic growth and operating efficiency.
The segment ended Q2 of fiscal year 2026 with a backlog of $8.7 billion, of which Labcorp expects to convert approximately $2.7 billion into revenue during the following twelve months. The book-to-bill ratio was 1.14 in the quarter and 1.03 during the twelve months ended with it. Central Laboratories, which represents approximately 70% of the segment, was the main source of booking strength and achieved constant-currency organic growth of 7.6%.
The company launched ColoSense nationally in June 2026 for colorectal cancer screening through at-home collection in average-risk adults over 45 years of age, with FDA approval and CMS coverage. On August 10, 2026, PGDx elio tissue complete CDx received FDA approval to identify BRAF variants in patients with stage IV melanoma. On August 24, 2026, Labcorp made the FDA-approved Elecsys pTau-217 test available to detect Alzheimer’s disease in patients aged 55 years and older who are experiencing cognitive decline.
Automated analysis for informational purposes only — not investment advice.
The company expects enterprise revenue growth of between 5.4% and 6.3% in fiscal year 2026, after raising the midpoint of the range by 30 basis points. It expects adjusted earnings per share of between $18.10 and $18.55, implying growth of more than 11% at the midpoint. It also maintained its free cash flow outlook of between $1.24 billion and $1.36 billion, with capital expenditures of approximately 4% of revenue.
Fiscal year 2026 guidance includes a negative impact of 30 basis points on Diagnostics volume due to ACA, following pressure of 20–30 basis points in Q2, although the affected category represents less than 4%–5% of segment volume. The path for PAMA also remained unresolved during the July 30, 2026 call, and the company was monitoring the RESULTS Act and the possibility of delaying implementation. Financially, quarterly free cash flow declined to $314 million from $543 million, and total debt was $5.9 billion at the end of the quarter.
During the quarter, the company invested $226 million in acquisitions, repurchased $354 million of shares, and paid $59 million in dividends. It also repaid $500 million of senior notes, then ended the quarter with cash of $142 million and total debt of $5.9 billion. In July 2026, the board of directors added $1 billion to the repurchase authorization, increasing the total available amount to $1.4 billion.
