We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Labcorp Q2 Earnings & Revenues Beat Estimates, Stock Up in Pre-Market
Read MoreHide Full Article
Key Takeaways
LH posted Q2 adjusted EPS of $4.35, up 10.4% year over year and 5.1% above consensus estimates.
Labcorp's Q2 revenues rose 9.5% to $3.53B, driven by organic growth, acquisitions and currency gains.
LH raised its 2025 guidance for revenues, EPS and free cash flow on business strength and currency impact.
Labcorp Holdings (LH - Free Report) , or Labcorp, reported adjusted earnings per share (EPS) of $4.35 for the second quarter of 2025. The figure rose 10.4% from the year-ago level.
The adjusted figure excludes the impact of certain amortization expenses and restructuring charges, among others. The bottom line beat the Zacks Consensus Estimate by 5.07%.
On a GAAP basis, EPS in the second quarter was $2.84 compared with $2.43 in the year-ago period.
LH Q2 Revenues
Revenues in the quarter under review rose 9.5% year over year to $3.53 billion. The figure topped the Zacks Consensus Estimate by 1.14%.
The year-over-year increase was driven by organic revenue growth of 5.4%, acquisitions (net of divestitures) of 3.5% and a foreign currency translation gain of 0.6%.
Following the announcement, Labcorp shares edged up 1.8% in the pre-market session today.
Labcorp’s Q2 Performance by Segments
The company currently operates under two segments — Diagnostics Laboratories and Biopharma Laboratory Services (comprised of its Central Laboratories and Early Development Research Laboratories).
For the second quarter, Diagnostics Laboratories reported revenues of $2.75 billion, reflecting an 8.9% improvement year over year.
Labcorp Holdings Inc. Price, Consensus and EPS Surprise
On an organic basis, revenues were up 4.5%. The company’s total volumes (measured by requisitions) increased 4.9%, as acquisition volumes contributed 1.5% and organic volumes rose 3.4%.
Biopharma Laboratory Services revenues rose 11% to $784.8 million in the second quarter. The year-over-year increase was primarily driven by organic growth of 7.8% and a foreign currency translation gain of 3.2%.
Labcorp’s Margin Performance
The gross margin expanded 90 basis points (bps) to 29.7% in the second quarter despite an 8.1% rise in the cost of revenues.
The adjusted operating income improved 26.7% year over year to $466.9 million. The adjusted operating margin expanded 179 bps year over year to 13.2% despite a 3.8% rise in SG&A expenses ($579.3 million).
Labcorp’s Cash Position
Labcorp exited the second quarter with cash and cash equivalents of $647.3 million compared with $369.4 million at the end of the first quarter. Long-term debt totaled $5.08 billion compared with $5.57 billion at the first quarter-end.
Cumulative cash inflow from operating activities at the end of the second quarter was $620.6 million compared with a cash inflow of $18.5 million at the end of the year-ago period.
LH Raises 2025 Guidance
Labcorp issued an updated 2025 guidance to reflect its second-quarter performance and full-year outlook.
Total revenues for 2025 are now expected to grow in the range of 7.5%-8.6% (earlier 6.7%-8%). Diagnostics Laboratories’ revenues are expected to increase in the range of 7%-8% (previously 6.5-7.7%), while Biopharma Laboratory Services’ revenues are now forecast between 6.1% and 7.5% (earlier 3%-5%).
The Zacks Consensus Estimate for full-year revenues is pegged at $13.91 billion.
Meanwhile, Labcorp expects full-year adjusted EPS to be in the band of $16.05-$16.50 (earlier $15.70-$16.40). The Zacks Consensus Estimate for the metric is pegged at $16.05.
The company expects 2025 free cash flow from continued operations to be in the range of $1.13-$1.28 billion (previously $1.10-$1.25 billion).
Our View on LH Stock
Labcorp exited the second quarter of 2025 with both earnings and revenue beats. Expansion of both margins is also encouraging. During the quarter, the company expanded its oncology portfolio with key launches, including Labcorp Plasma Detect and PGDx elio plasma focus Dx, and also launched several consumer-initiated tests through the Labcorp OnDemand platform. Labcorp also expanded its partnerships with hospitals, health systems and regional or local labs while improving access to comprehensive testing and laboratory services. Additionally, the company raised its 2025 outlook for enterprise revenues, adjusted EPS and free cash flow, primarily driven by currency and the underlying strength of its businesses.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy), reported second-quarter 2025 adjusted EPS of $2.19, which beat the Zacks Consensus Estimate by 14.1%. Revenues of $2.44 billion surpassed the consensus mark by 3.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ISRG has an estimated long-term earnings growth rate of 15.1% compared with the industry’s 14.4% rise. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 14.1%.
Veeva Systems, carrying a Zacks Rank #2 at present, posted first-quarter fiscal 2026 adjusted EPS of $1.97, exceeding the Zacks Consensus Estimate by 13.2%. Revenues of $759 million surpassed the Zacks Consensus Estimate by 4.3%.
VEEV has an estimated long-term earnings growth rate of 23.3% compared with the industry’s 17.9% rise. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10%.
Resmed, currently carrying a Zacks Rank #2, reported third-quarter fiscal 2025 adjusted EPS of $2.30, which surpassed the Zacks Consensus Estimate by 0.4%. Revenues of $1.29 billion topped the Zacks Consensus Estimate by 0.5%.
RMD has an estimated long-term earnings growth rate of 15.3% compared with the industry’s 14% rise. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 4.2%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Labcorp Q2 Earnings & Revenues Beat Estimates, Stock Up in Pre-Market
Key Takeaways
Labcorp Holdings (LH - Free Report) , or Labcorp, reported adjusted earnings per share (EPS) of $4.35 for the second quarter of 2025. The figure rose 10.4% from the year-ago level.
The adjusted figure excludes the impact of certain amortization expenses and restructuring charges, among others. The bottom line beat the Zacks Consensus Estimate by 5.07%.
On a GAAP basis, EPS in the second quarter was $2.84 compared with $2.43 in the year-ago period.
LH Q2 Revenues
Revenues in the quarter under review rose 9.5% year over year to $3.53 billion. The figure topped the Zacks Consensus Estimate by 1.14%.
The year-over-year increase was driven by organic revenue growth of 5.4%, acquisitions (net of divestitures) of 3.5% and a foreign currency translation gain of 0.6%.
Following the announcement, Labcorp shares edged up 1.8% in the pre-market session today.
Labcorp’s Q2 Performance by Segments
The company currently operates under two segments — Diagnostics Laboratories and Biopharma Laboratory Services (comprised of its Central Laboratories and Early Development Research Laboratories).
For the second quarter, Diagnostics Laboratories reported revenues of $2.75 billion, reflecting an 8.9% improvement year over year.
Labcorp Holdings Inc. Price, Consensus and EPS Surprise
Labcorp Holdings Inc. price-consensus-eps-surprise-chart | Labcorp Holdings Inc. Quote
On an organic basis, revenues were up 4.5%. The company’s total volumes (measured by requisitions) increased 4.9%, as acquisition volumes contributed 1.5% and organic volumes rose 3.4%.
Biopharma Laboratory Services revenues rose 11% to $784.8 million in the second quarter. The year-over-year increase was primarily driven by organic growth of 7.8% and a foreign currency translation gain of 3.2%.
Labcorp’s Margin Performance
The gross margin expanded 90 basis points (bps) to 29.7% in the second quarter despite an 8.1% rise in the cost of revenues.
The adjusted operating income improved 26.7% year over year to $466.9 million. The adjusted operating margin expanded 179 bps year over year to 13.2% despite a 3.8% rise in SG&A expenses ($579.3 million).
Labcorp’s Cash Position
Labcorp exited the second quarter with cash and cash equivalents of $647.3 million compared with $369.4 million at the end of the first quarter. Long-term debt totaled $5.08 billion compared with $5.57 billion at the first quarter-end.
Cumulative cash inflow from operating activities at the end of the second quarter was $620.6 million compared with a cash inflow of $18.5 million at the end of the year-ago period.
LH Raises 2025 Guidance
Labcorp issued an updated 2025 guidance to reflect its second-quarter performance and full-year outlook.
Total revenues for 2025 are now expected to grow in the range of 7.5%-8.6% (earlier 6.7%-8%). Diagnostics Laboratories’ revenues are expected to increase in the range of 7%-8% (previously 6.5-7.7%), while Biopharma Laboratory Services’ revenues are now forecast between 6.1% and 7.5% (earlier 3%-5%).
The Zacks Consensus Estimate for full-year revenues is pegged at $13.91 billion.
Meanwhile, Labcorp expects full-year adjusted EPS to be in the band of $16.05-$16.50 (earlier $15.70-$16.40). The Zacks Consensus Estimate for the metric is pegged at $16.05.
The company expects 2025 free cash flow from continued operations to be in the range of $1.13-$1.28 billion (previously $1.10-$1.25 billion).
Our View on LH Stock
Labcorp exited the second quarter of 2025 with both earnings and revenue beats. Expansion of both margins is also encouraging. During the quarter, the company expanded its oncology portfolio with key launches, including Labcorp Plasma Detect and PGDx elio plasma focus Dx, and also launched several consumer-initiated tests through the Labcorp OnDemand platform. Labcorp also expanded its partnerships with hospitals, health systems and regional or local labs while improving access to comprehensive testing and laboratory services. Additionally, the company raised its 2025 outlook for enterprise revenues, adjusted EPS and free cash flow, primarily driven by currency and the underlying strength of its businesses.
LH’s Zacks Rank & Key Picks
Labcorp currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Veeva Systems (VEEV - Free Report) and Resmed (RMD - Free Report) .
Intuitive Surgical, carrying a Zacks Rank #2 (Buy), reported second-quarter 2025 adjusted EPS of $2.19, which beat the Zacks Consensus Estimate by 14.1%. Revenues of $2.44 billion surpassed the consensus mark by 3.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ISRG has an estimated long-term earnings growth rate of 15.1% compared with the industry’s 14.4% rise. The company surpassed earnings estimates in each of the trailing four quarters, with the average surprise being 14.1%.
Veeva Systems, carrying a Zacks Rank #2 at present, posted first-quarter fiscal 2026 adjusted EPS of $1.97, exceeding the Zacks Consensus Estimate by 13.2%. Revenues of $759 million surpassed the Zacks Consensus Estimate by 4.3%.
VEEV has an estimated long-term earnings growth rate of 23.3% compared with the industry’s 17.9% rise. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10%.
Resmed, currently carrying a Zacks Rank #2, reported third-quarter fiscal 2025 adjusted EPS of $2.30, which surpassed the Zacks Consensus Estimate by 0.4%. Revenues of $1.29 billion topped the Zacks Consensus Estimate by 0.5%.
RMD has an estimated long-term earnings growth rate of 15.3% compared with the industry’s 14% rise. The company’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 4.2%.