Back to top

Image: Bigstock

Labcorp Gears Up to Report Q3 Earnings: What's in Store for the Stock?

Read MoreHide Full Article

Key Takeaways

  • Labcorp will report third-quarter 2025 results on Oct. 28, before market open.
  • LH's Q3 revenues are estimated at $3.56B, up 8.3%, while EPS is projected to rise 18% to $4.13.
  • LH's Diagnostics and biopharma units may have driven growth through acquisitions and new test launches.

Labcorp Holdings Inc. (LH - Free Report) , or Labcorp, is slated to report its third-quarter 2025 results on Oct. 28, before the market opens.

The renowned laboratory service provider reported adjusted earnings of $4.35 in the last reported quarter, topping the Zacks Consensus Estimate by 5.07%. Labcorp surpassed estimates in each of the trailing four quarters, the average surprise being 2.52%.

LH’s Q3 Estimates

The Zacks Consensus Estimate for Labcorp’s third-quarter 2025 revenues is pegged at $3.56 billion. This suggests an 8.3% rise from the year-ago reported figure.

The Zacks Consensus Estimate for its third-quarter 2025 EPS is expected to improve 18% to $4.13.

Estimate Revision Trend Ahead of Labcorp’s Q3 Earnings

Estimates for Labcorp’s third-quarter earnings have increased by 1 cent in the past seven days.

Here’s a brief overview of the company’s progress ahead of this announcement.

LH: Factors at Play

Diagnostics Laboratories (Dx)

Similar to the past quarters, the segment is likely to deliver solid results, supported by both organic growth and acquisitions. Labcorp’s strategy to be the preferred partner for health systems and regional local laboratories has deeply expanded its hospital presence, strengthened customer ties and improved patient access in key geographies.

Following the acquisition of Incyte Diagnostics’ clinical pathology (CP) business, the company began performing CP testing for most Incyte Diagnostics clients during the third quarter of 2025. Labcorp partnered with NOWDiagnostics (NOWDx) to distribute First to Know Syphilis Test kits at no cost to certain community-based public health organizations across the country.

Labcorp Holdings Inc. Price and EPS Surprise

Labcorp Holdings Inc. Price and EPS Surprise

Labcorp Holdings Inc. price-eps-surprise | Labcorp Holdings Inc. Quote

Earlier, the company extended its long-term agreement with UHealth, the University of Miami Health System, and acquired North Mississippi Health Services’ ambulatory outreach laboratory business. All these developments are expected to have a positive impact on its third-quarter revenues. In September, Labcorp completed the acquisition of BioReference Health's laboratory testing businesses focused on oncology and oncology-related clinical testing services across the United States.

Furthermore, the company’s innovative offerings across specialty focus areas are likely to have driven higher test volumes in the third quarter. Its expanded oncology portfolio now includes Labcorp Plasma Detect, a whole-genome sequencing MRD solution for early-stage colon cancer, and PGDx elio plasma focus Dx, the first and only FDA-authorized pan-solid tumor liquid biopsy test for targeted treatment guidance. In August, Labcorp launched the first FDA-cleared blood test for Alzheimer's disease, developed by Fujirebio Diagnostics, Inc.

Furthermore, the Labcorp OnDemand channel is expected to have supported top-line growth through a range of health and wellness tests. Recent launches include tests that measure an individual's cortisol and leptin levels, as well as electrolytes, GGT, hepatitis A and total testosterone for women. Labcorp is also expected to have benefited from the new Labcorp Whole Health Solutions, which provides specialized test panels and a tailored test menu of more than 1,000 biomarkers for cardiometabolic health, hormones, micronutrients, longevity and whole-body wellness insights.

The Zacks Consensus Estimate indicates an 8.4% year-over-year increase in the Dx segment’s revenues.

Biopharma Laboratory Services (“BLS”)

In the third quarter, the segment is likely to have benefited from the strong performance of Central Laboratories, its largest component. The business recently added digital pathology capabilities, including AI-powered solutions for rapid analysis of large data sets, which may have strengthened Labcorp’s global anatomic pathology capabilities, full-service tissue-based testing and companion diagnostic development across cancer, NASH and other diseases. In addition, Labcorp’s Global Trial Connect suite of central laboratory solutions is expected to have positively aided revenues. The Early Development business is also anticipated to have contributed positively.

According to the Zacks Consensus Estimate, revenues in the BLS segment are likely to improve 7.5% year over year.

Meanwhile, Labcorp’s ongoing use of digital technologies and AI may have continued to drive operational efficiencies, improving areas such as Net Promoter Score and margins. Tools such as the Labcorp Diagnostic Assistant and eClaim Assist platform may have played a key role in the progress. In addition, the company’s key metrics are expected to have gained from synergies and benefits of the LaunchPad initiative, which targets annual savings of $100- $125 million.

The Zacks Consensus Estimate implies a 14.7% increase in the adjusted operating income for the Dx business, while the same for the BLS arm indicates a 7.8% improvement year over year.

Earnings Whispers for Labcorp Stock

Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates, which is not the case here, as you can see below:

Earnings ESP: Labcorp has an Earnings ESP of -0.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Key MedTech Picks

Here are some medical stocks worth considering, which have the right combination of elements to post an earnings beat this time:

Exact Sciences (EXAS - Free Report) has an Earnings ESP of +32.65% and a Zacks Rank #1. The company is slated to release third-quarter 2025 results on Nov. 3.

EXAS’ earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 329.87%. The Zacks Consensus Estimate for the company’s third-quarter EPS is expected to increase 147.6% from the year-ago quarter figure.

ANI Pharmaceuticals (ANIP - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #2. The company is expected to release third-quarter 2025 results soon. 

ANIP’s earnings beat estimates in each of the trailing four quarters, the average surprise being 22.66%. The Zacks Consensus Estimate for ANIP’s third-quarter EPS is expected to surge 29.9% from the year-ago reported figure.

IDEXX Laboratories (IDXX - Free Report) has an Earnings ESP of +0.23% and a Zacks Rank #2. The company is slated to release third-quarter 2025 results on Nov. 3.

IDXX’s earnings topped estimates in each of the trailing four quarters, the average surprise being 6.08%. The Zacks Consensus Estimate for the company’s third-quarter EPS is anticipated to increase 12.1% from the year-ago quarter figure.

Published in