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Labcorp posted Q3 adjusted EPS of $4.18, up 19.4% year over year and above consensus estimates.
LH's quarterly revenues rose 8.6% to $3.56B but narrowly missed the Zacks Consensus Estimate.
Labcorp cut 2025 revenue growth guidance to 7.4-8.0%, prompting a 1.5% pre-market share dip.
Labcorp Holdings (LH - Free Report) , or Labcorp, reported adjusted earnings per share (EPS) of $4.18 for the third quarter of 2025. The figure rose 19.4% 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 1.2%.
On a GAAP basis, EPS was $3.12 compared with $2.00 in the year-ago period.
LH Q3 Revenues
Revenues rose 8.6% year over year to $3.56 billion. The figure missed the Zacks Consensus Estimate by 0.01%.
The year-over-year increase was driven by organic revenue growth of 6.2%, acquisitions (net of divestitures) of 1.7% and a foreign currency translation gain of 0.7%.
Following the announcement, Labcorp shares edged down 1.5% in the pre-market session today. This fall can be attributed to the company’s lowered 2025 revenue guidance.
Labcorp’s Q3 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 third quarter, Diagnostics Laboratories reported revenues of $2.77 billion, reflecting an 8.5% improvement year over year.
On an organic basis, revenues were up 6.3%. The company’s total volumes (measured by requisitions) increased 4.7%, as acquisition volumes contributed 1.2% and organic volumes rose 3.5%.
Biopharma Laboratory Services revenues rose 8.3% to $799.1 million in the third quarter. The year-over-year increase was primarily driven by organic growth of 5.3% and a foreign currency translation gain of 3.0%.
Labcorp’s Margin Performance
The gross margin expanded 121 basis points (bps) to 28.8% in the third quarter despite a 6.8% rise in the cost of revenues.
The adjusted operating income improved 40.8% year over year to $472.7 million. The adjusted operating margin expanded 303 bps year over year to 13.3% due to a 2.8% decline in SG&A expenses ($552.4 million).
Labcorp’s Cash Position
Labcorp exited the third quarter with cash and cash equivalents of $598.1 million compared with $647.3 million at the end of the second quarter. Long-term debt totaled $5.08 billion, in line with the second-quarter figure.
Cumulative cash inflow from operating activities at the end of the third quarter was $1.03 billion compared with $808.6 million a year ago.
Labcorp Holdings Inc. Price, Consensus and EPS Surprise
Labcorp updated 2025 full-year guidance to reflect its third-quarter performance and full-year outlook.
Total revenues for 2025 are now expected to grow in the range of 7.4-8.0% (earlier 7.5-8.6%). Diagnostics Laboratories’ revenues are expected to increase in the range of 7.2-7.8% (earlier 7-8%), while Biopharma Laboratory Services’ revenues are now forecasted to be between 5.7% and 7.1% (earlier 6.1% and 7.5%).
The Zacks Consensus Estimate for full-year revenues is pegged at $14.01 billion.
Meanwhile, Labcorp expects full-year adjusted EPS to be in the band of $16.15-$16.50 (earlier $16.05-$16.50). The Zacks Consensus Estimate for the metric is pegged at $16.30.
Our View on LH Stock
Labcorp exited the third quarter of 2025 on a mixed note, with earnings beating estimates but revenues missing the same. However, expansion of both margins is encouraging. During the quarter, the company signed several strategic agreements with health systems and regional/local laboratories. Also, it advanced business in high-growth specialty testing areas, including oncology and neurology. Labcorp introduced Labcorp Test Finder and new digital pathology, cytology and microbiology capabilities.
Meanwhile, the company’s lowered 2025 outlook for enterprise revenues raises concern.
Phibro Animal Health reported a fourth-quarter fiscal 2025 EPS of 57 cents, which beat the Zacks Consensus Estimate by 9.62%. Net sales of $378.7 million topped the consensus estimate by 4.86%. PAHC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Phibro has an estimated earnings growth rate of 21.1% for fiscal 2026 compared with the industry’s 12.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 27.88%.
Veracyte, currently sporting a Zacks Rank #1, reported second-quarter 2025 adjusted EPS of 44 cents, which beat the Zacks Consensus Estimate by 41.9%. Revenues of $130.2 million topped the Zacks Consensus Estimate by 7.1%.
VCYT has an estimated earnings growth rate of 19.3% for 2025 compared with the industry’s 12.9%. The company beat on earnings in each of the trailing four quarters, the average surprise being 242.77%.
Insulet, currently sporting a Zacks Rank #1, reported a second-quarter 2025 adjusted EPS of $1.17, which outperformed the Zacks Consensus Estimate by 25.81%. Revenues of $649.1 million exceeded the Zacks Consensus Estimate by 5.46%.
PODD has an estimated earnings growth rate of 42.3% for 2025 compared with the industry’s 12.7%. The company beat on earnings in each of the trailing four quarters, the average surprise being 19.54%.
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LH Q3 Earnings Beat, Revenues Miss, '25 Sales View Cut, Stock Down
Key Takeaways
Labcorp Holdings (LH - Free Report) , or Labcorp, reported adjusted earnings per share (EPS) of $4.18 for the third quarter of 2025. The figure rose 19.4% 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 1.2%.
On a GAAP basis, EPS was $3.12 compared with $2.00 in the year-ago period.
LH Q3 Revenues
Revenues rose 8.6% year over year to $3.56 billion. The figure missed the Zacks Consensus Estimate by 0.01%.
The year-over-year increase was driven by organic revenue growth of 6.2%, acquisitions (net of divestitures) of 1.7% and a foreign currency translation gain of 0.7%.
Following the announcement, Labcorp shares edged down 1.5% in the pre-market session today. This fall can be attributed to the company’s lowered 2025 revenue guidance.
Labcorp’s Q3 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 third quarter, Diagnostics Laboratories reported revenues of $2.77 billion, reflecting an 8.5% improvement year over year.
On an organic basis, revenues were up 6.3%. The company’s total volumes (measured by requisitions) increased 4.7%, as acquisition volumes contributed 1.2% and organic volumes rose 3.5%.
Biopharma Laboratory Services revenues rose 8.3% to $799.1 million in the third quarter. The year-over-year increase was primarily driven by organic growth of 5.3% and a foreign currency translation gain of 3.0%.
Labcorp’s Margin Performance
The gross margin expanded 121 basis points (bps) to 28.8% in the third quarter despite a 6.8% rise in the cost of revenues.
The adjusted operating income improved 40.8% year over year to $472.7 million. The adjusted operating margin expanded 303 bps year over year to 13.3% due to a 2.8% decline in SG&A expenses ($552.4 million).
Labcorp’s Cash Position
Labcorp exited the third quarter with cash and cash equivalents of $598.1 million compared with $647.3 million at the end of the second quarter. Long-term debt totaled $5.08 billion, in line with the second-quarter figure.
Cumulative cash inflow from operating activities at the end of the third quarter was $1.03 billion compared with $808.6 million a year ago.
Labcorp Holdings Inc. Price, Consensus and EPS Surprise
Labcorp Holdings Inc. price-consensus-eps-surprise-chart | Labcorp Holdings Inc. Quote
LH’s 2025 Guidance
Labcorp updated 2025 full-year guidance to reflect its third-quarter performance and full-year outlook.
Total revenues for 2025 are now expected to grow in the range of 7.4-8.0% (earlier 7.5-8.6%). Diagnostics Laboratories’ revenues are expected to increase in the range of 7.2-7.8% (earlier 7-8%), while Biopharma Laboratory Services’ revenues are now forecasted to be between 5.7% and 7.1% (earlier 6.1% and 7.5%).
The Zacks Consensus Estimate for full-year revenues is pegged at $14.01 billion.
Meanwhile, Labcorp expects full-year adjusted EPS to be in the band of $16.15-$16.50 (earlier $16.05-$16.50). The Zacks Consensus Estimate for the metric is pegged at $16.30.
Our View on LH Stock
Labcorp exited the third quarter of 2025 on a mixed note, with earnings beating estimates but revenues missing the same. However, expansion of both margins is encouraging. During the quarter, the company signed several strategic agreements with health systems and regional/local laboratories. Also, it advanced business in high-growth specialty testing areas, including oncology and neurology. Labcorp introduced Labcorp Test Finder and new digital pathology, cytology and microbiology capabilities.
Meanwhile, the company’s lowered 2025 outlook for enterprise revenues raises concern.
LH’s Zacks Rank & Other Key Picks
Labcorp currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Phibro Animal Health (PAHC - Free Report) , Veracyte (VCYT - Free Report) and Insulet (PODD - Free Report) .
Phibro Animal Health reported a fourth-quarter fiscal 2025 EPS of 57 cents, which beat the Zacks Consensus Estimate by 9.62%. Net sales of $378.7 million topped the consensus estimate by 4.86%. PAHC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Phibro has an estimated earnings growth rate of 21.1% for fiscal 2026 compared with the industry’s 12.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 27.88%.
Veracyte, currently sporting a Zacks Rank #1, reported second-quarter 2025 adjusted EPS of 44 cents, which beat the Zacks Consensus Estimate by 41.9%. Revenues of $130.2 million topped the Zacks Consensus Estimate by 7.1%.
VCYT has an estimated earnings growth rate of 19.3% for 2025 compared with the industry’s 12.9%. The company beat on earnings in each of the trailing four quarters, the average surprise being 242.77%.
Insulet, currently sporting a Zacks Rank #1, reported a second-quarter 2025 adjusted EPS of $1.17, which outperformed the Zacks Consensus Estimate by 25.81%. Revenues of $649.1 million exceeded the Zacks Consensus Estimate by 5.46%.
PODD has an estimated earnings growth rate of 42.3% for 2025 compared with the industry’s 12.7%. The company beat on earnings in each of the trailing four quarters, the average surprise being 19.54%.