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.
Why Is Labcorp (LH) Down 4.6% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Labcorp Holdings (LH - Free Report) . Shares have lost about 4.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Labcorp due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Labcorp Tops Q4 Earnings Estimates
Labcorp reported fourth-quarter 2025 adjusted earnings per share of $4.07, which beat the Zacks Consensus Estimate by 3%. The figure rose 18% from the year-ago level.
The adjusted figure excludes the impact of certain amortization expenses and restructuring charges, among others.
On a GAAP basis, earnings per share was $1.98 compared with $1.70 in the year-ago period.
Full-year adjusted earnings was $16.44 per share, which rose 12.8% year over year and beat the Zacks Consensus Estimate by 0.8%.
LH Revenues
Fourth quarter revenues rose 5.7% year over year to $3.52 billion. The figure missed the Zacks Consensus Estimate by 1%.
The year-over-year increase was driven by organic revenue growth of 3.8%, acquisitions (net of divestitures) of 1.2% and a foreign currency translation gain of 0.6%.
Full-year revenues rose 7.2% year over year to $13.95 billion. The figure missed the Zacks Consensus Estimate by 0.3%.
Labcorp’s Q4 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 fourth quarter, Diagnostics Laboratories reported revenues of $2.73 billion, reflecting a 5.5% improvement year over year.
On an organic basis, revenues were up 4.1%. The company’s total volumes (measured by requisitions) increased 2.2%, as acquisition volumes contributed 1.1% and organic volumes rose 1.1%.
Biopharma Laboratory Services revenues rose 3.4% to $793 million in the fourth quarter. The year-over-year increase was primarily driven by organic growth of 0.6% and a foreign currency translation gain of 2.8%.
Labcorp’s Margin Performance
The gross margin expanded 133 basis points (bps) to 28.2% in the fourth quarter despite a 3.7% rise in the cost of revenues.
The adjusted operating income improved 51% year over year to $454.6 million. The adjusted operating margin expanded 389 bps year over year to 12.9% due to a 9.5% decline in SG&A expenses ($538.6 million).
Labcorp’s Cash Position
Labcorp exited the fourth quarter with cash and cash equivalents of $532.3 million compared with $1.52 billion at the end of the fourth quarter of 2024. Long-term debt totaled $5.08 billion, in line sequentially.
Cumulative net cash provided by operating activities at the end of the fourth quarter was $1.64 billion compared with $1.59 billion a year ago.
LH’s 2026 Guidance
Labcorp provided full-year 2026 enterprise revenue and adjusted EPS guidance. Enterprise level guidance includes the estimated impact from currently anticipated capital allocation, including acquisitions, share repurchases and dividends.
Total revenues for 2026 are now expected to be in the range of $14.61-$14.79 billion, representing growth of 4.7- 6%. The Zacks Consensus Estimate for full-year revenues is pegged at $14.69 billion, representing growth of 5%.
Labcorp expects 2026 adjusted earnings per share to be in the band of $17.55-$18.25. The Zacks Consensus Estimate for the metric is pegged at $17.62.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Labcorp has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Labcorp has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Why Is Labcorp (LH) Down 4.6% Since Last Earnings Report?
It has been about a month since the last earnings report for Labcorp Holdings (LH - Free Report) . Shares have lost about 4.6% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Labcorp due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Labcorp Tops Q4 Earnings Estimates
Labcorp reported fourth-quarter 2025 adjusted earnings per share of $4.07, which beat the Zacks Consensus Estimate by 3%. The figure rose 18% from the year-ago level.
The adjusted figure excludes the impact of certain amortization expenses and restructuring charges, among others.
On a GAAP basis, earnings per share was $1.98 compared with $1.70 in the year-ago period.
Full-year adjusted earnings was $16.44 per share, which rose 12.8% year over year and beat the Zacks Consensus Estimate by 0.8%.
LH Revenues
Fourth quarter revenues rose 5.7% year over year to $3.52 billion. The figure missed the Zacks Consensus Estimate by 1%.
The year-over-year increase was driven by organic revenue growth of 3.8%, acquisitions (net of divestitures) of 1.2% and a foreign currency translation gain of 0.6%.
Full-year revenues rose 7.2% year over year to $13.95 billion. The figure missed the Zacks Consensus Estimate by 0.3%.
Labcorp’s Q4 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 fourth quarter, Diagnostics Laboratories reported revenues of $2.73 billion, reflecting a 5.5% improvement year over year.
On an organic basis, revenues were up 4.1%. The company’s total volumes (measured by requisitions) increased 2.2%, as acquisition volumes contributed 1.1% and organic volumes rose 1.1%.
Biopharma Laboratory Services revenues rose 3.4% to $793 million in the fourth quarter. The year-over-year increase was primarily driven by organic growth of 0.6% and a foreign currency translation gain of 2.8%.
Labcorp’s Margin Performance
The gross margin expanded 133 basis points (bps) to 28.2% in the fourth quarter despite a 3.7% rise in the cost of revenues.
The adjusted operating income improved 51% year over year to $454.6 million. The adjusted operating margin expanded 389 bps year over year to 12.9% due to a 9.5% decline in SG&A expenses ($538.6 million).
Labcorp’s Cash Position
Labcorp exited the fourth quarter with cash and cash equivalents of $532.3 million compared with $1.52 billion at the end of the fourth quarter of 2024. Long-term debt totaled $5.08 billion, in line sequentially.
Cumulative net cash provided by operating activities at the end of the fourth quarter was $1.64 billion compared with $1.59 billion a year ago.
LH’s 2026 Guidance
Labcorp provided full-year 2026 enterprise revenue and adjusted EPS guidance. Enterprise level guidance includes the estimated impact from currently anticipated capital allocation, including acquisitions, share repurchases and dividends.
Total revenues for 2026 are now expected to be in the range of $14.61-$14.79 billion, representing growth of 4.7- 6%. The Zacks Consensus Estimate for full-year revenues is pegged at $14.69 billion, representing growth of 5%.
Labcorp expects 2026 adjusted earnings per share to be in the band of $17.55-$18.25. The Zacks Consensus Estimate for the metric is pegged at $17.62.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Labcorp has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Labcorp has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.