Headquartered in Burlington, North Carolina, Labcorp Holdings Inc. (LH) operates one of the world’s largest laboratory networks, providing everything from routine diagnostics to oncology, genetics, and specialized testing. Its services support physicians, hospitals, biopharma companies, and patients while also helping accelerate drug development. The company has a market capitalization of $25.3 billion.
The company is expected to report its third-quarter earnings for fiscal 2026 before the market opens on Wednesday, Oct. 28. Ahead of the release, Wall Street analysts expect Labcorp to report a profit of $4.65 per share on a diluted basis, up 11.2% year over year from $4.18 in Q3 2025. Adding to the optimism, Labcorp has beaten consensus EPS estimates in each of the past four quarters.
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For the current fiscal year 2026, Wall Street analysts expect Labcorp’s diluted EPS to grow 11.4% annually to $18.32 from $16.44 in 2025, followed by a 7.5% improvement to $19.69 in fiscal 2027.
www.barchart.comLabcorp has delivered a positive return over the past year, but its 11.6% gain has failed to keep pace with the broader market. During the same 52-week period, the S&P 500 Index ($SPX) advanced 17%, while the State Street Health Care Select Sector SPDR ETF (XLV) also gained 17%, leaving LH trailing both benchmarks despite its solid advance.
www.barchart.comLabcorp has struggled to keep pace with the broader market as slower growth in its core laboratory business, uneven testing volumes, and margin pressure have tempered investor enthusiasm. Moreover, its revenue declined at a 2.6% annualized rate over the past five years as customers postponed purchases, while weak organic sales growth over the past two years suggests the company may need strategic adjustments or M&A to accelerate expansion.
Labcorp shares fell more than 2% on Sept. 22, after the Centers for Medicare and Medicaid Services (CMS) released new preliminary Medicare payment rates for laboratory services. The proposed reimbursement changes raised concerns that less favorable Medicare payment rates could pressure Labcorp’s revenue and margins, given its significant exposure to diagnostic testing.
Still, Wall Street analysts remain bullish about Labcorp’s future. Among the 17 analysts covering the stock, the consensus rating is “Strong Buy.” The stock has 13 “Strong Buy” ratings and four “Holds.” The mean price target of $348.18 implies an 11.6% upside from the current price level.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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