Labcorp Q4 Earnings Beat, Revenues Miss, Stock Down in Pre-Market

Labcorp Holdings LH or Labcorp reported fourth-quarter 2025 adjusted earnings per share (EPS) 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, EPS was $1.98 compared with $1.70 in the year-ago period.

Full-year adjusted EPS was $16.44, 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%. 

Following the announcement, Labcorp shares edged down 0.2% in the pre-market session today. The stock declined as investors reacted to the company’s fourth-quarter sales missing the Zacks Consensus Estimate.

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.

Labcorp Holdings Inc. Price, Consensus and EPS Surprise

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

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 EPS to be in the band of $17.55-$18.25. The Zacks Consensus Estimate for the metric is pegged at $17.62.

Our View on LH Stock

Labcorp exited the fourth quarter of 2025 on a mixed note, with earnings beating estimates but revenues missing the same. However, both earnings and revenues improved on a year-over-year basis. 

During 2025, the company expanded partnerships with health systems and regional/local laboratories by signing or closing 13 transactions in 2025.  It advanced leadership in specialty testing, launching more than 130 innovative new tests in 2025, spanning oncology, women’s health, neurology and autoimmune disorders. Labcorp announced strategic investment to build a modern, state-of-the-art 500,000 square foot Central Laboratory facility to address growth in demand. 

Meanwhile, expansion of both margins is encouraging.

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, Cardinal Health CAH and Align Technology ALGN.

Intuitive Surgical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $2.53, which surpassed the Zacks Consensus Estimate by 12.4%. Revenues of $2.87 billion beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 12.7% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 13.24%.

Cardinal Health, carrying a Zacks Rank #2 (Buy) at present, posted a second-quarter fiscal 2026 adjusted EPS of $2.63, exceeding the Zacks Consensus Estimate by 10%. Revenues of $65.6 billion topped the Zacks Consensus Estimate by 0.9%.

CAH has a long-term earnings growth rate of 15% compared with the industry’s 9.6% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 9.3%.

Align Technology, carrying a Zacks Rank #2 at present, posted a fourth-quarter 2025 adjusted EPS of $3.29, exceeding the Zacks Consensus Estimate by 10.1%. Revenues of $1.05 billion outperformed the Zacks Consensus Estimate by 5.3%.

ALGN has an estimated long-term earnings growth rate of 10.1% compared with the industry’s 9.5% growth. The company’s earnings outpaced estimates in three of the trailing four quarters and missed in one, the average surprise being 6.16%.

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