olivLaw · US equity research
Labcorp Holdings Inc. LH
Services-Medical Laboratories · SIC 8071 · Vertical: Services-Medical Laboratories (SIC 8071)
Labcorp Holdings is one of the largest global laboratory services providers, active in clinical diagnostics and in supporting drug development for the pharmaceutical industry. The company raised its 2026 guidance after a solid second quarter, with revenue growth of 5.8%, making it relevant for investors following the diagnostics sector.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 30 Oct 2026, Labcorp Holdings Inc. (LH) stock was 361.39 USD (−1.84% on the day), with market capitalisation 29.3 bn USD, P/E 29.6 on diluted EPS of 12.19 USD over the last 12 months, dividend yield 0.80%, beta 0.53, 52-week range 246.64–368.16 USD. Latest reported quarter (Q3 2026): revenue of 3.8 bn USD (+6.9% YoY), net income of 262.8 m USD (+0.7% YoY), diluted EPS 3.22 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 74.5
- overbought (≥ 70)
- Bollinger (20, 2)
- 292.21 – 360.15
- above the upper band · %B 1.02 · band width 20.8%
- SMA 50 / 200
- 323.22 / 287.55
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 10.41 / 5.30
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +17.3% | −0.9% | +18.2 pp | — |
| 3 months | +16.9% | +1.2% | +15.7 pp | — |
| 6 months | +41.3% | +4.8% | +36.4 pp | — |
| Year to date | +44.0% | +10.7% | +33.3 pp | — |
| 1 year | +43.2% | +11.1% | +32.1 pp | +5.4% |
| 3 years | +80.9% | +80.7% | +0.2 pp | +57.1% |
| 5 years | +46.6% | +64.6% | −18.0 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.3 bn | 3.3 bn | 3.5 bn | 3.6 bn | 3.5 bn | 3.5 bn | 3.7 bn | 3.8 bn |
| Cost of revenue | 2.4 bn | 2.4 bn | 2.5 bn | 2.5 bn | 2.5 bn | 2.5 bn | 2.6 bn | 2.7 bn |
| Gross profit | 896.3 m | 948.0 m | 1.0 bn | 1.0 bn | 993.2 m | 1.0 bn | 1.1 bn | 1.1 bn |
| SG&A | 595.2 m | 546.0 m | 579.3 m | 553.1 m | 537.9 m | 551.0 m | 577.2 m | 611.4 m |
| Operating income | 216.5 m | 326.0 m | 394.5 m | 396.6 m | 267.6 m | 380.8 m | 451.6 m | 402.1 m |
| Depreciation & amortisation | 170.6 m | 166.8 m | 170.3 m ≈ | 171.0 m ≈ | 173.0 m | 173.3 m | 179.0 m ≈ | 183.0 m ≈ |
| Interest expense | 63.4 m | 56.0 m | 57.1 m | 56.0 m | 55.0 m | 55.1 m | 61.1 m | 59.1 m |
| Income tax | 40.2 m | 62.2 m | 66.4 m | 75.5 m | 25.7 m | 41.7 m | 87.3 m | 64.9 m |
| Net income | 143.4 m | 212.8 m | 237.9 m | 261.1 m | 164.7 m | 277.8 m | 298.7 m | 262.8 m |
| Diluted EPS | 1.71 ≈ | 2.52 | 2.84 | 3.12 | 1.98 ≈ | 3.35 | 3.64 | 3.22 |
| Operating cash flow | 777.2 m | 18.5 m | 620.6 m ≈ | 387.2 m ≈ | 614.2 m | 191.5 m | 445.5 m ≈ | 563.8 m ≈ |
| Capex | 112.1 m | 126.0 m | 77.9 m ≈ | 106.7 m ≈ | 123.9 m | 121.0 m | 131.6 m ≈ | 151.6 m ≈ |
| Dividends paid | 60.1 m | 61.6 m | 59.9 m ≈ | 59.9 m ≈ | 59.3 m | 61.2 m | 58.7 m ≈ | 58.2 m ≈ |
| Share repurchases | 75.1 m | 0 | 200.0 m ≈ | 25.0 m ≈ | 225.0 m | 98.0 m | 353.8 m ≈ | 0 ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 86 percentile of its own 44-quarter history (min 8.1, median 18.5, max 48.7; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 11.3 bn | 11.6 bn | 14.0 bn | 13.1 bn | 11.9 bn | 12.2 bn | 13.0 bn | 14.0 bn |
| Revenue YoY | +9.9% | +2.0% | +21.0% | −6.0% | −9.7% | +2.5% | +7.0% | +7.2% |
| Net income | 883.7 m | 823.8 m | 1.6 bn | 2.4 bn | 1.3 bn | 418.0 m | 746.0 m | 876.5 m |
| Net income YoY | −28.0% | −6.8% | +88.9% | +52.8% | −46.2% | −67.3% | +78.5% | +17.5% |
| Diluted EPS | 8.61 | 8.35 | 15.88 | 24.39 | 13.97 | 4.77 | 8.84 | 10.46 |
| Diluted EPS YoY | −27.1% | −3.0% | +90.2% | +53.6% | −42.7% | −65.9% | +85.3% | +18.3% |
| net % | 7.8% | 7.1% | 11.1% | 18.1% | 10.8% | 3.4% | 5.7% | 6.3% |
| Free cash flow | 925.6 m | 1.0 bn | 1.8 bn | 2.7 bn | 1.5 bn | 874.1 m | 1.1 bn | 1.2 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 532.3 m USD
- Financial debt
- 5.6 bn USD
- Net debt
- 5.1 bn USD
- Equity
- 8.6 bn USD
- Total assets
- 18.4 bn USD
- Debt / equity
- 0.65x
- Current ratio
- 1.42x
- ROE
- 10.5%
- ROA
- 4.8%
- FCF margin
- 8.6%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 14.0 bn | 13.1 bn | 11.9 bn | 12.2 bn | 13.0 bn | 14.0 bn | SEC (XBRL)· 24 Feb 2026verified |
| Cost of revenue | 9.0 bn | 8.1 bn | 8.2 bn | 8.8 bn | 9.4 bn | 9.9 bn | SEC (XBRL)· 24 Feb 2026verified |
| Gross profit | 5.0 bn | 5.0 bn | 3.7 bn | 3.4 bn | 3.6 bn | 4.0 bn | SEC (XBRL)· 24 Feb 2026verified |
| SG&A | 1.7 bn | 1.7 bn | 1.8 bn | 2.0 bn | 2.2 bn | 2.2 bn | SEC (XBRL)· 24 Feb 2026verified |
| Operating income | 2.4 bn | 3.0 bn | 1.4 bn | 725.6 m | 1.1 bn | 1.4 bn | SEC (XBRL)· 24 Feb 2026verified |
| Depreciation & amortisation | 624.7 m | 577.0 m | 537.2 m | 577.3 m | 643.5 m | 681.1 m | SEC (XBRL)· 24 Feb 2026verified |
| EBITDA | 3.1 bn ≈ | 3.6 bn ≈ | 2.0 bn ≈ | 1.3 bn ≈ | 1.7 bn ≈ | 2.1 bn ≈ | SEC (XBRL)· 24 Feb 2026derived |
| Interest expense | 207.4 m | 211.8 m | 179.8 m | 199.6 m | 208.3 m | 224.1 m | SEC (XBRL)· 24 Feb 2026verified |
| Income tax | 662.1 m | 690.0 m | 233.9 m | 188.5 m | 212.4 m | 229.8 m | SEC (XBRL)· 24 Feb 2026verified |
| Net income | 1.6 bn | 2.4 bn | 1.3 bn | 418.0 m | 746.0 m | 876.5 m | SEC (XBRL)· 24 Feb 2026verified |
| Diluted EPS | 15.88 | 24.39 | 13.97 | 4.77 | 8.84 | 10.46 | SEC (XBRL)· 24 Feb 2026verified |
| Weighted average diluted shares | 98.0 m | 97.5 m | 91.6 m | 87.6 m | 84.4 m | 83.8 m | SEC (XBRL)· 24 Feb 2026verified |
| Dividend per share | — | — | 2.16 | 2.88 | 2.88 | 2.88 | SEC (XBRL)· 24 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 1.3 bn | 1.5 bn | 320.6 m | 536.8 m | 1.5 bn | 532.3 m | SEC (XBRL)· 24 Feb 2026verified |
| Receivables | 2.5 bn | 2.3 bn | 1.8 bn | 1.9 bn | 1.9 bn | 2.1 bn | SEC (XBRL)· 24 Feb 2026verified |
| Inventories | 423.2 m | 401.4 m | 470.6 m | 474.6 m | 493.2 m | 534.7 m | SEC (XBRL)· 24 Feb 2026verified |
| Current assets | 5.1 bn | 5.3 bn | 4.6 bn | 3.8 bn | 4.8 bn | 4.0 bn | SEC (XBRL)· 24 Feb 2026verified |
| Property, plant & equipment, net | 2.7 bn | 2.8 bn | 2.8 bn | 2.9 bn | 3.0 bn | 3.1 bn | SEC (XBRL)· 24 Feb 2026verified |
| Goodwill | 7.8 bn | 5.9 bn | 6.1 bn | 6.1 bn | 6.4 bn | 6.8 bn | SEC (XBRL)· 24 Feb 2026verified |
| Intangibles (excl. goodwill) | 4.0 bn | 3.7 bn | 3.1 bn | 3.3 bn | 3.5 bn | 3.6 bn | SEC (XBRL)· 24 Feb 2026verified |
| Total assets | 20.1 bn | 20.4 bn | 20.2 bn | 16.7 bn | 18.4 bn | 18.4 bn | SEC (XBRL)· 24 Feb 2026verified |
| Accounts payable | 638.9 m | 621.3 m | 852.2 m | 827.5 m | 875.8 m | 840.8 m | SEC (XBRL)· 24 Feb 2026verified |
| Short-term debt | 376.7 m | 1.5 m | 301.3 m | 999.8 m | 1.0 bn | 500.1 m | SEC (XBRL)· 24 Feb 2026verified |
| Long-term debt | 5.4 bn | 5.4 bn | 5.0 bn | 4.1 bn | 5.3 bn | 5.1 bn | SEC (XBRL)· 24 Feb 2026verified |
| Current liabilities | 3.1 bn | 2.8 bn | 3.1 bn | 3.2 bn | 3.3 bn | 2.8 bn | SEC (XBRL)· 24 Feb 2026verified |
| Total liabilities | 10.6 bn | 10.1 bn | 10.0 bn | 8.8 bn | 10.3 bn | 9.8 bn | SEC (XBRL)· 24 Feb 2026verified |
| Equity | 9.4 bn † | 10.3 bn † | 10.1 bn † | 7.9 bn † | 8.1 bn † | 8.6 bn † | SEC (XBRL)· 24 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 2.1 bn | 3.1 bn | 2.0 bn | 1.3 bn | 1.6 bn | 1.6 bn | SEC (XBRL)· 24 Feb 2026verified |
| Capex | 381.7 m | 421.5 m | 429.3 m | 453.6 m | 489.9 m | 434.5 m | SEC (XBRL)· 24 Feb 2026verified |
| Free cash flow | 1.8 bn ≈ | 2.7 bn ≈ | 1.5 bn ≈ | 874.1 m ≈ | 1.1 bn ≈ | 1.2 bn ≈ | SEC (XBRL)· 24 Feb 2026derived |
| Investing cash flow | -643.2 m | -884.6 m | -1.7 bn | -1.2 bn | -1.4 bn | -1.2 bn | SEC (XBRL)· 24 Feb 2026verified |
| Financing cash flow | -517.4 m | -2.1 bn | -1.3 bn | -59.3 m | 779.9 m | -1.5 bn | SEC (XBRL)· 24 Feb 2026verified |
| Dividends paid | 0 | 0 | 195.2 m | 254.0 m | 243.1 m | 240.7 m | SEC (XBRL)· 24 Feb 2026verified |
| Share repurchases | 100.0 m | 1.7 bn | 1.1 bn | 1.0 bn | 250.1 m | 450.0 m | SEC (XBRL)· 24 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 61 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
30 Oct 2026Source: olivLaw, closing series
Market cap: 29.3 bn USD
Key indicators
Coverage and freshness
Score by group
- Returns67
- Quality83
- Growth23
- Valuation68
- Balance sheet53
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 199.20 – 650.13 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)199.20 – 360.30 (Mid 260.04)WACC 8.6% · starting FCFF 1.5 bn USD · terminal value share of EV 75%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 17.9%
- Peers: EV/EBITDA369.67 – 650.13 (Mid 445.74)5 companies used · median multiple 18.9x · quartiles 16.1x – 26.4xAMS, BLLN, DGX, FTRE, RDNT
- Peers: P/E230.88 – 438.23 (Mid 370.89)4 companies used · median multiple 30.4x · quartiles 18.9x – 36.0xADVB, CDNA, DGX, VCYT
- Dividend discount (DDM)outside the aggregate37.85 – 50.90 (Mid 43.41)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 61/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 9.1% | 78 (vs peers) | 10% |
| Net margin · Quality | 6.9% | 74 (vs peers) | 6% |
| FCF conversion · Quality | 128.2% | 100 (on a fixed band) | 6% |
| Revenue CAGR 3Y · Growth | 5.6% | 46 (on a fixed band) | 8% |
| EPS CAGR 3Y · Growth | -9.2% | 0 (on a fixed band) | 8% |
| Net debt / EBITDA · Balance sheet | 2.5x | 40 (vs peers) | 10% |
| Interest coverage · Balance sheet | 6.5x | 77 (on a fixed band) | 6% |
| Current ratio · Balance sheet | 1.4x | 51 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 29.6x | 67 (vs peers) | 10% |
| EV/EBITDA · Valuation | 15.8x | 80 (vs peers) | 10% |
| FCF yield · Valuation | 4.4% | 55 (on a fixed band) | 8% |
| Shareholder yield (distributions) · Returns | 3.1% | 45 (on a fixed band) | 6% |
| Payout ratio (FCF) · Returns | 18.4% | 100 (on a fixed band) | 4% |
Score groups
- Balance sheet53/100 · 3/3 factors with a value
- Growth23/100 · 2/2 factors with a value
- Quality83/100 · 3/3 factors with a value
- Returns67/100 · 2/2 factors with a value
- Valuation68/100 · 3/3 factors with a value
Memo
LABCORP HOLDINGS INC. (LH). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 14.0 bn USD in 2025; YoY growth 7.2%; net margin 6.9%; ROE 11.4%; net debt/EBITDA 2.5x.
The estimated value range is 230.88–438.23 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 370.89 USD, the price of 361.39 USD leaves a potential of 2.6% (value / price − 1) and a margin of safety of 2.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 61/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- ROIC: 9.1%
- Net margin: 6.9%
- FCF conversion: 128.2%
- Interest coverage: 6.5x
- EV/EBITDA: 15.8x
- Payout ratio (FCF): 18.4%
What contradicts it
- EPS CAGR 3Y: -9.2%
Versus the vertical median
Services-Medical Laboratories (SIC 8071) · same industry (4-digit SIC) · compared with 23 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| NTRANatera, Inc. | 59.7 bn | — | -12.5% | -7.1% | +35.9% | +108% / +950% |
| LHLabcorp Holdings Inc. | 29.3 bn | 29.6 | 11.4% | 6.9% | +7.2% | +43% / +81% |
| DGXQuest Diagnostics Inc | 27.7 bn | 25.1 | 15.2% | 9.5% | +11.8% | +43% / +94% |
| GHGuardant Health, Inc. | 24.0 bn | — | — | -38.3% | +32.9% | +92% / +591% |
| CAICaris Life Sciences, Inc. | 9.7 bn | 92.7 | 20.1% | 10.6% | +97.0% | +14% / unavailable |
| GRALGRAIL, Inc. | 6.4 bn | — | -16.1% | -236.9% | +17.2% | +56% / unavailable |
| RDNTRadNet, Inc. | 5.8 bn | — | -2.1% | -0.9% | +11.5% | −3% / +173% |
| CDNACaredx, Inc. | 4.6 bn | 36.6 | 33.0% | 25.9% | +13.8% | +483% / +1,516% |
| VCYTVeracyte, Inc. | 4.0 bn | 35.7 | 8.8% | 20.4% | +16.0% | +39% / +141% |
| FTREFortrea Holdings Inc. | 2.1 bn | — | -12.3% | -2.6% | +1.0% | +104% / −25% |
| PSNLPersonalis, Inc. | 1.7 bn | — | -50.3% | -153.8% | −17.7% | +64% / +1,544% |
| BLLNBillionToOne, Inc. | 1.3 bn | 152.8 | 26.3% | 9.5% | +100.0% | unavailable / unavailable |
| CSTLCastle Biosciences, Inc. | 1.1 bn | — | -4.2% | -5.4% | +3.7% | +46% / +138% |
| FLGTFulgent Genetics, Inc. | 567.4 m | — | -8.0% | -26.0% | +13.8% | −8% / −14% |
| YDESYD Bio Limited | 420.5 m | — | -445.1% | -1,392.6% | +16.9% | −48% / unavailable |
| BDSXBiodesix, Inc. | 245.4 m | — | -540.0% | -27.0% | +24.1% | +240% / −18% |
| XGNExagen Inc. | 208.1 m | — | -113.8% | -26.6% | +19.7% | −26% / +402% |
| SERASera Prognostics, Inc. | 59.8 m | — | -45.0% | -47,475.7% | +5.2% | −38% / +21% |
| AMSAmerican Shared Hospital Services | 8.4 m | — | -7.5% | -5.8% | −0.9% | −44% / −46% |
| MDXHMdxhealth SA | 8.4 m | — | -2,440.4% | -31.1% | +19.8% | −97% / −94% |
| ACONAclarion, Inc. | 5.6 m | — | -59.0% | -10,978.5% | +65.6% | −75% / −100% |
| ADVBAdvanced Biomed Inc. | 3.8 m | 0.4 | 84.8% | 5,231.3% | unavailable | −76% / unavailable |
| BGLCBioNexus Gene Lab Corp. | 2.7 m | — | -33.7% | -82.4% | −21.9% | −83% / −78% |
| BNRBurning Rock Biotech Limited | 0 | — | -10.1% | -10.3% | +9.2% | −19% / +14% |
1- and 3-year price returns: for LH from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 218.97 Total return -39% · Per year -39% | 386.93 Total return 8% · Per year 8% | 582.57 Total return 62% · Per year 62% |
| 3 years | 217.04 Total return -38% · Per year -15% | 431.09 Total return 22% · Per year 7% | 712.00 Total return 100% · Per year 26% |
| 5 years | 215.11 Total return -37% · Per year -9% | 480.29 Total return 38% · Per year 7% | 870.19 Total return 147% · Per year 20% |
- Exit P/E± 107.77
- Net margin± 75.44
- Annual revenue growth± 61.31
- Annual dilution± 6.34
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (30 Oct 2026), 8-K (28 Oct 2026 · results).
In brief
Labcorp Holdings is one of the largest global laboratory services providers, active in clinical diagnostics and in supporting drug development for the pharmaceutical industry. The company raised its 2026 guidance after a solid second quarter, with revenue growth of 5.8% 3, making it relevant for investors following the diagnostics sector.
SWOT
Strengths
- The company has a global laboratory network and a strong position in supporting drug development, allowing it to offer end-to-end services to pharmaceutical clients 1.
- A broad specialty testing portfolio and experience integrating acquisitions support its appeal to health system partners 1.
- Rising operating margins in both segments point to good cost and efficiency discipline 3.
Weaknesses
- Dependence on government and private insurer reimbursement makes revenue vulnerable to changes in fee schedules and payment rules.
- Routine diagnostic testing carries lower margins than specialty testing, and price pressure can limit profit growth.
- Debt and interest costs reduce financial flexibility when financing costs rise.
Opportunities
- Demand for oncology, genetic and precision testing could keep growing, especially if new tests win insurer coverage.
- Partnerships with health systems and regional laboratories could expand testing volumes through acquisitions and collaborations.
- Direct-to-consumer services and international expansion of complementary diagnostics could open new revenue sources.
Threats
- Health system reforms and reimbursement cuts could significantly affect revenue if not offset by efficiency gains.
- Home and point-of-care testing technologies could reduce demand for traditional laboratory services.
- Price competition and supplier consolidation could compress margins, particularly in routine testing.
Risks
- Reimbursement cutshigh
Government and private insurer pressure on laboratory fees could reduce revenue and margins if reforms prove more severe than expected.
- Health system reformsmedium
Changes to Medicaid, insurance and federal funding could reduce testing utilization, and the company says the impact is difficult to predict 1.
- Loss of skilled staffmedium
Difficulty attracting and retaining specialists and patient-facing staff could raise costs and affect service quality.
- Acquisition integrationmedium
Recent and planned acquisitions carry integration risks, customer loss and potential impairment of acquired intangible assets 1.
- Alternative testing technologieslow
Development of point-of-care tests and patient test kits could reduce demand for commercial laboratories.
Investment thesis
What would need to be true (bull case)
- If growth in specialty segments continues and acquisition integration succeeds, the company could sustain steady growth in revenue and earnings per share.
- Its role in drug development and its contribution to FDA approvals could provide a solid base for long-term demand.
- An active share repurchase program and disciplined capital allocation could support shareholder value if cash flows remain strong.
What would break the thesis
- If reimbursement cuts accelerate or reforms reduce testing volumes, revenue growth could slow considerably.
- Competition from home testing and new technologies could limit growth in routine diagnostic testing.
- If acquisition integration or financing costs prove higher than expected, margins and cash flow could be affected.
What to watch
- Quarterly results and changes to revenue and adjusted EPS guidanceQ3 2026
- PAMA reporting process and setting of new CLFS rates for 2027-20292027
- Effect of OBBBA reforms on utilization of diagnostic testing2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (30 Oct 2026), 8-K (28 Oct 2026 · results).
The business
Labcorp provides clinical information to physicians, hospitals, pharmaceutical companies and patients through one of the largest laboratory networks in the world. The company reports its employees served clients in approximately 100 countries and performed more than 750 million tests in 2025 1. It also describes a major role in drug approvals, supporting more than 85% of new drugs approved by the FDA in 2025 1.
The company aims to expand its role through partnerships with health systems and local laboratories, and through specialty testing in oncology, women's health, autoimmune disease and neurology 1. It is also building direct-to-consumer services, such as testing through Labcorp OnDemand and self-collection 1.
Market context
The clinical testing market is shaped by pressure to reduce government and insurer reimbursement, alongside growing demand for specialty and precision testing. The company notes that PAMA has already reduced reimbursement for many tests, with a net reduction of about $245.0 million in 2018-2020 1. Statutory changes cap annual reductions at 15% for 2027-2029 1.
At the same time, the specialty segment is growing faster than the overall market, supported by biomarkers, earlier detection and personalized medicine 1. The company estimates that about 20% of biopharma drug development pipelines relate to cell and gene therapy 1.
Trends
- Reimbursement pressureheadwind
Government fee reductions and insurer pressure may limit growth in routine testing revenue, especially if 2026 reforms change payment systems.
- Growth in specialty testingtailwind
Oncology, women's health, autoimmune disease and neurology are growing faster than the broader market, and the company launched new tests in these areas in 2025 1.
- Consumer-driven healthmixed
Demand for tests patients can buy directly, such as genetic testing through Labcorp OnDemand, opens new revenue channels but requires digital investment.
- International expansiontailwind
The minority stake in SYNLAB in Europe and wider CDx expansion outside the US could support long-term growth if integration succeeds.
Competitive position
The company operates in a highly competitive market where price, service and specialization are decisive, and competition comes from other commercial laboratories as well as in-house departments of pharmaceutical and medical device companies 1. Additional pressure could arise if point-of-care or home testing technologies reduce demand for laboratory services 1.
In biopharma laboratory services, the company competes with other central laboratory and early development providers, and differentiates on reputation, turnaround times and scientific innovation 1. Losing existing customers or slower contract awards could weigh on growth 1.
- Quest DiagnosticsDGX
Major US clinical diagnostics provider, cited in the context of general competition among commercial laboratories.
- Hospital and health system in-house laboratories
Internal laboratory departments that can take over routine testing and reduce demand for outside services.
- Point-of-care test providers
Equipment and test kit makers that can move testing into physician offices or patients' homes.
- Competing clinical research laboratories and CROs
Providers of central laboratory and early development services for the pharmaceutical industry.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
- Stocks making the biggest moves midday: Wendy's, Wingstop, F5, Enphase Energy, Labcorp & moreCNBC — Top News · 28 Oct 2026 · EN
- Labcorp to overhaul data security practices, pay $2.3 million fine for cybersecurity failingsThe Record (Recorded Future) · 25 Sept 2026 · EN
- Why Labcorp Holdings Stock Dropped TodayYahoo Finance — News · 22 Sept 2026 · EN
- Labcorp Bets Big on AI, Specialty Testing to Drive Growth Through 2029Yahoo Finance — News · 14 Sept 2026 · EN
- Are Wall Street Analysts Bullish on Labcorp Holdings Stock?Yahoo Finance — News · 26 Aug 2026 · EN
- Labcorp Raises Earnings Outlook on Strong Medical Testing DemandBloomberg Markets · 30 Jul 2026 · EN
The latest news item in our archive is from 28 Oct 2026; the newest SEC filing is from 30 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report30 Oct 2026
- Current report28 Oct 2026Results of operations · Financial statements and exhibits
- Current report21 Oct 2026Regulation FD disclosure · Financial statements and exhibits
- Current report30 Sept 2026Regulation FD disclosure · Financial statements and exhibits
- Current report22 Sept 2026Regulation FD disclosure
- Current report10 Sept 2026Regulation FD disclosure · Financial statements and exhibits
- Current report28 Aug 2026Regulation FD disclosure · Financial statements and exhibits
- Current report17 Aug 2026Regulation FD disclosure · Financial statements and exhibits
- Current report14 Aug 2026Departure or appointment of officers
- Quarterly report05 Aug 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Labcorp Holdings Inc. · 24 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Labcorp Holdings Inc. · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Labcorp Holdings Inc. · 30 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.