Investors in Labcorp Holdings Inc. (LH) need to pay close attention to the stock based on moves in the options market lately. That is because the Feb 20, 2026 $135 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could als ...

ST. LOUIS--(BUSINESS WIRE)--Cofactor Genomics, a commercial-stage diagnostics company transforming precision oncology through RNA-based predictive tests, today announced strategic investments from Labcorp and Ascension Ventures. The financing is intended to accelerate Cofactor's nationwide expansion and broaden patient access to its immunotherapy-response diagnostics. Ascension Ventures, the strategic investment arm of 13 leading U.S. health systems across 22 states, representing more than $100. ...

Core Insights - Labcorp Holdings Inc. is expanding its business in specialty testing areas, including oncology, women's health, autoimmune disease, and neurology, while strengthening its market presence through strategic relationships with health systems and laboratories [1][8] - The company has shown solid financial stability, with a market capitalization of $22.28 billion and an earnings yield of 6.1%, outperforming the industry average of 3.4% [2] - Despite a 16.8% stock rally over the past year, macroeconomic challenges and currency impacts pose risks to Labcorp's operations [2][10] Business Expansion - Labcorp is enhancing its oncology and genetic testing portfolio, including the launch of OmniSeq INSIGHT for ovarian tumors and the CE marking of PGDx elio tissue complete [3] - The company has expanded access to Invitae genetic tests and introduced new Alzheimer's tests, maintaining strong momentum in its Labcorp OnDemand channel [4] - Strategic acquisitions and partnerships have driven growth, with $268 million invested in the third quarter of 2025, contributing 2.2% to top-line growth [5][6] Financial Performance - As of the end of the third quarter of 2025, Labcorp reported cash and cash equivalents of $598.1 million, with long-term debt at $5.08 billion [9] - The company returned capital to shareholders through dividends of $59.9 million and stock buybacks of $25 million during the quarter [9] Market Challenges - Labcorp faces macroeconomic risks, including reduced demand for diagnostic testing due to global economic volatility and inflation, which affects profitability [10] - The company's significant exposure to international markets makes it vulnerable to currency fluctuations, particularly with the strengthening U.S. dollar [11] Earnings Estimates - The Zacks Consensus Estimate for Labcorp's 2025 earnings has increased to $16.33, with revenues projected at $13.99 billion, indicating a 7.6% improvement from 2024 [12]

Core Insights - Labcorp has appointed Victor Bulto, a seasoned pharmaceutical executive from Novartis, to its Board of Directors, effective December 1, 2025, highlighting the company's commitment to long-term growth through innovation and global healthcare leadership [1][3]. Company Overview - Labcorp is a global leader in innovative and comprehensive laboratory services, providing insights and advancing science to improve health and lives through diagnostics and drug development capabilities [3]. - The company employs nearly 70,000 individuals and serves clients in approximately 100 countries, supporting over 75% of new drugs and therapeutic products approved by the FDA in 2024, and performing more than 700 million tests annually [3]. Victor Bulto's Background - Victor Bulto has 25 years of experience in healthcare and currently oversees Novartis' U.S. business, which is a $20+ billion operation across four therapeutic areas: oncology, immunology, neuroscience, and cardiovascular-renal-metabolic [2]. - Bulto has a proven track record of leading large organizations and has shaped strategies that enable businesses to navigate regulatory and market pressures effectively [2]. Strategic Importance - Bulto's expertise in transformation and technology will be crucial for Labcorp as it aims to innovate through science and technology, enhancing value for customers and shareholders [3]. - His belief in Labcorp's mission and the potential for accelerating access to novel therapies aligns with the company's focus on patient-centered care and the future of healthcare [3].

Core Insights - Labcorp's Plasma Detect technology has been featured in two peer-reviewed publications, highlighting its role in detecting molecular residual disease from circulating tumor DNA [1][9] - Following the announcement, Labcorp's stock experienced a slight increase of 0.4%, indicating positive market sentiment [2] - The company has a market capitalization of $22.78 billion and an earnings yield of 5.9%, outperforming the industry average of 4% [3] Labcorp Plasma Detect Developments - A study in Nature Medicine showed promising results for patients with diffuse pleural mesothelioma, indicating that immune-based treatments combined with Labcorp Plasma Detect can enhance treatment strategies [4][5] - Research published in Clinical Cancer Research found that lymph fluid from head and neck cancer patients contains higher concentrations of tumor-derived DNA, suggesting that combining lymph fluid testing with plasma monitoring can improve cancer detection and treatment decisions [6][7] Industry Outlook - The global cancer diagnostics market is projected to grow from $109.61 billion in 2024 to $155.07 billion by 2030, with a CAGR of 6.14% from 2025 to 2030, driven by increasing cancer prevalence and advancements in diagnostic technologies [8] Strategic Developments - Labcorp has entered a strategic agreement with Parkview Health to acquire select assets of its outreach laboratory services, enhancing its testing capabilities in Indiana and northwest Ohio [10] Stock Performance - Over the past year, Labcorp's shares have increased by 8.8%, contrasting with a 3% decline in the broader industry [11]

Core Insights - Labcorp Holdings Inc. is a leading global provider of laboratory services with a market capitalization of approximately $21.7 billion [1] Performance Overview - Over the past 52 weeks, Labcorp's stock has increased by 9.9%, underperforming the S&P 500 Index's 10.5% gain, but has outperformed the Health Care Select Sector SPDR Fund's 6% increase [2] - Year-to-date, Labcorp's stock has risen by 14%, compared to the S&P 500's 11.2% increase [2] Business Drivers - The stock's rise in 2025 is attributed to strong performance in the diagnostics business and positive investor sentiment, driven by demand for specialty tests and AI-driven efficiency initiatives [3] Financial Results - In Q3, Labcorp reported an adjusted EPS of $4.18, a 19.4% increase year-over-year, but the stock fell by 5.8% on the earnings announcement day due to a reduction in full-year revenue growth guidance to a range of 7.4% to 8% [4] Analyst Expectations - For the fiscal year ending December 2025, analysts project a 12% year-over-year growth in adjusted EPS to $16.32, with a strong earnings surprise history [5] - The consensus rating among 18 analysts is a "Strong Buy," with 14 "Strong Buy" ratings and four "Holds" [5] Price Target Insights - JP Morgan's analyst has maintained an "Overweight" rating on Labcorp and raised the price target to $317, suggesting a potential upside of 15% from the current levels [6] - The highest price target of $342 implies a possible rally of 30.8% [6]

Core Insights - Labcorp Plasma Detect technology is a blood-based assay that detects molecular residual disease (MRD) from circulating tumor DNA (ctDNA) and has been highlighted in two peer-reviewed publications, indicating its significance in cancer research and treatment strategies [1][4]. Group 1: Study Findings - A study in Nature Medicine showed promising results for patients with diffuse pleural mesothelioma (DPM), where immune-based treatment regimens before surgery were safe and allowed most patients to proceed with surgery. The study also indicated that Labcorp Plasma Detect could track early disease progression and predict long-term progression-free survival [2]. - Research published in Clinical Cancer Research found that lymph fluid collected from surgical drains after head and neck cancer surgery contained more tumor DNA than peripheral blood samples, suggesting that lymph-based testing could effectively identify residual cancer and improve follow-up treatment decisions [3]. Group 2: Clinical Utility - The studies emphasize the clinical utility of Labcorp Plasma Detect in advancing cancer research by tracking early disease progression, predicting long-term outcomes, and identifying residual cancer, which can inform future treatment strategies and enhance understanding of tumor biology [4]. Group 3: Company Overview - Labcorp is a global leader in laboratory services, employing nearly 70,000 individuals and serving clients in approximately 100 countries. The company supports over 75% of new drugs approved by the FDA in 2024 and conducts more than 700 million tests annually [5].

Revenue Growth - For the three months ended September 30, 2025, the Company's revenues were $3,563.5 million, an increase of 8.6% from $3,282.0 million for the corresponding period in 2024[115]. - The increase in revenues for the three months ended September 30, 2025, was due to organic revenue growth of 6.2%, acquisitions net of divestitures contributing 1.7%, and favorable foreign currency translation of 0.7%[115]. - For the nine months ended September 30, 2025, the Company's revenues were $10,435.9 million, an increase of 7.8% from $9,679.5 million for the corresponding period in 2024[116]. - The increase in revenues for the nine months ended September 30, 2025, was attributed to organic revenue growth of 4.6%, acquisitions net of divestitures of 3.0%, and favorable foreign currency translation of 0.3%[116]. Segment Performance - Diagnostic (Dx) revenues for the three months ended September 30, 2025, were $2,769.6 million, an increase of 8.5% over $2,553.5 million in the third quarter of 2024[121]. - The increase in Dx revenues was primarily due to organic revenue growth of 6.3% and acquisitions net of divestitures contributing 2.2%[121]. - BLS revenues for the three months ended September 30, 2025, were $799.1 million, an increase of 8.3% over $737.7 million in the third quarter of 2024[122]. - The increase in BLS revenues was due to organic growth of 5.3% and favorable foreign currency translation of 3.0%[122]. - Dx revenues for the nine months ended September 30, 2025, increased by 7.8% to $8,148.0 million, driven by organic revenue growth of 4.1% and acquisitions contributing 3.8%[138]. Expenses and Income - Cost of revenues increased by 6.8% to $2,538.4 million for the three months ended September 30, 2025, compared to $2,377.6 million in 2024, with the percentage of revenues decreasing to 71.2% from 72.4%[123]. - Selling, general, and administrative expenses decreased by 2.9% to $552.4 million for the three months ended September 30, 2025, from $568.6 million in 2024, with the percentage of revenues decreasing to 15.5% from 17.3%[124]. - Total operating income for the three months ended September 30, 2025, was $396.6 million, a 56.1% increase from $254.1 million in 2024[133]. - Dx segment operating income increased by 16.3% to $450.4 million for the three months ended September 30, 2025, compared to $387.4 million in 2024[133]. - BLS segment operating income rose by 9.4% to $132.2 million for the three months ended September 30, 2025, from $120.9 million in 2024[134]. - Operating income increased by 28.4% to $1,117.1 million for the nine months ended September 30, 2025, compared to $870.2 million in 2024[152]. Interest and Taxation - Interest expense increased by 10.9% to $56.0 million for the three months ended September 30, 2025, compared to $50.4 million in 2024[129]. - Provision for income taxes increased by 83.9% to $75.5 million for the three months ended September 30, 2025, from $41.0 million in 2024, with the effective tax rate rising to 22.4% from 19.5%[132]. - Interest expense increased by 16.7% to $169.1 million for the nine months ended September 30, 2025, compared to $144.9 million in 2024, primarily due to higher interest rates and increased total debt[148]. Cash Flow and Investments - Cash provided by operating activities rose to $1,026.3 million for the nine months ended September 30, 2025, up from $808.6 million in 2024, reflecting higher earnings[159]. - Net cash used for investing activities decreased to $(804.1) million in 2025 from $(1,157.2) million in 2024, primarily due to reduced business acquisitions and lower capital expenditures[160]. - Capital expenditures were $310.6 million for the nine months ended September 30, 2025, representing 3.0% of revenues, focused on growth projects and facility updates[161]. - Net cash used for financing activities was $(1,166.6) million for the nine months ended September 30, 2025, compared to net cash provided of $1,326.6 million in 2024, driven by decreased proceeds from senior note offerings[162]. Foreign Currency and Risk Management - Approximately 13.5% of the Company's revenues for the nine months ended September 30, 2025, were denominated in currencies other than the U.S. dollar[178]. - A hypothetical change of 10% in average exchange rates would have impacted income before income taxes by approximately $23.9 million for the nine months ended September 30, 2025[178]. - The Company limits foreign currency transaction risk through exchange rate fluctuation provisions in contracts or hedging with foreign currency forward contracts[179]. - The Company had 13 open foreign exchange forward contracts with a notional value totaling approximately $311.2 million as of September 30, 2025[179]. - The Company is party to USD to Swiss Franc cross-currency swap agreements with an aggregate notional amount of $1,200.0 million[180]. - The Company entered into fixed-to-variable interest rate swap agreements for the 2.70% senior notes due 2031 with an aggregate notional value of $500.0 million[183]. - Borrowings under the Company's term loan credit facilities are subject to variable interest rates unless fixed through interest rate swaps[182]. - The Company attempts to manage interest rate risk through an appropriate mix of fixed and variable rate debt[181].

Core Insights - Labcorp forecasts lower annual revenue growth for its contract research unit due to a prolonged funding crunch affecting early-stage drug development clients [1][4] - The company raised its annual profit forecast and reported better-than-expected third-quarter earnings, but shares fell 5.8% due to ongoing pressures in the contract research unit [2][4] Revenue Growth Projections - The contract research unit is expected to grow by 5.7% to 7.1% this year, down from a prior range of 6.1% to 7.5% [4] - Full-year revenue growth forecast has been trimmed to 7.4% to 8%, from a previous estimate of 7.5% to 8.6% [5] Financial Performance - For Q3, Labcorp reported adjusted earnings of $4.18 per share, exceeding analysts' consensus estimate of $4.13 [6] - The company expects adjusted profit for 2025 to be between $16.15 and $16.50 per share, an increase from the previous range of $16.05 to $16.50 [5] Market Context - The early development business contributes less than 6% to Labcorp's overall revenue, indicating that the impact of its weakness may be overstated [3] - The funding crunch has led to reduced spending from biotech clients over the past two years, with expectations for improvement being dampened by policy uncertainty [1][4]

Core Insights - Laboratory Corp reported third-quarter 2025 adjusted earnings per share of $4.18, an increase from $3.50 a year ago, surpassing the consensus of $4.18 [1] - Sales rose 8.6% year-over-year to $3.56 billion, also beating the consensus of $3.56 billion [1] - The sales increase was attributed to organic revenue growth of 6.2%, acquisitions net of divestitures at 1.7%, and foreign currency translation contributing 0.7% [1] Financial Performance - Adjusted operating income for the quarter was $396.6 million, representing 11.1% of revenue [1] - The company revised its fiscal year 2025 adjusted earnings guidance from $16.05-$16.50 to $16.15-$16.50, compared to the consensus of $16.32 [3] - LabCorp lowered its 2025 sales guidance from $14.08 billion-$14.23 billion to $13.97 billion-$14.05 billion, against the consensus of $14.01 billion [3] Growth Projections - LabCorp forecasts 2025 sales growth of 7.4%-8%, down from prior guidance of 7.5%-8.6% [3] - The guidance includes Diagnostics Laboratories sales growth of 7.2%-7.8% and Biopharma Laboratory Services sales growth of 5.7%-7.1% [4] Market Position - Analyst Andrew F. Brackmann from William Blair reiterated an Outperform rating, noting LabCorp's steady organic growth in diagnostics and a solid M&A pipeline [4] - The company is positioned for long-term earnings growth, supported by a steady dividend and resilient valuation multiple [4] Stock Performance - Laboratory Corp's stock is down 5.23% at $261.25 as of the last check on Tuesday [5]