Performance in 2025 was driven by a 7% top-line increase and 13% adjusted EPS growth, underpinned by deepening health system partnerships that contributed over $1 billion in revenue over three years. Esoteric and specialty testing achieved double-digit growth, serving as a high-margin engine that captures broader routine testing volume once physicians adopt Labcorp for complex diagnostics. The successful integration of Invitae has expanded genetic testing capabilities, with management now viewing it a ...

Management also highlighted continued strength in specialty and esoteric testing. Schechter said esoteric testing grew double digits in 2025 and remains a key growth engine, including in the company’s central laboratory business serving clinical trials. CFO Julia Wang added that esoteric testing as a share of total testing revenue increased over time, from 37.5% in the first quarter of 2023 to 41.5% in the fourth quarter of 2025.During the fourth quarter, Labcorp entered into an agreement to acquire select ...

Key Takeaways LH reported Q4 adjusted EPS of $4.07, up 18%, beating estimates, while revenues missed forecasts. Labcorp's Q4 revenues rose 5.7% to $3.52B, driven by organic growth, acquisitions and FX gains.LH guided 2026 revenues of $14.61-$14.79B and adjusted EPS of $17.55-$18.25. 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 th ...

Group 1 - Labcorp Holdings reported revenue of $3.52 billion for the quarter ended December 2025, reflecting a 5.6% increase year-over-year [1] - The company's EPS for the quarter was $4.07, up from $3.45 in the same quarter last year, with an EPS surprise of +2.98% compared to the consensus estimate of $3.95 [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $3.55 billion, resulting in a revenue surprise of -0.97% [1] Group 2 - Key metrics indicate that Labcorp's shares have returned +4.3% over the past month, outperforming the Zacks S&P 500 composite, which declined by -1.4% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3] Group 3 - The net book-to-bill ratio for Labcorp was reported at 1.1%, matching the average estimate based on two analysts [4] - Revenues from Biopharma Laboratory Services were $793 million, slightly above the average estimate of $791.05 million, representing a year-over-year change of +3.4% [4] - Revenues from Diagnostics Laboratories were $2.73 billion, below the average estimate of $2.77 billion, with a year-over-year change of +5.5% [4] - Adjusted Operating Income for Diagnostics Laboratories was $419.2 million, slightly below the average estimate of $423.58 million [4] - Adjusted Operating Income for Biopharma Laboratory Services was $136.1 million, exceeding the average estimate of $130.1 million [4] - Unallocated corporate expenses were reported at -$67.6 million, better than the average estimate of -$69.13 million [4]

Financial Data and Key Metrics Changes - In 2025, the company achieved over 7% top-line growth and 13% adjusted EPS growth, with margins improving by over 50 basis points [5][13] - For the fourth quarter, enterprise revenue increased by 5.6% year-over-year, with adjusted EPS growing by 18% [10][14] - Free cash flow from continuing operations was $490 million, a decrease from $665 million the previous year, primarily due to working capital timing [15] Business Line Data and Key Metrics Changes - Diagnostics revenue for the fourth quarter was $2.7 billion, up 5.5% year-over-year, with organic growth of 4.1% [16] - Biopharma Laboratory Services (BLS) revenue increased by 3.4% year-over-year, with central lab revenue growing by 11.1% [17] - The adjusted operating income for diagnostics was $419 million, representing 15.4% of revenue, compared to 13.9% the previous year [16] Market Data and Key Metrics Changes - The company reported a strong trailing twelve-month book-to-bill ratio of 1.09, driven by central labs [13][18] - The backlog for BLS was $8.7 billion, with an expected conversion of approximately $2.7 billion into revenue over the next 12 months [18] Company Strategy and Development Direction - The company aims to deepen partnerships with health systems and local laboratories, having signed or closed 13 deals contributing to over $1 billion in revenue growth [5][6] - A strategic investment is planned for a new central laboratory facility to support growth and demand, with construction expected to begin later this year [9] - The company continues to focus on specialty testing, having launched over 130 new tests in 2025, particularly in oncology, women's health, and neurology [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in strong underlying business performance for 2026, expecting enterprise revenue growth of 5.4% and adjusted EPS growth of approximately 9% [11][20] - The delay of PAMA through December 31, 2026, was viewed positively, but management emphasized the need for permanent reform [11][20] - Management highlighted the importance of ongoing investments in technology and AI to enhance customer experience and operational efficiency [9][21] Other Important Information - The company plans to allocate free cash flow for acquisitions, share repurchases, and dividends, with approximately $800 million of share repurchase authorization remaining [15][21] - Two executives are set to retire on April 1, with successors already appointed [11][12] Q&A Session Summary Question: 2026 guidance contributions from price and volume - Management expects revenue growth of 5%-6% in diagnostics, with half of the organic growth coming from volume and half from price mix [26][27] Question: Contributions from Invitae integration - The integration of Invitae has been successful, with expected revenue growth in specialty areas, but specific breakout of Invitae's performance will no longer be provided [31][32] Question: Fourth quarter organic volume performance - Organic volume was impacted by lower referrals from a large consumer genetic client and weather conditions, but adjustments indicate growth would have been over 2% [36][37] Question: 2026 guidance conservativeness and risks - Management feels confident about the guidance but acknowledges potential variability in organic volumes and the timing of M&A [44][46] Question: Competitive landscape in diagnostics - The company believes it will outperform the overall market, focusing on hospital deals and specialty testing, which are expected to grow faster than the overall market [48][49] Question: PAMA implications and central lab investments - Management is prepared to submit data for PAMA and continues to advocate for the RESULTS Act, while also planning significant investments in central lab infrastructure [55][59]

Labcorp (NYSE:LH) Q4 2025 Earnings call February 17, 2026 09:00 AM ET Company ParticipantsAdam Schechter - Chairman, President and CEOChristin O'Donnell - VP of Investor RelationsDan Clark - VP in Equity ResearchElizabeth Anderson - Senior Managing Director in Health Care Technology and Distribution ResearchErin Wright - Managing Director in U.S. Healthcare Services ResearchJack Meehan - Partner in Life Science Tools and Diagnostics ResearchJulia Wang - EVP and CFOKevin Caliendo - Managing Director in Healt ...

Labcorp (NYSE:LH) Q4 2025 Earnings call February 17, 2026 09:00 AM ET Speaker12Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Christin O'Donnell, Vice President of Investor Relations. Please go ahead.Speaker2Thank you, operator. Good morning, and welcome to Labcorp's fourth quarter 2025 conference call. As detailed in today's press release, there will be a replay of this conference call available. With me today are Adam ...

Core Viewpoint - Labcorp Holdings (LH) reported quarterly earnings of $4.07 per share, exceeding the Zacks Consensus Estimate of $3.95 per share, and showing an increase from $3.45 per share a year ago, indicating a positive earnings surprise of +2.98% [1] Financial Performance - The company posted revenues of $3.52 billion for the quarter ended December 2025, which was below the Zacks Consensus Estimate by 0.97%, but an increase from $3.33 billion year-over-year [2] - Over the last four quarters, Labcorp has surpassed consensus EPS estimates four times, but has only topped consensus revenue estimates once [2] Stock Performance - Labcorp shares have increased approximately 12.7% since the beginning of the year, contrasting with a 0.1% decline in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $4.12 on revenues of $3.52 billion, and for the current fiscal year, it is $17.62 on revenues of $14.69 billion [7] - The trend of earnings estimate revisions for Labcorp was mixed ahead of the earnings release, which may change following the recent report [6] Industry Context - The Medical Services industry, to which Labcorp belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Fourth Quarter 2025 Supplemental Financial Information February 17, 2026 labcorp Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements, including, but not limited to, statements with respect to (i) the estimated 2026 auidance and related assumations. (li) the impact of various factors on operating and financial results. including alobal economic and market conditions on the company's businesses, operating results, cash flows and/or financial conditio ...

Laboratory services provider Labcorp forecast annual profit above Wall Street estimates on Tuesday, banking on robust demand for its diagnostic tests. ...