Labcorp Announces 2025 Second Quarter Results

Core Insights - Labcorp reported strong second-quarter results for 2025, achieving double-digit topline growth and margin expansion across both segments, leading to an increase in full-year guidance [2][3][4]. Financial Performance - Total revenue for Q2 2025 was $3.53 billion, a 9.5% increase from $3.22 billion in Q2 2024 [5][7]. - Diluted EPS rose to $2.84 from $2.43 year-over-year, while adjusted EPS increased to $4.35 from $3.94 [7][9]. - Operating income for Q2 2025 was $394.5 million, compared to $294.8 million in Q2 2024, reflecting a margin of 11.2% [6][30]. Guidance Update - Labcorp raised its 2025 guidance for enterprise revenue to a range of 7.5% to 8.6%, with the midpoint raised by 70 basis points [4][19]. - Adjusted EPS guidance was updated to a range of $16.05 to $16.50, with the midpoint raised by $0.23 [19][20]. - Free cash flow guidance was adjusted to a range of $1.13 billion to $1.28 billion, with the midpoint raised by $25 million [19][20]. Strategic Initiatives - The company expanded partnerships with hospitals and health systems, enhancing access to comprehensive testing and laboratory services [7][8]. - Labcorp introduced several innovative tests in high-growth areas, including oncology and Alzheimer's disease diagnostics [8][26]. - The company announced agreements to acquire select assets from Incyte Diagnostics and BioReference Health, further strengthening its market position [8][19]. Capital Allocation - Labcorp declared a quarterly cash dividend of $0.72 per share, payable on September 11, 2025 [4]. - The company repurchased $200 million of common stock during the quarter [4][15]. - As of June 30, 2025, Labcorp's cash and cash equivalents stood at $0.65 billion, with total debt at $5.58 billion [15][32].