Labcorp Announces 2025 Third Quarter Results

Core Insights - Labcorp reported strong third-quarter results for 2025, with significant revenue growth and margin improvement driven by its Diagnostics and Central Laboratory businesses [2][3] - The company updated its full-year guidance, reflecting a revenue growth expectation of 7.4% to 8.0% and an adjusted EPS range of $16.15 to $16.50 [6][17] Financial Performance - Total revenue for Q3 2025 was $3.56 billion, an increase of 8.6% from $3.28 billion in Q3 2024 [5][6] - Adjusted EPS rose to $4.18 from $3.50 year-over-year, marking a growth of 19.4% [5][6] - Operating income for Q3 2025 was $396.6 million, compared to $254.1 million in Q3 2024, with an operating margin of 11.1% [5][6] Strategic Developments - Labcorp formed new partnerships with health systems and regional laboratories, enhancing its position as a preferred partner [3][6] - The company signed agreements to acquire assets from Empire City Laboratories and Laboratory Alliance of Central New York, further expanding its capabilities in oncology and clinical testing [7][6] Cash Flow and Capital Allocation - Operating cash flow for Q3 2025 was $387.2 million, up from $277.3 million in Q3 2024 [9] - Free cash flow increased to $280.5 million from $161.5 million year-over-year, primarily driven by higher cash earnings [9][6] - The company repurchased $25 million of common stock and declared a quarterly cash dividend of $0.72 per share [4][6] Guidance and Outlook - The updated full-year guidance includes a revenue growth expectation of 7.4% to 8.0% and an adjusted EPS range of $16.15 to $16.50 [6][17] - Free cash flow guidance was raised to a range of $1.17 billion to $1.29 billion, with the midpoint increased by $25 million [6][17]