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 ...

Leadership Transition - Jennifer Erickson has been appointed as Chief Executive Officer-Elect of Sonora Quest Laboratories, succeeding David Dexter who is retiring after over 26 years of service [1][2] - Dexter has been instrumental in the company's growth, leading it to become the market share leader in clinical laboratory testing in Arizona, performing over 100 million diagnostic tests annually [2] Achievements and Contributions - Under Dexter's leadership, significant milestones were achieved, including the development of the My Lab ReQuest™ direct-access testing platform in 2015 and the expansion of COVID-19 diagnostic testing capacity through Operation Catapult in 2020 [3] - Dexter emphasized the importance of collaboration with community partners, enhancing access to diagnostic testing across Arizona [3] Future Direction - Erickson is expected to continue Dexter's legacy of growth and innovation, focusing on patient-centered diagnostics and fostering a culture of collaboration and accountability [4] - With over 20 years of experience in healthcare leadership, including previous roles at Sonora Quest, Erickson is well-positioned to lead the company [5] Company Overview - Sonora Quest Laboratories, a subsidiary of Laboratory Sciences of Arizona, is a joint venture between Banner Health and Quest Diagnostics, recognized as one of the largest integrated laboratory systems in the U.S. [7] - The company employs approximately 3,900 staff and offers a comprehensive range of diagnostic testing services, accredited by the College of American Pathologists [7]

Core Insights - General Motors (GM) shares surged 15% following better-than-expected third-quarter sales and adjusted profit, marking the best performance in the S&P 500 [3][8] - The automotive giant reduced its forecast on tariff costs, indicating a quicker adjustment to tariffs than anticipated by analysts [3] - GM announced a $1.6 billion loss related to a reevaluation of its electric vehicle strategy due to regulatory changes [3] Company Performance - Halliburton (HAL) exceeded third-quarter revenue and adjusted earnings per share estimates, with shares rising approximately 12% [4] - Warner Bros. Discovery (WBD) shares increased by 11% after announcing a strategic review amid interest from potential buyers [5] - Philip Morris International (PM) reported third-quarter revenue and adjusted EPS above forecasts, yet shares fell 3.8% due to high investment levels [9] - Quest Diagnostics (DGX) shares declined 3.1% despite beating revenue and adjusted EPS forecasts, as the company lowered its full-year guidance for reported EPS [10] Market Trends - Major U.S. equities indexes ended the day mixed, with the S&P 500 little changed, the Dow rising 0.5%, and the Nasdaq retreating 0.2% [2] - Gold prices fell over 5%, impacting shares of Newmont (NEM), which dropped more than 9%, the largest decline among S&P 500 stocks [6][8]

Financial Data and Key Metrics Changes - Consolidated revenues for the third quarter were $2.82 billion, reflecting a 13.1% increase year-over-year, with organic revenues growing by 6.8% [15][17] - Reported operating income was $386 million, or 13.7% of revenues, compared to $330 million, or 13.3% of revenues last year [16] - Adjusted EPS was $2.60, up from $2.30 the prior year, while reported EPS was $2.16 compared to $1.99 a year ago [17] Business Line Data and Key Metrics Changes - Revenues for diagnostic information services increased by 13.5%, driven by organic growth across physician, hospital, and consumer channels [15] - In the physician channel, revenue grew approximately 17%, with organic growth in the high single digits [8] - The hospital channel saw low single-digit revenue growth, primarily driven by Co-Lab Solutions [9] Market Data and Key Metrics Changes - Total volume measured by requisitions increased by 12.5% year-over-year, with organic volume up 3.9% [15] - The consumer health business experienced strong growth, with direct channel growth between 30%-40% year-to-date [24][33] Company Strategy and Development Direction - The company is focused on delivering solutions that meet the evolving needs of clinical customers and expanding into consumer life sciences and data analytics [6] - Collaborations with Corewell Health and consumer health brands are expected to support future growth [19] - The company is investing in automation and AI technologies to drive operational improvements [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued strong demand for clinical solutions and the potential for revenue growth in the consumer health segment [3][19] - The company raised its full-year 2025 guidance, expecting revenues between $10.96 billion and $11 billion [18] - Management highlighted the potential impact of PAMA reforms and the need for legislative action to avoid significant payment cuts [5][26] Other Important Information - The company received FDA Breakthrough Device designation for its Haystack MRD test, reinforcing its cancer monitoring innovation [11] - The partnership with Epic Systems for Project Nova aims to modernize the order-to-cash process over the next several years [14][75] Q&A Session Summary Question: Utilization backdrop and expectations into year-end - Management noted that raw REC volume was up 3.9%, with strong demand in various states contributing to growth [23] Question: Latest expectations on PAMA - Management indicated that while the RESULTS Act has been proposed, a delay in PAMA is more likely than its passage [26] Question: Mix performance relative to expectations - Management stated that consumer channels are performing slightly above expectations, with strong growth in wellness and episodic testing [32] Question: 4Q margins and investment impacts - Management expects elevated margins in Q4 but noted potential headwinds from increased employee health expenses and Project Nova investments [40] Question: Cash flow and one-time benefits - Management highlighted strong cash flow but noted that one-time benefits from the CARES Act and tax legislation should not be expected to repeat next year [56] Question: Consumer health momentum and partnerships - Management discussed partnerships with Whoop and Oura, emphasizing the potential for increased requisition volume through these collaborations [62] Question: Oncology initiatives and evidence generation - Management confirmed ongoing studies for the Haystack MRD test and expressed optimism about expanding indications and reimbursement [98]

Financial Data and Key Metrics Changes - Consolidated revenues for the third quarter were $2.82 billion, reflecting a 13.1% increase year-over-year, with organic revenues growing by 6.8% [15] - Reported operating income was $386 million, or 13.7% of revenues, compared to $330 million, or 13.3% of revenues last year; adjusted operating income was $458 million, or 16.3% of revenues, compared to $385 million, or 15.5% last year [16] - Reported EPS was $2.16, up from $1.99 a year ago; adjusted EPS was $2.60 versus $2.30 the prior year [17] - Cash from operations increased to $1.42 billion year-to-date, a 63.1% increase from $870 million in the prior year [17] Business Line Data and Key Metrics Changes - In the physician channel, revenue grew approximately 17%, with organic revenue growth in the high single digits, driven by broad-based demand for clinical solutions [8] - Revenues in the hospital channel grew in low single digits, with COLAB Solutions contributing to growth [9] - The consumer channel saw strong double-digit growth, particularly from the questhealth.com platform and partnerships with companies like Whoop and Oura Health [10] Market Data and Key Metrics Changes - Total volume measured by requisitions increased by 12.5% year-over-year, with organic volume up 3.9% [15] - Revenue per requisition increased by 0.8% year-over-year, driven by an increase in the number of tests per requisition [16] Company Strategy and Development Direction - The company is focused on delivering solutions that meet the evolving needs of core clinical customers and expanding into higher growth areas such as consumer life sciences and data analytics [6] - Strategic acquisitions are emphasized as key growth drivers, particularly in hospital outreach and independent labs [7] - The company announced a joint venture with Corewell Health to establish a laboratory services partnership in Michigan, which is expected to generate approximately $1 billion in annual revenues from COLAB Solutions once fully scaled [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued strong demand for clinical solutions and the execution of their strategy, raising the full-year 2025 guidance [3][19] - The management highlighted the potential impact of PAMA reforms and the need for legislative action to avoid significant payment cuts [5] - The company expects to continue seeing elevated utilization levels and strong performance in the consumer health channel [24] Other Important Information - The company received FDA Breakthrough Device designation for its Haystack MRD test, reinforcing its cancer monitoring innovation [11] - The partnership with Epic Systems aims to modernize the order-to-cash process, enhancing patient and provider experiences [14][75] Q&A Session Summary Question: Utilization backdrop and expectations into year-end - Management noted that raw REC volume was up 3.9%, with strong growth in autoimmune and advanced cardiometabolic testing, and expects utilization levels to continue into Q4 [23] Question: Latest expectations on PAMA - Management indicated that while the RESULTS Act has been proposed, a delay in PAMA is more likely than its passage, with a potential $100 million impact next year [26] Question: Mix performance relative to expectations - Management stated that consumer channels are performing slightly above expectations, with strong growth in episodic testing and wellness testing [32] Question: Q4 margins and Project Nova investments - Management expects elevated margins in Q4 but noted potential headwinds from increased employee health expenses and Project Nova investments [39] Question: Cash flow and one-time benefits - Management highlighted strong cash flow but noted that some one-time benefits, such as the CARES Act payment, are not expected to recur next year [56] Question: Consumer health momentum and partnerships - Management discussed partnerships with Whoop and Oura, emphasizing the potential for increased requisition volume through these collaborations [62] Question: Oncology initiatives and Haystack integration - Management confirmed that the Haystack MRD test is fully integrated and ongoing studies are expected to broaden coverage for multiple cancer indications [98]

Financial Data and Key Metrics Changes - Consolidated revenues for Q3 2025 were $2,820 million, reflecting a 13.1% increase year-over-year, with organic revenue growth of 6.8% [13][16] - Reported operating income was $386 million, or 13.7% of revenues, compared to $330 million, or 13.3% of revenues last year [15][16] - Adjusted EPS for the quarter was $2.60, up from $2.30 a year ago, while reported EPS was $2.16 compared to $1.99 last year [16] - Cash from operations increased to $1,420 million year-to-date, a 63.1% increase from the prior year [17] Business Line Data and Key Metrics Changes - Revenues for Diagnostic Information Services increased by 13.5%, driven by organic growth across physician, hospital, and consumer channels [13] - The physician channel saw approximately 17% revenue growth, with organic growth in the high single digits [4][5] - The hospital channel experienced low single-digit revenue growth, supported by collaborative lab solutions [6] - The consumer channel showed strong double-digit growth, particularly from the questhealth.com platform [7][8] Market Data and Key Metrics Changes - Total volume measured by requisitions increased by 12.5% year-over-year, with organic volume up 3.9% [13][14] - The company noted broad-based demand across clinical solutions, particularly in advanced diagnostics areas such as autoimmune and brain health [4][9] Company Strategy and Development Direction - The company is focused on delivering solutions that meet the evolving needs of core clinical customers and expanding into higher growth areas like consumer health and data analytics [3][4] - Recent acquisitions are emphasized as key growth drivers, particularly in hospital outreach and independent labs [4] - The company is investing in automation and AI to improve operational efficiency and customer experience [11] Management's Comments on Operating Environment and Future Outlook - Management raised the full-year 2025 guidance due to strong performance year-to-date, expecting revenues between $10,960 million and $11,000 million [17][18] - The company is optimistic about potential PAMA reforms, although the passage of the Results Act is uncertain [2][27] - Management expects continued strong demand for clinical solutions and a positive outlook for the consumer health channel [20][36] Other Important Information - The company announced a joint venture with CoreWell Health to establish lab services in Michigan, which is expected to generate approximately $1 billion in annual revenues once fully scaled [7][18] - The company is implementing Project Nova, a multi-year order to cash transformation, with significant investments expected in 2025 [11][18] Q&A Session Summary Question: Utilization backdrop and expectations into year-end - Management noted that raw requisition volume was up 3.9%, with strong growth in autoimmune and advanced cardiometabolic testing, and expects utilization levels to continue into Q4 [22][24][26] Question: Latest expectations on PAMA - Management indicated a likelihood of a PAMA delay, with a potential $100 million impact if PAMA is reinstated, but they can offset some of this impact through controlled investments [27][28] Question: Mix performance relative to expectations - Management stated that consumer channels are performing slightly above expectations, with strong growth in episodic testing and wellness testing [32][34][36] Question: Q4 margins and impacts - Management highlighted strong Q3 margins but noted elevated employee health expenses and increased investments in Project Nova as potential headwinds for Q4 [40][44] Question: Cash flow and one-time benefits - Management confirmed strong cash flow guidance of $1,800 million, noting one-time benefits from the CARES Act and recent tax legislation that may not recur in 2026 [60][62] Question: Consumer health momentum and partnerships - Management discussed partnerships with WHOOP and Aura, highlighting the potential for significant growth in the consumer health segment [68][71] Question: Oncology initiatives and Haystack integration - Management provided updates on the integration of the Haystack MRD test and ongoing studies to expand its indications, with positive market response expected [96][98][112]

Core Insights - Alger Weatherbie Specialized Growth Fund's second-quarter 2025 investor letter highlights the impact of trade policy uncertainty on market volatility, particularly due to President Trump's tariffs, which affected import-dependent companies [1] - The S&P 500 reached a record high by the end of Q2 2025, with a gain of 10.94%, aided by improved market sentiment following the suspension of reciprocal tariff hikes on China [1] - Class A shares of the fund outperformed the Russell 2500 Growth Index during the same period [1] Company Analysis: NeoGenomics, Inc. - NeoGenomics, Inc. is identified as a leading provider of specialty oncology lab testing services, with a focus on serving hospitals, oncologists, and pathologists [3] - The stock of NeoGenomics experienced a one-month return of 14.83%, but it has lost 45.66% of its value over the past 52 weeks, closing at $8.13 per share with a market capitalization of $1.05 billion as of September 23, 2025 [2] - Despite a revenue shortfall attributed to weakness in non-clinical segments, NeoGenomics exceeded consensus estimates for EBITDA and reaffirmed its full-year 2025 organic revenue guidance, while slightly increasing total revenue guidance due to a recent acquisition [3]

Core Insights - Quest Diagnostics and Epic have announced a collaboration aimed at enhancing the laboratory testing experience for healthcare providers and patients in the United States [1][2][3] Group 1: Collaboration Details - The partnership will support Project Nova, a multi-year initiative by Quest to simplify and improve customer-facing processes, enhancing experiences for patients and providers across various EHR platforms [2][5] - Epic's Diagnostic Enterprise system will be integrated into Quest's national laboratory operations, including technologies like Aura, Beaker Laboratory, and MyChart [2][3] Group 2: Expected Benefits - Customers can expect faster and more convenient services, improved access to health insights, and quicker turnaround times for testing services [4][7] - The collaboration aims to streamline systems related to lab ordering, results reporting, and patient appointment scheduling, enhancing overall operational efficiency [7] Group 3: Leadership and Implementation - A cross-organization team experienced in large-scale implementations will oversee a phased rollout, ensuring a smooth transition for health systems and providers [5] - The focus will be on creating a comprehensive test list and improving patient engagement through MyChart [3][5]

Core Viewpoint - Zacks Premium offers various tools and resources to help investors make informed decisions and enhance their confidence in stock market investments [1]. Summary by Category Zacks Style Scores - Zacks Style Scores are indicators designed to assist investors in selecting stocks with the highest potential to outperform the market within the next 30 days, rated from A to F based on value, growth, and momentum characteristics [2]. Value Score - The Value Style Score focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow, aiming to find attractive investment opportunities before the market recognizes their true value [3]. Growth Score - The Growth Style Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable long-term growth [4]. Momentum Score - The Momentum Style Score helps investors capitalize on price trends, utilizing metrics like one-week price changes and monthly earnings estimate changes to determine optimal entry points for stocks [5]. VGM Score - The VGM Score combines the Value, Growth, and Momentum Scores, providing a comprehensive assessment of stocks based on their weighted styles, thus identifying companies with the best overall investment potential [6]. Zacks Rank - The Zacks Rank is a proprietary model that leverages earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.64% since 1988, significantly outperforming the S&P 500 [7][8]. Stock to Watch: Labcorp Holdings - Labcorp Holdings, a leading healthcare diagnostics company, has a Zacks Rank of 3 (Hold) and a VGM Score of A, indicating strong growth potential. The company is projected to achieve year-over-year earnings growth of 11.9% for the current fiscal year, with upward revisions in earnings estimates from analysts [11][12].