Core Viewpoint - Labcorp Holdings has shown mixed performance in its recent earnings report, with adjusted earnings per share exceeding estimates but revenues falling short, leading to a decline in share price over the past month [1][4]. Financial Performance - Labcorp reported Q4 2025 adjusted earnings per share of $4.07, beating the Zacks Consensus Estimate by 3% and reflecting an 18% increase year-over-year [2]. - Full-year adjusted earnings per share reached $16.44, a 12.8% increase from the previous year, also surpassing the Zacks Consensus Estimate by 0.8% [3]. Revenue Analysis - Q4 revenues increased by 5.7% year-over-year to $3.52 billion, although this figure missed the Zacks Consensus Estimate by 1% [4]. - Full-year revenues rose 7.2% year-over-year to $13.95 billion, again falling short of the Zacks Consensus Estimate by 0.3% [4]. Segment Performance - Diagnostics Laboratories generated revenues of $2.73 billion in Q4, marking a 5.5% improvement year-over-year [5]. - Biopharma Laboratory Services revenues increased by 3.4% to $793 million, driven by organic growth of 0.6% and a foreign currency translation gain of 2.8% [6]. Margin Performance - Gross margin expanded by 133 basis points to 28.2% in Q4, despite a 3.7% rise in the cost of revenues [7]. - Adjusted operating income improved by 51% year-over-year to $454.6 million, with the adjusted operating margin expanding by 389 basis points to 12.9% due to a 9.5% decline in SG&A expenses [7]. Cash Position - At the end of Q4, Labcorp had cash and cash equivalents of $532.3 million, down from $1.52 billion a year ago, while long-term debt remained stable at $5.08 billion [8]. Guidance for 2026 - Labcorp expects total revenues for 2026 to be in the range of $14.61 billion to $14.79 billion, indicating growth of 4.7% to 6% [9]. - Adjusted earnings per share for 2026 are projected to be between $17.55 and $18.25, with the Zacks Consensus Estimate at $17.62 [10]. Estimate Trends - Recent estimates for Labcorp have shown a downward trend, indicating a potential shift in investor sentiment [11]. VGM Scores - Labcorp currently holds a strong Growth Score of A, with a B in Momentum and Value, placing it in the top 40% for value investors [12]. Outlook - The overall trend in estimates has been downward, and Labcorp holds a Zacks Rank 3 (Hold), suggesting an expectation of an in-line return in the coming months [13].

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 ...