Core Insights - Labcorp Holdings reported fourth-quarter 2025 adjusted earnings per share (EPS) of $4.07, beating the Zacks Consensus Estimate by 3% and reflecting an 18% increase from the previous year [1][9] - Full-year adjusted EPS was $16.44, representing a year-over-year growth of 12.8% and exceeding the Zacks Consensus Estimate by 0.8% [2] Revenue Performance - Fourth-quarter revenues increased by 5.7% year over year to $3.52 billion, although this figure missed the Zacks Consensus Estimate by 1% [3] - Full-year revenues rose 7.2% year over year to $13.95 billion, also missing the Zacks Consensus Estimate by 0.3% [3] Segment Analysis - Diagnostics Laboratories segment reported revenues of $2.73 billion for the fourth quarter, reflecting 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 the fourth quarter, 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 - Labcorp ended the fourth quarter with cash and cash equivalents of $532.3 million, down from $1.52 billion at the end of the fourth quarter of 2024 [10] - Long-term debt remained stable at $5.08 billion, while cumulative net cash provided by operating activities was $1.64 billion, slightly up from $1.59 billion a year ago [10] 2026 Guidance - Labcorp expects 2026 revenues to be in the range of $14.61 billion to $14.79 billion, indicating growth of 4.7% to 6% [12] - Adjusted EPS for 2026 is projected to be between $17.55 and $18.25, with the Zacks Consensus Estimate at $17.62 [12] Strategic Developments - In 2025, Labcorp expanded partnerships with health systems and regional/local laboratories, closing 13 transactions [14] - The company launched over 130 innovative new tests in various fields and announced a strategic investment to build a new 500,000 square foot Central Laboratory facility [14]