Labcorp Holdings (LH) AI Stock Analysis

• Market Cap: $21.76B
• Dividend Yield: 1.14%
• Average Volume (3M): 653.75K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.39
• Revenue Growth: 8.28%
• EPS Growth: 97.24%
• Country: US
• Employees: 60,900
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 4.07
• Shares Outstanding: 82,400,000
• 10 Day Avg. Volume: 538,582
• 30 Day Avg. Volume: 653,754
• PEG Ratio: 1.28
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 17.31
• Enterprise Value/Market Cap: 1.31
• Enterprise Value/Revenue: 2.05
• Enterprise Value/Gross Profit: 7.26
• Enterprise Value/Ebitda: 14.21
• 1Y Price Target: $308.22
• Price Target Upside: 16.71% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 17.86
• Revenue Forecast (FY): $14.67B

• Rating: 62 Neutral
• Price Target: $280.00 ▲(6.02% Upside)
• Action: Downgraded Date: 03/21/26
• Date: Action: Downgraded 03/21/26

The score is driven primarily by solid (but uneven) financial performance and a constructive earnings outlook with guided growth, backlog strength, and margin initiatives. These positives are partially offset by a weak technical trend and only average valuation support, while recent financing-related corporate actions are modestly positive but keep leverage in focus.

Positive Factors

Central Labs backlog & book-to-bill momentum

A sizeable $8.7B backlog with ~ $2.7B expected to convert in 12 months and book-to-bill >1 provides durable revenue visibility for Biopharma Central Labs. That pipeline reduces near-term demand volatility, supports mid-single-digit organic growth, and underpins margin leverage over the next 2–6 months.

Consistent cash generation & capital allocation

Sustained positive FCF (~$1.2B) enables a repeatable allocation framework—funding capex, M&A, dividends and buybacks—supporting strategic expansion and shareholder returns. Guidance for $1.24–$1.36B FCF in 2026 reinforces multi-quarter funding capacity for growth and balance sheet management.

Product & technology innovation pipeline

A large program of new tests, FDA-cleared diagnostics and AI/automation rollout strengthens differentiated service offerings and increases high-value esoteric share. These innovations expand addressable markets, increase pricing and margin potential, and create longer-term clinical partnerships and payer evidence development.

Negative Factors

Early Development revenue weakness

A meaningful decline in Early Development reduces exposure to higher‑margin, growth-oriented work in BLS. Streamlining that trims ~$50M of revenue may improve near-term margins but erodes scale and could slow recovery of ED volumes, weakening segment growth and client continuity over the medium term.

Choppy free cash flow conversion

Inconsistent FCF generation reduces predictability of internal funding for capex, acquisitions and debt repayment. Even with positive annual FCF, quarter-to-quarter timing and working-capital swings make liquidity management harder and can constrain strategic moves or increase reliance on financing during weaker quarters.

Material debt and leverage constraints

Substantial indebtedness and a new term loan covenant cap leverage at 4.0x limit flexibility for large bolt-on M&A or aggressive buybacks. With ~$5.6B total debt cited in guidance, covenant and refinancing risk could restrict strategic optionality and raise sensitivity to earnings or cashflow volatility over the next several quarters.

Labcorp Holdings Business Overview & Revenue Model

Company Description

Labcorp Holdings, Inc. provides laboratory services to help doctors, hospitals, pharmaceutical companies, researchers and patients make clear and confident decisions. The company was founded on April 16, 2024 and is headquartered in Burlington, NC.

How the Company Makes Money

Labcorp primarily makes money by delivering two broad categories of services: (1) clinical laboratory and diagnostic testing and (2) drug development services for life sciences customers. In its clinical diagnostics business, revenue is generated when Labcorp performs laboratory tests (e.g., routine and specialized diagnostics) ordered by healthcare providers. Payment is typically received from third-party payers (such as private health insurers and government programs) and, in some cases, directly from patients, based on contracted reimbursement rates, test menus, and testing volumes. This business is driven by the volume and mix of tests performed, payer contract terms, and demand from hospitals, physician practices, and health systems. In drug development services, Labcorp generates revenue by providing outsourced support to pharmaceutical, biotechnology, and medical device companies across the development lifecycle, including services used to design and execute clinical trials, perform central laboratory and related testing for trials, manage and analyze trial data, and support regulatory submissions. Customers generally pay through contracted arrangements (often project-based and/or long-term service agreements) tied to milestones, delivered services, and ongoing study activity. Revenue in this segment is influenced by the number and size of customer programs, the duration of clinical trials, and overall R&D spending trends in the life sciences industry. Across both areas, significant factors affecting earnings include testing volume and test complexity (which impacts pricing), payer reimbursement dynamics in the clinical business, and the level of outsourcing demand from life sciences customers in the drug development business. Partnerships and relationships with health systems, physician networks, payers, and life sciences sponsors support recurring demand, but specific partnership terms and their quantitative contribution to revenue are null.

Labcorp Holdings Financial Statement Overview

Summary

Solid but not best-in-class fundamentals: revenue momentum improved, the balance sheet is stable with manageable leverage, and operating/free cash flow are positive. Offsetting this, profitability and margins have been volatile versus prior peaks and free cash flow has been uneven, reducing visibility.

Income Statement

Revenue has grown steadily from 2023 to 2025 (with a sharp acceleration in 2025), but profitability has been volatile and below prior-cycle peaks. Gross margin has compressed versus 2020–2022, and net margin—while improving in 2024–2025—remains well below 2021 levels. EBIT/EBITDA profitability is positive overall, but margin consistency has weakened, suggesting a more challenging cost/price environment.

Balance Sheet

Leverage appears manageable for the industry: debt-to-equity sits in a moderate range and improved in 2025 versus 2024, while equity remains sizable relative to total assets. Returns on equity have recovered from 2023 and improved further in 2024–2025, though still meaningfully below the strong profitability period seen in 2020–2022. Overall, the balance sheet looks stable, with the main watch item being the still-material debt load.

Cash Flow

The company consistently generates positive operating cash flow and free cash flow, which is a key strength. However, free cash flow has been choppy—down in 2022 and 2023, rebounding in 2024, then declining again in 2025—reducing visibility. Free cash flow has covered a meaningful portion of earnings across years, but cash conversion is not consistently strong enough to offset the variability in free cash flow trends.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.95B	13.01B	12.16B	11.86B	13.14B
Gross Profit	3.73B	3.62B	3.36B	3.71B	4.99B
EBITDA	2.01B	1.81B	1.35B	1.95B	3.68B
Net Income	876.50M	746.00M	418.00M	1.28B	2.38B
Balance Sheet
Total Assets	18.39B	18.38B	16.73B	20.16B	20.39B
Cash, Cash Equivalents and Short-Term Investments	532.30M	1.52B	536.80M	320.60M	1.47B
Total Debt	7.20B	7.27B	5.95B	6.25B	6.34B
Total Liabilities	9.76B	10.31B	8.83B	10.04B	10.09B
Stockholders Equity	8.62B	8.05B	7.88B	10.10B	10.27B
Cash Flow
Free Cash Flow	1.21B	1.10B	874.10M	1.47B	2.65B
Operating Cash Flow	1.64B	1.59B	1.33B	1.96B	3.11B
Investing Cash Flow	-1.19B	-1.37B	-1.17B	-1.65B	-884.60M
Financing Cash Flow	-1.46B	779.90M	-59.30M	-1.32B	-2.07B

Labcorp Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 264.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LH, the sentiment is Negative. The current price of 264.09 is below the 20-day moving average (MA) of 275.69, below the 50-day MA of 272.12, and below the 200-day MA of 266.03, indicating a bearish trend. The MACD of -2.80 indicates Positive momentum. The RSI at 40.95 is Neutral, neither overbought nor oversold. The STOCH value of 30.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LH.

Labcorp Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGX	70 Neutral	$21.33B	19.65	13.88%	1.80%	13.74%	14.87%
STE	69 Neutral	$21.37B	32.31	10.21%	0.94%	5.15%	60.30%
PODD	68 Neutral	$16.09B	80.92	17.36%	―	27.12%	-41.72%
BIIB	64 Neutral	$26.92B	19.96	7.28%	―	5.00%	-1.03%
LH	62 Neutral	$21.76B	23.81	10.28%	1.14%	8.28%	97.24%
IQV	59 Neutral	$28.25B	28.49	22.28%	―	3.85%	-4.74%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Labcorp Holdings Corporate Events

Labcorp Holdings Secures New $750 Million Term Loan

On March 20, 2026, Labcorp Holdings Inc. and its subsidiary Laboratory Corporation of America Holdings entered into a new term loan credit agreement providing a $750 million senior unsecured term loan maturing on March 20, 2028. The facility, fully funded at closing, bears interest at a floating rate based on either SOFR plus a margin of 0.700% or a base rate with no additional margin.

The credit agreement includes customary representations, covenants and events of default, with limitations on additional debt at certain non‑guarantor subsidiaries, as well as restrictions on liens, mergers and major asset sales. It also requires Labcorp to maintain a maximum consolidated leverage ratio of 4.0x, with the ability to raise this temporarily to 4.5x for four quarters following material acquisitions under specified conditions, shaping the company’s financial flexibility and capital structure over the loan term.

The most recent analyst rating on (LH) stock is a Hold with a $300.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Labcorp Holdings Adds John Sampson to Board

Labcorp Holdings Inc., the Burlington, N.C.-based provider of diagnostic and drug development laboratory services, has expanded its board with the appointment of John H. Sampson, M.D., Ph.D., MHSc, MBA, effective February 9, 2026. Sampson, vice chancellor for health affairs and dean of the University of Colorado Anschutz School of Medicine, brings clinical, research and health system leadership experience in oncology, neuroscience, women’s health and personalized medicine that aligns with Labcorp’s strategic priorities.

The company also named Sampson to its Quality and Compliance Committee, signaling a focus on strengthening clinical rigor and governance across its global operations. His background as a practicing neurosurgeon, member of the National Academy of Medicine and prolific researcher in neurologic disease is expected to bolster Labcorp’s efforts to advance earlier diagnosis, personalized medicine and new therapy development for its worldwide customer base.

The most recent analyst rating on (LH) stock is a Buy with a $319.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Labcorp Extends Receivables Facility, Enhances Liquidity Flexibility

Labcorp Holdings Inc. reported that on January 28, 2026, it executed a second amendment to its receivables purchase agreement through its special-purpose entity, Labcorp Receivables LLC, with PNC Bank as administrative agent and other parties. The amendment extended the facility’s scheduled termination date to January 26, 2029, added a committed $125 million accordion feature that allows Labcorp Receivables to increase the facility size from $700 million to up to $825 million by May 29, 2026, and removed a 0.10% SOFR adjustment previously applied to the capital accruing yield. The structure keeps Labcorp Receivables as a separate legal entity whose assets are available first to its own creditors, with any excess collections potentially remitted to Labcorp, underscoring the company’s continued use of off-balance-sheet-like receivables financing to enhance liquidity while maintaining creditor protections.

The most recent analyst rating on (LH) stock is a Buy with a $291.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Labcorp Schedules Q4 2025 Earnings Release and Call

On January 15, 2026, Labcorp Holdings announced plans to release its financial results for the fourth quarter of 2025 before the market opens on Tuesday, February 17, 2026, followed by a 9 a.m. ET conference call and webcast for investors and analysts. The earnings release, detailed financial information, and a replay of the webcast—available for nearly a year, until February 4, 2027—will be accessible via the company’s investor relations website, signaling Labcorp’s continued emphasis on transparency and engagement with the financial community as it reports on its recent operating performance.

The most recent analyst rating on (LH) stock is a Hold with a $273.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Labcorp Holdings Board Declares Quarterly Cash Dividend

On January 14, 2026, Labcorp Holdings Inc. announced that its Board of Directors declared a quarterly cash dividend of $0.72 per share of common stock, payable on March 12, 2026, to shareholders of record as of the close of business on February 27, 2026. The move signals continued commitment to returning capital to shareholders and reflects management’s confidence in the company’s cash generation and financial stability, which may bolster Labcorp’s appeal to income-focused investors in the healthcare and diagnostics sector.

The most recent analyst rating on (LH) stock is a Buy with a $325.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Labcorp to Present at J.P. Morgan Healthcare Conference

On December 30, 2025, Labcorp announced it would participate in a fireside chat at the 44th Annual J.P. Morgan Healthcare Conference, scheduled for Tuesday, January 13 at 4:30 p.m. Pacific Time. The session, which will be accessible via a live audio webcast on the company’s investor relations website and archived for replay, underscores Labcorp’s ongoing efforts to engage with the investment community and highlight its role in the global diagnostics and drug development ecosystem.

The most recent analyst rating on (LH) stock is a Buy with a $308.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.