Labcorp Holdings (LH) AI Stock Analysis

• Market Cap: $20.76B
• Dividend Yield: 1.14%
• Average Volume (3M): 576.07K
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.37
• Revenue Growth: 8.28%
• EPS Growth: 97.24%
• Country: US
• Employees: 60,900
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Equipment & Services
• EPS (TTM): 4.18
• Shares Outstanding: 82,900,000
• 10 Day Avg. Volume: 510,031
• 30 Day Avg. Volume: 576,067
• PEG Ratio: 0.30
• Price to Book (P/B): 2.39
• Price to Sales (P/S): 1.48
• P/FCF Ratio: 17.56
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 2.18
• Enterprise Value/Gross Profit: 7.66
• Enterprise Value/Ebitda: 14.90
• 1Y Price Target: $305.27
• Price Target Upside: 20.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 17.49
• Revenue Forecast (FY): $14.63B

• Rating: 70 Outperform
• Price Target: $279.00 ▲(9.85% Upside)

The score is driven primarily by solid financial performance (notably strong cash flow) and a positive earnings outlook with raised free-cash-flow guidance. These strengths are tempered by softer technical momentum (negative MACD and trading below key moving averages) and a valuation that is reasonable but not notably cheap.

Positive Factors

Free Cash Flow Strength

Raised FCF guidance signals durable cash generation capacity that supports reinvestment, dividends, and debt service. Persistent free cash flow above $1B strengthens financial flexibility for M&A, platform investments, and shareholder returns over the next several years.

Diversified Diagnostics and Drug Development

Balanced revenue mix across high-volume Diagnostics and growing Central Labs reduces reliance on any single end market. Strong organic growth in outpatient and central lab services underpins steady demand and resilience versus cyclical swings in pharma spending.

Technology and Proprietary Testing

Proprietary, FDA-cleared diagnostics and AI investments create sustainable competitive differentiation. Unique tests expand addressable market, improve pricing leverage, and support higher-margin service lines, strengthening long-term growth and customer lock-in.

Negative Factors

Moderate Leverage

A D/E near 0.75 is manageable but reduces financial flexibility versus lower-leverage peers. In a capital-intensive diagnostics footprint, moderate leverage increases refinancing and interest exposure, limiting ability to absorb shocks or fund large strategic initiatives without raising cost of capital.

Early Development Weakness and Restructuring

Underperformance and planned site consolidation in Early Development remove a portion of higher-margin service revenue and signal execution challenges. Losing ~$50M of revenue reduces segment scale and could slow diversification of Drug Development cash flows for several quarters.

Reimbursement Risk from PAMA

Material, policy-driven reimbursement cuts are a structural risk for lab services. A $100M headwind can compress margins and force operational adjustments; sustained regulatory pressure on pricing undermines revenue visibility and forces ongoing cost or service mix changes.

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 generates revenue primarily through its two main segments: Labcorp Diagnostics and Labcorp Drug Development. The Diagnostics segment earns money by providing a broad array of laboratory testing services, including blood tests, genetic testing, and other specialized tests to hospitals, physicians, and patients. This segment benefits from high volume, as it serves a vast network of healthcare providers and has a significant presence in the outpatient testing market. The Drug Development segment earns revenue by offering clinical trial services, laboratory testing, and related services to pharmaceutical and biotechnology companies, aiding in the development of new drugs. Key revenue streams include service fees for tests and trials, contracts with healthcare providers, and partnerships with pharmaceutical firms for drug development projects. Additionally, Labcorp's extensive laboratory network and technological advancements help reduce operational costs and improve efficiency, further contributing to its earnings.

Labcorp Holdings Financial Statement Overview

Summary

Labcorp Holdings exhibits solid financial health with consistent revenue growth and profitability. While leverage is slightly elevated, the company maintains a strong cash flow position, enabling it to manage debt effectively. Overall, Labcorp is well-positioned for continued growth in the medical equipment and services industry, though attention to further debt reduction could enhance financial stability.

Income Statement

Labcorp Holdings shows a steady revenue growth rate of 2.09% in the TTM, indicating a positive trajectory after previous fluctuations. The gross profit margin of 28.45% and net profit margin of 6.21% reflect stable profitability, though slightly below industry leaders. EBIT and EBITDA margins are healthy at 9.69% and 14.62%, respectively, suggesting efficient operational management.

Balance Sheet

The company's debt-to-equity ratio of 0.75 in the TTM indicates a moderate level of leverage, which is manageable but slightly higher than optimal. Return on equity stands at 10.20%, showing decent profitability from shareholders' investments. The equity ratio of 47.64% suggests a balanced capital structure, though there is room for improvement in reducing debt levels.

Cash Flow

Labcorp Holdings demonstrates strong cash flow management with a free cash flow growth rate of 9.43% in the TTM. The operating cash flow to net income ratio of 0.69 and free cash flow to net income ratio of 0.77 indicate robust cash generation relative to earnings, supporting future investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.77B	13.01B	12.16B	11.86B	13.14B	13.98B
Gross Profit	3.92B	3.62B	3.36B	3.71B	4.99B	4.95B
EBITDA	2.01B	1.81B	1.35B	1.95B	3.68B	3.25B
Net Income	855.20M	746.00M	418.00M	1.28B	2.38B	1.56B
Balance Sheet
Total Assets	18.26B	18.38B	16.73B	20.16B	20.39B	20.07B
Cash, Cash Equivalents and Short-Term Investments	598.10M	1.52B	536.80M	320.60M	1.47B	1.32B
Total Debt	6.53B	7.27B	5.95B	6.25B	6.34B	6.76B
Total Liabilities	9.55B	10.31B	8.83B	10.04B	10.09B	10.61B
Stockholders Equity	8.70B	8.05B	7.88B	10.10B	10.27B	9.44B
Cash Flow
Free Cash Flow	1.38B	1.10B	874.10M	1.47B	2.65B	1.75B
Operating Cash Flow	1.80B	1.59B	1.33B	1.96B	3.11B	2.14B
Investing Cash Flow	-1.01B	-1.37B	-1.17B	-1.65B	-884.60M	-643.20M
Financing Cash Flow	-1.71B	779.90M	-59.30M	-1.32B	-2.07B	-517.40M

Labcorp Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 253.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 253.98 is below the 20-day moving average (MA) of 254.23, below the 50-day MA of 258.51, and below the 200-day MA of 257.61, indicating a bearish trend. The MACD of -2.13 indicates Negative momentum. The RSI at 46.81 is Neutral, neither overbought nor oversold. The STOCH value of 42.20 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
STE	77 Outperform	$25.59B	36.99	10.14%	0.94%	5.15%	60.30%
BIIB	74 Outperform	$27.23B	16.26	9.31%	―	5.00%	-1.03%
IQV	73 Outperform	$41.02B	33.16	19.55%	―	3.85%	-4.74%
LH	70 Outperform	$20.76B	24.94	10.14%	1.14%	8.28%	97.24%
PODD	70 Outperform	$19.60B	80.71	19.68%	―	27.12%	-41.72%
DGX	69 Neutral	$19.57B	21.12	13.69%	1.80%	13.74%	14.87%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Labcorp Holdings Corporate Events

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.

Labcorp Holdings Announces Executive Retirement

On December 9, 2025, Labcorp Holdings announced that Mark Schroeder, the Executive Vice President and President of Diagnostics Laboratories and Chief Operations Officer, will retire on April 1, 2026. This announcement marks a significant leadership change for the company, potentially impacting its operational strategies and stakeholder relations.

The most recent analyst rating on (LH) stock is a Hold with a $290.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Labcorp Announces Board Member Retirement

On December 10, 2025, Labcorp Holdings announced the retirement of Dr. D. Gary Gilliland from its Board of Directors, effective December 31, 2025. Dr. Gilliland, who has been a director since 2014, played a crucial role in the company’s growth and innovation in oncology and gene therapy, significantly contributing to Labcorp’s position as a trusted leader in laboratory services.

The most recent analyst rating on (LH) stock is a Buy with a $287.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.

Labcorp Holdings Appoints Victor Bulto to Board

Labcorp Holdings announced the appointment of Victor Bulto, President of Novartis U.S., to its Board of Directors, effective December 1, 2025. Bulto brings extensive experience in healthcare leadership, having managed Novartis’ $20+ billion U.S. operations across key therapeutic areas. His expertise in transformation and innovation is expected to support Labcorp’s strategic priorities in advancing healthcare innovation and delivering value to customers and shareholders.

The most recent analyst rating on (LH) stock is a Hold with a $270.00 price target. To see the full list of analyst forecasts on Labcorp Holdings stock, see the LH Stock Forecast page.